Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Summarized results of discontinued operations for the three and six months ended June 30, 2018 and 2017, were as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In millions)	2018			2017			2018			2017
Revenues	$	11		$	680		$	633		$	1,369
Fuel	(5		)	(180		)	(121		)	(344		)
Purchased power	—			(74		)	(53		)	(123		)
Other operating expenses	—			(282		)	(347		)	(774		)
Provision for depreciation	—			(27		)	(46		)	(52		)
General taxes	—			(23		)	(18		)	(52		)
Impairment of assets	—			(131		)	—			(131		)
Other expense, net	(4		)	(23		)	(64		)	(31		)
Income (Loss) from discontinued operations, before tax	2			(60		)	(16		)	(138		)
Income tax benefit(1)	(30		)	(15		)	(1		)	(41		)
Income (Loss) from discontinued operations, net of tax	32			(45		)	(15		)	(97		)
Gain on deconsolidation, net of tax	—			—			1,239			—
Income (loss) from discontinued operations	$	32		$	(45	)	$	1,224		$	(97	)

⁽¹⁾ In conjunction with the sale of an interest in Bath County, AGC wrote-off and recognized as a benefit in discontinued operations its excess deferred tax liabilities of $32 million, created from the Tax Act, since they are not required to be refunded to ratepayers.

The gain on deconsolidation that was recognized in the six months ended June 30, 2018, consisted of the following:

(In millions)	For the Six Months Ended June 30, 2018
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, net of tax	$	1,239

The following table summarizes the major classes of assets and liabilities as discontinued operations as of June 30, 2018 and December 31, 2017:

(In millions)	June 30, 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	—		201
Collateral	—		130
Other current assets	—		69
Total current assets	—		606
Property, plant and equipment	—		1,057
Investments	—		1,875
Other non-current assets	—		356
Total non-current assets	—		3,288
Total assets included in discontinued operations	$	—	$	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 six months ended June 30, 2018 and 2017:

	For the Six Months Ended June 30,
(In millions)	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) from discontinued operations	$	1,224		$	(97	)
Depreciation and amortization, including nuclear fuel, regulatory assets, net, intangible assets and deferred debt-related costs	47			157
Unrealized (gain) loss on derivative transactions	(10		)	53
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(15		)	(178		)
Nuclear fuel	—			(134		)
Sales of investment securities held in trusts	109			437
Purchases of investment securities held in trusts	(122		)	(466		)