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Merger (Tables)
12 Months Ended
Dec. 31, 2012
Business Combinations [Abstract]  
Purchase price calculation
The total consideration in the merger was based on the closing price of a share of FE common stock on February 24, 2011, the day prior to the date the merger was completed, and was calculated as follows (in millions, except per share data):
Shares of AE common stock outstanding on February 24, 2011
170

Exchange ratio
0.667

Number of shares of FirstEnergy common stock issued
113

Closing price of FirstEnergy common stock on February 24, 2011
$
38.16

Fair value of shares issued by FirstEnergy
$
4,327

Fair value of replacement share-based compensation awards relating to pre-merger service
27

Total consideration transferred
$
4,354

The preliminary allocation of the total consideration transferred to the assets acquired and liabilities assumed
The allocation of the purchase price was as follows:
(In millions)
 
 
 
Current assets
$
1,493

Property, plant and equipment
9,660

Investments
138

Goodwill
872

Other noncurrent assets
1,353

Current liabilities
(718
)
Noncurrent liabilities
(3,450
)
Long-term debt and other long-term obligations
(4,994
)
 
$
4,354

The preliminary valuation of the additional intangible assets and liabilities recorded as result of the merger
The valuation of the additional intangible assets and liabilities recorded as a result of the merger is as follows:
(In millions)
 
Preliminary Valuation
 
Weighted Average Amortization Period
Above market contracts:
 
 
 
 
Energy contracts
 
$
189

 
10 years
NUG contracts
 
124

 
25 years
Coal supply contracts
 
516

 
8 years
 
 
829

 
 
Below market contracts:
 
 
 
 
NUG contracts
 
143

 
13 years
Coal supply contracts
 
83

 
7 years
Transportation contract
 
35

 
8 years
 
 
261

 
 
Net intangible assets
 
$
568

 
 
Revenue and earnings of Allegheny
Revenues and earnings of Allegheny included in FirstEnergy’s Consolidated Statements of Income for the periods beginning on the February 25, 2011, merger date are as follows:
 
 
February 25 -
 
Year Ended
(In millions, except per share amounts)
 
December 31, 2011
 
December 31, 2012
Total revenues
 
$
3,966

 
$
4,410

Earnings Available to FirstEnergy Corp.(1)
 
$
147

 
$
356

 
 
 
 
 
Basic Earnings Per Share
 
$
0.37

 
$
0.85

Diluted Earnings Per Share
 
$
0.37

 
$
0.85

(1) 
Includes Allegheny’s after-tax merger costs of $58 million and $1 million during 2011 and 2012, respectively.
Summary of consolidated results of operations
The unaudited pro forma financial information has been presented below for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the merger been completed on January 1, 2010, or the future consolidated results of operations of the combined company.
(Pro forma amounts in millions, except per share amounts)
 
2011
 
2010
Revenues
 
$
17,449

 
$
18,569

Earnings available to FirstEnergy
 
$
979

 
$
1,183

 
 
 
 
 
Basic Earnings Per Share
 
$
2.34

 
$
2.83

Diluted Earnings Per Share
 
$
2.33

 
$
2.82