Supplemental Guarantor Information (Tables)

6 Months Ended

Jun. 30, 2017

Supplemental Guarantor Information [Abstract]

Condensed Consolidating Statements of Income (Loss) and Comprehensive Income (Loss)



FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


For the Three Months Ended June 30, 2017	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)

REVENUES	$	717		$	474		$	360		$	(810	)	$	741

OPERATING EXPENSES:
Fuel	—			106			48			—			154
Purchased power from affiliates	811			—			38			(810		)	39
Purchased power from non-affiliates	156			—			—			—			156
Other operating expenses	63			58			153			12			286
Provision for depreciation	3			9			16			(1		)	27
General taxes	5			5			8			—			18
Total operating expenses	1,038			178			263			(799		)	680

OPERATING INCOME (LOSS)	(321		)	296			97			(11		)	61

OTHER INCOME (EXPENSE):
Investment income (loss), including net income from equity investees	247			10			21			(263		)	15
Interest expense — affiliates	(20		)	(3		)	(1		)	19			(5		)
Interest expense — other	(12		)	(26		)	(11		)	14			(35		)
Capitalized interest	—			—			6			—			6
Total other income (expense)	215			(19		)	15			(230		)	(19		)

INCOME (LOSS) BEFORE INCOME TAXES (BENEFITS)	(106		)	277			112			(241		)	42

INCOME TAXES (BENEFITS)	(125		)	102			45			1			23

NET INCOME (LOSS)	$	19		$	175		$	67		$	(242	)	$	19

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

NET INCOME (LOSS)	$	19		$	175		$	67		$	(242	)	$	19

OTHER COMPREHENSIVE INCOME (LOSS):
Pension and OPEB prior service costs	(4		)	(4		)	—			4			(4		)
Change in unrealized gains on available-for-sale securities	6			—			6			(6		)	6
Other comprehensive income (loss)	2			(4		)	6			(2		)	2
Income taxes (benefits) on other comprehensive income (loss)	—			(2		)	2			—			—
Other comprehensive income (loss), net of tax	2			(2		)	4			(2		)	2
COMPREHENSIVE INCOME (LOSS)	$	21		$	173		$	71		$	(244	)	$	21



FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


For the Six Months Ended June 30, 2017	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)

REVENUES	$	1,597		$	710		$	696		$	(1,348	)	$	1,655

OPERATING EXPENSES:
Fuel	—			204			94			—			298
Purchased power from affiliates	1,474			—			76			(1,348		)	202
Purchased power from non-affiliates	316			—			—			—			316
Other operating expenses	177			283			320			24			804
Provision for depreciation	6			16			31			(1		)	52
General taxes	11			13			15			—			39
Total operating expenses	1,984			516			536			(1,325		)	1,711

OPERATING INCOME (LOSS)	(387		)	194			160			(23		)	(56		)

OTHER INCOME (EXPENSE):
Investment income (loss), including net income (loss) from equity investees	229			20			48			(262		)	35
Miscellaneous income	—			—			5			—			5
Interest expense — affiliates	(38		)	(6		)	(2		)	39			(7		)
Interest expense — other	(23		)	(53		)	(22		)	28			(70		)
Capitalized interest	—			1			13			—			14
Total other income (expense)	168			(38		)	42			(195		)	(23		)

INCOME (LOSS) BEFORE INCOME TAXES (BENEFITS)	(219		)	156			202			(218		)	(79		)

INCOME TAXES (BENEFITS)	(158		)	60			78			2			(18		)

NET INCOME (LOSS)	$	(61	)	$	96		$	124		$	(220	)	$	(61	)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

NET INCOME (LOSS)	$	(61	)	$	96		$	124		$	(220	)	$	(61	)

OTHER COMPREHENSIVE INCOME (LOSS):
Pension and OPEB prior service costs	(7		)	(7		)	—			7			(7		)
Change in unrealized gains on available-for-sale securities	22			—			22			(22		)	22
Other comprehensive income (loss)	15			(7		)	22			(15		)	15
Income taxes (benefits) on other comprehensive income (loss)	5			(3		)	8			(5		)	5
Other comprehensive income (loss), net of tax	10			(4		)	14			(10		)	10
COMPREHENSIVE INCOME (LOSS)	$	(51	)	$	92		$	138		$	(230	)	$	(51	)



FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


For the Three Months Ended June 30, 2016	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)

REVENUES	$	1,061		$	400		$	473		$	(832	)	$	1,102

OPERATING EXPENSES:
Fuel	—			181			47			—			228
Purchased power from affiliates	950			—			49			(832		)	167
Purchased power from non-affiliates	266			—			—			—			266
Other operating expenses	119			88			148			14			369
Provision for depreciation	3			32			50			(1		)	84
General taxes	7			6			6			—			19
Impairment of assets	23			517			—			—			540
Total operating expenses	1,368			824			300			(819		)	1,673

OPERATING INCOME (LOSS)	(307		)	(424		)	173			(13		)	(571		)

OTHER INCOME (EXPENSE):
Investment income (loss), including net income from equity investees	(163		)	7			22			153			19
Miscellaneous income	1			—			—			—			1
Interest expense — affiliates	(12		)	(2		)	—			13			(1		)
Interest expense — other	(13		)	(26		)	(13		)	15			(37		)
Capitalized interest	—			2			6			—			8
Total other income (expense)	(187		)	(19		)	15			181			(10		)

INCOME (LOSS) BEFORE INCOME TAXES (BENEFITS)	(494		)	(443		)	188			168			(581		)

INCOME TAXES (BENEFITS)	(56		)	(149		)	61			1			(143		)

NET INCOME (LOSS)	$	(438	)	$	(294	)	$	127		$	167		$	(438	)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

NET INCOME (LOSS)	$	(438	)	$	(294	)	$	127		$	167		$	(438	)

OTHER COMPREHENSIVE INCOME (LOSS):
Pension and OPEB prior service costs	(3		)	(4		)	—			4			(3		)
Amortized gains on derivative hedges	(1		)	—			—			—			(1		)
Change in unrealized gains on available for sale securities	33			—			32			(32		)	33
Other comprehensive income (loss)	29			(4		)	32			(28		)	29
Income taxes (benefits) on other comprehensive income (loss)	12			(2		)	13			(11		)	12
Other comprehensive income (loss), net of tax	17			(2		)	19			(17		)	17
COMPREHENSIVE INCOME (LOSS)	$	(421	)	$	(296	)	$	146		$	150		$	(421	)



FIRSTENERGY SOLUTIONS CORP.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


For the Six Months Ended June 30, 2016	FES			FG			NG			Eliminations			Consolidated
	(In millions)
STATEMENTS OF INCOME (LOSS)

REVENUES	$	2,216		$	815		$	1,004		$	(1,734	)	$	2,301

OPERATING EXPENSES:
Fuel	—			300			93			—			393
Purchased power from affiliates	1,877			—			106			(1,734		)	249
Purchased power from non-affiliates	643			—			—			—			643
Other operating expenses	123			159			301			26			609
Provision for depreciation	6			63			100			(2		)	167
General taxes	15			16			14			—			45
Impairment of assets	23			517			—			—			540
Total operating expenses	2,687			1,055			614			(1,710		)	2,646

OPERATING INCOME (LOSS)	(471		)	(240		)	390			(24		)	(345		)

OTHER INCOME (EXPENSE):
Investment income, including net income from equity investees	86			13			39			(106		)	32
Miscellaneous income	3			—			—			—			3
Interest expense — affiliates	(21		)	(4		)	(2		)	24			(3		)
Interest expense — other	(26		)	(52		)	(24		)	29			(73		)
Capitalized interest	—			4			14			—			18
Total other income (expense)	42			(39		)	27			(53		)	(23		)

INCOME (LOSS) BEFORE INCOME TAXES (BENEFITS)	(429		)	(279		)	417			(77		)	(368		)

INCOME TAXES (BENEFITS)	(122		)	(88		)	147			2			(61		)

NET INCOME (LOSS)	$	(307	)	$	(191	)	$	270		$	(79	)	$	(307	)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

NET INCOME (LOSS)	$	(307	)	$	(191	)	$	270		$	(79	)	$	(307	)

OTHER COMPREHENSIVE INCOME (LOSS)
Pension and OPEB prior service costs	(7		)	(7		)	—			7			(7		)
Amortized gains on derivative hedges	(1		)	—			—			—			(1		)
Change in unrealized gains on available-for-sale securities	56			—			55			(55		)	56
Other comprehensive income (loss)	48			(7		)	55			(48		)	48
Income taxes (benefits) on other comprehensive income (loss)	19			(3		)	21			(18		)	19
Other comprehensive income (loss), net of tax	29			(4		)	34			(30		)	29
COMPREHENSIVE INCOME (LOSS)	$	(278	)	$	(195	)	$	304		$	(109	)	$	(278	)

Condensed Consolidating Balance Sheets

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS



As of June 30, 2017	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	2	$	—	$	—		$	2
Receivables-
Customers	185		—		—		—			185
Affiliated companies	300		240		237		(392		)	385
Other	10		2		—		—			12
Notes receivable from affiliated companies	361		1,599		1,366		(3,326		)	—
Materials and supplies	41		137		82		—			260
Derivatives	41		—		—		—			41
Collateral	98		13		—		—			111
Prepayments and other	40		11		—		—			51
	1,076		2,004		1,685		(3,718		)	1,047
PROPERTY, PLANT AND EQUIPMENT:
In service	121		2,561		4,981		(281		)	7,382
Less — Accumulated provision for depreciation	59		1,936		4,248		(188		)	6,055
	62		625		733		(93		)	1,327
Construction work in progress	2		55		242		—			299
	64		680		975		(93		)	1,626
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,793		—			1,793
Investment in affiliated companies	3,230		—		—		(3,230		)	—
Other	—		9		—		—			9
	3,230		9		1,793		(3,230		)	1,802

DEFERRED CHARGES AND OTHER ASSETS:
Property taxes	—		6		14		—			20
Accumulated deferred income tax benefits	440		1,203		738		(273		)	2,108
Derivatives	9		—		—		—			9
Other	32		329		—		18			379
	481		1,538		752		(255		)	2,516
	$	4,851	$	4,231	$	5,205	$	(7,296	)	$	6,991

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	—	$	183	$	99	$	(27	)	$	255
Short-term borrowings - affiliated companies	3,241		360		—		(3,326		)	275
Accounts payable-
Affiliated companies	477		92		168		(473		)	264
Other	17		74		—		—			91
Accrued taxes	48		51		59		(29		)	129
Derivatives	15		3		—		—			18
Other	47		80		10		33			170
	3,845		843		336		(3,822		)	1,202
CAPITALIZATION:
Total equity	239		914		2,217		(3,131		)	239
Long-term debt and other long-term obligations	691		1,938		1,022		(1,078		)	2,573
	930		2,852		3,239		(4,209		)	2,812
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		740			740
Accumulated deferred income taxes	5		—		—		(5		)	—
Retirement benefits	27		178		—		—			205
Asset retirement obligations	—		188		787		—			975
Derivatives	1		—		—		—			1
Other	43		170		843		—			1,056
	76		536		1,630		735			2,977
	$	4,851	$	4,231	$	5,205	$	(7,296	)	$	6,991

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING BALANCE SHEETS



As of December 31, 2016	FES		FG		NG		Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	2	$	—	$	—		$	2
Receivables-
Customers	213		—		—		—			213
Affiliated companies	332		315		417		(612		)	452
Other	17		2		8		—			27
Notes receivable from affiliated companies	501		1,585		1,294		(3,351		)	29
Materials and supplies	45		142		80		—			267
Derivatives	137		—		—		—			137
Collateral	157		—		—		—			157
Prepayments and other	38		24		1		—			63
	1,440		2,070		1,800		(3,963		)	1,347
PROPERTY, PLANT AND EQUIPMENT:
In service	120		2,524		4,703		(290		)	7,057
Less — Accumulated provision for depreciation	52		1,920		4,144		(187		)	5,929
	68		604		559		(103		)	1,128
Construction work in progress	2		67		358		—			427
	70		671		917		(103		)	1,555
INVESTMENTS:
Nuclear plant decommissioning trusts	—		—		1,552		—			1,552
Investment in affiliated companies	2,923		—		—		(2,923		)	—
Other	—		9		1		—			10
	2,923		9		1,553		(2,923		)	1,562

DEFERRED CHARGES AND OTHER ASSETS:
Property taxes	—		12		28		—			40
Accumulated deferred income tax benefits	395		1,271		883		(270		)	2,279
Derivatives	77		—		—		—			77
Other	33		327		—		21			381
	505		1,610		911		(249		)	2,777
	$	4,938	$	4,360	$	5,181	$	(7,238	)	$	7,241

LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES:
Currently payable long-term debt	$	—	$	200	$	5	$	(26	)	$	179
Short-term borrowings - affiliated companies	2,969		483		—		(3,351		)	101
Accounts payable-
Affiliated companies	743		107		406		(706		)	550
Other	17		93		—		—			110
Accrued taxes	50		48		61		(16		)	143
Derivatives	71		6		—		—			77
Other	56		54		10		36			156
	3,906		991		482		(4,063		)	1,316
CAPITALIZATION:
Total equity	218		828		2,006		(2,834		)	218
Long-term debt and other long-term obligations	691		2,093		1,120		(1,091		)	2,813
	909		2,921		3,126		(3,925		)	3,031
NONCURRENT LIABILITIES:
Deferred gain on sale and leaseback transaction	—		—		—		757			757
Accumulated deferred income taxes	4		3		—		(7		)	—
Retirement benefits	25		172		—		—			197
Asset retirement obligations	—		188		713		—			901
Derivatives	52		—		—		—			52
Other	42		85		860		—			987
	123		448		1,573		750			2,894
	$	4,938	$	4,360	$	5,181	$	(7,238	)	$	7,241

Condensed Consolidating Statements of Cash Flows

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



For the Six Months Ended June 30, 2017	FES			FG			NG			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(411	)	$	340		$	379		$	(13	)	$	295
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	272			—			—			(98		)	174
Redemptions and Repayments-
Long-term debt	—			(171		)	(5		)	13			(163		)
Short-term borrowings, net	—			(122		)	—			122			—
Other	(1		)	(3		)	—			—			(4		)
Net cash provided from (used for) financing activities	271			(296		)	(5		)	37			7
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	—			(30		)	(139		)	—			(169		)
Nuclear fuel	—			—			(134		)	—			(134		)
Sales of investment securities held in trusts	—			—			437			—			437
Purchases of investment securities held in trusts	—			—			(466		)	—			(466		)
Loans to affiliated companies, net	140			(14		)	(73		)	(24		)	29
Other	—			—			1			—			1
Net cash provided from (used for) investing activities	140			(44		)	(374		)	(24		)	(302		)
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			2			—			—			2
Cash and cash equivalents at end of period	$	—		$	2		$	—		$	—		$	2

FIRSTENERGY SOLUTIONS CORP.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



For the Six Months Ended June 30, 2016	FES			FG			NG			Eliminations			Consolidated
	(In millions)

NET CASH PROVIDED FROM (USED FOR) OPERATING ACTIVITIES	$	(335	)	$	308		$	596		$	(12	)	$	557
CASH FLOWS FROM FINANCING ACTIVITIES:
New Financing-
Short-term borrowings, net	322			89			8			(209		)	210
Redemptions and Repayments-
Long-term debt	—			(12		)	(245		)	12			(245		)
Other	(1		)	(2		)	—			—			(3		)
Net cash provided from (used for) financing activities	321			75			(237		)	(197		)	(38		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions	(27		)	(126		)	(182		)	—			(335		)
Nuclear fuel	—			—			(188		)	—			(188		)
Sales of investment securities held in trusts	—			—			441			—			441
Purchases of investment securities held in trusts	—			—			(467		)	—			(467		)
Cash Investments	11			—			—			—			11
Loans to affiliated companies, net	22			(257		)	37			209			11
Other	8			—			—			—			8
Net cash provided from (used for) investing activities	14			(383		)	(359		)	209			(519		)
Net change in cash and cash equivalents	—			—			—			—			—
Cash and cash equivalents at beginning of period	—			2			—			—			2
Cash and cash equivalents at end of period	$	—		$	2		$	—		$	—		$	2