XML 44 R30.htm IDEA: XBRL DOCUMENT v3.19.1
Capitalization (Tables)
 3 Months Ended
Mar. 31, 2019
Regulated Operations [Abstract]  
Schedule of Stockholders Equity
The changes in stockholders' equity for the three months ended March 31, 2019 and 2018, for FirstEnergy are included in the following tables:
 
 
Series A Convertible Preferred Stock
 
Common Stock
 
OPIC
 
AOCI
 
Accumulated Deficit
 
Total Stockholders' Equity
(In millions)
 
Shares
 
Amount
 
Shares
 
Amount
 
 
 
Balance, January 1, 2019
 
0.7

 
$
71

 
512

 
$
51

 
$
11,530

 
$
41

 
$
(4,879
)
 
$
6,814

Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
320

 
320

Other comprehensive loss, net of tax
 
 
 
 
 
 
 
 
 
 
 
(5
)
 
 
 
(5
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
7

 
 
 
 
 
7

Stock Investment Plan and certain share-based benefit plans
 
 
 
 
 
1

 
 
 
1

 
 
 
 
 
1

Cash dividends declared on common stock
 
 
 
 
 
 
 
 
 
(202
)
 
 
 
 
 
(202
)
Cash dividends declared on preferred stock
 
 
 
 
 
 
 
 
 
(3
)
 
 
 
 
 
(3
)
Conversion of Series A Convertible Preferred Stock
 
(0.5
)
 
(50
)
 
18

 
2

 
48

 
 
 
 
 
—

Balance, March 31, 2019
 
0.2

 
$
21

 
531

 
$
53

 
$
11,381

 
$
36

 
$
(4,559
)
 
$
6,932

 
 
Series A Convertible Preferred Stock
 
Common Stock
 
OPIC
 
AOCI
 
Accumulated Deficit
 
Total Stockholders' Equity
(In millions)
 
Shares
 
Amount
 
Shares
 
Amount
 
 
 
Balance, January 1, 2018
 
—

 
$
—

 
445

 
$
44

 
$
10,001

 
$
142

 
$
(6,262
)
 
$
3,925

Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
1,369

 
1,369

Other comprehensive loss, net of tax
 
 
 
 
 
 
 
 
 
 
 
(56
)
 
 
 
(56
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
19

 
 
 
 
 
19

Stock Investment Plan and certain share-based benefit plans
 
 
 
 
 
2

 
1

 
5

 
 
 
 
 
6

Cash dividends declared on common stock
 
 
 
 
 
 
 
 
 
(343
)
 
 
 
 
 
(343
)
Cash dividends declared on preferred stock
 
 
 
 
 
 
 
 
 
(42
)
 
 
 
 
 
(42
)
Stock issuance (1)
 
1.6

 
162

 
30

 
3

 
2,297

 
 
 
 
 
2,462

Impact of adopting new accounting pronouncements (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
35

 
35

Balance, March 31, 2018
 
1.6

 
$
162

 
477

 
$
48

 
$
11,937

 
$
86

 
$
(4,858
)
 
$
7,375


(1) The preferred stock included an embedded conversion option at a price that was below the fair value of the Common Stock on the commitment date. This beneficial conversion feature (BCF), which was approximately $296 million, was recorded to OPIC as well as the amortization of the BCF (deemed dividend of $113 million for the three months ended March 31, 2018) through the period from the issue date to the first allowable conversion date (July 22, 2018). There is no net impact to OPIC for the three months ended March 31, 2018. Please see below for additional information on the issuance.

(2) FirstEnergy adopted ASU 2016-01, "Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" standard on January 1, 2018, and subsequently recorded a cumulative effect adjustment to retained earnings of $57 million representing unrealized gains on equity securities with FES NDTs that were previously recorded to AOCI. In addition, FirstEnergy adopted ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" and upon adoption, recorded a $22 million cumulative effect adjustment for stranded tax effects, such as pension and OPEB prior service costs and losses on derivative hedges, to retained earnings on January 1, 2018. These amounts are offset in other comprehensive loss and do not have an impact on total stockholders' equity.