SUPPLEMENTARY FINANCIAL INFORMATION

Other Income and Deductions



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Other income:
Sale of land	$	—	$	2	$	6	$	2
Mineral rights royalty income	1		1		3		3
Contract settlements	2		—		2		—
All other	1		2		4		6
Total other income	$	4	$	5	$	15	$	11
Other deductions:
Impairment of favorable purchase contracts (Note 3)	$	—	$	—	$	8	$	—
Impairment of emission allowances (Note 3)	4		—		55		—
Impairment of mining development costs (Note 3)	19		—		19		—
All other	2		5		4		8
Total other deductions	$	25	$	5	$	86	$	8

Restricted Cash



	September 30, 2015				December 31, 2014
	Current Assets		Noncurrent Assets		Current Assets		Noncurrent Assets
Amounts related to TCEH's DIP Facility (Note 8)	$	364	$	—	$	—	$	350
Amounts related to TCEH's pre-petition Letter of Credit Facility (Note 9) (a)	—		506		—		551
Other	—		—		2		—
Total restricted cash	$	364	$	506	$	2	$	901

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(a)	See Note 9 for discussion of letter of credit draws in 2015 and 2014.

Trade Accounts Receivable



	September 30, 2015			December 31, 2014
Wholesale and retail trade accounts receivable	$	786		$	603
Allowance for uncollectible accounts	(16		)	(15		)
Trade accounts receivable — net	$	770		$	588

Gross trade accounts receivable at September 30, 2015 and December 31, 2014 included unbilled revenues of $287 million and $239 million, respectively.

Allowance for Uncollectible Accounts Receivable



	Nine Months Ended September 30,
	2015			2014
Allowance for uncollectible accounts receivable at beginning of period	$	15		$	14
Increase for bad debt expense	29			30
Decrease for account write-offs	(28		)	(27		)
Allowance for uncollectible accounts receivable at end of period	$	16		$	17

Inventories by Major Category



	September 30, 2015		December 31, 2014
Materials and supplies	$	215	$	214
Fuel stock	144		215
Natural gas in storage	29		39
Total inventories	$	388	$	468

Investments



	September 30, 2015		December 31, 2014
Nuclear plant decommissioning trust	$	874	$	893
Assets related to employee benefit plans, including employee savings programs, net of distributions	1		1
Land	36		37
Miscellaneous other	8		10
Total investments	$	919	$	941

Nuclear Decommissioning Trust — Investments in a trust that will be used to fund the costs to decommission the Comanche Peak nuclear generation plant are carried at fair value. Decommissioning costs are being recovered from Oncor's customers as a delivery fee surcharge over the life of the plant and deposited by TCEH in the trust fund. Income and expense associated with the trust fund and the decommissioning liability are offset by a corresponding change in a receivable/payable (currently a payable reported in noncurrent liabilities) that will ultimately be settled through changes in Oncor's delivery fees rates (see Note 14). The nuclear decommissioning trust fund is not a debtor under the Chapter 11 Cases. A summary of investments in the fund follows:



	September 30, 2015
	Cost (a)		Unrealized gain		Unrealized loss			Fair market value
Debt securities (b)	$	304	$	11	$	(1	)	$	314
Equity securities (c)	289		279		(8		)	560
Total	$	593	$	290	$	(9	)	$	874



	December 31, 2014
	Cost (a)		Unrealized gain		Unrealized loss			Fair market value
Debt securities (b)	$	288	$	13	$	—		$	301
Equity securities (c)	276		320		(4		)	592
Total	$	564	$	333	$	(4	)	$	893

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(a)	Includes realized gains and losses on securities sold.

(b)

The investment objective for debt securities is to invest in a diversified tax efficient portfolio with an overall portfolio rating of AA or above as graded by S&P or Aa2 by Moody's Investors Services, Inc. The debt securities are heavily weighted with municipal bonds. The debt securities had an average coupon rate of 3.58% and 4.35% at September 30, 2015 and December 31, 2014, respectively, and an average maturity of 7 years and 6 years at September 30, 2015 and December 31, 2014, respectively.


(c)	The investment objective for equity securities is to invest tax efficiently and to match the performance of the S&P 500 Index.

Debt securities held at September 30, 2015 mature as follows: $96 million in one to five years, $85 million in five to ten years and $133 million after ten years.

The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from such sales.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Realized gains	$	1		$	1		$	2		$	2
Realized losses	$	(2	)	$	—		$	(3	)	$	(1	)
Proceeds from sales of securities	$	242		$	165		$	315		$	250
Investments in securities	$	(247	)	$	(170	)	$	(328	)	$	(263	)

Property, Plant and Equipment

At September 30, 2015 and December 31, 2014, property, plant and equipment of $10.0 billion and $12.3 billion, respectively, is stated net of accumulated depreciation and amortization of $4.1 billion and $5.2 billion, respectively.

The estimated remaining useful lives of our lignite/coal and nuclear generation facilities range from 17 to 54 years. Those estimated lives are subject to change as market factors evolve, including changes in environmental regulation and wholesale electricity price forecasts.

Asset Retirement and Mining Reclamation Obligations

These liabilities primarily relate to nuclear generation plant decommissioning, land reclamation related to lignite mining, removal of lignite/coal fueled plant ash treatment facilities and generation plant asbestos removal and disposal costs. There is no earnings impact with respect to changes in the nuclear plant decommissioning liability, as all costs are recoverable through the regulatory process as part of Oncor's delivery fees.

In December 2014, the EPA signed the final Disposal of Coal Combustion Residuals from Electric Utilities rule (the CCR rule), and in April 2015, the rule was posted in the Federal Register. We have established an estimated $59 million asset retirement obligation related to the rule for our existing facilities.

The following table summarizes the changes to these obligations, reported in other current liabilities and other noncurrent liabilities and deferred credits in the condensed consolidated balance sheets, for the nine months ended September 30, 2015:



	Nuclear Plant Decommissioning		Mining Land Reclamation			Other			Total
Liability at December 31, 2014	$	413	$	165		$	36		$	614
Additions:
Accretion	19		15			4			38
Adjustment for new cost estimate (a)	70		—			—			70
Incremental reclamation costs (b)	—		—			59			59
Reductions:
Payments	—		(44		)	(1		)	(45		)
Liability at September 30, 2015	502		136			98			736
Less amounts due currently	—		(65		)	—			(65		)
Noncurrent liability at September 30, 2015	$	502	$	71		$	98		$	671

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(a)	The adjustment for nuclear plant decommissioning resulted from a new cost estimate completed in the second quarter of 2015. In accordance with regulatory requirements, a new cost estimate is completed every five years. The increase in the liability was driven by increased security and fuel-handling costs.


(b)	The adjustment for other asset retirement obligations resulted from the effect on our estimated retirement obligation related to coal combustion residual facilities at our lignite/coal fueled generation facilities that arose from the CCR rule discussed above.

Other Noncurrent Liabilities and Deferred Credits

The balance of other noncurrent liabilities and deferred credits consists of the following:



	September 30, 2015		December 31, 2014
Uncertain tax positions, including accrued interest	$	54	$	74
Asset retirement and mining reclamation obligations	671		560
Unfavorable purchase and sales contracts	549		566
Nuclear decommissioning fund excess over asset retirement obligation (Note 14)	372		479
Other, including retirement and other employee benefits	21		20
Total other noncurrent liabilities and deferred credits	$	1,667	$	1,699

Unfavorable Purchase and Sales Contracts — The amortization of unfavorable purchase and sales contracts totaled $6 million for both the three months ended September 30, 2015 and 2014 and $17 million for both the nine months ended September 30, 2015 and 2014. See Note 3 for intangible assets related to favorable purchase and sales contracts.

The estimated amortization of unfavorable purchase and sales contracts for each of the next five fiscal years is as follows:



Year	Amount
2015	$	24
2016	$	24
2017	$	24
2018	$	24
2019	$	24

Fair Value of Debt



	September 30, 2015				December 31, 2014
Debt:	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Borrowings under debtor-in-possession credit facility (Note 8)	$	1,425	$	1,421	$	1,425	$	1,430
Pre-petition notes, loans and other debt reported as liabilities subject to compromise (Note 9) (a)	$	31,894	$	10,183	$	31,894	$	16,664
Long-term debt not subject to compromise, excluding capital lease obligations (Note 8)	$	58	$	66	$	76	$	79

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(a)	Carrying amount excludes deferred debt issuance and extension costs.

We determine fair value in accordance with accounting standards as discussed in Note 12, and at September 30, 2015, our debt fair value represents Level 2 valuations. We obtain security pricing from an independent party who uses broker quotes and third-party pricing services to determine fair values. Where relevant, these prices are validated through subscription services such as Bloomberg.

Supplemental Cash Flow Information



	Nine Months Ended September 30,
	2015			2014
Cash payments related to:
Interest paid (a)	$	976		$	938
Capitalized interest	(8		)	(14		)
Interest paid (net of capitalized interest) (a)	$	968		$	924
Reorganization items (b)	$	114		$	41
Income taxes	$	26		$	33
Noncash investing and financing activities:
Construction expenditures (c)	$	64		$	73
Contribution related to EFH Corp. stock-based compensation	$	—		$	2

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(a)	Net of amounts received under interest rate swap agreements. This amount also includes amounts paid for adequate protection.


(b)	Represents cash payments for legal and other consulting services.


(c)	Represents end-of-period accruals.