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

12 Months Ended

Dec. 31, 2018

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)	2018			2017			2016
Operating expenses
Operating and maintenance	$	(5	)	$	10		$	221
Operating and maintenance from affiliates	9			25			51
Other	4			4			4
Total operating expenses	8			39			276
Operating loss	(8		)	(39		)	(276		)
Other income and (deductions)
Interest expense, net	(312		)	(315		)	(312		)
Equity in earnings of investments	2,188			4,414			1,508
Interest income from affiliates, net	42			40			39
Other, net	3			1			7
Total other income	1,921			4,140			1,242
Income before income taxes	1,913			4,101			966
Income taxes	(97		)	315			(155		)
Net income	$	2,010		$	3,786		$	1,121
Other comprehensive income (loss)
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic costs	$	(66	)	$	(56	)	$	(48	)
Actuarial loss reclassified to periodic cost	247			197			184
Pension and non-pension postretirement benefit plan valuation adjustment	(143		)	10			(181		)
Unrealized gain on cash flow hedges	12			3			2
Unrealized gain on marketable securities	—			6			1
Unrealized gain (loss) on equity investments	1			6			(4		)
Unrealized (loss) gain on foreign currency translation	(10		)	7			10
Other comprehensive income (loss)	41			173			(36		)
Comprehensive income	$	2,051		$	3,959		$	1,085

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)	2018			2017			2016
Net cash flows provided by operating activities	$	2,581		$	1,921		$	1,029
Cash flows from investing activities
Changes in Exelon intercompany money pool	1			(129		)	1,390
Investment in affiliates	(1,236		)	(1,717		)	(1,757		)
Acquisition of business	—			—			(6,962		)
Other investing activities	—			(5		)	5
Net cash flows used in investing activities	(1,235		)	(1,851		)	(7,324		)
Cash flows from financing activities
Issuance of long-term debt	—			—			1,800
Proceeds from short-term borrowings with maturities greater than 90 days	—			500			—
Retirement of long-term debt	—			(569		)	(46		)
Common stock issued from treasury stock	—			1,150			—
Dividends paid on common stock	(1,332		)	(1,236		)	(1,166		)
Proceeds from employee stock plans	105			150			55
Other financing activities	(4		)	(9		)	(20		)
Net cash flows (used in) provided by financing activities	(1,231		)	(14		)	623
Increase (Decrease) in cash, cash equivalents and restricted cash	115			56			(5,672		)
Cash, cash equivalents and restricted cash at beginning of period	74			18			5,690
Cash, cash equivalents and restricted cash at end of period	$	189		$	74		$	18

Exelon Corporation and Subsidiary Companies

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

Condensed Balance Sheets

	December 31,
(In millions)	2018		2017
ASSETS
Current assets
Cash and cash equivalents	$	189	$	74
Accounts receivable, net
Other accounts receivable	48		431
Accounts receivable from affiliates	44		33
Notes receivable from affiliates	216		217
Regulatory assets	182		284
Other	4		4
Total current assets	683		1,043
Property, plant and equipment, net	48		50
Deferred debits and other assets
Regulatory assets	3,742		3,697
Investments in affiliates	40,448		39,311
Deferred income taxes	1,455		1,431
Notes receivable from affiliates	898		910
Other	235		234
Total deferred debits and other assets	46,778		45,583
Total assets	$	47,509	$	46,676

Exelon Corporation and Subsidiary Companies

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

Condensed Balance Sheets

	December 31,
(In millions)	2018			2017
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term borrowings	$	500		$	500
Accounts payable	1			2
Accrued expenses	184			99
Payables to affiliates	360			360
Regulatory liabilities	15			16
Pension obligations	63			65
Other	14			46
Total current liabilities	1,137			1,088
Long-term debt	7,147			7,161
Deferred credits and other liabilities
Regulatory liabilities	32			15
Pension obligations	7,795			7,792
Non-pension postretirement benefit obligations	199			322
Deferred income taxes	233			220
Other	202			180
Total deferred credits and other liabilities	8,461			8,529
Total liabilities	16,745			16,778
Commitments and contingencies
Shareholders’ equity
Common stock (No par value, 2,000 shares authorized, 968 shares and 963 shares outstanding at December 31, 2018 and 2017, respectively)	19,116			18,966
Treasury stock, at cost (2 shares at December 31, 2018 and 2017)	(123		)	(123		)
Retained earnings	14,766			14,081
Accumulated other comprehensive loss, net	(2,995		)	(3,026		)
Total shareholders’ equity	30,764			29,898
Total liabilities and shareholders’ equity	$	47,509		$	46,676

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 5—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, 2018 and December 31, 2017.

Short-Term Loan Agreements

On March 23, 2017, Exelon Corporate entered into a $500 million term loan agreement which expired on March 22, 2018.  The loan agreement was renewed on March 22, 2018 and will expire on March 21, 2019. 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 its syndicated revolving credit facility with aggregate bank commitments of $600 million through May 26, 2021. On May 26, 2018, Exelon Corporate had its maturity date extended to May 26, 2023. As of December 31, 2018, Exelon Corporation had available capacity under those commitments of $591 million. See Note 13—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for additional 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, 2018 and December 31, 2017:

					Maturity Date	December 31,
	Rates					2018			2017
Long-term debt
Junior subordinated notes			3.50	%	2022	$	1,150		$	1,150
Senior unsecured notes(a)	2.45	%	7.60	%	2020 - 2046	5,889			5,889
Total long-term debt						7,039			7,039
Unamortized debt discount and premium, net						(7		)	(8		)
Unamortized debt issuance costs						(47		)	(49		)
Fair value adjustment of consolidated subsidiary						162			179
Long-term debt						$	7,147		$	7,161

__________

(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 2019, 2020, 2021, 2022, 2023 and thereafter are as follows:

2019	$	—
2020	1,450
2021	300
2022	1,150
2023	—
Remaining years	4,139
Total long-term debt	$	7,039

Commitments and Contingencies

See Note 22—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)	2018			2017			2016
Operating and maintenance from affiliates:
BSC(a)	$	11		$	23		$	51
Other	(2		)	2			—
Total operating and maintenance from affiliates:	$	9		$	25		$	51
Interest income from affiliates, net:
Generation	$	36		$	37		$	39
BSC	4			3			—
Exelon Energy Delivery Company, LLC(b)	$	2		$	—		$	—
Total interest income from affiliates, net:	$	42		$	40		$	39
Equity in earnings (losses) of investments:
Exelon Energy Delivery Company, LLC(b)	$	1,835		$	1,670		$	1,041
PCI	(17		)	1			6
BSC	—			1			1
UII, LLC	—			41			(9		)
Exelon Transmission Company, LLC	1			(10		)	(13		)
Exelon Enterprise	—			1			(1		)
Generation	369			2,710			483
Total equity in earnings of investments:	$	2,188		$	4,414		$	1,508
Cash contributions received from affiliates	$	2,302		$	1,879		$	1,912

	December 31,
(in millions)	2018			2017
Accounts receivable from affiliates (current):
BSC(a)	$	13		$	1
Generation	17			21
ComEd	4			3
PECO	2			1
BGE	2			1
PHISCO	6			6
Total accounts receivable from affiliates (current):	$	44		$	33
Notes receivable from affiliates (current):
BSC(a)	$	116		$	217
Generation(c)	100			—
Total notes receivable from affiliates (current):	$	216		$	217
Investments in affiliates:
BSC(a)	$	197		$	196
Exelon Energy Delivery Company, LLC(b)	26,702			25,082
PCI	61			78
UII, LLC	268			268
Exelon Transmission Company, LLC	1			1
Voluntary Employee Beneficiary Association trust	(1		)	(4		)
Exelon Enterprises	22			22
Generation	13,204			13,674
Other	(6		)	(6		)
Total investments in affiliates:	$	40,448		$	39,311
Notes receivable from affiliates (non-current):
Generation(c)	$	898		$	910
Accounts payable to affiliates (current):
UII, LLC	$	360		$	360

__________

(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 affiliates in Generation’s Consolidated Balance Sheets and intercompany notes receivable at Exelon Corporate, which are eliminated in consolidation in Exelon’s Consolidated Balance Sheets.