Constellation Energy Corp
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
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FY2023 · Filed Feb 27, 2024
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23. Supplemental Financial Information
- Supplemental Financial Information
Supplemental Statement of Operations Information
The following tables provide additional information about material items recorded in the Consolidated Statements of Operations and Comprehensive Income.
| Taxes other than income taxes | |||
|---|---|---|---|
| For the Years Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| Gross receipts(a) | $139 | $130 | $99 |
| Property | 253 | 274 | 268 |
| Payroll | 142 | 130 | 109 |
(a)Represent gross receipts taxes related to our retail operations. The offsetting collection of gross receipts taxes from customers is recorded in Operating revenues in the Consolidated Statements of Operations and Comprehensive Income.
| Other, net | |||
|---|---|---|---|
| For the Years Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| Decommissioning-related activities: | |||
| Net realized income on NDT funds(a) | |||
| Regulatory Agreement Units | $657 | $333 | $817 |
| Non-Regulatory Agreement Units | 335 | 97 | 449 |
| Net unrealized (losses) gains on NDT funds | |||
| Regulatory Agreement Units | 397 | (1,354) | 351 |
| Non-Regulatory Agreement Units | 259 | (798) | 209 |
| Regulatory offset to NDT fund-related activities(b) | (845) | 820 | (917) |
| Total Decommissioning-related activities | 803 | (902) | 909 |
| Non-service net periodic benefit credit(c) | 54 | 110 | — |
| Net realized and unrealized (losses) gains from equity investments(d) | 307 | (13) | (160) |
| Return to provision adjustment(e) | 19 | (49) | — |
| Other(f) | 85 | 68 | 46 |
| Total Other, net | $1,268 | $(786) | $795 |
(a)Realized income includes interest, dividends and realized gains and losses on sales of NDT fund investments.
(b)Includes the elimination of decommissioning-related activities and the elimination of income taxes related to all NDT fund activity for the Regulatory Agreement Units except for decommissioning-related impacts that were not offset for the Byron units starting in the second quarter of 2021. With our September 15, 2021 reversal of the previous decision to retire Byron, we resumed contractual offset for Byron as of that date. See Note 10 — Asset Retirement Obligations for additional information regarding the accounting for nuclear decommissioning and the contractual offset suspension for the Byron units.
(c)Prior to separation, we were allocated our portion of pension and OPEB non-service credits (costs) from Exelon, which was included in Operating and maintenance expense. Effective February 1, 2022, the non-service credit (cost) components are included in Other, net, in accordance with single employer plan accounting. See Note 15 — Retirement Benefits for additional information.
(d)For 2023, includes unrealized gain resulting from equity investment that became publicly traded in the second quarter of 2023 and now has a readily determinable fair value (and no longer is accounted for as an equity method investment due to lack of significant influence). We recorded the fair value of this investment in Investments on the Consolidated Balance Sheets based on quoted market price of the stock. See Note 18 — Fair Value of Financial Assets and Liabilities for additional information. For 2022, represents Net realized and unrealized (losses) gains from equity investments. For 2021, represents Net unrealized (losses) gains from equity investments.
(e)This reflects amounts contractually owed to Exelon under the TMA, which is offset in Income taxes. See Note 14 — Income Taxes for additional information.
(f)Includes amounts we billed Exelon for services pursuant to the TSA. See Note 1 — Basis of Presentation for additional information.
Supplemental Cash Flow Information
The following tables provide additional information about material items recorded in the Consolidated Statements of Cash Flows.
| Depreciation, amortization and accretion | |||
|---|---|---|---|
| For the Years Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| Property, plant, and equipment(a) | $1,073 | $1,065 | $2,954 |
| Amortization of intangible assets, net(a) | 23 | 26 | 49 |
| Amortization of energy contract assets and liabilities(b) | 35 | 35 | 31 |
| Nuclear fuel(c) | 787 | 758 | 992 |
| ARO accretion(d) | 596 | 543 | 514 |
| Total depreciation, amortization, and accretion | $2,514 | $2,427 | $4,540 |
(a)Included in Depreciation and amortization expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)Included in Operating revenues or Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income.
(c)Included in Purchased power and fuel expense in the Consolidated Statements of Operations and Comprehensive Income.
(d)Included in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
| Cash paid during the year | |||
|---|---|---|---|
| For the Years Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| Interest (net of amount capitalized) | $264 | $230 | $275 |
| Income taxes (net of refunds) | 466 | 287 | 426 |
| Other non-cash operating activities | ||||||
|---|---|---|---|---|---|---|
| CEG Parent · Constellation | ||||||
| For the Years Ended December 31, | For the Years Ended December 31, | |||||
| 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | |
| Pension and non-pension postretirement benefit costs | $47 | $17 | $123 | $47 | $17 | $123 |
| Other decommissioning-related activity(a) | (534) | (263) | (946) | (534) | (263) | (946) |
| Energy-related options(b) | 183 | 293 | 125 | 183 | 293 | 125 |
| Asset impairments | 71 | — | 545 | 71 | — | 545 |
| (Gain) loss on sale of assets and businesses | (27) | (1) | (201) | (27) | (1) | (201) |
| Severance costs | 2 | (1) | (73) | 2 | (1) | (73) |
| Long-term incentive plan | 57 | 44 | — | — | — | — |
| Amortization of operating ROU asset | 64 | 75 | 119 | 64 | 75 | 119 |
| (Gain) loss on sale of receivables | 75 | 69 | 36 | 75 | 69 | 36 |
(a)Includes the elimination of decommissioning-related activities for the Regulatory Agreement Units except for decommissioning-related impacts that were not offset for the Byron units starting in the second quarter of 2021, including the elimination of operating revenues, ARO accretion, ARC amortization, investment income, and income taxes related to all NDT fund activity for these units. With our September 15, 2021 reversal of the previous decision to retire Byron, we resumed contractual offset for Byron as of that date. See Note 10 — Asset Retirement Obligations for additional information regarding the accounting for nuclear decommissioning and the contractual offset suspension for the Byron units.
(b)Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded to results of operations.
The following table provides a reconciliation of cash, restricted cash, and cash equivalents reported in the Consolidated Balance Sheets that sum to the total of the same amounts in the Consolidated Statements of Cash Flows.
| December 31, 2023 | CEG Parent | Constellation |
|---|---|---|
| Cash and cash equivalents | $368 | $366 |
| Restricted cash and cash equivalents | 86 | 74 |
| Total cash, restricted cash, and cash equivalents | $454 | $440 |
| December 31, 2022 | CEG Parent | Constellation |
|---|---|---|
| Cash and cash equivalents | $422 | $403 |
| Restricted cash and cash equivalents | 106 | 98 |
| Total cash, restricted cash, and cash equivalents | $528 | $501 |
| December 31, 2021 | CEG Parent | Constellation |
|---|---|---|
| Cash and cash equivalents | $504 | $504 |
| Restricted cash and cash equivalents | 72 | 72 |
| Total cash, restricted cash, and cash equivalents | $576 | $576 |
For additional information on restricted cash, see Note 1 — Basis of Presentation.
Supplemental Balance Sheet Information
The following tables provide additional information about material items recorded in the Consolidated Balance Sheets.
| Investments | ||
|---|---|---|
| December 31, 2023 | December 31, 2022 | |
| Equity method investments(a) | $7 | $82 |
| Other investments: | ||
| Employee benefit trusts and investments(b) | 82 | 68 |
| Equity investments with readily determinable fair values(a)(c) | 369 | — |
| Equity investments without readily determinable fair values | 103 | 46 |
| Other available for sale debt security investments | 2 | 6 |
| Total investments | $563 | $202 |
(a)An investment previously classified as an equity method investment became publicly traded in the second quarter of 2023 and now has a readily determinable fair value. We recorded the fair value of this investment in Investments on the Consolidated Balance Sheets based on quoted market price of the stock. See Note 18 — Fair Value of Financial Assets and Liabilities for additional information.
(b)Debt and equity security investments are recorded at fair market value.
(c)Does not include the equity investments with readily determinable fair values that are recorded in Other current assets in the Consolidated Balance Sheets. See Note 18 — Fair Value of Financial Assets and Liabilities for additional information on Investments in equities.
| Accounts payable and accrued expenses | ||
|---|---|---|
| December 31, 2023 | CEG Parent | Constellation |
| Accounts payable | $1,302 | $1,289 |
| Compensation-related accruals(a) | 680 | 576 |
| Taxes accrued | 399 | 390 |
| Accounts payable and accrued expenses | ||
|---|---|---|
| December 31, 2022 | CEG Parent | Constellation |
| Accounts payable | $2,828 | $2,810 |
| Compensation-related accruals(a) | 540 | 502 |
| Taxes accrued | 257 | 257 |
(a)Primarily includes accrued payroll, bonuses and other incentives, vacation, and benefits.
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