Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Summarized results of discontinued operations for the three months ended March 31, 2018 and 2017, were as follows:

	For the Three Months Ended March 31,
(In millions)	2018			2017
Revenues	$	622		$	689
Fuel	(116		)	(164		)
Purchased power	(53		)	(49		)
Other operating expenses	(347		)	(492		)
Provision for depreciation	(46		)	(25		)
General taxes	(18		)	(29		)
Other Income (Expense)	(60		)	(8		)
Loss from discontinued operations, before tax	(18		)	(78		)
Income tax expense (benefit)	29			(26		)
Loss from discontinued operations, net of tax	(47		)	(52		)
Gain on deconsolidation, net of tax	1,239			—
Income (loss) from discontinued operations	$	1,192		$	(52	)

The gain on deconsolidation that was recognized in the three months ended March 31, 2018, consisted of the following:

(In millions)
Removal of investment in FES and FENOC	$	2,193
Assumption of benefit obligations retained at FE (including Pension, OPEB and EDCP)	(820		)
Guarantees and credit support provided by FE	(139		)
Reserve on receivables and allocated Pension/OPEB mark-to-market	(914		)
Gain on deconsolidation of FES and FENOC, before tax	320
Income tax benefit including estimated worthless stock deduction	919
Gain on deconsolidation of FES and FENOC	$	1,239

The following table summarizes the major classes of assets and liabilities as discontinued operations as of March 31, 2018 and December 31, 2017:

(In millions)	March 31, 2018		December 31, 2017
Carrying amount of the major classes of assets included in discontinued operations:
Cash	$	—	$	1
Restricted cash	—		3
Receivables	—		202
Materials and supplies	2		201
Collateral	—		130
Other current assets	—		69
Total current assets	2		606
Property, plant and equipment	353		1,057
Investments	—		1,875
Other non-current assets	—		356
Total non-current assets	353		3,288
Total assets included in discontinued operations	$	355	$	3,894
Carrying amount of the major classes of liabilities included in discontinued operations:
Currently payable long-term debt	$	—	$	524
Accounts payable	—		200
Accrued taxes	—		38
Accrued compensation and benefits	—		79
Other current liabilities	—		132
Total current liabilities	—		973
Long-term debt and other long-term obligations	—		2,299
Accumulated deferred income taxes (1)	—		(1,812		)
Asset retirement obligations	—		1,945
Deferred gain on sale and leaseback transaction	—		723
Other non-current liabilities	—		244
Total noncurrent liabilities	—		3,399
Total liabilities included in discontinued operations	$	—	$	4,372

⁽¹⁾ Represents an increase in FirstEnergy's ADIT liability as an ADIT asset was removed upon deconsolidation of FES and FENOC.

FirstEnergy's Consolidated Statement of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category. The following table summarizes the major classes of cash flow items as discontinued operations for the three months ended March 31, 2018 and 2017:

	For the Three Months Ended March 31,
(In millions)	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) from discontinued operations	$	1,192		$	(52	)
Depreciation and amortization, including nuclear fuel, regulatory assets, net, intangible assets and deferred debt-related costs	47			79
Unrealized (gain) loss on derivative transactions	(10		)	47
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(15		)	(90		)
Nuclear fuel	—			(132		)
Sales of investment securities held in trusts	109			231
Purchases of investment securities held in trusts	(122		)	(245		)