Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2016

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants' consolidated financial statements at December 31, 2016 and December 31, 2015 are as follows:



	December 31, 2016										December 31, 2015
							Successor										Predecessor
	Exelon ^(a)(b)		Generation		BGE		PHI ^(b)		ACE		Exelon ^(a)		Generation		BGE		PHI		ACE
Current assets	$	954	$	916	$	23	$	14	9		$	909	$	881	$	23	$	12	$	12
Noncurrent assets	8,563		8,525		3		35		23		8,009		8,004		3		18		18
Total assets	$	9,517	$	9,441	$	26	$	49	$	32	$	8,918	$	8,885	$	26	$	30	$	30
Current liabilities	$	885	$	802	$	42	$	42	37		$	473	$	387	$	81	$	48	$	48
Noncurrent liabilities	2,713		2,612		—		101		89		2,927		2,884		41		124		124
Total liabilities	$	3,598	$	3,414	$	42	$	143	$	126	$	3,400	$	3,271	$	122	$	172	$	172

_______________________

(a) Includes certain purchase accounting adjustments not pushed down to the BGE standalone entity.

(b) Includes certain purchase accounting adjustments not pushed down to the ACE standalone entity.



December 31, 2016	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	638	$	567	$	1,205
Total liabilities^(a)	215		287		502
Exelon's ownership interest in VIE^(a)	—		248		248
Other ownership interests in VIE^(a)	423		32		455
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		264		264
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	9		—		9



December 31, 2015	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	263	$	164	$	427
Total liabilities^(a)	22		125		147
Exelon's ownership interest in VIE^(a)	—		11		11
Other ownership interests in VIE^(a)	241		28		269
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		21		21
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	17		—		17

___________________


(a)	These items represent amounts on the unconsolidated VIE balance sheets, not on Exelon’s or Generation’s Consolidated Balance Sheets. These items are included to provide information regarding the relative size of the unconsolidated VIEs.

(b)

These items represent amounts on Exelon’s and Generation’s Consolidated Balance Sheets related to the asset sale agreement with ZionSolutions, LLC. The net assets pledged for Zion Station decommissioning includes gross pledged assets of $113 million and $206 million as of December 31, 2016 and December 31, 2015, respectively; offset by payables to ZionSolutions LLC of $104 million and $189 million as of December 31, 2016 and December 31, 2015, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VIE.

As of December 31, 2016 and December 31, 2015, these assets and liabilities primarily consisted of the following:



		December 31, 2016										December 31, 2015
								Successor										Predecessor
		Exelon ^(a)(b)		Generation		BGE		PHI ^(b)		ACE		Exelon ^(a)		Generation		BGE		PHI		ACE
Cash and cash equivalents		$	150	$	150	$	—	$	—	$	—	$	164	$	164	$	—	$	—	$	—
Restricted cash		59		27		23		9		9		100		77		23		12		12
Accounts receivable, net
	Customer	371		371		—		—		—		219		219		—		—		—
	Other	48		48		—		—		—		43		43		—		—		—
Mark-to-market derivatives assets		31		31		—		—		—		140		140		—		—		—
Inventory
	Materials and supplies	199		199		—		—		—		181		181		—		—		—
Other current assets		50		44		—		5		—		35		30		—		—		—
	Total current assets	908		870		23		14		9		882		854		23		12		12

Property, plant and equipment, net		5,415		5,415		—		—		—		5,160		5,160		—		—		—
Nuclear decommissioning trust funds		2,185		2,185		—		—		—		2,036		2,036		—		—		—
Goodwill		47		47		—		—		—		47		47		—		—		—
Mark-to-market derivatives assets		23		23		—		—		—		53		53		—		—		—
Other noncurrent assets		315		277		3		35		23		90		85		3		18		18
	Total noncurrent assets	7,985		7,947		3		35		23		7,386		7,381		3		18		18
	Total assets	$	8,893	$	8,817	$	26	$	49	$	32	$	8,268	$	8,235	$	26	$	30	$	30

Long-term debt due within one year		$	181	$	99	$	41	$	40	$	35	$	111	$	27	$	79	$	46	$	46
Accounts payable		269		269		—		—		—		216		216		—		—		—
Accrued expenses		119		116		1		2		2		115		113		2		2		2
Mark-to-market derivative liabilities		60		60		—		—		—		5		5		—		—		—
Unamortized energy contract liabilities		15		15		—		—		—		12		12		—		—		—
Other current liabilities		30		30		—		—		—		13		13		—		—		—
	Total current liabilities	674		589		42		42		37		472		386		81		48		48

	Long-term debt	641		540		—		101		89		666		623		41		124		124
	Asset retirement obligations	1,904		1,904		—		—		—		1,999		1,999		—		—		—
	Pension obligation^(c)	9		9		—		—		—		9		9		—		—		—
	Unamortized energy contract liabilities	22		22		—		—		—		39		39		—		—		—
	Other noncurrent liabilities	106		106		—		—		—		79		79		—		—		—
	Noncurrent liabilities	2,682		2,581		—		101		89		2,792		2,749		41		124		124
	Total liabilities	$	3,356	$	3,170	$	42	$	143	$	126	$	3,264	$	3,135	$	122	$	172	$	172

___________

(a) Includes certain purchase accounting adjustments not pushed down to the BGE standalone entity.

(b) Includes certain purchase accounting adjustments not pushed down to the ACE standalone entity.

(c) Includes the CNEG retail gas pension obligation, which is presented as a net asset balance within the Prepaid pension asset line item on Generation’s balance sheet. See Note 17 - Retirement Benefits for additional details

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details