Mergers, Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the final acquisition-date fair value of the consideration transferred and the assets and liabilities assumed for the FitzPatrick acquisition by Generation as of December 31, 2017:



Cash paid for purchase price	$	110
Cash paid for net cost reimbursement	125
Nuclear fuel transfer	54
Total consideration transferred	$	289

Identifiable assets acquired and liabilities assumed
Current assets	$	60
Property, plant and equipment	298
Nuclear decommissioning trust funds	807
Other assets^(a)	114
Total assets	$	1,279

Current liabilities	$	6
Nuclear decommissioning ARO	444
Pension and OPEB obligations	33
Deferred income taxes	149
Spent nuclear fuel obligation	110
Other liabilities	15
Total liabilities	$	757
Total net identifiable assets, at fair value	$	522

Bargain purchase gain (after-tax)	$	233

_________


(a)	Includes a $110 million asset associated with a contractual right to reimbursement from the New York Power Authority (NYPA), a prior owner of FitzPatrick, associated with the DOE one-time fee obligation. See Note 23-Commitments and Contingencies for additional background regarding SNF obligations to the DOE.

Exelon applied push-down accounting to PHI, and accordingly, the PHI assets acquired and liabilities assumed were recorded at their estimated fair values on Exelon’s and PHI's Consolidated Balance Sheets as follows:



Purchase Price Allocation^(a)
Current assets	$	1,441
Property, plant and equipment	11,088
Regulatory assets	5,015
Other assets	248
Goodwill	4,005
Total assets	$	21,797

Current liabilities	$	2,752
Unamortized energy contracts	1,515
Regulatory liabilities	297
Long-term debt, including current maturities	5,636
Deferred income taxes	3,447
Pension and OPEB obligations	821
Other liabilities	187
Total liabilities	$	14,655
Total purchase price	$	7,142

__________


(a)	Amounts shown reflect the final purchase price allocation and the correction of a reporting error identified and corrected in the second quarter of 2016. The error had resulted in a gross up of certain assets and liabilities related to legacy PHI intercompany and income tax receivable and payable balances.

The following table summarizes the final acquisition-date fair value of the consideration transferred and the assets and liabilities assumed for the ConEdison Solutions acquisition by Generation:



Total consideration transferred	$	257

Identifiable assets acquired and liabilities assumed
Working capital assets	$	204
Property, plant and equipment	2
Mark-to-market derivative assets	6
Unamortized energy contract assets	100
Customer relationships	9
Other assets	1
Total assets	$	322

Mark-to-market derivative liabilities	$	65
Total liabilities	$	65
Total net identifiable assets, at fair value	$	257

Business Combination, Separately Recognized Transactions [Table Text Block]

The following amounts represent total commitment costs for Exelon, PHI, Pepco, DPL and ACE that have been recorded since the acquisition date:



	Expected Payment Period							Successor
Description	Expected Payment Period	Pepco		DPL		ACE		PHI		Exelon
Rate credits	2016 - 2017	$	91	$	67	$	101	$	259	$	259
Energy efficiency	2016 - 2021	—		—		—		—		122
Charitable contributions	2016 - 2026	28		12		10		50		50
Delivery system modernization	Q2 2017	—		—		—		—		22
Green sustainability fund	Q2 2017	—		—		—		—		14
Workforce development	2016 - 2020	—		—		—		—		17
Other		1		5		—		6		29
Total		$	120	$	84	$	111	$	315	$	513

The total purchase price consideration of approximately $7.1 billion for the PHI Merger consisted of cash paid to PHI shareholders, cash paid for PHI preferred securities and cash paid for PHI stock-based compensation equity awards as follows:



(In millions of dollars, except per share data)	Total Consideration
Cash paid to PHI shareholders at $27.25 per share (254 million shares outstanding at March 23, 2016)	$	6,933
Cash paid for PHI preferred stock	180
Cash paid for PHI stock-based compensation equity awards^(a)	29
Total purchase price	$	7,142

__________

(a)

PHI’s unvested time-based restricted stock units and performance-based restricted stock units issued prior to April 29, 2014 were immediately vested and paid in cash upon the close of the merger. PHI’s remaining unvested time-based restricted stock units as of the close of the merger were cancelled. There were no remaining unvested performance-based restricted stock units as of the close of the merger.

Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block]

The unaudited pro-forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the merger events taken place on the dates indicated, or the future consolidated results of operations of the combined company.



	Year Ended December 31,
	2016^(a)		2015^(b)
Total operating revenues	$	32,342	$	33,823
Net income attributable to common shareholders	1,562		2,618

Basic earnings per share	$	1.69	$	2.85
Diluted earnings per share	1.69		2.84

______________


(a)	The amounts above exclude non-recurring costs directly related to the merger of $680 million and intercompany revenue of $171 million for the year ended December 31, 2016.


(b)	The amounts above exclude non-recurring costs directly related to the merger of $92 million and intercompany revenue of $559 million for the year ended December 31, 2015.

Restructuring and Related Costs [Table Text Block]

For the periods ended December 31, 2017 and 2016, the Registrants have recognized costs to achieve the PHI acquisition as follows:



	For the Year Ended December 31,
Acquisition, Integration and Financing Costs^(a)	2017			2016
Exelon	$	16		$	143
Generation	22			37
ComEd^(b)	1			(6		)
PECO	4			5
BGE^(b)	4			(1		)
Pepco^(b)	(6		)	28
DPL^(b)	(7		)	20
ACE^(b)	(6		)	19



	Successor					Predecessor
Acquisition, Integration and Financing Costs^(a)	For the Year Ended December 31, 2017			March 24, 2016 to December 31, 2016		January 1, 2016 to March 23, 2016
PHI^(b)	$	(18	)	$	69	$	29

______________


(a)	The costs incurred are classified primarily within Operating and maintenance expense in the Registrants’ respective Consolidated Statements of Operations and Comprehensive Income, with the exception of the financing costs, which are included within Interest expense. Costs do not include merger commitments discussed above.

(b)

For the year ended December 31, 2017, includes deferrals of previously incurred integration costs to achieve distribution synergies related to the PHI acquisition of $24 million, $8 million, $8 million, and $8 million incurred at PHI, Pepco, DPL, and ACE, respectively, that have been recorded as a regulatory asset for anticipated recovery. For the year ended December 31, 2016, includes deferrals of previously incurred integration costs to achieve distribution synergies related to the PHI acquisition of $8 million, $6 million, $11 million, and $4 million incurred at ComEd, BGE, Pepco, and DPL, respectively, that have been recorded as a regulatory asset for anticipated recovery. For the Successor period March 24, 2016 to December 31, 2016, includes deferrals of previously incurred integration costs to achieve distribution synergies related to the PHI acquisition of $16 million incurred at PHI that have been recorded as a regulatory asset for anticipated recovery. See Note 3 - Regulatory Matters for more information.

For the years ended December 31, 2017 and 2016, the Registrants recorded the following severance costs related to the cost management program within Operating and maintenance expense in their Consolidated Statements of Operations:



	Exelon		Generation		ComEd			PECO			BGE
2017^(a)	$	6	$	9	$	(1	)	$	(1	)	$	(1	)
2016^(b)	23		18		3			1			1

__________


(a)	The amounts for Generation, ComEd, PECO, and BGE include $(4) million, $(2) million, $(1) million, and $(1) million, respectively, for amounts billed by BSC through intercompany allocations for the year ended December 31, 2017.


(b)	The amounts above for Generation, ComEd, PECO and BGE include $7 million, $3 million, $1 million, and $1 million, respectively, for amounts billed by BSC through intercompany allocations for the year ended December 31, 2016.

For the years ended December 31, 2017 and 2016, the Registrants recorded the following severance costs associated with ongoing severance benefits within Operating and maintenance expense in their Consolidated Statements of Operations and Comprehensive Income:



											Successor
	Exelon		Generation^(a)		ComEd^(a)		PECO^(a)		BGE^(a)		PHI^(a)		Pepco^(a)		DPL^(a)		ACE^(a)
Year ended December 31,
2017	$	14	$	6	$	3	$	1	$	—	$	4	$	2	$	1	$	1
2016	19		13		3		1		1		1		—		—		—

__________


(a)	The amounts above for Generation, ComEd, PECO, BGE, and PHI include immaterial amounts billed by BSC for the years ended December 31, 2017 and 2016. Pepco, DPL, and ACE include immaterial amounts billed by PHISCO for the year ended December 31, 2017. Pepco, DPL, and ACE did not have any ongoing severance plans for the year ended December 31, 2016

For the year ended December 31, 2016, the Registrants recorded the following severance costs associated with the identified job reductions within Operating and maintenance expense in their Consolidated Statements of Operations and Comprehensive Income, pursuant to the authoritative guidance for ongoing severance plans:



											Successor
	Exelon		Generation		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Severance Benefits
Severance costs^(a)	$	57	$	9	$	2	$	1	$	1	$	44	$	21	$	13	$	10

__________


(a)	The amounts above for Generation, ComEd, PECO, BGE, Pepco, DPL, and ACE include $8 million, $2 million, $1 million, $1 million, $20 million, $12 million and $10 million, respectively, for amounts billed by BSC and/or PHISCO through intercompany allocations for the year ended December 31, 2016.