Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2014

The following tables present summary information about Exelon and Generation’s significant unconsolidated VIE entities:



September 30, 2014	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	115	$	307	$	422
Total liabilities^(a)	2		115		117
Exelon's ownership interest in VIE^(a)	—		62		62
Other ownership interests in VIE^(a)	113		130		243
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		66		66
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	31		—		31



December 31, 2013	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	128	$	332	$	460
Total liabilities^(a)	17		123		140
Exelon's ownership interest in VIE^(a)	—		86		86
Other ownership interests in VIE^(a)	111		123		234
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	7		67		74
Contract intangible asset	9		—		9
Debt and payment guarantees	—		5		5
Net assets pledged for Zion Station decommissioning^(b)	44		—		44

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(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 $365 million and $458 million as of September 30, 2014 and December 31, 2013, respectively; offset by payables to ZionSolutions LLC of $334 million and $414 million as of September 30, 2014 and December 31, 2013, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VIE.



		September 30, 2014						December 31, 2013
		Exelon		Generation		BGE		Exelon		Generation			BGE
Cash and cash equivalents		$	372	$	372	$	—	$	62	$	62	$	—
Restricted cash			142		95		47		80		52		28
Accounts receivable, net
	Customer		213		213		—		260		260		—
	Other		53		53		—		—		—		—
Mark-to-market derivatives assets			40		40		—		21		21		—
Inventory
	Materials and supplies		171		171		—		—		—		—
Other current assets			53		47		—		34		23		—
	Total current assets		1,044		991		47		457		418		28

	Property, plant and equipment, net		4,517		4,517		—		1,171		1,171		—
	Nuclear decommissioning trust funds		2,034		2,034		—		—		—		—
	Goodwill		46		46		—		—		—		—
	Other noncurrent assets		132		115		3		127		106		3
	Total noncurrent assets		6,729		6,712		3		1,298		1,277		3
	Total assets	$	7,773	$	7,703	$	50	$	1,755	$	1,695	$	31

Short-term borrowings		$	1	$	1	$	—	$	—	$	—	$	—
Long-term debt due within one year			83		5		72		85		5		70
Accounts payable			264		264		—		170		170		—
Accrued expenses			78		72		7		26		22		4
Mark-to-market derivative liabilities			18		18		—		29		29		—
Other current liabilities			53		53		—		10		10		—
	Total current liabilities		497		413		79		320		236		74

	Long-term debt		256		84		158		298		86		195
	Asset retirement obligations		1,654		1,654		—		—		—		—
	Pension obligation^(a)		8		8		—		—		—		—
	Other noncurrent liabilities		179		179		—		40		40		—
	Noncurrent liabilities		2,097		1,925		158		338		126		195
	Total liabilities	$	2,594	$	2,338	$	237	$	658	$	362	$	269

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(a)	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 — 13 - Retirement Benefits for additional details.

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in Exelon’s, Generation’s, and BGE’s consolidated financial statements at September 30, 2014 and December 31, 2013 are as follows:



	September 30, 2014						December 31, 2013
	Exelon^(a)(b)		Generation^(b)		BGE		Exelon^(a)		Generation		BGE
Current assets	$	1,071	$	1,018	$	47	$	484	$	446	$	28
Noncurrent assets	7,384		7,367		3		1,905		1,884		3
Total assets	$	8,455	$	8,385	$	50	$	2,389	$	2,330	$	31

Current liabilities	$	545	$	460	$	79	$	566	$	481	$	74
Noncurrent liabilities	2,671		2,499		158		774		562		195
Total liabilities	$	3,216	$	2,959	$	237	$	1,340	$	1,043	$	269

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


(b)	Includes total assets of $6.0 billion and total liabilities of $2.0 billion due to the consolidation of CENG beginning April 1, 2014. See Note 6 — Investment in Constellation Energy Nuclear Group, LLC for additional information.

- 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.

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