Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2016



	March 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	$	145	$	145	$	—	$	—	$	—	$	164	$	164	$	—	$	—	$	—
Restricted cash	117		62		44		11		11		100		77		23		12		12
Accounts receivable, net
Customer	231		231		—		—		—		219		219		—		—		—
Other	28		28		—		—		—		43		43		—		—		—
Mark-to-market derivatives assets	120		120		—		—		—		140		140		—		—		—
Inventory
Materials and supplies	186		186		—		—		—		181		181		—		—		—
Other current assets	50		36		—		11		—		35		30		—		—		—
Total current assets	877		808		44		22		11		882		854		23		12		12
Property, plant and equipment, net	5,141		5,141		—		—		—		5,160		5,160		—		—		—
Nuclear decommissioning trust funds	2,069		2,069		—		—		—		2,036		2,036		—		—		—
Goodwill	47		47		—		—		—		47		47		—		—		—
Mark-to-market derivatives assets	41		41		—		—		—		53		53		—		—		—
Other noncurrent assets	135		84		3		46		18		90		85		3		18		18
Total noncurrent assets	7,433		7,382		3		46		18		7,386		7,381		3		18		18
Total assets	$	8,310	$	8,190	$	47	$	68	$	29	$	8,268	$	8,235	$	26	$	30	$	30
Long-term debt due within one year	$	265	$	128	$	79	$	56	$	45	$	111	$	27	$	79	$	46	$	46
Accounts payable	164		164		—		—		—		216		216		—		—		—
Accrued expenses	81		75		4		2		2		115		113		2		2		2
Mark-to-market derivative liabilities	7		7		—		—		—		5		5		—		—		—
Unamortized energy contract liabilities	12		12		—		—		—		12		12		—		—		—
Other current liabilities	13		13		—		—		—		13		13		—		—		—
Total current liabilities	542		399		83		58		47		472		386		81		48		48
Long-term debt	743		559		41		142		114		666		623		41		124		124
Asset retirement obligations	2,016		2,016		—		—		—		1,999		1,999		—		—		—
Pension obligation^(c)	9		9		—		—		—		9		9		—		—		—
Unamortized energy contract liabilities	35		35		—		—		—		39		39		—		—		—
Other noncurrent liabilities	76		76		—		—		—		79		79		—		—		—
Total noncurrent liabilities	2,879		2,695		41		142		114		2,792		2,749		41		124		124
Total liabilities	$	3,421	$	3,094	$	124	$	200	$	161	$	3,264	$	3,135	$	122	$	172	$	172

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(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 13 - Retirement Benefits for additional details.



March 31, 2016	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	264	$	357	$	621
Total liabilities^(a)	15		247		262
Exelon's ownership interest in VIE^(a)	—		75		75
Other ownership interests in VIE^(a)	249		35		284
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		94		94
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	17		—		17



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

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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 $183 million and $206 million as of March 31, 2016 and December 31, 2015, respectively; offset by payables to ZionSolutions LLC of $166 million and $189 million as of March 31, 2016 and December 31, 2015, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VI

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



	March 31, 2016										December 31, 2015
							Successor										Predecessor
	Exelon^(a)(b)		Generation		BGE		PHI^(b)		ACE		Exelon^(a)		Generation		BGE		PHI		ACE
Current assets	$	928	$	860	$	44	$	22	$	11	$	909	$	881	$	23	$	12	$	12
Noncurrent assets	8,047		7,996		3		46		18		8,009		8,004		3		18		18
Total assets	$	8,975	$	8,856	$	47	$	68	$	29	$	8,918	$	8,885	$	26	$	30	$	30
Current liabilities	$	544	$	400	$	83	58		$	47	$	473	$	387	$	81	$	48	$	48
Noncurrent liabilities	3,050		2,865		41		142		114		2,927		2,884		41		124		124
Total liabilities	$	3,594	$	3,265	$	124	$	200	$	161	$	3,400	$	3,271	$	122	$	172	$	172

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(a)	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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