Schedule I - Condensed Financial Information of Parent (Exelon Corporate)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule I - Condensed Financial Information of Parent (Exelon Corporate)

Exelon Corporation and Subsidiary Companies

Schedule I – Condensed Financial Information of Parent (Exelon Corporate)

Condensed Statements of Operations and Other Comprehensive Income

	For the Years Ended December 31,
(In millions)	2017			2016			2015
Operating expenses
Operating and maintenance	$	10		$	221		$	—
Operating and maintenance from affiliates	25			51			43
Other	4			4			4
Total operating expenses	39			276			47
Operating loss	(39		)	(276		)	(47		)
Other income and (deductions)
Interest expense, net	(315		)	(312		)	(168		)
Equity in earnings of investments	4,398			1,521			2,461
Interest income from affiliates, net	40			39			43
Other, net	1			7			(43		)
Total other income	4,124			1,255			2,293
Income before income taxes	4,085			979			2,246
Income taxes	315			(155		)	(23		)
Net income	$	3,770		$	1,134		$	2,269
Other comprehensive income (loss)
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic costs	$	(56	)	$	(48	)	$	(46	)
Actuarial loss reclassified to periodic cost	197			184			220
Pension and non-pension postretirement benefit plan valuation adjustment	10			(181		)	(99		)
Unrealized gain on cash flow hedges	3			2			9
Unrealized gain on marketable securities	6			1			—
Unrealized gain (loss) on equity investments	6			(4		)	(3		)
Unrealized gain (loss) on foreign currency translation	7			10			(21		)
Other comprehensive income (loss)	173			(36		)	60
Comprehensive income	$	3,943		$	1,098		$	2,329

Exelon Corporation and Subsidiary Companies

Schedule I – Condensed Financial Information of Parent (Exelon Corporate)

Condensed Statements of Cash Flows

	For the Years Ended December 31,
(In millions)	2017			2016			2015
Net cash flows provided by operating activities	$	1,921		$	1,029		$	3,071
Cash flows from investing activities
Changes in Exelon intercompany money pool	(129		)	1,390			(1,217		)
Notes receivable from affiliates	—			—			550
Investment in affiliates	(1,717		)	(1,757		)	(212		)
Acquisition of business	—			(6,962		)	—
Other investing activities	(5		)	5			(55		)
Net cash flows used in investing activities	(1,851		)	(7,324		)	(934		)
Cash flows from financing activities
Issuance of long-term debt	—			1,800			4,200
Proceeds from short-term borrowings with maturities greater than 90 days	500			—			—
Retirement of long-term debt	(569		)	(46		)	(2,263		)
Issuance of common stock	—			—			1,868
Common stock issued from treasury stock	1,150			—			—
Dividends paid on common stock	(1,236		)	(1,166		)	(1,105		)
Proceeds from employee stock plans	150			55			32
Other financing activities	(9		)	(20		)	(58		)
Net cash flows (used in) provided by financing activities	(14		)	623			2,674
Increase (Decrease) in cash and cash equivalents	56			(5,672		)	4,811
Cash and cash equivalents at beginning of period	18			5,690			879
Cash and cash equivalents at end of period	$	74		$	18		$	5,690

Exelon Corporation and Subsidiary Companies

Schedule I – Condensed Financial Information of Parent (Exelon Corporate)

Condensed Balance Sheets

	December 31,
(In millions)	2017		2016
ASSETS
Current assets
Cash and cash equivalents	$	74	$	18
Deposit with IRS	—		1,250
Accounts receivable, net
Other accounts receivable	431		73
Accounts receivable from affiliates	33		48
Notes receivable from affiliates	217		88
Regulatory assets	284		263
Other	4		—
Total current assets	1,043		1,740
Property, plant and equipment, net	50		51
Deferred debits and other assets
Regulatory assets	3,697		4,033
Investments in affiliates	39,272		34,869
Deferred income taxes	1,431		2,107
Notes receivable from affiliates	910		922
Other	234		256
Total deferred debits and other assets	45,544		42,187
Total assets	$	46,637	$	43,978

Exelon Corporation and Subsidiary Companies

Schedule I – Condensed Financial Information of Parent (Exelon Corporate)

Condensed Balance Sheets

	December 31,
(In millions)	2017			2016
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	500		$	—
Long-term debt due within one year	—			570
Accounts payable	2			2
Accrued expenses	99			489
Payables to affiliates	360			706
Regulatory liabilities	16			16
Pension obligations	65			58
Other	46			50
Total current liabilities	1,088			1,891
Long-term debt	7,161			7,193
Deferred credits and other liabilities
Regulatory liabilities	15			31
Pension obligations	7,792			8,608
Non-pension postretirement benefit obligations	322			7
Deferred income taxes	220			226
Other	180			182
Total deferred credits and other liabilities	8,529			9,054
Total liabilities	16,778			18,138
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2000 shares authorized, 963 shares and 924 shares outstanding at December 31, 2017 and 2016, respectively)	18,966			18,797
Treasury stock, at cost (2 shares and 35 shares at December 31, 2017 and 2016, respectively)	(123		)	(2,327		)
Retained earnings	13,503			12,030
Accumulated other comprehensive loss, net	(2,487		)	(2,660		)
Total shareholders’ equity	29,859			25,840
Total liabilities and shareholders’ equity	$	46,637		$	43,978

Basis of Presentation

Exelon Corporate is a holding company that conducts substantially all of its business operations through its subsidiaries. These condensed financial statements and related footnotes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of Exelon Corporation.

Exelon Corporate owns 100% of all of its significant subsidiaries, either directly or indirectly, except for Commonwealth Edison Company (ComEd), of which Exelon Corporate owns more than 99%, and BGE, of which Exelon owns 100% of the common stock but none of BGE’s preferred stock. BGE redeemed all of its outstanding preferred stock in 2016.

Mergers

On March 23, 2016, Exelon completed the merger contemplated by the Merger Agreement among Exelon, Purple Acquisition Corp., a wholly owned subsidiary of Exelon (Merger Sub) and Pepco Holdings, Inc. (PHI). As a result of that merger, Merger Sub was merged into PHI (the PHI Merger) with PHI surviving as a wholly owned subsidiary of Exelon and Exelon Energy Delivery Company, LLC (EEDC), a wholly owned subsidiary of Exelon which also owns Exelon's interests in ComEd, PECO and BGE (through a special purpose subsidiary in the case of BGE). See Note 4—Mergers, Acquisitions and Dispositions of the Combined Notes to Consolidated Financial Statements for additional information on the PHI Merger.

Debt and Credit Agreements

Short-Term Borrowings

Exelon Corporate meets its short-term liquidity requirements primarily through the issuance of commercial paper. Exelon Corporate had no commercial paper borrowings at both December 31, 2017 and December 31, 2016.

Short-Term Loan Agreements

On March 23, 2017, Exelon Corporate entered into a $500 million term loan agreement which expires on March 22, 2018.  Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 1% and all indebtedness thereunder is unsecured.  The loan agreement is reflected in Exelon’s Consolidated Balance Sheet within Short-Term borrowings.

Credit Agreements

On May 26, 2016, Exelon Corporate amended and extended its syndicated revolving credit facility with aggregate bank commitments of $600 million through May 26, 2021. As of December 31, 2017, Exelon Corporation had available capacity under those commitments of $555 million. See Note 13—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for further information regarding Exelon Corporation’s credit agreement.

Long-Term Debt

The following tables present the outstanding long-term debt for Exelon Corporate as of December 31, 2017 and December 31, 2016:

					Maturity Date	December 31,
	Rates					2017			2016
Long-term debt
Junior subordinated notes			3.50	%	2022	$	1,150		$	1,150
Contract payment - junior subordinated notes			2.50	%	2017	—			19
Senior unsecured notes(a)	2.45	%	7.60	%	2020 - 2046	5,889			6,439
Total long-term debt						7,039			7,608
Unamortized debt discount and premium, net						(8		)	(8		)
Unamortized debt issuance costs						(49		)	(57		)
Fair value adjustment of consolidated subsidiary						179			220
Long-term debt due within one year						—			(570		)
Long-term debt						$	7,161		$	7,193

__________

(a) Senior unsecured notes include mirror debt that is held on both Generation and Exelon Corporation's balance sheets.

The debt maturities for Exelon Corporate for the periods 2018,2019, 2020, 2021, 2022 and thereafter are as follows:

2018	$	—
2019	—
2020	1,450
2021	300
2022	1,150
Remaining years	4,139
Total long-term debt	$	7,039

Commitments and Contingencies

See Note 23—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for Exelon Corporate’s commitments and contingencies related to environmental matters and fund transfer restrictions.

Related Party Transactions

The financial statements of Exelon Corporate include related party transactions as presented in the tables below:

	For the Years Ended December 31,
(In millions)	2017			2016			2015
Operating and maintenance from affiliates:
BSC(a)	$	23		$	51		$	43
Other	2			—			—
Total operating and maintenance from affiliates:	$	25		$	51		$	43
Interest income from affiliates, net:
Generation	$	37		$	39		$	43
BSC	3			—			—
Total interest income from affiliates, net:	$	40		$	39		$	43
Equity in earnings (losses) of investments:
Exelon Energy Delivery Company, LLC(b)	$	1,670		$	1,041		$	1,079
PCI	1			6			—
BSC	1			1			—
UII, LLC	41			(9		)	20
Exelon Transmission Company, LLC	(10		)	(13		)	(8		)
Exelon Enterprise	1			(1		)	(1		)
Generation	2,694			496			1,371
Total equity in earnings of investments	$	4,398		$	1,521		$	2,461
Cash contributions received from affiliates	$	1,879		$	1,912		$	3,209

	December 31,
(in millions)	2017			2016
Accounts receivable from affiliates (current):
BSC(a)	$	1		$	15
Generation	21			22
ComEd	3			3
PECO	1			1
BGE	1			1
PHISCO	6			6
Total accounts receivable from affiliates (current)	$	33		$	48
Notes receivable from affiliates (current):
BSC(a)	$	217		$	88
Investments in affiliates:
BSC(a)	$	196		$	194
Exelon Energy Delivery Company, LLC(b)	25,082			23,003
PCI	78			77
UII, LLC	268			92
Exelon Transmission Company, LLC	1			5
Voluntary Employee Beneficiary Association trust	(4		)	(5		)
Exelon Enterprises	22			21
Generation	13,635			11,488
Other	(6		)	(6		)
Total investments in affiliates	$	39,272		$	34,869
Notes receivable from affiliates (non-current):
Generation(c)	$	910		$	922
Accounts payable to affiliates (current):
ComEd	$	—		$	345
UII, LLC	360			361
Total accounts payable to affiliates (current)	$	360		$	706

__________

(a) Exelon Corporate receives a variety of corporate support services from BSC, including legal, human resources, financial, information technology and supply management services. All services are provided at cost, including applicable overhead.

(b) Exelon Energy Delivery Company, LLC consists of ComEd, PECO, BGE, PHI, Pepco, DPL and ACE.

(c) In connection with the debt obligations assumed by Exelon as part of the Constellation merger, Exelon and subsidiaries of Generation (former Constellation subsidiaries) assumed intercompany loan agreements that mirror the terms and amounts of the third-party debt obligations of Exelon, resulting in intercompany notes payable included in Long-Term Debt to affiliate on Generation’s Consolidated Balance Sheets and intercompany notes receivable at Exelon Corporate, which are eliminated in consolidation on Exelon’s Consolidated Balance Sheets.