Pension and Other Postemployment Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]



	Pension						OPEB
Obligations and Funded Status - Qualified and Non-Qualified Plans	2019			2018			2019			2018
	(In millions)
Change in benefit obligation:
Benefit obligation as of January 1	$	9,462		$	10,167		$	608		$	731

Service cost	193			224			3			5
Interest cost	373			372			22			25
Plan participants’ contributions	—			—			4			3
Plan amendments	2			5			—			5
Special termination benefits	14			31			—			8
Medicare retiree drug subsidy	—			—			1			1
Annuity purchase	—			(129		)	—			—
Actuarial (gain) loss	1,535			(710		)	64			(121		)
Benefits paid	(529		)	(498		)	(48		)	(49		)
Benefit obligation as of December 31	$	11,050		$	9,462		$	654		$	608

Change in fair value of plan assets:
Fair value of plan assets as of January 1	$	6,984		$	6,704		$	408		$	439
Actual return on plan assets	1,419			(363		)	73			(8		)
Annuity purchase	—			(129		)	—			—
Company contributions	521			1,270			21			22
Plan participants’ contributions	—			—			4			3
Benefits paid	(529		)	(498		)	(48		)	(48		)
Fair value of plan assets as of December 31	$	8,395		$	6,984		$	458		$	408

Funded Status:
Qualified plan	$	(2,203	)	$	(2,093	)	$	—		$	—
Non-qualified plans	(452		)	(385		)	—			—
Funded Status (Net liability as of December 31)	$	(2,655	)	$	(2,478	)	$	(196	)	$	(200	)

Accumulated benefit obligation	$	10,439		$	8,951		$	—		$	—

Amounts Recognized in AOCI:
Prior service cost (credit)	$	24		$	30		$	(85	)	$	(121	)

Assumptions Used to Determine Benefit Obligations
(as of December 31)
Discount rate	3.34		%	4.44		%	3.18		%	4.30		%
Rate of compensation increase	4.10		%	4.10		%	N/A			N/A
Cash balance weighted average interest crediting rate	2.57		%	3.34		%	N/A			N/A

Assumed Health Care Cost Trend Rates
(as of December 31)
Health care cost trend rate assumed (pre/post-Medicare)	N/A			N/A			6.0-5.5%			6.0-5.5%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	N/A			N/A			4.5		%	4.5		%
Year that the rate reaches the ultimate trend rate	N/A			N/A			2028			2028

Allocation of Plan Assets (as of December 31)
Equity securities	29		%	34		%	54		%	48		%
Fixed Income	36		%	34		%	30		%	35		%
Hedge funds	9		%	11		%	—		%	—		%
Insurance-linked securities	2		%	2		%	—		%	—		%
Real estate funds	7		%	10		%	—		%	—		%
Derivatives	—		%	2		%	—		%	—		%
Private equity funds	4		%	2		%	—		%	—		%
Cash and short-term securities	13		%	5		%	16		%	17		%
Total	100		%	100		%	100		%	100		%

Components of Net Periodic Benefit Costs



Components of Net Periodic Benefit Costs for the Years Ended December 31,	Pension									OPEB
	2019			2018			2017			2019			2018			2017
	(In millions)
Service cost	$	193		$	224		$	208		$	3		$	5		$	5
Interest cost	373			372			390			22			25			27
Expected return on plan assets	(540		)	(574		)	(448		)	(29		)	(31		)	(30		)
Amortization of prior service costs (credits)	7			7			7			(36		)	(81		)	(81		)
Special termination costs ⁽¹⁾	14			31			—			—			8			—
Pension & OPEB mark-to-market adjustment	656			227			108			20			(82		)	13
Net periodic benefit costs (credits)	$	703		$	287		$	265		$	(20	)	$	(156	)	$	(66	)

⁽¹⁾Subject to a cap, FirstEnergy has agreed to fund a pension enhancement through its pension plan, for voluntary enhanced retirement packages offered to certain FES employees, as well as offer certain other employee benefits (approximately $14 million recognized for the year ended December 31, 2019).



Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,*	Pension						OPEB
	2019		2018		2017		2019		2018		2017
Weighted-average discount rate	4.44	%	3.75	%	4.25	%	4.30	%	3.50	%	4.00	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%
Rate of compensation increase	4.10	%	4.20	%	4.20	%	N/A		N/A		N/A

Assumptions Used to Determine Net Periodic Benefit Cost



Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31,*	Pension						OPEB
	2019		2018		2017		2019		2018		2017
Weighted-average discount rate	4.44	%	3.75	%	4.25	%	4.30	%	3.50	%	4.00	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%	7.50	%
Rate of compensation increase	4.10	%	4.20	%	4.20	%	N/A		N/A		N/A

^*Excludes impact of pension and OPEB mark-to-market adjustment.

Target asset allocations for pension and OPEB portfolio

FirstEnergy’s target asset allocations for its pension and OPEB trust portfolios for 2019 and 2018 are shown in the following table:



Target Asset Allocations
	2019		2018
Equities	38	%	38	%
Fixed income	30	%	30	%
Hedge funds	8	%	8	%
Real estate	10	%	10	%
Alternative investments	8	%	8	%
Cash	6	%	6	%
	100	%	100	%

Estimated Future Benefit Payments

Taking into account estimated employee future service, FirstEnergy expects to make the following benefit payments from plan assets and other payments, net of participant contributions:



			OPEB
	Pension		Benefit Payments		Subsidy Receipts
	(In millions)
2020	$	547	$	52	$	(1	)
2021	564		49		(1		)
2022	573		48		(1		)
2023	586		47		(1		)
2024	593		46		(1		)
Years 2025-2029	3,099		208		(3		)

Pension

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension investments measured at fair value

The following tables set forth pension financial assets that are accounted for at fair value by level within the fair value hierarchy. See Note 10, "Fair Value Measurements," for a description of each level of the fair value hierarchy. There were no significant transfers between levels during 2019 and 2018.



	December 31, 2019										Asset Allocation
	Level 1			Level 2		Level 3		Total			Asset Allocation
	(In millions)
Cash and short-term securities	$	—		$	1,069	$	—	$	1,069		13	%
Equities	1,532			828		—		2,360			29	%
Fixed income:
Corporate bonds	—			2,064		—		2,064			25	%
Other⁽³⁾	—			880		—		880			11	%
Alternatives:
Derivatives	(40		)	—		—		(40		)	—	%
Total ⁽¹⁾	$	1,492		$	4,841	$	—	$	6,333		78	%

Private equity funds ⁽²⁾								342			4	%
Insurance-linked securities ⁽²⁾								186			2	%
Hedge funds ⁽²⁾								774			9	%
Real estate funds ⁽²⁾								584			7	%
Total Investments								$	8,219		100	%


⁽¹⁾	Excludes $176 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.


⁽²⁾	Net Asset Value used as a practical expedient to approximate fair value.


⁽³⁾	Includes insurance annuities, bank loans and emerging markets debt.



	December 31, 2018								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	342	$	—	$	342	5	%
Equities	1,115		1,256		—		2,371		34	%
Fixed income:
Government bonds	—		59		—		59		1	%
Corporate bonds	—		1,674		—		1,674		23	%
Other⁽⁴⁾	—		667		—		667		10	%
Alternatives:
Derivatives	108		—		—		108		2	%
Total ⁽¹⁾	$	1,223	$	3,998	$	—	$	5,221	75	%

Private equity funds ⁽²⁾							143		2	%
Insurance-linked securities ⁽²⁾							108		2	%
Hedge funds ⁽³⁾							779		11	%
Real estate funds ⁽³⁾							665		10	%
Total Investments							$	6,916	100	%


⁽¹⁾	Excludes $68 million as of December 31, 2018, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.


⁽²⁾	Net asset value used as a practical expedient to approximate fair value.

⁽³⁾

The classification of Level 2 and 3 assets from the prior year, $779 million and $665 million, respectively, was adjusted in the current year presentation and included outside of the fair value hierarchy table as of December 31, 2018, as investments for which Net Asset Value is used as a practical expedient to approximate fair value in accordance with ASU 2015-07 "Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)".

⁽⁴⁾

Includes insurance annuities, bank loans and emerging markets debt.

OPEB

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension investments measured at fair value

As of December 31, 2019 and 2018, the OPEB trust investments measured at fair value were as follows:



	December 31, 2019								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	72	$	—	$	72	16	%
Equity investment:
Domestic	246		—		—		246		54	%
Fixed income:
Government bonds	—		100		—		100		22	%
Corporate bonds	—		34		—		34		7	%
Mortgage-backed securities (non-government)			5		—		5		1	%
Total ⁽¹⁾	$	246	$	211	$	—	$	457	100	%

⁽¹⁾ Excludes $1 million as of December 31, 2019, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.



	December 31, 2018								Asset Allocation
	Level 1		Level 2		Level 3		Total		Asset Allocation
	(In millions)
Cash and short-term securities	$	—	$	71	$	—	$	71	17	%
Equity investment:
Domestic	196		—		—		196		48	%
Fixed income:
Government bonds	—		107		—		107		26	%
Corporate bonds	—		32		—		32		8	%
Mortgage-backed securities (non-government)			4		—		4		1	%
Total ⁽¹⁾	$	196	$	214	$	—	$	410	100	%

⁽¹⁾ Excludes $(2) million as of December 31, 2018, of receivables, payables, taxes and accrued income associated with financial instruments reflected within the fair value table.