Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2015

As of December 31, 2015 and 2014, these assets and liabilities primarily consisted of the following:



		December 31, 2015									December 31, 2014 (a)
		Exelon			Generation			BGE				Exelon		Generation		BGE
Cash and cash equivalents			$	164		$	164		$	—		$	392	$	392	$	—
Restricted cash			100			77			23			117		96		21
Accounts receivable, net
	Customer		219			219			—			297		297		—
	Other		43			43			—			57		57		—
Mark-to-market derivatives assets			140			140			—			171		171		—
Inventory
	Materials and supplies		181			181			—			172		172		—
Other current assets			35			30			—			37		30		—
	Total current assets		882			854			23			1,243		1,215		21

Property, plant and equipment, net			5,160			5,160			—			4,638		4,638		—
Nuclear decommissioning trust funds			2,036			2,036			—			2,097		2,097		—
Goodwill			47			47			—			47		47		—
Mark-to-market derivatives assets			53			53			—			44		44		—
Other noncurrent assets			90			85			3			90		77		3
	Total noncurrent assets		7,386			7,381			3			6,916		6,903		3
	Total assets		$	8,268		$	8,235		$	26		$	8,159	$	8,118	$	24

Long-term debt due within one year			$	111		$	27		$	79		$	87	$	5	$	75
Accounts payable			216			216			—			292		292		—
Accrued expenses			115			113			2			111		108		2
Mark-to-market derivative liabilities			5			5			—			24		24		—
Unamortized energy contract liabilities			12			12			—			22		22		—
Other current liabilities			13			13			—			25		25		—
	Total current liabilities		472			386			81			561		476		77

	Long-term debt		666			623			41			212		81		120
	Asset retirement obligations		1,999			1,999			—			1,763		1,763		—
	Pension obligation^(b)		9			9			—			9		9		—
	Unamortized energy contract liabilities		39			39			—			51		51		—
	Other noncurrent liabilities		79			79			—			132		132		—
	Noncurrent liabilities		2,792			2,749			41			2,167		2,036		120
	Total liabilities		$	3,264		$	3,135		$	122		$	2,728	$	2,512	$	197

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(a)	Certain December 31, 2014 balances have been adjusted for the adoption of accounting guidance related to classification of deferred taxes and simplifying the presentation of debt costs. See Note 1- Significant Accounting Policies for additional information.


(b)	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.

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



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



December 31, 2014	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	114	$	91	$	205
Total liabilities^(a)	3		49		52
Exelon's ownership interest in VIE^(a)	—		9		9
Other ownership interests in VIE^(a)	111		33		144
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

___________________

(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. Exelon corrected an error in the December 31, 2014 balances within Commercial Agreement VIEs for an overstatement of Total assets, Total liabilities and Other ownership interests in VIE of $392 million, $234 million and $158 million, respectively. The error is not considered material to any prior period.

(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 $206 million and $319 million as of December 31, 2015 and December 31, 2014, respectively; offset by payables to ZionSolutions LLC of $189 million and $292 million as of December 31, 2015 and December 31, 2014, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VIE.

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants’ consolidated financial statements at December 31, 2015 and 2014 are as follows:



	December 31, 2015						December 31, 2014 ^(a)
	Exelon ^(b)		Generation		BGE		Exelon ^(b)		Generation		BGE
Current assets	$	909	$	881	$	23	$	1,275	$	1,247	$	21
Noncurrent assets	8,009		8,004		3		7,573		7,560		3
Total assets	$	8,918	$	8,885	$	26	$	8,848	$	8,807	$	24
Current liabilities	$	473	$	387	$	81	$	611	$	526	$	77
Noncurrent liabilities	2,927		2,884		41		2,728		2,597		120
Total liabilities	$	3,400	$	3,271	$	122	$	3,339	$	3,123	$	197

_______________________


(a)	Certain December 31, 2014 balances have been adjusted for the adoption of accounting guidance related to classification of deferred taxes and simplifying the presentation of debt costs. See Note 1- Significant Accounting Policies for additional information.


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

- 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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