Changes in Accumulated Other Comprehensive Income (Exelon and Generation)

The following tables present changes in accumulated other comprehensive income (loss) (AOCI) by component for the three months ended March 31, 2019 and 2018:



Three Months Ended March 31, 2019	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	$	(2	)	$	—	$	(2,960	)	$	(33	)	$	—		$	(2,995	)
OCI before reclassifications	—			—		(38		)	2			(1		)	(37		)
Amounts reclassified from AOCI^(b)	—			—		20			—			—			20
Net current-period OCI	—			—		(18		)	2			(1		)	(17		)
Ending balance	$	(2	)	$	—	$	(2,978	)	$	(31	)	$	(1	)	$	(3,012	)
Generation^(a)
Beginning balance	$	(4	)	$	—	$	—		$	(33	)	$	(1	)	$	(38	)
OCI before reclassifications	—			—		—			2			(1		)	1
Amounts reclassified from AOCI	1			—		—			—			—			1
Net current-period OCI	1			—		—			2			(1		)	2
Ending balance	$	(3	)	$	—	$	—		$	(31	)	$	(2	)	$	(36	)



Three Months Ended March 31, 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	8			—			18				1			—			27
Amounts reclassified from AOCI^(b)	—			—			44				—			—			44
Net current-period OCI	8			—			62				1			—			71
Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard^(c)	—			(10		)	—				—			—			(10		)
Ending balance	$	(6	)	$	—		$	(2,936	)		$	(22	)	$	(1	)	$	(2,965	)
Generation^(a)
Beginning balance	$	(16	)	$	3		$	—			$	(23	)	$	(1	)	$	(37	)
OCI before reclassifications	7			—			—				(1		)	—			6
Amounts reclassified from AOCI	—			—			—				—			—			—
Net current-period OCI	7			—			—				(1		)	—			6
Impact of adoption of Recognition and Measurement of Financial Assets and Liabilities standard^(c)	—			(3		)	—				—			—			(3		)
Ending balance	$	(9	)	$	—		$	—			$	(24	)	$	(1	)	$	(34	)

_________


(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 and $3 million for Exelon and Generation, respectively. The amounts reclassified related to Rabbi Trusts. See Note 1 — Significant Accounting Policies of the Exelon 2018 Form 10-K 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 1 — Significant Accounting Policies of the Exelon 2018 Form 10-K for additional information.

Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE did not have any reclassifications out of AOCI to Net income during the three months ended March 31, 2019 and 2018. The following tables present amounts reclassified out of AOCI to Net income for Exelon during the three months ended March 31, 2019 and 2018.

Three Months Ended March 31, 2019



Details about AOCI components	Items reclassified out of AOCI^(a)			Affected line item in the Statement of Operations and Comprehensive Income
	Exelon
Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	22
Actuarial losses^(b)	(49		)
	(27		)	Total before tax
	7			Tax benefit
	$	(20	)	Net of tax

Total Reclassifications	$	(20	)	Net of tax

Three Months Ended March 31, 2018



Details about AOCI components	Items reclassified out of AOCI^(a)			Affected line item in the Statement of Operations and Comprehensive Income
	Exelon
Amortization of pension and other postretirement benefit plan items
Prior service costs^(b)	$	23
Actuarial losses^(b)	(83		)
	(60		)	Total before tax
	16			Tax benefit
	$	(44	)	Net of tax

Total Reclassifications	$	(44	)	Net of tax

_________


(a)	Amounts in parenthesis represent a decrease in net income.


(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 months ended March 31, 2019 and 2018:



	Three Months Ended March 31,
	2019			2018
Exelon
Pension and non-pension postretirement benefit plans:
Prior service benefit reclassified to periodic benefit cost	$	6		$	6
Actuarial loss reclassified to periodic benefit cost	(13		)	(22		)
Pension and non-pension postretirement benefit plans valuation adjustment	14			(7		)
Change in unrealized loss on cash flow hedges	—			(3		)
Change in unrealized loss on investments in unconsolidated affiliates	—			(1		)
Total	$	7		$	(27	)

Generation
Change in unrealized gain (loss) on cash flow hedges	$	1		$	(3	)
Change in unrealized loss on investments in unconsolidated affiliates	—			(1		)
Total	$	1		$	(4	)