Exelon 2015 Annual Report Download - page 261

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Unconsolidated Variable Interest Entities
Exelon’s and Generation’s variable interests in unconsolidated VIEs generally include equity investments and energy purchase and sale
contracts. For the equity investments, the carrying amount of the investments is reflected on Exelon’s and Generation’s Consolidated Balance
Sheets in Investments. For the energy purchase and sale contracts (commercial agreements), the carrying amount of assets and liabilities in
Exelon’s and Generation’s Consolidated Balance Sheets that relate to their involvement with the VIEs are predominately related to working capital
accounts and generally represent the amounts owed by, or owed to, Exelon and Generation for the deliveries associated with the current billing
cycles under the commercial agreements. Further, Exelon and Generation have not provided material debt or equity support, liquidity arrangements
or performance guarantees associated with these commercial agreements.
As of December 31, 2015 and 2014, Exelon and Generation had significant unconsolidated variable interests in eight and six VIEs,
respectively, for which Exelon or Generation, as applicable, was not the primary beneficiary; including certain equity method investments and
certain commercial agreements. The increase in the number of unconsolidated VIEs is due to the execution of an energy purchase and sale
agreement with a new unconsolidated VIE and an equity investment in a new unconsolidated VIE.
The following tables present summary information about Exelon and Generation’s significant unconsolidated VIE entities:
December 31, 2015
Commercial
Agreement
VIEs
Equity
Investment
VIEs Total
Total assets $ 263 $ 164 $427
Total liabilities 22 125 147
Exelon’s ownership interest in VIE — 11 11
Other ownership interests in VIE 241 28 269
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments — 21 21
Contract intangible asset 9 — 9
Debt and payment guarantees — 3 3
Net assets pledged for Zion Station decommissioning 17 — 17
December 31, 2014
Commercial
Agreement
VIEs
Equity
Investment
VIEs Total
Total assets $ 114 $ 91 $205
Total liabilities 3 49 52
Exelon’s ownership interest in VIE — 9 9
Other ownership interests in VIE 111 33 144
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments — 13 13
Contract intangible asset 9 — 9
Debt and payment guarantees — 3 3
Net assets pledged for Zion Station decommissioning 27 — 27
(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. Exelon corrected an error in the December 31, 2014 balances within Commercial Agreement VIEs for an
overstatement of Total assets, Total liabilities and Other ownership interests in VIE of $392 million, $234 million and $158 million, respectively. The error is not considered material
to any prior period.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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