Company: AILIM
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001002910-25-000055
Chunk: 303

Company: Ameren Illinois Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 303
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retirement BenefitObligation0.25% decrease in discount rate$12 $115 $2 $21 0.25% decrease in return on assets12 (a)4 (a)

(a)Not applicable.

Accounting EstimateUncertainties Affecting ApplicationAccounting for ContingenciesWe make judgments and estimates in the recording and the disclosing of liabilities for claims, litigation, environmental remediation, the actions of various regulatory agencies, or other matters that occur in the normal course of business. We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.•Estimating financial impact of events•Estimating likelihood of various potential outcomes•Regulatory and political environments and requirements•Outcome of legal proceedings, settlements, or other factors•Changes in regulation, legislation, expected scope of work, technology, or timing of environmental remediation

Basis for Judgment

The determination of a loss contingency requires significant judgment as to the expected outcome of the contingency in future periods. In making the determination as to the amount of potential loss and the probability of loss, we consider the nature of the litigation, the claim or assessment, opinions or views of legal counsel, and the expected outcome of potential litigation, among other things. If no estimate is better than another within our range of estimates, we record as our best estimate of a loss the minimum value of our estimated range of outcomes. As additional information becomes available, we reassess the potential liability related to the contingency and revise our estimates. The amount recorded for any contingency may differ from actual costs incurred when the contingency is ultimately resolved. Contingencies are normally resolved over long periods of time. In our evaluation of legal matters, management consults with legal counsel and relies on analysis of relevant case law and legal precedents. See Note 2 – Rate and Regulatory Matters, Note 9 – Callaway Energy Center, and Note 14 – Commitments and Contingencies under Part II, Item 8, of this report for information on the Ameren Companies’ contingencies.

Accounting EstimateUncertainties Affecting ApplicationAccounting for Income TaxesWe record a provision for income taxes, deferred tax assets and liabilities, and a valuation allowance against net deferred tax assets, if any. See Note 12 – Income Taxes under Part II, Item 8, of this report.•Changes in business, industry, laws, technology, or economic and market conditions affecting forecasted financial condition and/or results