11. SUPPLEMENTARY FINANCIAL INFORMATION

Major Customers

Revenues from TCEH represented 24% and 25% of our total operating revenues for the three months ended June 30, 2015 and 2014, respectively, and 24% and 25% for the six months ended June 30, 2015 and 2014, respectively. Revenues from REP subsidiaries of NRG Energy, Inc., a nonaffiliated entity, collectively represented 15% and 16% of our total operating revenues for the three months ended June 30, 2015 and 2014, respectively, and 16% of our total operating revenues for each of the six-month periods ended June 30, 2015 and 2014. No other customer represented 10% or more of our total operating revenues.

Other Income and Deductions


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014

Other income:
Accretion of fair value adjustment (discount) to regulatory assets due to purchase accounting	$	1	$	3	$	4	$	6
Other		-		-		-		1
Total other income	$	1	$	3	$	4	$	7
Other deductions:
Professional fees	$	5	$	4	$	7	$	7
Other		2		-		5		-
Total other deductions	$	7	$	4	$	12	$	7

Interest Expense and Related Charges


	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014

Interest expense	$	85	$	89	$	167	$	178
Amortization of debt issuance costs and discounts		1		1		1		2
Allowance for funds used during construction – capitalized interest portion		(2)		(1)		(3)		(3)
Total interest expense and related charges	$	84	$	89	$	165	$	177

Restricted Cash

All restricted cash amounts reported on our balance sheet at June 30, 2015 and December 31, 2014 relate to the transition bonds.

Trade Accounts and Other Receivables

Trade accounts and other receivables reported on our balance sheet consisted of the following:


	At June 30,		At December 31,
	2015		2014

Gross trade accounts and other receivables	$	573	$	528
Trade accounts and other receivables from affiliates		(138)		(118)
Allowance for uncollectible accounts		(5)		(3)
Trade accounts receivable from nonaffiliates – net	$	430	$	407

Gross trade accounts receivable at June 30, 2015 and December 31, 2014 included unbilled revenues of $192 million and $182 million, respectively. At June 30, 2015 and December 31, 2014, REP subsidiaries of NRG Energy, Inc., a nonaffiliated entity, collectively represented approximately 13% and 12% of the nonaffiliated trade accounts receivable amount, respectively.

Under a PUCT rule relating to the Certification of Retail Electric Providers, write-offs of uncollectible amounts owed by REPs are deferred as a regulatory asset. Due to commitments made to the PUCT in 2007, we are not allowed to recover bad debt expense, or certain other costs and expenses, from ratepayers in the event of a default or bankruptcy by an affiliate REP.

Investments and Other Property

Investments and other property reported on our balance sheet consisted of the following:


	At June 30,		At December 31,
	2015		2014

Assets related to employee benefit plans, including employee savings programs	$	95	$	94
Land		3		3
Total investments and other property	$	98	$	97

Property, Plant and Equipment

Property, plant and equipment reported on our balance sheet consisted of the following:


	At June 30,		At December 31,
	2015		2014

Total assets in service	$	18,735	$	18,238
Less accumulated depreciation		6,332		6,125
Net of accumulated depreciation		12,403		12,113
Construction work in progress		359		335
Held for future use		15		15
Property, plant and equipment – net	$	12,777	$	12,463

Intangible Assets

Intangible assets (other than goodwill) reported on our balance sheet consisted of the following:


	At June 30, 2015						At December 31, 2014
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net

Identifiable intangible assets subject to amortization included in property, plant and equipment:
Land easements	$	465	$	88	$	377	$	463	$	86	$	377
Capitalized software		446		272		174		433		242		191
Total	$	911	$	360	$	551	$	896	$	328	$	568

Aggregate amortization expense for intangible assets totaled $16 million and $14 million for the three months ended June 30, 2015 and 2014, respectively, and $32 million and $28 million for the six months ended June 30, 2015 and 2014, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows:


Year	Amortization Expense
2015	$	64
2016		61
2017		52
2018		47
2019		44

At both June 30, 2015 and December 31, 2014, goodwill totaling $4.1 billion was reported on our balance sheet. None of this goodwill is being deducted for tax purposes.

Other Noncurrent Liabilities and Deferred Credits

Other noncurrent liabilities and deferred credits reported on our balance sheet consisted of the following:


	At June 30,		At December 31,
	2015		2014

Retirement plans and other employee benefits	$	1,925	$	1,894
Uncertain tax positions (including accrued interest)		2		2
Amount payable related to income taxes		17		17
Investment tax credits		16		17
Other		64		59
Total other noncurrent liabilities and deferred credits	$	2,024	$	1,989

Supplemental Cash Flow Information


	Six Months Ended June 30,
	2015		2014

Cash payments (receipts) related to:
Interest	$	177	$	178
Capitalized interest		(3)		(3)
Interest (net of amounts capitalized)	$	174	$	175
Amount in lieu of income taxes (a):
Federal	$	-	$	144
State		22		20
Total amount in lieu of income taxes	$	22	$	164
Noncash construction expenditures (b)	$	61	$	37

_____________

(a)

See Note 10 for income tax detail.

(b)

Represents end-of-period accruals.