Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2018

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants' consolidated financial statements at March 31, 2018 and December 31, 2017 are as follows:



	March 31, 2018								December 31, 2017
	Exelon^(a)		Generation		PHI^(a)		ACE		Exelon^(a)		Generation		PHI^(a)		ACE
Current assets	$	823	$	812	$	11	$	7	$	662	$	652	$	10	$	6
Noncurrent assets	9,279		9,251		28		20		9,317		9,286		31		23
Total assets	$	10,102	$	10,063	$	39	$	27	$	9,979	$	9,938	$	41	$	29
Current liabilities	$	269	$	236	$	33	$	29	$	308	$	272	$	36	$	32
Noncurrent liabilities	3,292		3,230		62		54		3,316		3,250		66		58
Total liabilities	$	3,561	$	3,466	$	95	$	83	$	3,624	$	3,522	$	102	$	90

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

As of March 31, 2018 and December 31, 2017, these assets and liabilities primarily consisted of the following:



	March 31, 2018								December 31, 2017
	Exelon ^(a)		Generation		PHI ^(a)		ACE		Exelon^(a)		Generation		PHI^(a)		ACE
Cash and cash equivalents	$	280	$	280	$	—	$	—	$	126	$	126	$	—	$	—
Restricted cash	73		66		7		7		64		58		6		6
Accounts receivable, net
Customer	154		154		—		—		170		170		—		—
Other	29		29		—		—		25		25		—		—
Inventory
Materials and supplies	202		202		—		—		205		205		—		—
Other current assets	55		51		4		—		45		41		4		—
Total current assets	793		782		11		7		635		625		10		6
Property, plant and equipment, net	6,181		6,181		—		—		6,186		6,186		—		—
Nuclear decommissioning trust funds	2,483		2,483		—		—		2,502		2,502		—		—
Other noncurrent assets	270		242		28		20		274		243		31		23
Total noncurrent assets	8,934		8,906		28		20		8,962		8,931		31		23
Total assets	$	9,727	$	9,688	$	39	$	27	$	9,597	$	9,556	$	41	$	29
Long-term debt due within one year	$	102	$	70	$	32	$	28	$	102	$	67	$	35	$	31
Accounts payable	93		93		—		—		114		114		—		—
Accrued expenses	52		51		1		1		67		66		1		1
Unamortized energy contract liabilities	17		17		—		—		18		18		—		—
Other current liabilities	5		5		—		—		7		7		—		—
Total current liabilities	269		236		33		29		308		272		36		32
Long-term debt	1,125		1,063		62		54		1,154		1,088		66		58
Asset retirement obligations	2,062		2,062		—		—		2,035		2,035		—		—
Unamortized energy contract liabilities	1		1		—		—		5		5		—		—
Other noncurrent liabilities	99		99		—		—		116		116		—		—
Total noncurrent liabilities	3,287		3,225		62		54		3,310		3,244		66		58
Total liabilities	$	3,556	$	3,461	$	95	$	83	$	3,618	$	3,516	$	102	$	90

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

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



March 31, 2018	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	626	$	501	$	1,127
Total liabilities^(a)	37		225		262
Exelon's ownership interest in VIE^(a)	—		246		246
Other ownership interests in VIE^(a)	588		30		618
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		246		246
Contract intangible asset	8		—		8
Net assets pledged for Zion Station decommissioning^(b)	2		—		2



December 31, 2017	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	625	$	509	$	1,134
Total liabilities^(a)	37		228		265
Exelon's ownership interest in VIE^(a)	—		251		251
Other ownership interests in VIE^(a)	588		30		618
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		251		251
Contract intangible asset	8		—		8
Net assets pledged for Zion Station decommissioning^(b)	2		—		2

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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 $30 million and $39 million as of March 31, 2018 and December 31, 2017, respectively; offset by payables to ZionSolutions, LLC of $28 million and $37 million as of March 31, 2018 and December 31, 2017, respectively. These items are included to provide information regarding the relative size of the ZionSolutions, LLC unconsolidated VIE. See Note 13 — Nuclear Decommissioning 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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