2018 Q1 Form 10-Q Financial Statement

#000162828018005662 Filed on May 02, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $9.691B $8.747B
YoY Change 10.79% 15.5%
Cost Of Revenue $4.437B $3.633B
YoY Change 22.13% 11.65%
Gross Profit $5.256B $5.114B
YoY Change 2.78% 18.41%
Gross Profit Margin 54.24% 58.47%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.091B $754.0M
YoY Change 44.69% 24.42%
% of Gross Profit 20.76% 14.74%
Operating Expenses $8.648B $3.810B
YoY Change 126.98% -0.91%
Operating Profit $1.099B $1.308B
YoY Change -15.98% 170.81%
Interest Expense $365.0M $363.0M
YoY Change 0.55% 31.05%
% of Operating Profit 33.21% 27.75%
Other Income/Expense, Net -$399.0M -$116.0M
YoY Change 243.97% -32.95%
Pretax Income $702.0M $1.192B
YoY Change -41.11% 284.52%
Income Tax $59.00M $211.0M
% Of Pretax Income 8.4% 17.7%
Net Earnings $636.0M $971.0M
YoY Change -34.5% 689.43%
Net Earnings / Revenue 6.56% 11.1%
Basic Earnings Per Share $0.60 $1.07
Diluted Earnings Per Share $0.60 $1.06
COMMON SHARES
Basic Shares Outstanding 966.0M shares 928.0M shares
Diluted Shares Outstanding 968.0M shares 930.0M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $787.0M $1.859B
YoY Change -57.67% 93.65%
Cash & Equivalents $787.0M $609.0M
Short-Term Investments $1.250B
Other Short-Term Assets $1.495B $1.221B
YoY Change 22.44% 12.43%
Inventory $1.471B $1.561B
Prepaid Expenses
Receivables $4.190B $3.886B
Other Receivables $1.103B $1.133B
Total Short-Term Assets $11.53B $12.19B
YoY Change -5.42% 7.3%
LONG-TERM ASSETS
Property, Plant & Equipment $74.71B $72.63B
YoY Change 2.87% 4.65%
Goodwill $6.677B $6.677B
YoY Change 0.0% -0.16%
Intangibles
YoY Change
Long-Term Investments $640.0M $648.0M
YoY Change -1.23% 42.42%
Other Assets $1.333B $1.440B
YoY Change -7.43% 3.0%
Total Long-Term Assets $105.5B $104.9B
YoY Change 0.58% 4.48%
TOTAL ASSETS
Total Short-Term Assets $11.53B $12.19B
Total Long-Term Assets $105.5B $104.9B
Total Assets $117.0B $117.1B
YoY Change -0.04% 4.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.207B $3.011B
YoY Change 6.51% 4.77%
Accrued Expenses $1.569B $3.007B
YoY Change -47.82% 33.05%
Deferred Revenue $35.00M
YoY Change
Short-Term Debt $1.654B $2.048B
YoY Change -19.24% -43.74%
Long-Term Debt Due $1.203B $3.645B
YoY Change -67.0% 77.11%
Total Short-Term Liabilities $10.15B $14.44B
YoY Change -29.67% 4.84%
LONG-TERM LIABILITIES
Long-Term Debt $32.91B $31.04B
YoY Change 5.99% 5.9%
Other Long-Term Liabilities $2.067B $1.853B
YoY Change 11.55% -1.75%
Total Long-Term Liabilities $34.97B $32.90B
YoY Change 6.31% 5.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.15B $14.44B
Total Long-Term Liabilities $34.97B $32.90B
Total Liabilities $84.45B $88.78B
YoY Change -4.87% 5.02%
SHAREHOLDERS EQUITY
Retained Earnings $14.35B $12.72B
YoY Change 12.78% 6.41%
Common Stock $18.97B $18.81B
YoY Change 0.88% 0.65%
Preferred Stock
YoY Change
Treasury Stock (at cost) $123.0M -$123.0M
YoY Change -200.0% -105.29%
Treasury Stock Shares 1.832M shares 34.74M shares
Shareholders Equity $30.23B $26.53B
YoY Change
Total Liabilities & Shareholders Equity $117.0B $117.1B
YoY Change -0.04% 4.77%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $636.0M $971.0M
YoY Change -34.5% 689.43%
Depreciation, Depletion And Amortization $1.091B $754.0M
YoY Change 44.69% 24.42%
Cash From Operating Activities $1.502B $1.074B
YoY Change 39.85% -27.09%
INVESTING ACTIVITIES
Capital Expenditures $1.880B $2.009B
YoY Change -6.42% -8.76%
Acquisitions
YoY Change
Other Investing Activities -$3.000M $18.00M
YoY Change -116.67% 800.0%
Cash From Investing Activities -$1.857B -$2.283B
YoY Change -18.66% -73.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $1.241B $65.00M
YoY Change 1809.23% -43.97%
Cash From Financing Activities $264.0M $1.184B
YoY Change -77.7% -22.77%
NET CHANGE
Cash From Operating Activities $1.502B $1.074B
Cash From Investing Activities -$1.857B -$2.283B
Cash From Financing Activities $264.0M $1.184B
Net Change In Cash -$91.00M -$25.00M
YoY Change 264.0% -99.55%
FREE CASH FLOW
Cash From Operating Activities $1.502B $1.074B
Capital Expenditures $1.880B $2.009B
Free Cash Flow -$378.0M -$935.0M
YoY Change -59.57% 28.26%

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CY2017Q1 us-gaap Proceeds From Issuance Of Long Term Debt
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CY2017Q1 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
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CY2018Q1 us-gaap Proceeds From Short Term Debt Maturing In More Than Three Months
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CY2017Q1 us-gaap Proceeds From Stock Plans
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CY2018Q1 us-gaap Profit Loss
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CY2017Q1 us-gaap Provision For Doubtful Accounts
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CY2018Q1 us-gaap Provision For Doubtful Accounts
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CY2017Q1 us-gaap Public Utilities Allowance For Funds Used During Construction Capitalized Cost Of Equity
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17000000 USD
CY2018Q1 us-gaap Public Utilities Allowance For Funds Used During Construction Capitalized Cost Of Equity
PublicUtilitiesAllowanceForFundsUsedDuringConstructionCapitalizedCostOfEquity
18000000 USD
CY2017Q4 us-gaap Public Utilities Amount Of Allowance For Earnings On Equity Capitalized For Rate Making Purposes
PublicUtilitiesAmountOfAllowanceForEarningsOnEquityCapitalizedForRateMakingPurposes
69000000 USD
CY2018Q1 us-gaap Public Utilities Amount Of Allowance For Earnings On Equity Capitalized For Rate Making Purposes
PublicUtilitiesAmountOfAllowanceForEarningsOnEquityCapitalizedForRateMakingPurposes
69000000 USD
CY2017Q1 us-gaap Quantifying Misstatement In Current Year Financial Statements Amount
QuantifyingMisstatementInCurrentYearFinancialStatementsAmount
-127000000 USD
CY2018Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodBeforeTax
4000000 USD
CY2017Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-40000000 USD
CY2018Q1 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax
-44000000 USD
CY2017Q1 us-gaap Regulated Operating Revenue
RegulatedOperatingRevenue
4118000000 USD
CY2018Q1 us-gaap Regulated Operating Revenue
RegulatedOperatingRevenue
4570000000 USD
CY2017Q4 us-gaap Regulatory Assets
RegulatoryAssets
9288000000 USD
CY2018Q1 us-gaap Regulatory Assets
RegulatoryAssets
9308000000 USD
CY2017Q4 us-gaap Regulatory Assets Current
RegulatoryAssetsCurrent
1267000000 USD
CY2018Q1 us-gaap Regulatory Assets Current
RegulatoryAssetsCurrent
1245000000 USD
CY2017Q4 us-gaap Regulatory Assets Noncurrent
RegulatoryAssetsNoncurrent
8021000000 USD
CY2018Q1 us-gaap Regulatory Assets Noncurrent
RegulatoryAssetsNoncurrent
8063000000 USD
CY2017Q4 us-gaap Regulatory Liabilities
RegulatoryLiabilities
10388000000 USD
CY2018Q1 us-gaap Regulatory Liabilities
RegulatoryLiabilities
10246000000 USD
CY2017Q4 us-gaap Regulatory Liability Current
RegulatoryLiabilityCurrent
523000000 USD
CY2018Q1 us-gaap Regulatory Liability Current
RegulatoryLiabilityCurrent
522000000 USD
CY2017Q4 us-gaap Regulatory Liability Noncurrent
RegulatoryLiabilityNoncurrent
9865000000 USD
CY2018Q1 us-gaap Regulatory Liability Noncurrent
RegulatoryLiabilityNoncurrent
9724000000 USD
CY2017Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
65000000 USD
CY2018Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
1241000000 USD
CY2017Q1 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
RepaymentsOfShortTermDebtMaturingInMoreThanThreeMonths
500000000 USD
CY2018Q1 us-gaap Repayments Of Short Term Debt Maturing In More Than Three Months
RepaymentsOfShortTermDebtMaturingInMoreThanThreeMonths
1000000 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
253000000 USD
CY2017Q1 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
254000000 USD
CY2017Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
207000000 USD
CY2018Q1 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
209000000 USD
CY2016Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
26000000 USD
CY2017Q1 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
26000000 USD
CY2017Q4 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
85000000 USD
CY2018Q1 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
103000000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
14081000000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
14346000000 USD
CY2017Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
79000000 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
10000000 USD
CY2017Q1 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
0 USD
CY2018Q1 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
0 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
544000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
264000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
104000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
46000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
128000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
1086000000 USD
CY2017Q1 us-gaap Revenues
Revenues
8747000000 USD
CY2018Q1 us-gaap Revenues
Revenues
9693000000 USD
CY2017Q1 us-gaap Severance Costs1
SeveranceCosts1
4000000 USD
CY2018Q1 us-gaap Severance Costs1
SeveranceCosts1
8000000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
31000000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
29000000 USD
CY2017Q4 us-gaap Shares Issued
SharesIssued
965168000 shares
CY2018Q1 us-gaap Shares Issued
SharesIssued
967214000 shares
CY2017Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
929000000 USD
CY2018Q1 us-gaap Short Term Borrowings
ShortTermBorrowings
1654000000 USD
CY2017Q4 us-gaap Spent Nuclear Fuel Obligation Noncurrent
SpentNuclearFuelObligationNoncurrent
1147000000 USD
CY2018Q1 us-gaap Spent Nuclear Fuel Obligation Noncurrent
SpentNuclearFuelObligationNoncurrent
1151000000 USD
CY2017Q1 us-gaap Stock Issued1
StockIssued1
2000000 USD
CY2018Q1 us-gaap Stock Issued1
StockIssued1
1000000 USD
CY2018Q1 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
361000 shares
CY2018Q1 us-gaap Stock Issued During Period Shares Share Based Compensation Gross
StockIssuedDuringPeriodSharesShareBasedCompensationGross
1685000 shares
CY2018Q1 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
12000000 USD
CY2018Q1 us-gaap Stock Issued During Period Value Share Based Compensation Gross
StockIssuedDuringPeriodValueShareBasedCompensationGross
-3000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
29896000000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
30231000000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
32187000000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
32565000000 USD
CY2017Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
436000000 USD
CY2018Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
446000000 USD
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
1832457 shares
CY2018Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
1832457 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
123000000 USD
CY2018Q1 us-gaap Treasury Stock Value
TreasuryStockValue
123000000 USD
CY2017Q1 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-47000000 USD
CY2018Q1 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-259000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
743000000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
733000000 USD
CY2017Q1 us-gaap Utilities Operating Expense Maintenance Operations And Other Costs And Expenses
UtilitiesOperatingExpenseMaintenanceOperationsAndOtherCostsAndExpenses
2438000000 USD
CY2018Q1 us-gaap Utilities Operating Expense Maintenance Operations And Other Costs And Expenses
UtilitiesOperatingExpenseMaintenanceOperationsAndOtherCostsAndExpenses
2384000000 USD
CY2017Q1 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
224000000 USD
CY2018Q1 us-gaap Utilities Operating Expense Taxes
UtilitiesOperatingExpenseTaxes
235000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Assets Current
VariableInterestEntityConsolidatedAssetsCurrent
662000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Assets Current
VariableInterestEntityConsolidatedAssetsCurrent
823000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Assets Noncurrent
VariableInterestEntityConsolidatedAssetsNoncurrent
9317000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Assets Noncurrent
VariableInterestEntityConsolidatedAssetsNoncurrent
9279000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Assets Not Pledged
VariableInterestEntityConsolidatedAssetsNotPledged
9597000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Assets Not Pledged
VariableInterestEntityConsolidatedAssetsNotPledged
9727000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Carrying Amount Assets
VariableInterestEntityConsolidatedCarryingAmountAssets
9979000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Carrying Amount Assets
VariableInterestEntityConsolidatedCarryingAmountAssets
10102000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Carrying Amount Liabilities
VariableInterestEntityConsolidatedCarryingAmountLiabilities
3624000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Carrying Amount Liabilities
VariableInterestEntityConsolidatedCarryingAmountLiabilities
3561000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Liabilities Current
VariableInterestEntityConsolidatedLiabilitiesCurrent
308000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Liabilities Current
VariableInterestEntityConsolidatedLiabilitiesCurrent
269000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Liabilities No Recourse
VariableInterestEntityConsolidatedLiabilitiesNoRecourse
3618000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Liabilities No Recourse
VariableInterestEntityConsolidatedLiabilitiesNoRecourse
3556000000 USD
CY2017Q4 us-gaap Variable Interest Entity Consolidated Liabilities Noncurrent
VariableInterestEntityConsolidatedLiabilitiesNoncurrent
3316000000 USD
CY2018Q1 us-gaap Variable Interest Entity Consolidated Liabilities Noncurrent
VariableInterestEntityConsolidatedLiabilitiesNoncurrent
3292000000 USD
CY2018Q1 us-gaap Variable Interest Entity Entity Maximum Loss Exposure Amount
VariableInterestEntityEntityMaximumLossExposureAmount
9000000 USD
CY2017Q4 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Assets
VariableInterestEntityNonconsolidatedCarryingAmountAssets
1134000000 USD
CY2018Q1 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Assets
VariableInterestEntityNonconsolidatedCarryingAmountAssets
1127000000 USD
CY2017Q4 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Liabilities
VariableInterestEntityNonconsolidatedCarryingAmountLiabilities
265000000 USD
CY2018Q1 us-gaap Variable Interest Entity Nonconsolidated Carrying Amount Liabilities
VariableInterestEntityNonconsolidatedCarryingAmountLiabilities
262000000 USD
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
930000000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
968000000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
928000000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
966000000 shares
CY2018Q1 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">New Accounting Standards Issued and Not Yet Adopted as of March 31, 2018: </font><font style="font-family:Arial;font-size:10pt;">The following new authoritative accounting guidance issued by the FASB has not yet been adopted and reflected by the Registrants in their consolidated financial statements as of March 31, 2018. Unless otherwise indicated, the Registrants are currently assessing the impacts such guidance may have (which could be material) on their Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows and disclosures, as well as the potential to early adopt where applicable. The Registrants have assessed other FASB issuances of new standards which are not listed below given the current expectation that such standards will not significantly impact the Registrants' financial reporting.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Leases (Issued February 2016):</font><font style="font-family:Arial;font-size:10pt;"> Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standard is effective January 1, 2019. Early adoption is permitted, however the Registrants will not early adopt the standard. The issued guidance required a modified retrospective transition approach, which requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented (January 1, 2017). In January 2018, the FASB proposed amending the standard to give entities another option for transition. The proposed transition method would allow entities to initially apply the requirements of the standard in the period of adoption (January 1, 2019). The Registrants will assess this transition option when the FASB issues the standard.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The new guidance requires lessees to recognize both the right-of-use assets and lease liabilities in the balance sheet for most leases, whereas today only finance lease liabilities (referred to as capital leases) are recognized in the balance sheet. In addition, the definition of a lease has been revised which may result in changes to the classification of an arrangement as a lease. Under the new guidance, an arrangement that conveys the right to control the use of an identified asset by obtaining substantially all of its economic benefits and directing how it is used is a lease, whereas the current definition focuses on the ability to control the use of the asset or to obtain its output. Quantitative and qualitative disclosures related to the amount, timing and judgments of an entity&#8217;s accounting for leases and the related cash flows are expanded. Disclosure requirements apply to both lessees and lessors, whereas current disclosures relate only to lessees. Significant changes to lease systems, processes and procedures are required to implement the requirements of the new standard. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. Lessor accounting is also largely unchanged.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The standard provides a number of transition practical expedients that entities may elect. These include a "package of three" expedients that must be taken together and allow entities to (1) not reassess whether existing contracts contain leases, (2) carryforward the existing lease classification, and (3) not reassess initial direct costs associated with existing leases. The Registrants expect to elect this practical expedient.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In January 2018, the FASB issued additional guidance which provides another optional transition practical expedient. This practical expedient allows entities to not evaluate land easements under the new guidance at adoption if they were not previously accounted for as leases.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The Registrants have assessed the lease standard and are executing a detailed implementation plan in preparation for adoption on January 1, 2019. Key activities in the implementation plan include:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:29px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Developing a complete lease inventory and abstracting the required data attributes into a lease accounting system that supports the Registrants' lease portfolios and integrates with existing systems.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:29px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Evaluating the transition practical expedients available under the guidance. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:29px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Identifying, assessing and documenting technical accounting issues, policy considerations and financial reporting implications which includes completing a detailed contract assessment for a sample of transactions to determine whether they are leases under the new guidance. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:29px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Identifying and implementing changes to processes and controls to ensure all impacts of the new guidance are effectively addressed.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Impairment of Financial Instruments (Issued June 2016):</font><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;">Provides for a new Current Expected Credit Loss (CECL) impairment model for specified financial instruments including loans, trade receivables, debt securities classified as held-to-maturity investments and net investments in leases recognized by a lessor. Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects the entity&#8217;s current estimate of credit losses expected to be incurred over the life of the financial instrument. The standard does not make changes to the existing impairment models for non-financial assets such as fixed assets, intangibles and goodwill. The standard will be effective January 1, 2020 (with early adoption as of January 1, 2019 permitted) and requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Goodwill Impairment (Issued January 2017):</font><font style="font-family:Arial;font-size:10pt;"> Simplifies the accounting for goodwill impairment by removing Step 2 of the current test, which requires calculation of a hypothetical purchase price allocation. Under the revised guidance, goodwill impairment will be measured as the amount by which a reporting unit&#8217;s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill (currently Step 1 of the two-step impairment test). Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. Exelon, Generation, ComEd, PHI and DPL have goodwill as of </font><font style="font-family:Arial;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:Arial;font-size:10pt;">. This updated guidance is not currently expected to impact the Registrants&#8217; financial reporting. The standard is effective January 1, 2020, with early adoption permitted, and must be applied on a prospective basis. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Derivatives and Hedging (Issued September 2017): </font><font style="font-family:Arial;font-size:10pt;">Allows more financial and nonfinancial hedging strategies to be eligible for hedge accounting. The amendments are intended to more closely align hedge accounting with companies&#8217; risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. There are also amendments related to effectiveness testing and disclosure requirements. The guidance is effective January 1, 2019 and early adoption is permitted with a modified retrospective transition approach. The Registrants are currently assessing this standard but do not currently expect a significant impact given the limited activity for which the Registrants elect hedge accounting and because the Registrants do not anticipate increasing their use of hedge accounting as a result of this standard.</font></div></div>
CY2018Q1 us-gaap Reclassifications
Reclassifications
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">Prior Period Adjustments and Reclassifications (All Registrants)</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;"></font><font style="font-family:Arial;font-size:10pt;">In the second quarter of 2017, errors were identified related to the Exelon, Generation, ComEd, PECO and BGE Consolidated Statements of Cash Flows for the three months ended March 31, 2017. These classification errors related to the presentation of changes in Accounts payable and accrued expenses and Accounts receivable within Cash flows provided by operating activities and Capital expenditures and Proceeds from sale of long-lived assets within Cash flows used in investing activities. These errors have been corrected in Exelon's, Generation's, ComEd's, PECO's, and BGE's Consolidated Statements of Cash Flows for the three months ended March 31, 2017 that are presented in this first quarter 2018 Form 10-Q. As revised, the Cash flows provided by operating activities for the three months ended March 31, 2017 are </font><font style="font-family:Arial;font-size:10pt;">$1,074 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$420 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$236 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$106 million</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$208 million</font><font style="font-family:Arial;font-size:10pt;"> for Exelon, Generation, ComEd, PECO and BGE, respectively, an increase (decrease) of </font><font style="font-family:Arial;font-size:10pt;">$(127) million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$(320) million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$91 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$42 million</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$40 million</font><font style="font-family:Arial;font-size:10pt;"> for Exelon, Generation, ComEd, PECO and BGE, respectively, from the originally reported amounts. As revised, the Cash flows used in investing activities are </font><font style="font-family:Arial;font-size:10pt;">$2,283 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$910 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$619 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$69 million</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$202 million</font><font style="font-family:Arial;font-size:10pt;"> for Exelon, Generation, ComEd, PECO and BGE, respectively, an increase (decrease) of </font><font style="font-family:Arial;font-size:10pt;">$(127) million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$(320) million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$91 million</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">$42 million</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$40 million</font><font style="font-family:Arial;font-size:10pt;"> for Exelon, Generation, ComEd, PECO and BGE, respectively, from the originally reported amounts. Management concluded that the errors are not material to the previously issued financial statements. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Certain prior year amounts in the Registrants' Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows, Consolidated Balance Sheets and Consolidated Statements of Changes in Shareholders' Equity have been recasted to reflect new accounting standards issued by the FASB and adopted as of January 1, 2018. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Beginning on January 1, 2018, Exelon adopted the following new accounting standards requiring reclassification or adjustments to previously reported information as follows:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Statement of Cash Flows: Classification of Restricted Cash. </font><font style="font-family:Arial;font-size:10pt;">The Registrants applied the new guidance using the full retrospective method and, accordingly, have recasted the presentation of restricted cash in their Consolidated Statements of Cash Flows in the prior periods presented. See Note </font><font style="font-family:Arial;font-size:10pt;">18</font><font style="font-family:Arial;font-size:10pt;"> &#8212; </font><font style="font-family:Arial;">Supplemental Financial Information</font><font style="font-family:Arial;font-size:10pt;"> for further information. &#160;</font><font style="font-family:inherit;font-size:11pt;color:#1f497d;"> </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income</font><font style="font-family:Arial;font-size:10pt;">.&#160; Exelon early adopted and retrospectively applied the new guidance to when the effects of the TCJA were recognized and, accordingly, recasted its December 31, 2017 AOCI and retained earnings in its Consolidated Balance Sheet and Consolidated Statement of Changes in Shareholders' Equity.&#160; Exelon's accounting policy is to release the stranded tax effects from AOCI related to its pension and OPEB plans under a portfolio (or aggregate) approach as an entire pension or OPEB plan is liquidated or terminated. See Note </font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> &#8212; </font><font style="font-family:Arial;font-size:10pt;">New Accounting Standards</font><font style="font-family:Arial;font-size:10pt;"> for further information. &#160;</font><font style="font-family:inherit;font-size:11pt;color:#1f497d;"> </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. </font><font style="font-family:Arial;font-size:10pt;">Exelon applied this guidance retrospectively for the presentation of the service and other non-service costs components of net benefit cost and, accordingly, have recasted those amounts, which were not material, in its Consolidated Statement of Operations and Comprehensive Income in prior periods presented.&#160;As part of the adoption, Exelon elected the practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the comparative periods as the estimation basis for applying the retrospective presentation requirements. See Note </font><font style="font-family:Arial;font-size:10pt;">14</font><font style="font-family:Arial;font-size:10pt;"> &#8212; </font><font style="font-family:Arial;">Retirement Benefits</font><font style="font-family:Arial;font-size:10pt;"> for further information. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:12px;padding-bottom:12px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:Arial;font-size:10pt;">. The Registrants applied the new guidance using the full retrospective method and, accordingly, have recasted certain amounts in their Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Cash Flows, Consolidated Balance Sheets, Consolidated Statements of Changes in Shareholders' Equity and Combined Notes to Consolidated Financial Statements in the prior periods presented.&#160;The amounts recasted in the Registrants' Consolidated Statements of Operations and Comprehensive Income are shown in the table below. The amounts recasted in the Registrants&#8217; Consolidated Statements of Cash Flows, Consolidated Balance Sheets, Consolidated Statements of Changes in Shareholders' Equity and Combined Notes to Consolidated Financial Statements were not material.&#160; See Note </font><font style="font-family:Arial;font-size:10pt;">5</font><font style="font-family:Arial;font-size:10pt;"> &#8212; </font><font style="font-family:Arial;">Revenue from Contracts with Customers </font><font style="font-family:Arial;font-size:10pt;">for further information.</font><font style="font-family:inherit;font-size:11pt;color:#1f497d;"> </font></div></td></tr></table></div>

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