Changes in Accumulated Other Comprehensive Income (Exelon, Generation, PECO and PHI)

The following tables present changes in accumulated other comprehensive income (loss) (AOCI) by component for the nine months ended September 30, 2016 and 2015:



Nine Months Ended September 30, 2016	Gains and (losses) on Cash Flow Hedges			Unrealized Gains and (losses) on Marketable Securities		Pension and Non-Pension Postretirement Benefit Plan Items			Foreign Currency Items			AOCI of Equity Investments			Total
Exelon^(a)
Beginning balance	$	(19	)	$	3	$	(2,565	)	$	(40	)	$	(3	)	$	(2,624	)
OCI before reclassifications	(1		)	—		(2		)	3			(5		)	(5		)
Amounts reclassified from AOCI^(b)	(3		)	—		104			5			—			106
Net current-period OCI	(4		)	—		102			8			(5		)	101
Ending balance	$	(23	)	$	3	$	(2,463	)	$	(32	)	$	(8	)	$	(2,523	)
Generation^(a)
Beginning balance	$	(21	)	$	1	$	—		$	(40	)	$	(3	)	$	(63	)
OCI before reclassifications	—			1		—			3			1			5
Amounts reclassified from AOCI^(b)	(3		)	—		—			5			—			2
Net current-period OCI	(3		)	1		—			8			1			7
Ending balance	$	(24	)	$	2	$	—		$	(32	)	$	(2	)	$	(56	)
PECO^(a)
Beginning balance	$	—		$	1	$	—		$	—		$	—		$	1
OCI before reclassifications	—			—		—			—			—			—
Amounts reclassified from AOCI^(b)	—			—		—			—			—			—
Net current-period OCI	—			—		—			—			—			—
Ending balance	$	—		$	1	$	—		$	—		$	—		$	1
PHI Predecessor^(a)
Beginning balance January 1, 2016	$	(8	)	$	—	$	(28	)	$	—		$	—		$	(36	)
OCI before reclassifications	—			—		—			—			—			—
Amounts reclassified from AOCI^(b)	—			—		1			—			—			1
Net current-period OCI	—			—		1			—			—			1
Ending balance March 23, 2016^(c)	$	(8	)	$	—	$	(27	)	$	—		$	—		$	(35	)



Nine Months Ended September 30, 2015	Gains and (losses) on Hedging Activity			Unrealized Gains and (losses) on Marketable Securities		Pension and Non-Pension Postretirement Benefit Plan Items			Foreign Currency Items			AOCI of Equity Investments		Total
Exelon^(a)
Beginning balance	$	(28	)	$	3	$	(2,640	)	$	(19	)	$	—	$	(2,684	)
OCI before reclassifications	(18		)	—		(29		)	(17		)	—		(64		)
Amounts reclassified from AOCI^(b)	22			—		130			—			—		152
Net current-period OCI	4			—		101			(17		)	—		88
Ending balance	$	(24	)	$	3	$	(2,539	)	$	(36	)	$	—	$	(2,596	)
Generation^(a)
Beginning balance	$	(18	)	$	1	$	—		$	(19	)	$	—	$	(36	)
OCI before reclassifications	(13		)	—		—			(17		)	—		(30		)
Amounts reclassified from AOCI^(b)	6			—		—			—			—		6
Net current-period OCI	(7		)	—		—			(17		)	—		(24		)
Ending balance	$	(25	)	$	1	$	—		$	(36	)	$	—	$	(60	)
PECO^(a)
Beginning balance	$	—		$	1	$	—		$	—		$	—	$	1
OCI before reclassifications	—			—		—			—			—		—
Amounts reclassified from AOCI^(b)	—			—		—			—			—		—
Net current-period OCI	—			—		—			—			—		—
Ending balance	$	—		$	1	$	—		$	—		$	—	$	1
PHI Predecessor^(a)
Beginning balance	$	(9	)	$	—	$	(37	)	$	—		$	—	$	(46	)
OCI before reclassifications	—			—		—			—			—		—
Amounts reclassified from AOCI^(b)	1			—		4			—			—		5
Net current-period OCI	1			—		4			—			—		5
Ending balance	$	(8	)	$	—	$	(33	)	$	—		$	—	$	(41	)

________


(a)	All amounts are net of tax and noncontrolling interest. Amounts in parenthesis represent a decrease in AOCI.


(b)	See next tables for details about these reclassifications.


(c)	As a result of the PHI Merger, the PHI predecessor balances at March 23, 2016 were reduced to zero on March 24, 2016 due to purchase accounting adjustments applied to PHI.

ComEd, PECO, BGE, Pepco, DPL and ACE did not have any reclassifications out of AOCI to Net income during the three and nine months ended September 30, 2016 and 2015. The following tables present amounts reclassified out of AOCI to Net income for Exelon, Generation and PHI during the three and nine months ended September 30, 2016 and 2015.

Three Months Ended September 30, 2016




Details about AOCI components	Items reclassified out of AOCI^(a)						Affected line item in the Statement of Operations and Comprehensive Income
	Exelon			Generation
Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	19		$	—
Actuarial losses^(b)	(76		)	—
Total before tax	(57		)	—
Tax benefit	22			—
Net of tax	$	(35	)	$	—

Gains (losses) on foreign currency translation
Other	$	(5	)	$	(5	)	Other income and (deductions)
Total before tax	(5		)	(5		)
Tax expense	—			—
Net of tax	$	(5	)	$	(5	)

Total Reclassifications for the period	$	(40	)	$	(5	)	Comprehensive income

Nine Months Ended September 30, 2016



Details about AOCI components	Items reclassified out of AOCI^(a)									Affected line item in the Statement of Operations and Comprehensive Income
							Predecessor
							January 1, 2016 to March 23, 2016
	Exelon			Generation			PHI
Gains and (losses) on cash flow hedges
Other cash flow hedges	$	5		$	5		$	—		Interest expense
Total before tax	5			5			—
Tax expense	(2		)	(2		)	—
Net of tax	$	3		$	3		$	—		Comprehensive income

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	57		$	—		$	—
Actuarial losses^(b)	(227		)	—			(1		)
Total before tax	(170		)	—			(1		)
Tax benefit	66			—			—
Net of tax	$	(104	)	$	—		$	(1	)


Gains (losses) on foreign currency translation
Other	$	(5	)	$	(5	)	$	—		Other income and (deductions)
Total before tax	(5		)	(5		)	—
Tax expense	—			—			—
Net of tax	$	(5	)	$	(5	)	$	—

Total Reclassifications	$	(106	)	$	(2	)	$	(1	)	Comprehensive income

Three Months Ended September 30, 2015




Details about AOCI components	Items reclassified out of AOCI^(a)									Affected line item in the Statement of Operations and Comprehensive Income
							Predecessor
	Exelon			Generation			PHI
Gains and (losses) on cash flow hedges
Other cash flow hedges	$	(4	)	$	(4	)	$	(1	)	Interest expense
Total before tax	(4		)	(4		)	(1		)
Tax expense	1			1			—
Net of tax	$	(3	)	$	(3	)	$	(1	)	Comprehensive income

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	19		$	—		$	—
Actuarial losses^(b)	(90		)	—			(2		)
Total before tax	(71		)	—			(2		)
Tax expense	28			—			2
Net of tax	$	(43	)	$	—		$	—

Total Reclassifications for the period	$	(46	)	$	(3	)	$	(1	)	Comprehensive income

Nine Months Ended September 30, 2015



Details about AOCI components	Items reclassified out of AOCI^(a)									Affected line item in the Statement of Operations and Comprehensive Income
							Predecessor
	Exelon			Generation			PHI
Gains and (losses) on cash flow hedges
Terminated interest rate swaps	$	(26	)	$	—		$	—		Other, net
Energy related hedges	2			2			—			Operating revenues
Other cash flow hedges	(11		)	(11		)	(1		)	Interest expense
Total before tax	(35		)	(9		)	(1		)
Tax benefit	13			3			—
Net of tax	$	(22	)	$	(6	)	$	(1	)	Comprehensive income

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	57		$	—		$	—
Actuarial losses^(b)	(270		)	—			(7		)
Total before tax	(213		)	—			(7		)
Tax benefit	83			—			3
Net of tax	$	(130	)	$	—		$	(4	)

Total Reclassifications	$	(152	)	$	(6	)	$	(5	)	Comprehensive income

_______


(a)	Amounts in parenthesis represent a decrease in net income.


(b)	This AOCI component is included in the computation of net periodic pension and OPEB cost (see Note 13 — Retirement Benefits for additional details).

The following table presents income tax expense (benefit) allocated to each component of other comprehensive income (loss) during the three and nine months ended September 30, 2016 and 2015:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Exelon
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost	$	7		$	8		$	22		$	22
Actuarial loss reclassified to periodic cost	(29		)	(35		)	(88		)	(105		)
Pension and non-pension postretirement benefit plans valuation adjustment	1			—			1			17
Change in unrealized gain/(loss) on cash flow hedges	(1		)	3			3			(3		)
Change in unrealized loss on equity investments	—			—			3			—
Change in unrealized gain on marketable securities	(1		)	—			(1		)	—
Total	$	(23	)	$	(24	)	$	(60	)	$	(69	)

Generation
Change in unrealized gain/(loss) on cash flow hedges	$	(2	)	$	3		$	1		$	4
Change in unrealized loss on equity investments	—			—			3			—
Change in unrealized gain on marketable securities	—			—			—			—
Total	$	(2	)	$	3		$	4		$	4



	Predecessor
PHI	Three Months Ended September 30, 2015			January 1, 2016 to March 23, 2016		Nine Months Ended September 30, 2015
Pension and non-pension postretirement benefit plans:
Actuarial loss reclassified to periodic cost	$	(2	)	$	—	$	(3	)