Pension and Other Postemployment Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]



	Pensions						OPEB
Obligations and Funded Status	2013			2012			2013			2012
	(In millions)
Change in benefit obligation:
Benefit obligation as of January 1	$	8,975		$	7,977		$	1,076		$	1,037

Service cost	197			161			13			12
Interest cost	372			389			37			47
Plan participants’ contributions	—			—			15			17
Plan amendments	2			8			(37		)	(85		)
Medicare retiree drug subsidy	—			—			5			—
Actuarial (gain) loss	(846		)	861			(107		)	152
Benefits paid	(437		)	(421		)	(123		)	(104		)
Benefit obligation as of December 31	$	8,263		$	8,975		$	879		$	1,076

Change in fair value of plan assets:
Fair value of plan assets as of January 1	$	6,671		$	5,867		$	508		$	528
Actual return on plan assets	(77		)	611			56			48
Company contributions	14			614			39			19
Plan participants’ contributions	—			—			15			17
Benefits paid	(437		)	(421		)	(123		)	(104		)
Fair value of plan assets as of December 31	$	6,171		$	6,671		$	495		$	508

Funded Status:
Qualified plan	$	(1,782	)	$	(1,967	)
Non-qualified plans	(310		)	(336		)
Funded Status	$	(2,092	)	$	(2,303	)	$	(384	)	$	(566	)

Accumulated benefit obligation	$	7,800		$	8,355		$	—		$	—

Amounts Recognized on the Balance Sheet:
Current liabilities	$	(15	)	$	(14	)	$	—		$	—
Noncurrent liabilities	(2,077		)	(2,289		)	(384		)	(566		)
Net liability as of December 31	$	(2,092	)	$	(2,303	)	$	(384	)	$	(566	)

Amounts Recognized in AOCI:
Prior service cost (credit)	$	48		$	58		$	(558	)	$	(728	)

Assumptions Used to Determine Benefit Obligations
(as of December 31)
Discount rate	5.00		%	4.25		%	4.75		%	4.00		%
Rate of compensation increase	4.20		%	4.70		%	N/A			N/A

Assumed Health Care Cost Trend Rates
(as of December 31)
Health care cost trend rate assumed (pre/post-Medicare)	N/A			N/A			7.25-7.75%			7.5-8.0%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	N/A			N/A			5		%	5		%
Year that the rate reaches the ultimate trend rate (pre/post-Medicare)	N/A			N/A			2020			2020

Allocation of Plan Assets (as of December 31)
Equity securities	18		%	15		%	47		%	39		%
Bonds	40		%	47		%	40		%	40		%
Absolute return strategies	23		%	22		%	3		%	4		%
Real estate	6		%	5		%	1		%	1		%
Private equities	—		%	1		%	—		%	—		%
Cash and short-term securities	13		%	10		%	9		%	16		%
Total	100		%	100		%	100		%	100		%

Components of Net Periodic Benefit Costs



	Pensions									OPEB
Components of Net Periodic Benefit Costs	2013			2012			2011			2013			2012			2011
	(In millions)
Service cost	$	197		$	161		$	130		$	13		$	12		$	13
Interest cost	372			389			374			37			47			48
Expected return on plan assets	(501		)	(486		)	(446		)	(34		)	(37		)	(40		)
Amortization of prior service cost (credit)	12			12			14			(207		)	(203		)	(203		)
Other adjustments (settlements, curtailments, etc.)	—			—			6			—			—			—
Pensions & OPEB mark-to-market adjustment	(267		)	735			729			(129		)	140			36
Net periodic cost	$	(187	)	$	811		$	807		$	(320	)	$	(41	)	$	(146	)

Assumptions Used to Determine Net Periodic Benefit Cost



Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31⁽¹⁾	Pensions						OPEB
	2013		2012		2011		2013		2012		2011
Weighted-average discount rate	4.25	%	5.00	%	5.50	%	4.00	%	4.75	%	5.00	%
Expected long-term return on plan assets	7.75	%	7.75	%	8.25	%	7.75	%	7.75	%	8.50	%
Rate of compensation increase	4.70	%	5.20	%	5.20	%	N/A		N/A		N/A

Target asset allocations for pension and OPEB portfolio

FirstEnergy’s target asset allocations for its pensions and OPEB trust portfolios for 2013 and 2012 are shown in the following table:



	Target Asset Allocations
	2013		2012
Equities	26	%	20	%
Fixed income	40	%	51	%
Absolute return strategies	22	%	21	%
Real estate	5	%	5	%
Private equity	1	%	—	%
Cash	6	%	3	%
	100	%	100	%

Effect of One-Percentage Point change in assumed health care cost trend rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects:



	1-Percentage-Point Increase		1-Percentage-Point Decrease
	(in millions)
Effect on total of service and interest cost	$	1	$	(1	)
Effect on accumulated benefit obligation	$	26	$	(23	)

Estimated Future Benefit Payments

Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contributions:



			OPEB
	Pensions		Benefit Payments		Subsidy Receipts
	(in millions)
2014	$	449	$	129	$	(4	)
2015	466		67		(4		)
2016	484		67		(4		)
2017	500		67		(4		)
2018	524		65		(4		)
Years 2019-2023	2,867		382		(17		)

Net Pension and OPEB Asset (Liability)

FES’ share of the net pensions and OPEB liability as of December 31, 2013 and 2012, was as follows:



	Pensions						OPEB
	2013			2012			2013			2012
	(In millions)
Net Liability	$	(149	)	$	(180	)	$	(8	)	$	(36	)

Net Periodic Pension and OPEB Costs

FES’ share of the net periodic pensions and OPEB costs for the three years ended December 31, 2013 was as follows:



	Pensions							OPEB
	2013			2012		2011		2013			2012			2011
	(In millions)
Net Periodic Costs	$	(30	)	$	78	$	80	$	(40	)	$	(11	)	$	(21	)

Pensions

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension investments measured at fair value

The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 9, Fair Value Measurements, for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2013 and 2012.



	December 31, 2013								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	782	$	—	$	782	13	%
Equity investments
Domestic	701		3		—		704		11	%
International	304		118		—		422		7	%
Fixed income
Government bonds	—		314		—		314		5	%
Corporate bonds	—		2,128		—		2,128		34	%
Mortgaged-backed securities (non-government)	—		87		—		87		1	%
Alternatives
Hedge funds	—		1,395		—		1,395		23	%
Derivatives	—		14		—		14		—	%
Private equity funds	—		—		27		27		—	%
Real estate funds	—		—		385		385		6	%
Total ⁽¹⁾	$	1,005	$	4,841	$	412	$	6,258	100	%



	December 31, 2012								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	652	$	—	$	652	10	%
Equity investments
Domestic	547		8		—		555		8	%
International	275		153		—		428		7	%
Fixed income
Government bonds	4		564		—		568		8	%
Corporate bonds	—		1,899		—		1,899		28	%
High yield debt	—		369		—		369		6	%
Mortgaged-backed securities (non-government)	—		330		—		330		5	%
Alternatives
Hedge funds	—		1,498		—		1,498		22	%
Derivatives	—		18		—		18		—	%
Private equity funds	—		—		33		33		1	%
Real estate funds	—		—		357		357		5	%
Total ⁽¹⁾	$	826	$	5,491	$	390	$	6,707	100	%

Reconciliation of changes in the fair value of pension investments

The following table provides a reconciliation of changes in the fair value of pension investments classified as Level 3 in the fair value hierarchy during 2013 and 2012:



	Private Equity Funds			Real Estate Funds			Derivatives
	(In millions)
Balance as of January 1, 2012	$	135		$	327		$	70
Actual return on plan assets:
Unrealized gains	(14		)	29			—
Realized gains	(10		)	4			—
Purchases, sales and settlements	—			—			(70		)
Transfers in (out)	(78		)	(3		)	—
Balance as of December 31, 2012	$	33		$	357		$	—
Actual return on plan assets:
Unrealized gains	1			17			—
Realized gains	5			13			—
Purchases, sales and settlements	—			—			—
Transfers out	(12		)	(2		)	—
Balance as of December 31, 2013	$	27		$	385		$	—

OPEB

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension investments measured at fair value

As of December 31, 2013 and 2012, the OPEB trust investments measured at fair value were as follows:



	December 31, 2013								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	47	$	—	$	47	9	%
Equity investment
Domestic	227		—		—		227		45	%
International	4		2		—		6		1	%
Mutual funds	5		—		—		5		1	%
Fixed income
U.S. treasuries	—		44		—		44		9	%
Government bonds	—		91		—		91		18	%
Corporate bonds	—		59		—		59		12	%
High yield debt	—		—		—		—		—	%
Mortgage-backed securities (non-government)	—		3		—		3		1	%
Alternatives
Hedge funds	—		17		—		17		3	%
Private equity funds	—		—		—		—		—	%
Real estate funds	—		—		5		5		1	%
Total ⁽¹⁾	$	236	$	263	$	5	$	504	100	%



	December 31, 2012								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	83	$	—	$	83	16	%
Equity investment
Domestic	183		—		—		183		36	%
International	4		2		—		6		1	%
Mutual funds	8		3		—		11		2	%
Fixed income
U.S. treasuries	—		48		—		48		9	%
Government bonds	—		88		—		88		17	%
Corporate bonds	—		59		—		59		11	%
High yield debt	—		5		—		5		1	%
Mortgage-backed securities (non-government)	—		9		—		9		2	%
Alternatives
Hedge funds	—		21		—		21		4	%
Private equity funds	—		—		—		—		—	%
Real estate funds	—		—		5		5		1	%
Total ⁽¹⁾	$	195	$	318	$	5	$	518	100	%

Reconciliation of changes in the fair value of pension investments

The following table provides a reconciliation of changes in the fair value of OPEB trust investments classified as Level 3 in the fair value hierarchy during 2013 and 2012:



	Private Equity Funds			Real Estate Funds
	(in millions)
Balance as of January 1, 2012	$	3		$	7
Actual return on plan assets:
Unrealized losses	(1		)	—
Realized gains (losses)	—			—
Purchases, sales and settlements	—			—
Transfers out	(2		)	(2		)
Balance as of December 31, 2012	$	—		$	5
Balance as of December 31, 2013	$	—		$	5