Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2017

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants' consolidated financial statements at June 30, 2017 and December 31, 2016 are as follows:



	June 30, 2017								December 31, 2016
					Successor										Successor
	Exelon^(a)		Generation		PHI ^(a)		ACE		Exelon^(a)(b)		Generation		BGE		PHI^(a)		ACE
Current assets	$	512	$	501	$	11	$	7	$	954	$	916	$	23	$	14	$	9
Noncurrent assets	8,617		8,585		32		23		8,563		8,525		3		35		23
Total assets	$	9,129	$	9,086	$	43	$	30	$	9,517	$	9,441	$	26	$	49	$	32
Current liabilities	$	573	$	535	$	38	$	34	$	885	$	802	$	42	$	42	$	37
Noncurrent liabilities	2,723		2,640		83		74		2,713		2,612		—		101		89
Total liabilities	$	3,296	$	3,175	$	121	$	108	$	3,598	$	3,414	$	42	$	143	$	126

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


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

As of June 30, 2017 and December 31, 2016, these assets and liabilities primarily consisted of the following:



	June 30, 2017								December 31, 2016
					Successor										Successor
	Exelon ^(a)		Generation		PHI ^(a)		ACE		Exelon^(a)(b)		Generation		BGE		PHI^(a)		ACE
Cash and cash equivalents	$	68	$	68	$	—	$	—	$	150	$	150	$	—	$	—	$	—
Restricted cash	55		48		7		7		59		27		23		9		9
Accounts receivable, net
Customer	106		106		—		—		371		371		—		—		—
Other	24		24		—		—		48		48		—		—		—
Mark-to-market derivatives assets	—		—		—		—		31		31		—		—		—
Inventory
Materials and supplies	193		193		—		—		199		199		—		—		—
Other current assets	38		34		4		—		50		44		—		5		—
Total current assets	484		473		11		7		908		870		23		14		9
Property, plant and equipment, net	5,293		5,293		—		—		5,415		5,415		—		—		—
Nuclear decommissioning trust funds	2,341		2,341		—		—		2,185		2,185		—		—		—
Goodwill	—		—		—		—		47		47		—		—		—
Mark-to-market derivative assets	—		—		—		—		23		23		—		—		—
Other noncurrent assets	267		235		32		23		315		277		3		35		23
Total noncurrent assets	7,901		7,869		32		23		7,985		7,947		3		35		23
Total assets	$	8,385	$	8,342	$	43	$	30	$	8,893	$	8,817	$	26	$	49	$	32
Long-term debt due within one year	$	191	$	154	$	37	$	33	$	181	$	99	$	41	$	40	$	35
Accounts payable	80		80		—		—		269		269		—		—		—
Accrued expenses	48		47		1		1		119		116		1		2		2
Mark-to-market derivative liabilities	—		—		—		—		60		60		—		—		—
Unamortized energy contract liabilities	16		16		—		—		15		15		—		—		—
Other current liabilities	5		5		—		—		30		30		—		—		—
Total current liabilities	340		302		38		34		674		589		42		42		37
Long-term debt	616		533		83		74		641		540		—		101		89
Asset retirement obligations	1,954		1,954		—		—		1,904		1,904		—		—		—
Pension obligation^(c)	—		—		—		—		9		9		—		—		—
Unamortized energy contract liabilities	13		13		—		—		22		22		—		—		—
Other noncurrent liabilities	98		98		—		—		106		106		—		—		—
Total noncurrent liabilities	2,681		2,598		83		74		2,682		2,581		—		101		89
Total liabilities	$	3,021	$	2,900	$	121	$	108	$	3,356	$	3,170	$	42	$	143	$	126

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

(b) Includes certain purchase accounting adjustments not pushed down to the BGE 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 Consolidated Balance Sheets. See Note 13 - Retirement Benefits for additional details.

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



June 30, 2017	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	641	$	529	$	1,170
Total liabilities^(a)	64		229		293
Exelon's ownership interest in VIE^(a)	—		268		268
Other ownership interests in VIE^(a)	577		32		609
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		268		268
Contract intangible asset	9		—		9
Debt and payment guarantees	—		—		—
Net assets pledged for Zion Station decommissioning^(b)	6		—		6



December 31, 2016	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	638	$	567	$	1,205
Total liabilities^(a)	215		287		502
Exelon's ownership interest in VIE^(a)	—		248		248
Other ownership interests in VIE^(a)	423		32		455
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		264		264
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	9		—		9

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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 $75 million and $113 million as of June 30, 2017 and December 31, 2016, respectively; offset by payables to ZionSolutions LLC of $69 million and $104 million as of June 30, 2017 and December 31, 2016, respectively. These items are included to provide information regarding the relative size of the ZionSolutions LLC unconsolidated VI

- 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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