Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2014

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants’ consolidated financial statements at December 31, 2014 and 2013 are as follows:



	December 31, 2014						December 31, 2013
	Exelon ^{(a) (b)}		Generation^(b)		BGE		Exelon ^(a)		Generation		BGE
Current assets	$	1,271	$	1,242	$	21	$	484	$	446	$	28
Noncurrent assets	7,580		7,566		3		1,905		1,884		3
Total assets	$	8,851	$	8,808	$	24	$	2,389	$	2,330	$	31
Current liabilities	$	611	$	526	$	77	$	566	$	481	$	74
Noncurrent liabilities	2,730		2,600		120		774		562		195
Total liabilities	$	3,341	$	3,126	$	197	$	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 $6.1 billion and total liabilities of $2.1 billion due to the consolidation of CENG. See Note 5— Investment in Constellation Energy Nuclear Group, LLC for additional information.



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 $319 million and $458 million as of December 31, 2014 and December 31, 2013, respectively; offset by payables to ZionSolutions LLC of $292 million and $414 million as of December 31, 2014 and December 31, 2013, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VIE.

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



December 31, 2014	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	506	$	91	$	597
Total liabilities^(a)	237		49		286
Exelon's ownership interest in VIE^(a)	—		9		9
Other ownership interests in VIE^(a)	269		33		302
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		13		13
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	27		—		27

As of December 31, 2014 and 2013, these assets and liabilities primarily consisted of the following:



		December 31, 2014									December 31, 2013
		Exelon			Generation			BGE				Exelon		Generation		BGE
Cash and cash equivalents			$	392		$	392		$	—		$	62	$	62	$	—
Restricted cash			117			96			21			80		52		28
Accounts receivable, net
	Customer		297			297			—			260		260		—
	Other		57			57			—			—		—		—
Mark-to-market derivatives assets			171			171			—			21		21		—
Inventory
	Materials and supplies		172			172			—			—		—		—
Other current assets			33			26			—			34		23		—
	Total current assets		1,239			1,211			21			457		418		28

Property, plant and equipment, net			4,638			4,638			—			1,171		1,171		—
Nuclear decommissioning trust funds			2,097			2,097			—			—		—		—
Goodwill			47			47			—			—		—		—
Mark-to-market derivatives assets			44			44			—			—		—		—
Other noncurrent assets			95			82			3			127		106		3
	Total noncurrent assets		6,921			6,908			3			1,298		1,277		3
	Total assets		$	8,160		$	8,119		$	24		$	1,755	$	1,695	$	31

Long-term debt due within one year			$	87		$	5		$	75		$	85	$	5	$	70
Accounts payable			292			292			—			170		170		—
Accrued expenses			111			108			2			26		22		4
Mark-to-market derivative liabilities			24			24			—			29		29		—
Unamortized energy contract liabilities			22			22			—			5		5		—
Other current liabilities			25			25			—			5		5		—
	Total current liabilities		561			476			77			320		236		74

	Long-term debt		212			81			120			298		86		195
	Asset retirement obligations		1,763			1,763			—			—		—		—
	Pension obligation^(a)		9			9			—			—		—		—
	Unamortized energy contract liabilities		51			51			—			28		28		—
	Other noncurrent liabilities		127			127			—			12		12		—
	Noncurrent liabilities		2,162			2,031			120			338		126		195
	Total liabilities		$	2,723		$	2,507		$	197		$	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 16—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.

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