Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations (EME only)

In September 2012, Homer City, a wholly owned indirect subsidiary of EME, and Homer City Generation, L.P., an affiliate of GECC, entered into the Homer City Master Transaction Agreement (MTA) for the divestiture by Homer City of substantially all of its remaining assets and certain specified liabilities. Accordingly, in the third quarter of 2012, Homer City met the definition of a discontinued operation and was classified separately on EME's consolidated financial statements. In December 2012, the transaction closed and Homer City Generation, L.P. assumed control of Homer City. On May 2, 2013, the Homer City Debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. For further discussion, see Note 15—Restructuring Activities and Note 16—Condensed Combined Debtors' Financial Information.

Effective May 1, 2013, Homer City withdrew from the benefit plan that provided postretirement medical, dental, vision, and life insurance coverage to certain Homer City retirees, effectively terminating access and company subsidy for these programs. Employees who were eligible for the plan continued to receive coverage for these benefits up to June 30, 2013. As a result of the withdrawal from the plan, EME recorded a pre-tax gain of approximately $30 million in income (loss) from operations of discontinued subsidiaries on the consolidated statements of operations.

Summarized results of discontinued operations are:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2013			2012			2013		2012
Total operating revenues	$	—		$	121		$	—	$	303
Total operating expenses	—			(138		)	29		(385		)
Asset impairments and other charges	—			(113		)	—		(134		)
Other income (expense)	(1		)	5			—		7
Income (loss) before income taxes	(1		)	(125		)	29		(209		)
Provision (benefit) for income taxes	—			(49		)	13		(80		)
Income (loss) from operations of discontinued subsidiaries	$	(1	)	$	(76	)	$	16	$	(129	)

The assets and liabilities associated with the discontinued operations are segregated on the consolidated balance sheets are:



(in millions)	September 30, 2013		December 31, 2012
Cash and cash equivalents	$	—	$	2
Other current assets	—		7
Carrying value adjustment	—		(9		)
Assets of discontinued operations	$	—	$	—

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

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+ Details

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