19. Supplemental Financial Information (All Registrants)

Supplemental Statement of Operations Information

The following tables provide additional information about the Registrants’ Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2016 and 2015:



	Three Months Ended September 30, 2016
															Successor
	Exelon			Generation			ComEd			PECO			BGE		PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	57		$	57		$	—		$	—		$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	35			35			—			—			—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	155			155			—			—			—		—		—		—		—
Non-regulatory agreement units	116			116			—			—			—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(5		)	(5		)	—			—			—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(168		)	(168		)	—			—			—		—		—		—		—
Total decommissioning-related activities	190			190			—			—			—		—		—		—		—
Investment income	2			1			—			(1		)	—		—		—		—		—
Interest income related to uncertain income tax positions	8			—			—			—			—		—		—		—		—
Penalty related to uncertain income tax positions^(c)	(106		)	—			(86		)	—			—		—		—		—		—
AFUDC — Equity	19			—			5			2			5		7		5		1		1
Other	7			(6		)	1			1			—		12		7		2		1
Other, net	$	120		$	185		$	(80	)	$	2		$	5	$	19	$	12	$	3	$	2



																						Successor		Predecessor
	Nine Months Ended September 30, 2016																					March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd			PECO			BGE			Pepco		DPL		ACE		PHI		PHI
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	181		$	181		$	—		$	—		$	—		$	—	$	—	$	—	$	—	$	—
Non-regulatory agreement units	95			95			—			—			—			—		—		—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	286			286			—			—			—			—		—		—		—		—
Non-regulatory agreement units	216			216			—			—			—			—		—		—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(2		)	(2		)	—			—			—			—		—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(380		)	(380		)	—			—			—			—		—		—		—		—
Total decommissioning-related activities	396			396			—			—			—			—		—		—		—		—
Investment income (expense)	14			6			—			(1		)	2		^(d)	—		—		—		1		—
Long-term lease income	4			—			—			—			—			—		—		—		—		—
Interest income related to uncertain income tax positions	13			—			—			—			—			1		—		1		—		—
Penalty income related to uncertain income tax positions^(c)	(106		)	—			(86		)	—			—			—		—		—		—		—
AFUDC — Equity	43			—			8			6			14			14		3		5		15		7
Loss on debt extinguishment	(3		)	(2		)	—			—			—			—		—		—		—		—
Other	16			(5		)	6			1			—			13		6		2		15		(11		)
Other, net	$	377		$	395		$	(72	)	$	6		$	16		$	28	$	9	$	8	$	31	$	(4	)



	Three Months Ended September 30, 2015
																Predecessor
	Exelon			Generation			ComEd		PECO			BGE				PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	39		$	39		$	—	$	—		$	—			$	—	$	—	$	—	$	—
Non-regulatory agreement units	18			18			—		—			—				—		—		—		—
Net unrealized losses on decommissioning trust funds
Regulatory agreement units	(301		)	(301		)	—		—			—				—		—		—		—
Non-regulatory agreement units	(218		)	(218		)	—		—			—				—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	207			207			—		—			—				—		—		—		—
Total decommissioning-related activities	(255		)	(255		)	—		—			—				—		—		—		—
Investment income (expense)	4			1			—		(1		)	1			^(d)	—		—		—		—
Long-term lease income	4			—			—		—			—				—		—		—		—
AFUDC — Equity	6			—			1		1			4				2		3		—		—
Other	(3		)	(3		)	3		1			(1		)		25		5		4		1
Other, net	$	(244	)	$	(257	)	$	4	$	1		$	4			$	27	$	8	$	4	$	1



	Nine Months Ended September 30, 2015
															Predecessor
	Exelon			Generation			ComEd		PECO			BGE			PHI		Pepco		DPL		ACE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	203		$	203		$	—	$	—		$	—		$	—	$	—	$	—	$	—
Non-regulatory agreement units	122			122			—		—			—			—		—		—		—
Net unrealized losses on decommissioning trust funds
Regulatory agreement units	(385		)	(385		)	—		—			—			—		—		—		—
Non-regulatory agreement units	(274		)	(274		)	—		—			—			—		—		—		—
Net unrealized gains on pledged assets
Zion Station decommissioning	9			9					—			—			—		—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	129			129			—		—			—			—		—		—		—
Total decommissioning-related activities	(196		)	(196		)	—		—			—			—		—		—		—
Investment income (expense)	6			1			—		(1		)	3		^(d)	—		—		—		—
Long-term lease income	12			—			—		—			—			—		—		—		—
Interest income related to uncertain income tax positions	—			1			—		—			—			—		—		—		1
AFUDC — Equity	16			—			2		4			10			11		9		1		1
Terminated interest rate swaps^(e)	(26		)	—			—		—			—			—		—		—		—
Other	9			1			12		—			—			37		12		7		2
Other, net	$	(179	)	$	(193	)	$	14	$	3		$	13		$	48	$	21	$	8	$	4

____


(a)	Includes investment income and realized gains and losses on sales of investments of the trust funds.


(b)	Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of net income taxes related to all NDT fund activity for those units. See Note 16 — Asset Retirement Obligations of the Exelon 2015 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(c)	See Note 11— Income Taxes for discussion of the penalty related to the Tax Court's decision on Exelon's like-kind exchange tax position.


(d)	Relates to the cash return on BGE’s rate stabilization deferral. See Note 3 — Regulatory Matters of the Exelon 2015 Form 10-K for additional information regarding the rate stabilization deferral.

(e)

In January 2015, in connection with Generation's $750 million issuance of five-year Senior Unsecured Notes, Exelon terminated certain floating-to-fixed interest rate swaps. As the original forecasted transactions were a series of future interest payments over a ten year period, a portion of the anticipated interest payments were probable not to occur. As a result, $26 million of anticipated payments were reclassified from AOCI to Other, net in Exelon's Consolidated Statement of Operations and Comprehensive Income.

The following utility taxes are included in revenues and expenses for the three and nine months ended September 30, 2016 and 2015. Generation’s utility tax expense represents gross receipts tax related to its retail operations and the utility registrants' utility tax expense represents municipal and state utility taxes and gross receipts taxes related to their operating revenues. The offsetting collection of utility taxes from customers is recorded in revenues on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.



	Three Months Ended September 30, 2016
											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	255	$	35	$	67	$	40	$	21	$	92	$	87	$	5	$	—



																	Successor		Predecessor
	Nine Months Ended September 30, 2016																March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon		Generation		ComEd		PECO		BGE		Pepco		DPL		ACE		PHI		PHI
Utility taxes	$	624	$	90	$	186	$	106	$	66	$	240	$	14	$	—	$	176	$	78



	Three Months Ended September 30, 2015
											Predecessor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	151	$	28	$	63	$	37	$	23	$	86	$	82	$	4	$	—



	Nine Months Ended September 30, 2015
											Predecessor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Utility taxes	$	430	$	79	$	180	$	104	$	67	$	253	$	239	$	14	$	—

Supplemental Cash Flow Information

The following tables provide additional information regarding the Registrants’ Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015:



																			Successor		Predecessor
	Nine Months Ended September 30, 2016																		March 24, 2016 to September 30, 2016		January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd		PECO		BGE		Pepco		DPL		ACE		PHI		PHI
Depreciation, amortization, accretion and depletion
Property, plant and equipment^(a)	$	2,490		$	1,297		$	524	$	181	$	223	$	128	$	82	$	61	$	215	$	94
Amortization of regulatory assets^(a)	293			—			49		20		84		93		38		69		140		58
Amortization of intangible assets, net^(a)	38			32			—		—		—		—		—		—		—		—
Amortization of energy contract assets and liabilities^(b)	(7		)	(7		)	—		—		—		—		—		—		—		—
Nuclear fuel^(c)	862			862			—		—		—		—		—		—		—		—
ARO accretion^(d)	333			332			1		—		—		—		—		—		—		—
Total depreciation, amortization, accretion and depletion	$	4,009		$	2,516		$	574	$	201	$	307	$	221	$	120	$	130	$	355	$	152



	Nine Months Ended September 30, 2015
													Predecessor
	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Depreciation, amortization, accretion and depletion
Property, plant and equipment^(a)	$	1,648		$	739		$	471	$	179	$	216	$	292	$	122	$	76	$	57
Amortization of regulatory assets^(a)	131			—			57		19		55		182		69		37		78
Amortization of intangible assets, net^(a)	39			35			—		—		—		—		—		—		—
Amortization of energy contract assets and liabilities^(b)	(20		)	(19		)	—		—		—		—		—		—		—
Nuclear fuel^(c)	841			841			—		—		—		—		—		—		—
ARO accretion^(d)	291			291			—		—		—		—		—		—		—
Total depreciation, amortization, accretion and depletion	$	2,930		$	1,887		$	528	$	198	$	271	$	474	$	191	$	113	$	135

________


(a)	Included in Depreciation and amortization on the Registrants' Consolidated Statements of Operations and Comprehensive Income.


(b)	Included in Operating revenues or Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(c)	Included in Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(d)	Included in Operating and maintenance expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.



																									Successor			Predecessor
	Nine Months Ended September 30, 2016																								March 24, 2016 to September 30, 2016			January 1, 2016 to March 23, 2016
	Exelon			Generation			ComEd			PECO			BGE			Pepco			DPL			ACE			PHI			PHI
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	458		$	163		$	124		$	25		$	50		$	24		$	13		$	11		$	58		$	23
Loss from equity method investments	15			16			—			—			—			—			—			—			—			—
Provision for uncollectible accounts	107			14			31			24			12			15			12			18			27			16
Stock-based compensation costs	88			—			—			—			—			—			—			—			—			3
Other decommissioning-related activity^(a)	(237		)	(237		)	—			—			—			—			—			—			—			—
Energy-related options^(b)	(20		)	(20		)	—			—			—			—			—			—			—			—
Amortization of regulatory asset related to debt costs	7			—			3			1			—			2			—			1			2			1
Amortization of rate stabilization deferral	62			—			—			—			62			3			3			—			—			5
Amortization of debt fair value adjustment	(9		)	(9		)	—			—			—			—			—			—			—			—
Discrete impacts from EIMA^(c)	(36		)	—			(36		)	—			—			—			—			—			—			—
Amortization of debt costs	26			12			(3		)	2			3			—			—			—			—			—
Provision for excess and obsolete inventory	74			70			4			—			—			1			1			1			—			1
Merger-related commitments^(d)(e)	508			3			—			—			—			125			73			110			308			—
Severance costs	130			57			—			—			—			—			—			—			53			—
Asset retirement costs	—			—			—			—			—			—			5			2			—			—
Lower of cost or market inventory adjustment	36			36			—			—			—			—			—			—			—			—
Other	15			24			(1		)	(3		)	(18		)	(2		)	(8		)	(5		)	(7		)	(3		)
Total other non-cash operating activities	$	1,224		$	129		$	122		$	49		$	109		$	168		$	99		$	138		$	441		$	46
Non-cash investing and financing activities:
Change in capital expenditures not paid	$	(338	)	$	(289	)	$	(42	)	$	(4	)	$	17		$	15		$	(10	)	$	2		$	(5	)	$	11
Fair value of net assets contributed to Generation in connection with the PHI merger, net of cash^(d)(f)	—			119			—			—			—			—			—			—			—			—
Fair value of net assets distributed to Exelon in connection with the PHI Merger, net of cash ^(d)(f)	—			—			—			—			—			—			—			—			129			—
Fair value of pension obligation transferred in connection with the PHI Merger	—			—			—			—			—			—			—			—			53			—
Assumption of member purchase liability	—			—			—			—			—			—			—			—			29			—
Assumption of merger commitment liability	—			—			—			—			—			33			—			—			33			—
Change in PPE related to ARO update	476			476			—			—			—			—			—			—			—			—
Indemnification of like-kind exchange position^(g)	—			—			157			—			—			—			—			—			—			—
Non-cash financing of capital projects	84			84			—			—			—			—			—			—			—			—



	Nine Months Ended September 30, 2015
															Predecessor
	Exelon			Generation			ComEd		PECO			BGE			PHI			Pepco			DPL		ACE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	476		$	200		$	155	$	29		$	49		$	73		$	22		$	11	$	11
Loss from equity method investments	3			4			—		—			—			—			—			—		—
Provision for uncollectible accounts	114			15			46		37			15			49			15			18		15
Stock-based compensation costs	102			—			—		—			—			9			—			—		—
Other decommissioning-related activity^(a)	(31		)	(31		)	—		—			—			—			—			—		—
Energy-related options^(b)	18			18			—		—			—			—			—			—		—
Amortization of regulatory asset related to debt costs	—			—			—		—			—			4			2			—		—
Amortization of rate stabilization deferral	60			—			—		—			60			3			3			1		—
Amortization of debt fair value adjustment	(34		)	(9		)	—		—			—			—			—			—		—
Discrete impacts from EIMA^(c)	101			—			101		—			—			—			—			—		—
Amortization of debt costs	43			12			3		2			2			1			—			—		—
Provision for excess and obsolete inventory	7			8			—		—			—			1			—			—		—
Lower of cost or market inventory adjustment	15			15			—		—			—			—			—			—		—
Other	(18		)	(5		)	7		1			(15		)	3			—			1		1
Total other non-cash operating activities	$	856		$	227		$	312	$	69		$	111		$	143		$	42		$	31	$	27
Non-cash investing and financing activities:
Change in capital expenditures not paid	$	59		$	48		$	62	$	(23	)	$	(14	)	$	(3	)	$	(1	)	$	2	$	—
Nuclear fuel procurement^(d)	—			—			—		—			—			—			—			—		—
Change in PPE related to ARO update	811			811			—		—			—			—			—			—		—
Indemnification of like-kind exchange position^(g)	—			—			5		—			—			—			—			—		—
Non-cash financing of capital projects	52			52			—		—			—			—			—			—		—
Long-term software licensing agreement^(f)	95			—			—		—			—			—			—			—		—

________

(a)

Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of operating revenues, ARO accretion, ARC amortization, investment income and income taxes related to all NDT fund activity for these units. See Note 16 - Asset Retirement Obligations of the Exelon 2015 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(b)	Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded in Operating revenues.


(c)	Reflects the change in distribution rates pursuant to EIMA, which allows for the recovery of costs by a utility through a pre-established performance-based formula rate tariff. See Note 5 — Regulatory Matters for more information.


(d)	See Note 4 — Mergers, Acquisitions and Dispositions for additional information related to the merger with PHI.


(e)	Excludes $5 million of forgiveness of Accounts receivable related to merger commitments recorded in connection with the PHI Merger, the balance is included within Provision for uncollectible accounts.


(f)	Immediately following closing of the PHI Merger, the net assets associated with PHI's unregulated business interests were distributed by PHI to Exelon. Exelon contributed a portion of such net assets to Generation.


(g)	See Note 11— Income Taxes for discussion of the like-kind exchange tax position.

Supplemental Balance Sheet Information

The following tables provide additional information about assets and liabilities of the Registrants as of September 30, 2016 and December 31, 2015:



													Successor
September 30, 2016	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Property, plant and equipment:
Accumulated depreciation and amortization	$	18,354	^(a)	$	10,004	^(a)	$	3,841	$	3,213	$	3,198	$	146	$	3,026	$	1,171	$	1,008
Accounts receivable:
Allowance for uncollectible accounts	$	330		$	85		$	82	$	78	$	39	$	46	$	15	$	14	$	17



													Predecessor
December 31, 2015	Exelon			Generation			ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Property, plant and equipment:
Accumulated depreciation and amortization	$	16,375	^(b)	$	8,639	^(b)	$	3,710	$	3,101	$	3,016	$	5,341	$	2,929	$	1,139	$	968
Accounts receivable:
Allowance for uncollectible accounts	$	284		$	77		$	75	$	83	$	49	$	56	$	17	$	17	$	17

_______


(a)	Includes accumulated amortization of nuclear fuel in the reactor core of $3,198 million.


(b)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,861 million.

PECO Installment Plan Receivables (Exelon and PECO)

PECO enters into payment agreements with certain delinquent customers, primarily residential, seeking to restore their service, as required by the PAPUC. Customers with past due balances that meet certain income criteria are provided the option to enter into an installment payment plan, some of which have terms greater than one year, to repay past due balances in addition to paying for their ongoing service on a current basis. The receivable balance for these payment agreement receivables is recorded in accounts receivable for the current portion and other deferred debits and other assets for the noncurrent portion. The net receivable balance for installment plans with terms greater than one year was $16 million and $15 million as of September 30, 2016 and December 31, 2015, respectively. The allowance for uncollectible accounts reserve methodology and assessment of the credit quality of the installment plan receivables are consistent with the customer accounts receivable methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2015 Form 10-K. The allowance for uncollectible accounts balance associated with these receivables at September 30, 2016 of $14 million consists of $0 million, $3 million and $11 million for low risk, medium risk and high risk segments, respectively. The allowance for uncollectible accounts balance at December 31, 2015 of $15 million consists of $1 million, $3 million and $11 million for low risk, medium risk and high risk segments, respectively. The balance of the payment agreement is billed to the customer in equal monthly installments over the term of the agreement. Installment receivables outstanding as of September 30, 2016 and December 31, 2015 include balances not yet presented on the customer bill, accounts currently billed and an immaterial amount of past due receivables. When a customer defaults on its payment agreement, the terms of which are defined by plan type, the entire balance of the agreement becomes due and the balance is reclassified to current customer accounts receivable and reserved for in accordance with the methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2015 Form 10-K.