Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2019

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in the Registrants' consolidated financial statements at March 31, 2019 and December 31, 2018 are as follows:



	March 31, 2019								December 31, 2018
	Exelon^(a)		Generation		PHI^(a)		ACE		Exelon^(a)		Generation		PHI^(a)		ACE
Current assets	$	645	$	639	$	6	$	3	$	938	$	931	$	7	$	4
Noncurrent assets	9,235		9,210		25		19		9,071		9,045		26		19
Total assets	$	9,880	$	9,849	$	31	$	22	$	10,009	$	9,976	$	33	$	23
Current liabilities	$	748	$	725	$	23	$	19	$	274	$	252	$	22	$	19
Noncurrent liabilities	2,831		2,790		41		35		3,280		3,233		47		40
Total liabilities	$	3,579	$	3,515	$	64	$	54	$	3,554	$	3,485	$	69	$	59

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



March 31, 2019	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	601	$	463	$	1,064
Total liabilities^(a)	42		223		265
Exelon's ownership interest in VIE^(a)	—		214		214
Other ownership interests in VIE^(a)	559		26		585
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		214		214
Contract intangible asset	7		—		7



December 31, 2018	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	597	$	472	$	1,069
Total liabilities^(a)	37		222		259
Exelon's ownership interest in VIE^(a)	—		223		223
Other ownership interests in VIE^(a)	560		27		587
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		223		223
Contract intangible asset	7		—		7

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(a)	These items represent amounts in the unconsolidated VIE balance sheets, not in Exelon’s or Generation’s Consolidated Balance Sheets. These items are included to provide information regarding the relative size of the unconsolidated VIEs.

Included within the balances above are assets and liabilities of certain consolidated VIEs for which the assets can only be used to settle obligations of those VIEs, and liabilities that creditors or beneficiaries do not have recourse to the general credit of the Registrants. As of March 31, 2019 and December 31, 2018, these assets and liabilities primarily consisted of the following:



	March 31, 2019								December 31, 2018
	Exelon^(a)		Generation		PHI^(a)		ACE		Exelon^(a)		Generation		PHI^(a)		ACE
Cash and cash equivalents	$	125	$	125	$	—	$	—	$	414	$	414	$	—	$	—
Restricted cash and cash equivalents	58		55		3		3		66		62		4		4
Accounts receivable, net
Customer	152		152		—		—		146		146		—		—
Other	23		23		—		—		23		23		—		—
Inventory, net
Materials and supplies	213		213		—		—		212		212		—		—
Other current assets	51		48		3		—		52		49		3		—
Total current assets	622		616		6		3		913		906		7		4
Property, plant and equipment, net	6,147		6,147		—		—		6,145		6,145		—		—
NDT funds	2,520		2,520		—		—		2,351		2,351		—		—
Other noncurrent assets	257		232		25		19		258		232		26		19
Total noncurrent assets	8,924		8,899		25		19		8,754		8,728		26		19
Total assets	$	9,546	$	9,515	$	31	$	22	$	9,667	$	9,634	$	33	$	23
Long-term debt due within one year	$	567	$	545	$	22	$	19	$	87	$	66	$	21	$	18
Accounts payable	120		120		—		—		96		96		—		—
Accrued expenses	42		41		1		—		72		72		1		1
Unamortized energy contract liabilities	13		13		—		—		15		15		—		—
Other current liabilities	6		6		—		—		3		3		—		—
Total current liabilities	748		725		23		19		273		252		22		19
Long-term debt	565		524		41		35		1,072		1,025		47		40
Asset retirement obligations	2,190		2,190		—		—		2,160		2,160		—		—
Unamortized energy contract liabilities	—		—		—		—		1		1		—		—
Other noncurrent liabilities	69		69		—		—		42		42		—		—
Total noncurrent liabilities	2,824		2,783		41		35		3,275		3,228		47		40
Total liabilities	$	3,572	$	3,508	$	64	$	54	$	3,548	$	3,480	$	69	$	59

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

- 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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