Changes in Accumulated Other Comprehensive Income (Exelon, Generation and PECO)

The following tables present changes in accumulated other comprehensive income (loss) (AOCI) by component for the nine months ended September 30, 2018 and 2017:



Nine Months Ended September 30, 2018	Gains (Losses) on Cash Flow Hedges			Unrealized gains (losses) on Marketable Securities				Pension and Non-Pension Postretirement Benefit Plan Items				Foreign Currency Items			AOCI of Investments in Unconsolidated Affiliates			Total
Exelon^(a)
Beginning balance	$	(14	)	$	10			$	(2,998	)	^(d)	$	(23	)	$	(1	)	$	(3,026	)
OCI before reclassifications	11			—				22				(4		)	1			30
Amounts reclassified from AOCI^(b)	1			—				136				—			—			137
Net current-period OCI	12			—				158				(4		)	1			167
Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard	—			(10		)	^(c)	—				—			—			(10		)
Ending balance	$	(2	)	$	—			$	(2,840	)		$	(27	)	$	—		$	(2,869	)
Generation^(a)
Beginning balance	$	(16	)	$	3			$	—			$	(23	)	$	(1	)	$	(37	)
OCI before reclassifications	11			—				—				(4		)	1			8
Amounts reclassified from AOCI^(b)	1			—				—				—			—			1
Net current-period OCI	12			—				—				(4		)	1			9
Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard	—			(3		)	^(c)	—				—			—			(3		)
Ending balance	$	(4	)	$	—			$	—			$	(27	)	$	—		$	(31	)
PECO^(a)
Beginning balance	$	—		$	1			$	—			$	—		$	—		$	1
OCI before reclassifications	—			—				—				—			—			—
Amounts reclassified from AOCI^(b)	—			—				—				—			—			—
Net current-period OCI	—			—				—				—			—			—
Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard	—			(1		)	^(c)	—				—			—			(1		)
Ending balance	$	—		$	—			$	—			$	—		$	—		$	—



Nine Months Ended September 30, 2017	Gains (Losses) on Cash Flow Hedges			Unrealized gains (losses) on Marketable Securities		Pension and Non-Pension Postretirement Benefit Plan Items			Foreign Currency Items			AOCI of Investments in Unconsolidated Affiliates			Total
Exelon^(a)
Beginning balance	$	(17	)	$	4	$	(2,610	)	$	(30	)	$	(7	)	$	(2,660	)
OCI before reclassifications	2			2		(55		)	7			7			(37		)
Amounts reclassified from AOCI^(b)	3			—		105			—			—			108
Net current-period OCI	5			2		50			7			7			71
Ending balance	$	(12	)	$	6	$	(2,560	)	$	(23	)	$	—		$	(2,589	)
Generation^(a)
Beginning balance	$	(19	)	$	2	$	—		$	(30	)	$	(7	)	$	(54	)
OCI before reclassifications	2			—		—			7			6			15
Amounts reclassified from AOCI^(b)	3			—		—			—			—			3
Net current-period OCI	5			—		—			7			6			18
Ending balance	$	(14	)	$	2	$	—		$	(23	)	$	(1	)	$	(36	)
PECO^(a)
Beginning balance	$	—		$	1	$	—		$	—		$	—		$	1
OCI before reclassifications	—			—		—			—			—			—
Amounts reclassified from AOCI^(b)	—			—		—			—			—			—
Net current-period OCI	—			—		—			—			—			—
Ending balance	$	—		$	1	$	—		$	—		$	—		$	1

_________


(a)	All amounts are net of tax and noncontrolling interests. Amounts in parenthesis represent a decrease in AOCI.


(b)	See next tables for details about these reclassifications.

(c)

Exelon prospectively adopted the new standard Recognition and Measurement of Financial Assets and Liabilities. The standard was adopted as of January 1, 2018, which resulted in an increase to Retained earnings and Accumulated other comprehensive loss of $10 million, $3 million and $1 million for Exelon, Generation and PECO, respectively. The amounts reclassified related to Rabbi Trusts. See Note 2 — New Accounting Standards for additional information.

(d)

Exelon early adopted the new standard Reclassification of Certain Tax Effects from AOCI. The standard was adopted retrospectively as of December 31, 2017, which resulted in an increase to Exelon’s Retained earnings and Accumulated other comprehensive loss of $539 million, primarily related to deferred income taxes associated with Exelon’s pension and OPEB obligations. See Note 2 — New Accounting Standards for additional information.

ComEd, PECO, BGE, PHI, Pepco, DPL and ACE did not have any reclassifications out of AOCI to Net income during the three and nine months ended September 30, 2018 and 2017. The following tables present amounts reclassified out of AOCI to Net income for Exelon and Generation during the three and nine months ended September 30, 2018 and 2017.

Three Months Ended September 30, 2018



Details about AOCI components	Items reclassified out of AOCI^(a)					Affected line item in the Statement of Operations and Comprehensive Income
	Exelon			Generation
Gains (Losses) on cash flow hedges
Other cash flow hedges	$	—		$	—	Interest expense
	—			—		Total before tax
	—			—		Tax benefit
	$	—		$	—	Net of tax

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	23		$	—
Actuarial losses^(b)	(83		)	—
	(60		)	—		Total before tax
	15			—		Tax benefit
	$	(45	)	$	—	Net of tax

Total Reclassifications	$	(45	)	$	—	Net of tax

Nine Months Ended September 30, 2018



Details about AOCI components	Items reclassified out of AOCI^(a)						Affected line item in the Statement of Operations and Comprehensive Income
	Exelon			Generation
Gains (Losses) on cash flow hedges
Other cash flow hedges	$	(1	)	$	(1	)	Interest expense
	(1		)	(1		)	Total before tax
	—			—			Tax benefit
	$	(1	)	$	(1	)	Net of tax

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	68		$	—
Actuarial losses^(b)	(251		)	—
	(183		)	—			Total before tax
	47			—			Tax benefit
	$	(136	)	$	—		Net of tax

Total Reclassifications	$	(137	)	$	(1	)	Net of tax

Three Months Ended September 30, 2017



Details about AOCI components	Items reclassified out of AOCI^(a)						Affected line item in the Statement of Operations and Comprehensive Income
	Exelon			Generation
Gains (Losses) on cash flow hedges
Other cash flow hedges	$	2		$	2		Interest expense
	2			2			Total before tax
	(1		)	(1		)	Tax expense
	$	1		$	1		Net of tax

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	23		$	—
Actuarial losses^(b)	(81		)	—
	(58		)	—			Total before tax
	23			—			Tax benefit
	$	(35	)	$	—		Net of tax

Total Reclassifications	$	(34	)	$	1		Net of tax

Nine Months Ended September 30, 2017



Details about AOCI components	Items reclassified out of AOCI^(a)						Affected line item in the Statement of Operations and Comprehensive Income
	Exelon			Generation
Gains (Losses) on cash flow hedges
Other cash flow hedges	$	(5	)	$	(5	)	Interest expense
	(5		)	(5		)	Total before tax
	2			2			Tax benefit
	$	(3	)	$	(3	)	Net of tax

Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	69		$	—
Actuarial losses^(b)	(243		)	—
	(174		)	—			Total before tax
	69			—			Tax benefit
	$	(105	)	$	—		Net of tax

Total Reclassifications	$	(108	)	$	(3	)	Net of tax

_________


(a)	Amounts in parenthesis represent a decrease in AOCI.


(b)	This AOCI component is included in the computation of net periodic pension and OPEB cost (see Note 14 — Retirement Benefits for additional information).

The following table presents income tax benefit (expense) allocated to each component of other comprehensive income (loss) during the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Exelon
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost	$	6		$	9		$	18		$	27
Actuarial loss reclassified to periodic benefit cost	(21		)	(32		)	(65		)	(96		)
Pension and non-pension postretirement benefit plans valuation adjustment	(2		)	—			(8		)	2
Change in unrealized gains on cash flow hedges	—			—			(5		)	(3		)
Change in unrealized gains (losses) on investments in unconsolidated affiliates	—			1			(1		)	(2		)
Change in unrealized gains on marketable securities	—			—			—			(2		)
Total	$	(17	)	$	(22	)	$	(61	)	$	(74	)

Generation
Change in unrealized gains on cash flow hedges	$	—		$	—		$	(4	)	$	(3	)
Change in unrealized gains on investments in unconsolidated affiliates	—			—			(1		)	(2		)
Change in unrealized gains on marketable securities	—			—			—			(1		)
Total	$	—		$	—		$	(5	)	$	(6	)