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Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Provision for income taxes (benefits)
INCOME TAXES (BENEFITS)
 
2017
 
2016
 
2015
 
 
(In millions)
FirstEnergy
 
 
 
 
 
 
Currently payable (receivable)-
 
 
 
 
 
 
Federal
 
$
14

 
$
(1
)
 
$
1

State
 
42

 
9

 
30

 
 
56

 
8

 
31

Deferred, net-
 
 
 
 
 
 
Federal
 
876

 
(3,114
)
 
277

State
 
(29
)
 
59

 
15

 
 
847

 
(3,055
)
 
292

Investment tax credit amortization
 
(8
)
 
(8
)
 
(8
)
Total provision for income taxes (benefits)
 
$
895

 
$
(3,055
)
 
$
315

 
 
 
 
 
 
 
FES
 
 
 
 
 
 
Currently payable (receivable)-
 
 
 
 
 
 
Federal
 
$
(159
)
 
$
(67
)
 
$
(56
)
State
 
(1
)
 
(1
)
 
2

 
 
(160
)
 
(68
)
 
(54
)
Deferred, net-
 
 
 
 

 
 
Federal
 
509

 
(2,861
)
 
103

State
 
(52
)
 
(57
)
 
18

 
 
457

 
(2,918
)
 
121

Investment tax credit amortization
 
(2
)
 
(2
)
 
(2
)
Total provision for income taxes (benefits)
 
$
295

 
$
(2,988
)
 
$
65

 
 
 
 
 
 
 
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes
The following tables provide a reconciliation of federal income tax expense (benefit) at the federal statutory rate to the total income taxes (benefits) for the three years ended December 31:
 
2017
 
2016
 
2015
 
(In millions)
FirstEnergy
 
 
 
 
 
Income (loss) before income taxes (benefits)
$
(829
)
 
$
(9,232
)
 
$
893

Federal income tax expense (benefit) at statutory rate (35%)
$
(290
)
 
$
(3,231
)
 
$
313

Increases (reductions) in taxes resulting from-
 
 
 
 
 
State income taxes, net of federal tax benefit
(4
)
 
(192
)
 
17

AFUDC equity and other flow-through
(15
)
 
(13
)
 
(16
)
Amortization of investment tax credits
(8
)
 
(8
)
 
(8
)
Change in accounting method
—

 
—

 
(8
)
ESOP dividend
(6
)
 
(6
)
 
(6
)
Impairment of non-deductible goodwill
—

 
157

 
—

Remeasurement of deferred taxes
1,193

 
—

 
—

Uncertain tax positions
(3
)
 
(16
)
 
1

Valuation allowances
29

 
246

 
18

Other, net
(1
)
 
8

 
4

Total income taxes (benefits)
$
895

 
$
(3,055
)
 
$
315

Effective income tax rate
(108.0
)%
 
33.1
%
 
35.3
%
 
 
 
 
 
 
FES
 
 
 
 
 
Income (loss) before income taxes (benefits)
$
(2,096
)
 
$
(8,443
)
 
$
147

Federal income tax expense (benefit) at statutory rate (35%)
$
(734
)
 
$
(2,955
)
 
$
51

Increases (reductions) in taxes resulting from-
 
 
 
 
 
State income taxes, net of federal tax benefit
(52
)
 
(188
)
 
2

Amortization of investment tax credits
(2
)
 
(2
)
 
(2
)
ESOP dividend
—

 
(1
)
 
(1
)
Impairment of non-deductible goodwill
—

 
9

 
—

Remeasurement of deferred taxes
1,067

 
—

 
—

Uncertain tax positions
—

 
(8
)
 
5

Valuation allowances
18

 
151

 
14

Other, net
(2
)
 
6

 
(4
)
Total income taxes (benefits)
$
295

 
$
(2,988
)
 
$
65

Effective income tax rate
(14.1
)%
 
35.4
%
 
44.2
%
 
 
 
 
 
 
Accumulated deferred income taxes
Accumulated deferred income taxes as of December 31, 2017 and 2016, are as follows:

 
 
2017
 
2016
 
 
(In millions)
FirstEnergy
 
 
 
 
Property basis differences
 
$
3,662

 
$
7,088

Deferred sale and leaseback gain
 
(231
)
 
(351
)
Pension and OPEB
 
(952
)
 
(1,347
)
Nuclear decommissioning activities
 
450

 
635

Asset retirement obligations
 
(453
)
 
(669
)
Regulatory asset/liability
 
416

 
545

Deferred compensation
 
(177
)
 
(269
)
Nuclear Fuel
 
(375
)
 
(90
)
Loss carryforwards and AMT credits
 
(1,467
)
 
(2,251
)
Valuation reserve
 
580

 
438

All other
 
(94
)
 
36

Net deferred income tax liability
 
$
1,359

 
$
3,765

 
 
 
 
 
FES
 
 
 
 
Property basis differences
 
$
(677
)
 
$
(1,009
)
Deferred sale and leaseback gain
 
(219
)
 
(328
)
Pension and OPEB
 
(244
)
 
(366
)
Lease market valuation liability
 
75

 
111

Nuclear decommissioning activities
 
411

 
540

Asset retirement obligations
 
(296
)
 
(453
)
Nuclear Fuel
 
(375
)
 
(90
)
Loss carryforwards and AMT credits
 
(587
)
 
(830
)
Valuation reserve
 
268

 
197

All other
 
(110
)
 
(51
)
Net deferred income tax asset
 
$
(1,754
)
 
$
(2,279
)
Pre-tax net operating loss expiration period
Expiration Period
 
FirstEnergy
 
FES
 
 
(In millions)
 
 
State
 
Local
 
State
 
Local
2018-2022
 
$
806

 
$
3,472

 
$
2

 
$
1,954

2023-2027
 
1,963

 
—

 
32

 
—

2028-2032
 
2,382

 
—

 
703

 
—

2033-2037
 
1,896

 
—

 
982

 
—

 
 
$
7,047

 
$
3,472

 
$
1,719

 
$
1,954
Changes in unrecognized tax benefits
The following table summarizes the changes in unrecognized tax positions for the years ended 2017, 2016 and 2015:
 
 
FirstEnergy
 
FES
 
 
(In millions)
Balance, January 1, 2015
 
$
34

 
$
3

Current year increases
 
3

 
—

Prior years increases
 
7

 
5

Prior years decreases
 
(10
)
 
—

Balance, December 31, 2015
 
$
34

 
$
8

Current year increases
 
2

 
—

Prior years increases
 
69

 
—

Prior years decreases
 
(21
)
 
(8
)
Balance, December 31, 2016
 
$
84

 
$
—

Current year increases
 
2

 
—

Decrease for lapse in statute
 
(6
)
 
—

Balance, December 31, 2017
 
$
80

 
$
—
Details of general taxes
General tax expense for 2017, 2016 and 2015, is summarized as follows:

 
 
2017
 
2016
 
2015
 
 
(In millions)
FirstEnergy
 
 
 
 
 
 
KWH excise
 
$
188

 
$
196

 
$
193

State gross receipts
 
204

 
212

 
224

Real and personal property
 
486

 
472

 
410

Social security and unemployment
 
131

 
127

 
119

Other
 
34

 
35

 
32

Total general taxes
 
$
1,043

 
$
1,042

 
$
978

 
 
 
 
 
 
 
FES
 
 
 
 
 
 
State gross receipts
 
$
20

 
$
28

 
$
44

Real and personal property
 
27

 
42

 
36

Social security and unemployment
 
11

 
15

 
16

Other
 
—

 
3

 
2

Total general taxes
 
$
58

 
$
88

 
$
98