EXELON CORP
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
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10. Leases
- Leases (All Registrants)
Lessee
The Registrants have operating and finance leases for which they are the lessees. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of the lease agreements as of December 31, 2023. Exelon, ComEd, PECO, and BGE did not have material finance leases in 2023, 2022, or 2021.
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| Real estate | ● | ● | ● | ● | ● | ● | ● | ● |
|---|---|---|---|---|---|---|---|---|
| Vehicles and equipment | ● | ● | ● | ● | ● | ● | ||
| (in years) | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE |
|---|---|---|---|---|---|---|---|---|
| Remaining lease terms | 1-82 | 1-29 | 1-10 | 1-82 | 1-8 | 1-8 | 1-8 | 1-7 |
| Options to extend the term | 3-30 | N/A | N/A | 3-5 | 3-30 | 5 | 3-30 | 5 |
| Options to terminate within | 9 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
The components of operating lease costs were as follows:
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
|---|---|---|---|---|---|---|---|---|
| Operating lease costs | $58 | $1 | $— | $5 | $43 | $11 | $11 | $6 |
| Variable lease costs | 9 | 1 | — | — | 3 | 1 | 1 | 1 |
| Total lease costs(a) | $67 | $2 | $— | $5 | $46 | $12 | $12 | $7 |
| Operating lease costs | $66 | $2 | $— | $15 | $42 | $10 | $12 | $6 |
| Variable lease costs | 8 | 1 | — | — | 2 | 1 | 1 | 1 |
| Total lease costs(a) | $74 | $3 | $— | $15 | $44 | $11 | $13 | $7 |
| Operating lease costs | $84 | $3 | $— | $30 | $43 | $10 | $12 | $6 |
| Variable lease costs | 7 | 1 | — | 1 | 1 | — | — | — |
| Total lease costs(a) | $91 | $4 | $— | $31 | $44 | $10 | $12 | $6 |
(a)Excludes sublease income recorded at Exelon, PHI, and DPL of $4 million for the years ended December 31, 2023, 2022, and 2021.
The components of financing lease costs were as follows:
| PHI | Pepco | DPL | ACE | |
|---|---|---|---|---|
| Amortization of ROU asset | $16 | $6 | $6 | $4 |
| Interest on lease liabilities | 6 | 2 | 2 | 1 |
| Total finance lease cost | $22 | $8 | $8 | $5 |
| Amortization of ROU asset | $14 | $5 | $6 | $3 |
| Interest on lease liabilities | 4 | 1 | 2 | 1 |
| Total finance lease cost | $18 | $6 | $8 | $4 |
| Amortization of ROU asset | $11 | $4 | $4 | $3 |
| Interest on lease liabilities | 2 | 1 | 1 | — |
| Total finance lease cost | $13 | $5 | $5 | $3 |
The following tables provide additional information regarding the presentation of operating and finance lease ROU assets and lease liabilities within the Registrants’ Consolidated Balance Sheets:
| Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| Operating lease ROU assets | ||||||||
| Other deferred debits and other assets | $257 | $— | $1 | $29 | $152 | $31 | $32 | $8 |
| Operating lease liabilities | ||||||||
| Other current liabilities | $38 | $— | $— | $4 | $30 | $5 | $7 | $3 |
| Other deferred credits and other liabilities | 248 | — | — | 17 | 141 | 30 | 36 | 6 |
| Total operating lease liabilities | $286 | $— | $— | $21 | $171 | $35 | $43 | $9 |
| Operating lease ROU assets | ||||||||
| Other deferred debits and other assets | $265 | $2 | $1 | $2 | $180 | $36 | $39 | $9 |
| Operating lease liabilities | ||||||||
| Other current liabilities | $40 | $2 | $— | $— | $31 | $6 | $8 | $3 |
| Other deferred credits and other liabilities | 266 | — | 1 | 4 | 167 | 34 | 42 | 7 |
| Total operating lease liabilities | $306 | $2 | $1 | $4 | $198 | $40 | $50 | $10 |
| Finance Leases | ||||
|---|---|---|---|---|
| PHI | Pepco | DPL | ACE | |
| Finance lease ROU assets | ||||
| Plant, property and equipment, net | $72 | $25 | $28 | $18 |
| Finance lease liabilities | ||||
| Long-term debt due within one year | $15 | $5 | $6 | $4 |
| Long-term debt | 59 | 21 | 23 | 15 |
| Total finance lease liabilities | $74 | $26 | $29 | $19 |
| Finance lease ROU assets | ||||
| Plant, property and equipment, net | $74 | $25 | $31 | $18 |
| Finance lease liabilities | ||||
| Long-term debt due within one year | $12 | $4 | $5 | $3 |
| Long-term debt | 64 | 21 | 27 | 16 |
| Total finance lease liabilities | $76 | $25 | $32 | $19 |
Future minimum lease payments for operating and finance leases as of December 31, 2023 were as follows:
| Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE |
| 2024 | $49 | $— | $— | $4 | $36 | $7 | $9 | $3 |
| 2025 | 47 | — | — | 4 | 34 | 5 | 8 | 3 |
| 2026 | 43 | — | — | 4 | 30 | 5 | 5 | 1 |
| 2027 | 41 | — | — | 2 | 30 | 4 | 6 | 1 |
| 2028 | 41 | — | — | 2 | 30 | 4 | 6 | 1 |
| Remaining years | 130 | — | — | 22 | 40 | 16 | 21 | 1 |
| Total | 351 | — | — | 38 | 200 | 41 | 55 | 10 |
| Interest | 65 | — | — | 17 | 29 | 6 | 12 | 1 |
| Total operating lease liabilities | $286 | $— | $— | $21 | $171 | $35 | $43 | $9 |
| Finance Leases | ||||
|---|---|---|---|---|
| Year | PHI | Pepco | DPL | ACE |
| 2024 | $16 | $6 | $6 | $4 |
| 2025 | 16 | 6 | 6 | 4 |
| 2026 | 16 | 6 | 6 | 4 |
| 2027 | 14 | 5 | 6 | 3 |
| 2028 | 10 | 3 | 4 | 3 |
| Remaining years | 8 | 2 | 3 | 3 |
| Total | 80 | 28 | 31 | 21 |
| Interest | 6 | 2 | 2 | 2 |
| Total finance lease liabilities | $74 | $26 | $29 | $19 |
The weighted average remaining lease terms, in years, for operating and finance leases were as follows:
| Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| At December 31, 2023 | 8.8 | 1.8 | 5.0 | 17.1 | 6.1 | 7.6 | 7.4 | 3.2 |
| At December 31, 2022 | 9.5 | 1.0 | 5.5 | 70.9 | 6.8 | 8.1 | 7.9 | 3.3 |
| Finance Leases | ||||
|---|---|---|---|---|
| PHI | Pepco | DPL | ACE | |
| At December 31, 2023 | 4.9 | 4.9 | 4.8 | 5.1 |
| At December 31, 2022 | 5.5 | 5.4 | 5.5 | 5.6 |
The weighted average discount rates for operating and finance leases were as follows:
| Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| At December 31, 2023 | 4.0% | 0.7% | 2.5% | 5.0% | 4.2% | 4.1% | 4.0% | 3.6% |
| At December 31, 2022 | 3.9% | 2.6% | 2.3% | 4.5% | 4.2% | 4.0% | 4.0% | 3.3% |
| Finance Leases | ||||
|---|---|---|---|---|
| PHI | Pepco | DPL | ACE | |
| At December 31, 2023 | 2.7% | 2.7% | 2.6% | 2.8% |
| At December 31, 2022 | 2.3% | 2.3% | 2.3% | 2.4% |
Cash paid for amounts included in the measurement of operating and finance lease liabilities were as follows:
| Operating Cash Flows from Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| For the year ended December 31, 2023 | $65 | $2 | $— | $15 | $37 | $7 | $9 | $3 |
| For the year ended December 31, 2022 | 66 | 3 | — | 16 | 37 | 8 | 9 | 4 |
| For the year ended December 31, 2021 | 93 | 3 | — | 46 | 39 | 8 | 9 | 4 |
| Financing Cash Flows from Finance Leases | ||||
|---|---|---|---|---|
| PHI | Pepco | DPL | ACE | |
| For the year ended December 31, 2023 | $15 | $5 | $6 | $4 |
| For the year ended December 31, 2022 | 13 | 5 | 5 | 3 |
| For the year ended December 31, 2021 | 10 | 3 | 4 | 3 |
ROU assets obtained in exchange for operating and finance lease obligations were as follows:
| Operating Leases | ||||||||
|---|---|---|---|---|---|---|---|---|
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | ACE | |
| For the year ended December 31, 2023 | $35 | $— | $— | $32 | $3 | $— | $1 | $2 |
| For the year ended December 31, 2022 | 46 | — | — | — | 2 | — | 1 | 1 |
| For the year ended December 31, 2021 | 1 | — | — | (1) | 1 | — | 1 | — |
| Finance Leases | ||||
|---|---|---|---|---|
| PHI | Pepco | DPL | ACE | |
| For the year ended December 31, 2023 | $11 | $5 | $3 | $3 |
| For the year ended December 31, 2022 | 14 | 4 | 7 | 3 |
| For the year ended December 31, 2021 | 32 | 12 | 12 | 8 |
Lessor
The Registrants have operating leases for which they are the lessors. The following tables outline the significant types of leases at each of the Registrants and other terms and conditions of their lease agreements as of December 31, 2023. ACE didnot have any operating leases for which they are the lessors for the years ended December 31, 2023, 2022, and 2021.
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | |
| Real estate | ● | ● | ● | ● | ● | ● | ● |
|---|
| (in years) | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL |
|---|---|---|---|---|---|---|---|
| Remaining lease terms | 1-79 | 1-13 | 1-79 | 19 | 1-9 | 1-2 | 8-9 |
| Options to extend the term | 1-79 | 5-79 | 1-50 | N/A | N/A | N/A | N/A |
The components of lease income were as follows:
| Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL | |
|---|---|---|---|---|---|---|---|
| Operating lease income | $5 | $— | $— | $— | $4 | $— | $3 |
| Variable lease income | 1 | — | — | — | 1 | — | 1 |
| Operating lease income | $4 | $— | $— | $— | $4 | $— | $3 |
| Variable lease income | 1 | — | — | — | 1 | — | 1 |
| Operating lease income | $5 | $— | $— | $— | $4 | $— | $3 |
| Variable lease income | 1 | — | — | — | 1 | — | 1 |
Future minimum lease payments to be recovered under operating leases as of December 31, 2023 were as follows:
| Year | Exelon | ComEd | PECO | BGE | PHI | Pepco | DPL |
|---|---|---|---|---|---|---|---|
| 2024 | $6 | $1 | $1 | $— | $4 | $— | $4 |
| 2025 | 6 | 1 | 1 | — | 4 | — | 4 |
| 2026 | 6 | — | 1 | — | 5 | — | 4 |
| 2027 | 6 | — | — | — | 5 | — | 4 |
| 2028 | 5 | — | — | — | 5 | — | 4 |
| Remaining years | 22 | — | 3 | 1 | 18 | — | 18 |
| Total | $51 | $2 | $6 | $1 | $41 | $— | $38 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.