XML 34 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
Summarized results of discontinued operations for the three and nine months ended September 30, 2018 and 2017, were as follows:
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
(In millions)
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Revenues
 
$
83

 
$
788

 
$
934

 
$
2,299

Fuel
 
(52
)
 
(237
)
 
(269
)
 
(671
)
Purchased power
 
—

 
(66
)
 
(85
)
 
(189
)
Other operating expenses
 
(24
)
 
(290
)
 
(414
)
 
(1,097
)
Provision for depreciation
 
(18
)
 
(28
)
 
(96
)
 
(80
)
General taxes
 
(4
)
 
(15
)
 
(32
)
 
(74
)
Impairment of assets
 
—

 
(18
)
 
—

 
(149
)
Other expense, net
 
(1
)
 
(2
)
 
(82
)
 
(37
)
Income (Loss) from discontinued operations, before tax
 
(16
)
 
132

 
(44
)
 
2

Income tax expense (benefit)(1)
 
(5
)
 
37

 
(9
)
 
(1
)
Income (Loss) from discontinued operations, net of tax
 
(11
)
 
95

 
(35
)
 
3

Gain (Loss) on disposal of FES and FENOC, net of tax
 
(834
)
 
—

 
405

 
—

Income (Loss) from discontinued operations
 
$
(845
)
 
$
95

 
$
370

 
$
3

(1) In conjunction with the sale of an interest in Bath County, AGC wrote off and recognized as a benefit in discontinued operations in the second quarter of 2018 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 (loss) on disposal that was recognized in the three and nine months ended September 30, 2018, consisted of the following:
(In millions)
 
For the Three Months Ended September 30, 2018

 
For the Nine Months Ended September 30, 2018

Removal of investment in FES and FENOC
 
$
—

 
$
2,193

Assumption of benefit obligations retained at FE
 
—

 
(820
)
Guarantees and credit support provided by FE
 
—

 
(139
)
Reserve on receivables and allocated Pension/OPEB mark-to-market
 
—

 
(914
)
Settlement Consideration and Services Credit
 
(1,183
)
 
(1,183
)
Loss on disposal of FES and FENOC, before tax
 
(1,183
)
 
(863
)
Income tax benefit, including estimated worthless stock deduction
 
349

 
1,268

Gain (Loss) on disposal of FES and FENOC, net of tax
 
$
(834
)
 
$
405

The following table summarizes the major classes of assets and liabilities as discontinued operations as of September 30, 2018, and December 31, 2017:
(In millions)
 
September 30, 2018
 
December 31, 2017
 
 
 
 
 
Carrying amount of the major classes of assets included in discontinued operations:
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
1

Restricted cash
 
—

 
3

Receivables
 
—

 
202

Materials and supplies
 
17

 
227

Prepaid taxes and other
 
—

 
199

 Total current assets
 
17

 
632

 
 
 
 
 
Property, plant and equipment
 
—

 
1,132

Investments
 
—

 
1,875

Other noncurrent assets
 
—

 
356

 Total noncurrent assets
 
—

 
3,363

Total assets included in discontinued operations
 
$
17

 
$
3,995

 
 
 
 
 
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
 
—

 
137

        Total current liabilities
 
—

 
978

 
 
 
 
 
Long-term debt and other long-term obligations
 
—

 
2,428

Accumulated deferred income taxes (1)
 
—

 
(1,812
)
Asset retirement obligations
 
—

 
1,945

Deferred gain on sale and leaseback transaction
 
—

 
723

Other noncurrent liabilities
 
—

 
244

        Total noncurrent liabilities
 
—

 
3,528

Total liabilities included in discontinued operations
 
$
—

 
$
4,506


(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 nine months ended September 30, 2018 and 2017:
 
 
For the Nine Months Ended September 30,
(In millions)
 
2018
 
2017
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Income from discontinued operations
 
$
370

 
$
3

Depreciation and amortization, including nuclear fuel, regulatory assets, net, intangible assets and deferred debt-related costs
 
110

 
245

Unrealized (gain) loss on derivative transactions
 
(15
)
 
64

 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 

Property additions
 
(27
)
 
(233
)
Nuclear fuel
 
—

 
(156
)
Sales of investment securities held in trusts
 
109

 
834

Purchases of investment securities held in trusts
 
(122
)
 
(878
)