Exelon 2015 Annual Report Download - page 376

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
in AOCI and regulatory assets (liabilities), respectively, during 2014. Of the $1,753 million gain related to pension benefits, $1,071 million and $682 million were recognized in
AOCI and regulatory assets, respectively, during 2013. Of the $677 million gain related to other postretirement benefits, $352 million and $325 million were recognized in AOCI
and regulatory assets, respectively, during 2013.
The following table provides the components of Exelon’s gross accumulated other comprehensive loss and regulatory assets (liabilities) that
have not been recognized as components of periodic benefit cost at December 31, 2015 and 2014, respectively, for all plans combined:
Pension Benefits
Other
Postretirement Benefits
2015 2014 2015 2014
Prior service cost (credit) $ 36 $ 49 $ (812) $ (963)
Actuarial loss 7,310 7,407 711 985
Total $ 7,346 $ 7,456 $ (101) $ 22
(a) Of the $7,346 million related to pension benefits, $4,246 million and $3,100 million are included in AOCI and regulatory assets, respectively, at December 31, 2015. Of the $(101)
million related to other postretirement benefits, $(63) million and $(38) million are included in AOCI and regulatory assets (liabilities), respectively, at December 31, 2015. Of the
$7,456 million related to pension benefits, $4,310 million and $3,146 million are included in AOCI and regulatory assets, respectively, at December 31, 2014. The $22 million
related to other postretirement benefits is included in regulatory assets (liabilities) at December 31, 2014.
The following table provides the components of Exelon’s AOCI and regulatory assets(liabilities) at December 31, 2015 (included in the table
above) that are expected to be amortized as components of periodic benefit cost in 2016. These estimates are subject to the completion of an
actuarial valuation of Exelon’s pension and other postretirement benefit obligations, which will reflect actual census data as of January 1, 2016 and
actual claims activity as of December 31, 2015. The valuation is expected to be completed in the first quarter of 2016 for the majority of the
benefit plans.
Pension Benefits
Other
Postretirement Benefits
Prior service cost (credit) $ 13 $ (175)
Actuarial loss 501 50
Total $ 514 $ (125)
(a) Of the $514 million related to pension benefits at December 31, 2015, $290 million and $224 million are expected to be amortized from AOCI and regulatory assets in 2016,
respectively. Of the $(125) million related to other postretirement benefits at December 31, 2015, $(64) million and $(61) million are expected to be amortized from AOCI and
regulatory assets (liabilities) in 2016, respectively.
Assumptions
The measurement of the plan obligations and costs of providing benefits under Exelon’s defined benefit and other postretirement plans
involves various factors, including the development of valuation assumptions and accounting policy elections. When developing the required
assumptions, Exelon considers historical information as well as future expectations. The measurement of benefit obligations and costs is
impacted by several assumptions including the discount rate applied to benefit obligations, the long-term EROA, Exelon’s expected level of
contributions to the plans, the long-term expected investment rate credited to employees participating in cash balance plans and the anticipated
rate of increase of health care costs. Additionally, assumptions related to plan participants include the incidence of mortality, the expected
remaining service period, the level of compensation and rate of compensation increases, employee age and length of service, among other
factors.
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(a)
(a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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