ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Dec. 31, 2020

The changes in AOCI for the years ended December 31, 2020, 2019 and 2018, for FirstEnergy are shown in the following table:



	Gains & Losses on Cash Flow Hedges (1)		Unrealized Gains on AFS Securities		Defined Benefit Pension & OPEB Plans		Total
	(In millions)
AOCI Balance, January 1, 2018	$	(22)	$	67	$	97	$	142

Other comprehensive income before reclassifications	—		(97)		(9)		(106)
Amounts reclassified from AOCI	8		(1)		(74)		(67)
Deconsolidation of FES and FENOC	13		(8)		—		5
Other comprehensive income (loss)	21		(106)		(83)		(168)
Income tax (benefits) on other comprehensive income (loss)	10		(39)		(38)		(67)
Other comprehensive income (loss), net of tax	11		(67)		(45)		(101)

AOCI Balance, December 31, 2018	$	(11)	$	—	$	52	$	41

Other comprehensive income before reclassifications	—		—		(2)		(2)
Amounts reclassified from AOCI	2		—		(29)		(27)

Other comprehensive income (loss)	2		—		(31)		(29)
Income tax (benefits) on other comprehensive income (loss)	—		—		(8)		(8)
Other comprehensive income (loss), net of tax	2		—		(23)		(21)

AOCI Balance, December 31, 2019	$	(9)	$	—	$	29	$	20


Amounts reclassified from AOCI	1		—		(34)		(33)

Other comprehensive income (loss)	1		—		(34)		(33)
Income tax (benefits) on other comprehensive income (loss)	—		—		(8)		(8)
Other comprehensive income (loss), net of tax	1		—		(26)		(25)

AOCI Balance, December 31, 2020	$	(8)	$	—	$	3	$	(5)

(1) Relates to previous cash flow hedges used to hedge fixed rate long-term debt securities prior to their issuance.

The following amounts were reclassified from AOCI for FirstEnergy in the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,						Affected Line Item in Consolidated Statements of Income
Reclassifications from AOCI (1)	2020		2019		2018 (2)
	(In millions)
Gains & losses on cash flow hedges
Commodity contracts	$	—	$	—	$	1	Other operating expenses
Long-term debt	1		2		7		Interest expense
	—		—		(2)		Income taxes
	$	1	$	2	$	6	Net of tax

Unrealized gains on AFS securities
Realized gains on sales of securities	$	—	$	—	$	(1)	Discontinued operations



Defined benefit pension and OPEB plans
Prior-service costs	$	(34)	$	(29)	$	(74)	(3)
	8		8		19		Income taxes
	$	(26)	$	(21)	$	(55)	Net of tax

(1) Amounts in parenthesis represent credits to the Consolidated Statements of Income (Loss) from AOCI.
(2) Includes stranded tax amounts reclassified from AOCI in connection with the adoption of ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income".
(3) Prior-service costs are reported within Miscellaneous income, net within Other Income (Expense) on FirstEnergy’s Consolidated Statements of Income. Components are included in the computation of net periodic cost (credits), see Note 5, "Pension and Other Postemployment Benefits," for additional details.