Fair Value Measurements

12 Months Ended

Dec. 31, 2011

LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS

All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported on the Consolidated Balance Sheets at cost, which approximates their fair market value, in the caption “Short-term borrowings.” The following table provides the approximate fair value and related carrying amounts of long-term debt and other long-term obligations, excluding capital lease obligations and net unamortized premiums and discounts, as of December 31, 2011 and 2010:



	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
FirstEnergy⁽¹⁾	$	17,165	$	19,320	$	13,928	$	14,845
FES	3,675		3,931		4,279		4,403
OE	1,157		1,434		1,159		1,321
CEI	1,831		2,162		1,853		2,035
TE	600		741		600		653
JCP&L	1,777		2,080		1,810		1,962
Met-Ed	729		824		742		821
Penelec	1,120		1,251		1,120		1,189


⁽¹⁾	Includes debt assumed in the AE merger (see Note 2, Merger) with a carrying value and a fair value as of December 31, 2011, of $4,355 million and $4,561 million, respectively.

The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each respective period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar to those of FirstEnergy and its subsidiaries listed above.

INVESTMENTS

All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include held-to-maturity securities, available-for-sale securities and notes receivable.

FE and its subsidiaries periodically evaluate their investments for other-than-temporary impairment. They first consider their intent and ability to hold an equity investment until recovery and then consider, among other factors, the duration and the extent to which the security’s fair value has been less than cost and the near-term financial prospects of the security issuer when evaluating an investment for impairment. For debt securities, FE and its subsidiaries consider their intent to hold the security, the likelihood that they will be required to sell the security before recovery of their cost basis and the likelihood of recovery of the security’s entire amortized cost basis.

Unrealized gains applicable to the decommissioning trusts of FES, OE and TE are recognized in OCI because fluctuations in fair value will eventually impact earnings while unrealized losses are recorded to earnings. The decommissioning trusts of JCP&L, Met-Ed and Penelec are subject to regulatory accounting. Net unrealized gains and losses are recorded as regulatory assets or liabilities because the difference between investments held in the trust and the decommissioning liabilities will be recovered from or refunded to customers.

The investment policy for the NDT funds restricts or limits the trusts’ ability to hold certain types of assets including private or direct placements, warrants, securities of FirstEnergy, investments in companies owning nuclear power plants, financial derivatives, preferred stocks, securities convertible into common stock and securities of the trust funds’ custodian or managers and their parents or subsidiaries.

Available-For-Sale Securities

FES and the Utility Registrants hold debt and equity securities within their NDT, nuclear fuel disposal trusts and NUG trusts. These trust investments are considered available-for-sale securities at fair market value. FES and the Utility Registrants have no securities held for trading purposes.

The following table summarizes the amortized cost basis, unrealized gains and losses and fair values of investments held in NDT, nuclear fuel disposal trusts and NUG trusts as of December 31, 2011 and 2010:



	December 31, 2011⁽¹⁾								December 31, 2010⁽²⁾
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value		Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(In millions)
Debt securities
FirstEnergy	$	1,980	$	25	$	—	$	2,005	$	1,699	$	31	$	—	$	1,730
FES	1,012		13		—		1,025		980		13		—		993
OE	134		—		—		134		123		1		—		124
TE	53		1		—		54		42		—		—		42
JCP&L	356		7		—		363		281		9		—		290
Met-Ed	232		2		—		234		127		4		—		131
Penelec	193		2		—		195		145		4		—		149
Equity securities
FirstEnergy	$	222	$	36	$	—	$	258	$	268	$	69	$	—	$	337
FES	104		20		—		124		—		—		—		—
TE	22		5		—		27		—		—		—		—
JCP&L	27		3		—		30		80		17		—		97
Met-Ed	46		5		—		51		125		35		—		160
Penelec	23		3		—		26		63		16		—		79


⁽¹⁾	Excludes short-term cash investments: FirstEnergy — $164 million; FES — $74 million; OE — $2 million; TE — $2 million; JCP&L — $19 million; Met-Ed — $25 million and Penelec — $41 million.


⁽²⁾	Excludes short-term cash investments: FirstEnergy — $193 million; FES — $153 million; OE — $3 million; TE — $34 million; JCP&L — $3 million; Met-Ed — $(3) million and Penelec — $4 million.

Proceeds from the sale of investments in available-for-sale securities, realized gains and losses on those sales net of adjustments recorded to earnings and interest and dividend income for the three years ended December 31, 2011, 2010 and 2009 were as follows:



December 31, 2011	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	4,207	$	229	$	(90	)	$	82
FES	1,843		80		(46		)	47
OE	154		6		—			3
TE	120		5		(5		)	2
JCP&L	779		39		(11		)	15
Met-Ed	860		64		(16		)	8
Penelec	451		35		(12		)	6



December 31, 2010	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	3,172	$	126	$	(107	)	$	79
FES	1,927		92		(75		)	47
OE	83		2		—			3
TE	126		3		(1		)	2
JCP&L	411		10		(10		)	14
Met-Ed	460		13		(14		)	7
Penelec	165		6		(7		)	6



December 31, 2009	Sales Proceeds		Realized Gains		Realized Losses			Interest and Dividend Income
	(In millions)
FirstEnergy	$	2,229	$	226	$	(155	)	$	60
FES	1,379		199		(117		)	27
OE	131		11		(4		)	4
TE	169		7		(1		)	2
JCP&L	397		6		(12		)	14
Met-Ed	68		2		(13		)	7
Penelec	84		1		(8		)	6

Held-To-Maturity Securities

The following table provides the amortized cost basis, unrealized gains and approximate fair values of investments in held-to-maturity securities as of December 31, 2011 and 2010:



	December 31, 2011						December 31, 2010
	Cost Basis		Unrealized Gains		Fair Value		Cost Basis		Unrealized Gains		Fair Value
	(In millions)
Debt Securities
FirstEnergy	$	402	$	50	$	452	$	476	$	91	$	567
OE	163		21		184		190		51		241
CEI	287		28		315		340		41		381

Investments in emission allowances, employee benefit trusts and cost and equity method investments totaling $693 million as of December 31, 2011, and $259 million as of December 31, 2010, are excluded from the amounts reported above.

Notes Receivable

The table below provides the approximate fair value and related carrying amounts of notes receivable as of December 31, 2011 and 2010. The fair value of notes receivable represents the present value of the cash inflows based on the yield to maturity. The yields assumed were based on financial instruments with similar characteristics and terms. The maturity date of notes receivable due from affiliated companies is 2016.



	December 31, 2011				December 31, 2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
FirstEnergy	$	—	$	—	$	7	$	8
TE⁽¹⁾	81		92		104		118


⁽¹⁾	Represents TE's investment in the Shippingport Trust notes (see Note 6, Leases), which is eliminated during consolidation.

RECURRING FAIR VALUE MEASUREMENTS

Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of the fair value hierarchy are as follows:



Level 1		– Quoted prices for identical instruments in active markets.

Level 2		– Quoted prices for similar instruments in active markets;
		– quoted prices for identical or similar instruments in markets that are not active and
		– model-derived valuations for which all significant inputs are observable market data.

		Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures.

Level 3		– Valuation inputs are unobservable and significant to the fair value measurement.

		FirstEnergy develops its view of the future market price through a combination of market observation and assessment (generally for the short term) and fundamental modeling (generally for the long term). FirstEnergy utilizes market data and assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. FirstEnergy primarily applies the market approach for recurring fair value measurements using the best information available. Accordingly, FirstEnergy maximizes the use of observable inputs and minimizes the use of unobservable inputs.

The determination of the fair value measures takes into consideration various factors. These factors include, but are not limited to, nonperformance risk, including counterparty credit risk and the impact of credit enhancements (such as cash deposits, LOCs and priority interests). The impact of these forms of risk were not significant in the fair value measurements.

The following tables set forth financial assets and liabilities that are accounted for at fair value by level within the fair value hierarchy. There were no significant transfers between levels during 2011 and 2010.

FIRSTENERGY



	December 31, 2011											December 31, 2010
	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3			Total
Assets	(In millions)
Corporate debt securities	$	—	$	1,544		$	—		$	1,544		$	—	$	597		$	—		$	597
Derivative assets — commodity contracts	—		264			—			264			—		250			—			250
Derivative assets — FTRs	—		—			1			1			—		—			—			—
Derivative assets — NUG contracts⁽¹⁾	—		—			56			56			—		—			122			122
Equity securities⁽²⁾	259		—			—			259			338		—			—			338
Foreign government debt securities	—		3			—			3			—		149			—			149
U.S. government debt securities	—		148			—			148			—		595			—			595
U.S. state debt securities	—		314			—			314			—		379			—			379
Other⁽³⁾	—		225			—			225			—		219			—			219
Total assets	$	259	$	2,498		$	57		$	2,814		$	338	$	2,189		$	122		$	2,649
Liabilities
Derivative liabilities — commodity contracts	$	—	$	(247	)	$	—		$	(247	)	$	—	$	(348	)	$	—		$	(348	)
Derivative liabilities — FTRs	—		—			(23		)	(23		)	—		—			—			—
Derivative liabilities — NUG contracts⁽¹⁾	—		—			(349		)	(349		)	—		—			(466		)	(466		)
Total liabilities	$	—	$	(247	)	$	(372	)	$	(619	)	$	—	$	(348	)	$	(466	)	$	(814	)
Net assets (liabilities)⁽⁴⁾	$	259	$	2,251		$	(315	)	$	2,195		$	338	$	1,841		$	(344	)	$	1,835


⁽¹⁾	NUG contracts are generally subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽³⁾	Primarily consists of short-term cash investments.


⁽⁴⁾	Excludes $(52) million and $(7) million as of December 31, 2011 and 2010, respectively, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of NUG contracts held by the Utilities and FTRs held by FirstEnergy and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010:



	Derivative Assets⁽¹⁾			Derivative Liabilities⁽¹⁾			Net⁽¹⁾
	(In millions)
December 31, 2009 Balance	$	200		$	(643	)	$	(443	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(71		)	(110		)	(181		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(7		)	287			280
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	122		$	(466	)	$	(344	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(55		)	(173		)	(228		)
Purchases	13			(4		)	9
Issuances	—			—			—
Sales	—			—			—
Settlements	(23		)	283			260
Transfers in (out) of Level 3	—			(12		)	(12		)
December 31, 2011 Balance	$	57		$	(372	)	$	(315	)


⁽¹⁾	Changes in the fair value of NUG contracts are generally subject to regulatory accounting and do not impact earnings.

FES



	December 31, 2011											December 31, 2010
	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total
Assets	(In millions)
Corporate debt securities	$	—	$	1,010		$	—		$	1,010		$	—	$	528		$	—	$	528
Derivative assets — commodity contracts	—		248			—			248			—		241			—		241
Derivative assets — FTRs	—		—			1			1			—		—			—		—
Equity securities⁽¹⁾	124		—			—			124			—		—			—		—
Foreign government debt securities	—		3			—			3			—		147			—		147
U.S. government debt securities	—		7			—			7			—		308			—		308
U.S. state debt securities	—		5			—			5			—		6			—		6
Other⁽²⁾	—		132			—			132			—		148			—		148
Total assets	$	124	$	1,405		$	1		$	1,530		$	—	$	1,378		$	—	$	1,378
Liabilities
Derivative liabilities — commodity contracts	$	—	$	(234	)	$	—		$	(234	)	$	—	$	(348	)	$	—	$	(348	)
Derivative liabilities — FTRs	—		—			(7		)	(7		)	—		—			—		—
Total liabilities	$	—	$	(234	)	$	(7	)	$	(241	)	$	—	$	(348	)	$	—	$	(348	)
Net assets (liabilities)⁽³⁾	$	124	$	1,171		$	(6	)	$	1,289		$	—	$	1,030		$	—	$	1,030


⁽¹⁾	NDT funds hold equity portfolios whose performance of which is benchmarked against the Alerian MLP Index.


⁽²⁾	Primarily consists of short-term cash investments.


⁽³⁾	Excludes $(58) million and $7 million as of December 31, 2011 and 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of FTRs held by FES and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010:



	Derivative Asset FTRs			Derivative Liability FTRs			Net FTRs
	(In millions)
December 31, 2010 Balance	$	—		$	—		$	—
Realized gain (loss)	—			—			—
Unrealized gain (loss)	4			(8		)	(4		)
Purchases	2			(1		)	1
Issuances	—			—			—
Sales	—			—			—
Settlements	(5		)	2			(3		)
Transfers in (out) of Level 3	—			—			—
December 31, 2011 Balance	$	1		$	(7	)	$	(6	)



	December 31, 2011								December 31, 2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Corporate debt securities	$	—	$	3	$	—	$	3	$	—	$	—	$	—	$	—
U.S. government debt securities	—		132		—		132		—		124		—		124
Other⁽¹⁾	—		2		—		2		—		2		—		2
Total assets⁽²⁾	$	—	$	137	$	—	$	137	$	—	$	126	$	—	$	126


⁽¹⁾	Primarily consists of short-term cash investments.


⁽²⁾	Excludes $1 million as of December 31, 2011 and 2010 of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.



	December 31, 2011								December 31, 2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(In millions)
Corporate debt securities	$	—	$	53	$	—	$	53	$	—	$	7	$	—	$	7
Equity securities⁽¹⁾	27		—		—		27		—		—		—		—
U.S. government debt securities	—		—		—		—		—		33		—		33
U.S. state debt securities	—		—		—		—		—		1		—		1
Other⁽²⁾	—		3		—		3		—		35		—		35
Total assets	$	27	$	56	$	—	$	83	$	—	$	76	$	—	$	76


⁽¹⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽²⁾	Primarily consists of short-term cash investments.

JCP&L



	December 31, 2011										December 31, 2010
	Level 1		Level 2		Level 3			Total			Level 1		Level 2		Level 3			Total
Assets	(In millions)
Corporate debt securities	$	—	$	144	$	—		$	144		$	—	$	23	$	—		$	23
Derivative assets — commodity contracts	—		—		—			—			—		2		—			2
Derivative assets — NUG contracts⁽¹⁾	—		—		4			4			—		—		6			6
Equity securities⁽²⁾	30		—		—			30			96		—		—			96
U.S. government debt securities	—		2		—			2			—		33		—			33
U.S. state debt securities	—		219		—			219			—		236		—			236
Other⁽³⁾	—		15		—			15			—		4		—			4
Total assets	$	30	$	380	$	4		$	414		$	96	$	298	$	6		$	400
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(147	)	$	(147	)	$	—	$	—	$	(233	)	$	(233	)
Total liabilities	$	—	$	—	$	(147	)	$	(147	)	$	—	$	—	$	(233	)	$	(233	)
Net assets (liabilities)⁽⁴⁾	$	30	$	380	$	(143	)	$	267		$	96	$	298	$	(227	)	$	167


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽³⁾	Primarily consists of short-term cash investments.


⁽⁴⁾	Excludes $2 million and $(3) million as of December 31, 2011 and December 31, 2010 of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of NUG contracts held by JCP&L and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
December 31, 2009 Balance	$	8		$	(399	)	$	(391	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(1		)	36			35
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	130			129
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	6		$	(233	)	$	(227	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(2		)	(11		)	(13		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	—			97			97
Transfers in (out) of Level 3	—			—			—
December 31, 2011 Balance	$	4		$	(147	)	$	(143	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.

MET-ED



	December 31, 2011										December 31, 2010
	Level 1		Level 2		Level 3			Total			Level 1		Level 2		Level 3			Total
Assets	(In millions)
Corporate debt securities	$	—	$	229	$	—		$	229		$	—	$	32	$	—		$	32
Derivative assets — commodity contracts	—		—		—			—			—		5		—			5
Derivative assets — NUG contracts⁽¹⁾	—		—		49			49			—		—		112			112
Equity securities⁽²⁾	51		—		—			51			160		—		—			160
Foreign government debt securities	—		—		—			—			—		1		—			1
U.S. government debt securities	—		5		—			5			—		88		—			88
U.S. state debt securities	—		—		—			—			—		2		—			2
Other⁽³⁾	—		23		—			23			—		14		—			14
Total assets	$	51	$	257	$	49		$	357		$	160	$	142	$	112		$	414
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(79	)	$	(79	)	$	—	$	—	$	(116	)	$	(116	)
Total liabilities	$	—	$	—	$	(79	)	$	(79	)	$	—	$	—	$	(116	)	$	(116	)
Net assets (liabilities)⁽⁴⁾	$	51	$	257	$	(30	)	$	278		$	160	$	142	$	(4	)	$	298


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽³⁾	Primarily consists of short-term cash investments.


⁽⁴⁾	Excludes $2 million and $(9) million as of December 31, 2011 and 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of NUG contracts held by Met-Ed and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
December 31, 2009 Balance	$	176		$	(143	)	$	33
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(59		)	(38		)	(97		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(5		)	65			60
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	112		$	(116	)	$	(4	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(57		)	(31		)	(88		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(6		)	68			62
Transfers in (out) of Level 3	—			—			—
December 31, 2011 Balance	$	49		$	(79	)	$	(30	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.



	December 31, 2011										December 31, 2010
	Level 1		Level 2		Level 3			Total			Level 1		Level 2		Level 3			Total
Assets	(In millions)
Corporate debt securities	$	—	$	104	$	—		$	104		$	—	$	8	$	—		$	8
Derivative assets — commodity contracts	—		—		—			—			—		2		—			2
Derivative assets — NUG contracts⁽¹⁾	—		—		3			3			—		—		4			4
Equity securities⁽²⁾	26		—		—			26			81		—		—			81
U.S. government debt securities	—		2		—			2			—		9		—			9
U.S. state debt securities	—		90		—			90			—		133		—			133
Other⁽³⁾	—		39		—			39			—		5		—			5
Total assets	$	26	$	235	$	3		$	264		$	81	$	157	$	4		$	242
Liabilities
Derivative liabilities — NUG contracts⁽¹⁾	$	—	$	—	$	(123	)	$	(123	)	$	—	$	—	$	(117	)	$	(117	)
Total liabilities	$	—	$	—	$	(123	)	$	(123	)	$	—	$	—	$	(117	)	$	(117	)
Net assets (liabilities)⁽⁴⁾	$	26	$	235	$	(120	)	$	141		$	81	$	157	$	(113	)	$	125


⁽¹⁾	NUG contracts are subject to regulatory accounting and do not impact earnings.


⁽²⁾	NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index.


⁽³⁾	Primarily consists of short-term cash investments.


⁽⁴⁾	Excludes $1 million and $(3) million as of December 31, 2011 and 2010, respectively, of receivables, payables, taxes and accrued income associated with the financial instruments reflected within the fair value table.

Rollforward of Level 3 Measurements

The following table provides a reconciliation of changes in the fair value of NUG contracts held by Penelec and classified as Level 3 in the fair value hierarchy for the years ending December 31, 2011 and 2010:



	Derivative Asset NUG Contracts⁽¹⁾			Derivative Liability NUG Contracts⁽¹⁾			Net NUG Contracts⁽¹⁾
	(In millions)
December 31, 2009 Balance	$	16		$	(101	)	$	(85	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	(11		)	(108		)	(119		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	92			91
Transfers in (out) of Level 3	—			—			—
December 31, 2010 Balance	$	4		$	(117	)	$	(113	)
Realized gain (loss)	—			—			—
Unrealized gain (loss)	—			(103		)	(103		)
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(1		)	97			96
Transfers in (out) of Level 3	—			—			—
December 31, 2011 Balance	$	3		$	(123	)	$	(120	)


⁽¹⁾	Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details