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Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Provision for income taxes (benefits) |
INCOME TAXES (BENEFITS) |  | 2017 |  | 2016 |  | 2015
|  | (In millions)
FirstEnergy |  |  |  |  |  |
Currently payable (receivable)- |  |  |  |  |  |
Federal |  | $ | 14 |  |  | $ | (1 | ) |  | $ | 1 |
State |  | 42 |  |  | 9 |  |  | 30 |
|  | 56 |  |  | 8 |  |  | 31 |
Deferred, net- |  |  |  |  |  |
Federal |  | 876 |  |  | (3,114 | ) |  | 277 |
State |  | (29 | ) |  | 59 |  |  | 15 |
|  | 847 |  |  | (3,055 | ) |  | 292 |
Investment tax credit amortization |  | (8 | ) |  | (8 | ) |  | (8 | )
Total provision for income taxes (benefits) |  | $ | 895 |  |  | $ | (3,055 | ) |  | $ | 315 |
FES |  |  |  |  |  |
Currently payable (receivable)- |  |  |  |  |  |
Federal |  | $ | (159 | ) |  | $ | (67 | ) |  | $ | (56 | )
State |  | (1 | ) |  | (1 | ) |  | 2 |
|  | (160 | ) |  | (68 | ) |  | (54 | )
Deferred, net- |  |  |  |  |  |  |
Federal |  | 509 |  |  | (2,861 | ) |  | 103 |
State |  | (52 | ) |  | (57 | ) |  | 18 |
|  | 457 |  |  | (2,918 | ) |  | 121 |
Investment tax credit amortization |  | (2 | ) |  | (2 | ) |  | (2 | )
Total provision for income taxes (benefits) |  | $ | 295 |  |  | $ | (2,988 | ) |  | $ | 65 |
Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes | The following tables provide a reconciliation of federal income tax expense (benefit) at the federal statutory rate to the total income taxes (benefits) for the three years ended December 31:
| 2017 |  | 2016 |  | 2015
| (In millions)
FirstEnergy |  |  |  |  |
Income (loss) before income taxes (benefits) | $ | (829 | ) |  | $ | (9,232 | ) |  | $ | 893 |
Federal income tax expense (benefit) at statutory rate (35%) | $ | (290 | ) |  | $ | (3,231 | ) |  | $ | 313 |
Increases (reductions) in taxes resulting from- |  |  |  |  |
State income taxes, net of federal tax benefit | (4 | ) |  | (192 | ) |  | 17 |
AFUDC equity and other flow-through | (15 | ) |  | (13 | ) |  | (16 | )
Amortization of investment tax credits | (8 | ) |  | (8 | ) |  | (8 | )
Change in accounting method | — |  |  | — |  |  | (8 | )
ESOP dividend | (6 | ) |  | (6 | ) |  | (6 | )
Impairment of non-deductible goodwill | — |  |  | 157 |  |  | — |
Remeasurement of deferred taxes | 1,193 |  |  | — |  |  | — |
Uncertain tax positions | (3 | ) |  | (16 | ) |  | 1 |
Valuation allowances | 29 |  |  | 246 |  |  | 18 |
Other, net | (1 | ) |  | 8 |  |  | 4 |
Total income taxes (benefits) | $ | 895 |  |  | $ | (3,055 | ) |  | $ | 315 |
Effective income tax rate | (108.0 | )% |  | 33.1 | % |  | 35.3 | %
FES |  |  |  |  |
Income (loss) before income taxes (benefits) | $ | (2,096 | ) |  | $ | (8,443 | ) |  | $ | 147 |
Federal income tax expense (benefit) at statutory rate (35%) | $ | (734 | ) |  | $ | (2,955 | ) |  | $ | 51 |
Increases (reductions) in taxes resulting from- |  |  |  |  |
State income taxes, net of federal tax benefit | (52 | ) |  | (188 | ) |  | 2 |
Amortization of investment tax credits | (2 | ) |  | (2 | ) |  | (2 | )
ESOP dividend | — |  |  | (1 | ) |  | (1 | )
Impairment of non-deductible goodwill | — |  |  | 9 |  |  | — |
Remeasurement of deferred taxes | 1,067 |  |  | — |  |  | — |
Uncertain tax positions | — |  |  | (8 | ) |  | 5 |
Valuation allowances | 18 |  |  | 151 |  |  | 14 |
Other, net | (2 | ) |  | 6 |  |  | (4 | )
Total income taxes (benefits) | $ | 295 |  |  | $ | (2,988 | ) |  | $ | 65 |
Effective income tax rate | (14.1 | )% |  | 35.4 | % |  | 44.2 | %
Accumulated deferred income taxes | Accumulated deferred income taxes as of December 31, 2017 and 2016, are as follows:
|  | 2017 |  | 2016
|  | (In millions)
FirstEnergy |  |  |  |
Property basis differences |  | $ | 3,662 |  |  | $ | 7,088 |
Deferred sale and leaseback gain |  | (231 | ) |  | (351 | )
Pension and OPEB |  | (952 | ) |  | (1,347 | )
Nuclear decommissioning activities |  | 450 |  |  | 635 |
Asset retirement obligations |  | (453 | ) |  | (669 | )
Regulatory asset/liability |  | 416 |  |  | 545 |
Deferred compensation |  | (177 | ) |  | (269 | )
Nuclear Fuel |  | (375 | ) |  | (90 | )
Loss carryforwards and AMT credits |  | (1,467 | ) |  | (2,251 | )
Valuation reserve |  | 580 |  |  | 438 |
All other |  | (94 | ) |  | 36 |
Net deferred income tax liability |  | $ | 1,359 |  |  | $ | 3,765 |
FES |  |  |  |
Property basis differences |  | $ | (677 | ) |  | $ | (1,009 | )
Deferred sale and leaseback gain |  | (219 | ) |  | (328 | )
Pension and OPEB |  | (244 | ) |  | (366 | )
Lease market valuation liability |  | 75 |  |  | 111 |
Nuclear decommissioning activities |  | 411 |  |  | 540 |
Asset retirement obligations |  | (296 | ) |  | (453 | )
Nuclear Fuel |  | (375 | ) |  | (90 | )
Loss carryforwards and AMT credits |  | (587 | ) |  | (830 | )
Valuation reserve |  | 268 |  |  | 197 |
All other |  | (110 | ) |  | (51 | )
Net deferred income tax asset |  | $ | (1,754 | ) |  | $ | (2,279 | )
Pre-tax net operating loss expiration period |
Expiration Period |  | FirstEnergy |  | FES
|  | (In millions)
|  | State |  | Local |  | State |  | Local
2018-2022 |  | $ | 806 |  |  | $ | 3,472 |  |  | $ | 2 |  |  | $ | 1,954 |
2023-2027 |  | 1,963 |  |  | — |  |  | 32 |  |  | — |
2028-2032 |  | 2,382 |  |  | — |  |  | 703 |  |  | — |
2033-2037 |  | 1,896 |  |  | — |  |  | 982 |  |  | — |
|  | $ | 7,047 |  |  | $ | 3,472 |  |  | $ | 1,719 |  |  | $ | 1,954 |
Changes in unrecognized tax benefits | The following table summarizes the changes in unrecognized tax positions for the years ended 2017, 2016 and 2015:
|  | FirstEnergy |  | FES
|  | (In millions)
Balance, January 1, 2015 |  | $ | 34 |  |  | $ | 3 |
Current year increases |  | 3 |  |  | — |
Prior years increases |  | 7 |  |  | 5 |
Prior years decreases |  | (10 | ) |  | — |
Balance, December 31, 2015 |  | $ | 34 |  |  | $ | 8 |
Current year increases |  | 2 |  |  | — |
Prior years increases |  | 69 |  |  | — |
Prior years decreases |  | (21 | ) |  | (8 | )
Balance, December 31, 2016 |  | $ | 84 |  |  | $ | — |
Current year increases |  | 2 |  |  | — |
Decrease for lapse in statute |  | (6 | ) |  | — |
Balance, December 31, 2017 |  | $ | 80 |  |  | $ | — |
Details of general taxes | General tax expense for 2017, 2016 and 2015, is summarized as follows:
|  | 2017 |  | 2016 |  | 2015
|  | (In millions)
FirstEnergy |  |  |  |  |  |
KWH excise |  | $ | 188 |  |  | $ | 196 |  |  | $ | 193 |
State gross receipts |  | 204 |  |  | 212 |  |  | 224 |
Real and personal property |  | 486 |  |  | 472 |  |  | 410 |
Social security and unemployment |  | 131 |  |  | 127 |  |  | 119 |
Other |  | 34 |  |  | 35 |  |  | 32 |
Total general taxes |  | $ | 1,043 |  |  | $ | 1,042 |  |  | $ | 978 |
FES |  |  |  |  |  |
State gross receipts |  | $ | 20 |  |  | $ | 28 |  |  | $ | 44 |
Real and personal property |  | 27 |  |  | 42 |  |  | 36 |
Social security and unemployment |  | 11 |  |  | 15 |  |  | 16 |
Other |  | — |  |  | 3 |  |  | 2 |
Total general taxes |  | $ | 58 |  |  | $ | 88 |  |  | $ | 98 |

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