Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants' consolidated financial statements at September 30, 2016 and December 31, 2015 are as follows:



	September 30, 2016										December 31, 2015
							Successor										Predecessor
	Exelon^(a)(b)		Generation		BGE		PHI^(b)		ACE		Exelon^(a)		Generation		BGE		PHI		ACE
Current assets	$	914	$	849	$	44	$	20	$	15	$	909	$	881	$	23	$	12	$	12
Noncurrent assets	8,235		8,201		3		31		19		8,009		8,004		3		18		18
Total assets	$	9,149	$	9,050	$	47	$	51	$	34	$	8,918	$	8,885	$	26	$	30	$	30
Current liabilities	$	569	$	439	$	84	45		$	40	$	473	$	387	$	81	$	48	$	48
Noncurrent liabilities	3,090		2,979		—		111		99		2,927		2,884		41		124		124
Total liabilities	$	3,659	$	3,418	$	84	$	156	$	139	$	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.



September 30, 2016	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	586	$	531	$	1,117
Total liabilities^(a)	181		308		489
Exelon's ownership interest in VIE^(a)	—		193		193
Other ownership interests in VIE^(a)	405		34		439
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		225		225
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	11		—		11



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 $135 million and $206 million as of September 30, 2016 and December 31, 2015, respectively; offset by payables to ZionSolutions LLC of $124 million and $189 million as of September 30, 2016 and December 31, 2015, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VI



	September 30, 2016										December 31, 2015
							Successor										Predecessor
	Exelon^(a)(b)		Generation		BGE		PHI^(b)		ACE		Exelon ^(a)		Generation		BGE		PHI		ACE
Cash and cash equivalents	$	160	$	160	$	—	$	—	$	—	$	164	$	164	$	—	$	—	$	—
Restricted cash	101		43		44		15		15		100		77		23		12		12
Accounts receivable, net
Customer	264		264		—		—		—		219		219		—		—		—
Other	42		42		—		—		—		43		43		—		—		—
Mark-to-market derivatives assets	49		49		—		—		—		140		140		—		—		—
Inventory
Materials and supplies	192		192		—		—		—		181		181		—		—		—
Other current assets	58		51		—		5		—		35		30		—		—		—
Total current assets	866		801		44		20		15		882		854		23		12		12
Property, plant and equipment, net	5,139		5,139		—		—		—		5,160		5,160		—		—		—
Nuclear decommissioning trust funds	2,173		2,173		—		—		—		2,036		2,036		—		—		—
Goodwill	47		47		—		—		—		47		47		—		—		—
Mark-to-market derivatives assets	32		32		—		—		—		53		53		—		—		—
Other noncurrent assets	257		223		3		31		19		90		85		3		18		18
Total noncurrent assets	7,648		7,614		3		31		19		7,386		7,381		3		18		18
Total assets	$	8,514	$	8,415	$	47	$	51	$	34	$	8,268	$	8,235	$	26	$	30	$	30
Long-term debt due within one year	$	191	$	64	$	81	$	43	$	38	$	111	$	27	$	79	$	46	$	46
Accounts payable	201		201		—		—		—		216		216		—		—		—
Accrued expenses	102		98		2		2		2		115		113		2		2		2
Mark-to-market derivative liabilities	24		24		—		—		—		5		5		—		—		—
Unamortized energy contract liabilities	14		14		—		—		—		12		12		—		—		—
Other current liabilities	34		34		—		—		—		13		13		—		—		—
Total current liabilities	566		435		83		45		40		472		386		81		48		48
Long-term debt	661		550		—		111		99		666		623		41		124		124
Asset retirement obligations	2,070		2,070		—		—		—		1,999		1,999		—		—		—
Pension obligation^(c)	9		9		—		—		—		9		9		—		—		—
Unamortized energy contract liabilities	26		26		—		—		—		39		39		—		—		—
Other noncurrent liabilities	106		106		—		—		—		79		79		—		—		—
Total noncurrent liabilities	2,872		2,761		—		111		99		2,792		2,749		41		124		124
Total liabilities	$	3,438	$	3,196	$	83	$	156	$	139	$	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.

- 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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