SEGMENT INFORMATION

FirstEnergy's reportable segments are as follows: Regulated Distribution and Regulated Transmission.

On March 31, 2018, as discussed in Note 3, “Discontinued Operations,” FirstEnergy deconsolidated FES and FENOC and presented FES, FENOC, BSPC and a portion of AE Supply, representing substantially all of FirstEnergy’s operations that previously comprised the CES reportable operating segment, as discontinued operations in FirstEnergy’s consolidated financial statements resulting from actions taken as part of the strategic review to exit commodity-exposed generation. The financial information for all periods has been revised to present the discontinued operations within Reconciling Adjustments. The remaining business activities that previously comprised the CES reportable operating segment were not material and, as such, have been combined into Corporate/Other for reporting purposes.

The Regulated Distribution segment distributes electricity through FirstEnergy’s ten utility operating companies, serving approximately six million customers within 65,000 square miles of Ohio, Pennsylvania, West Virginia, Maryland, New Jersey and New York, and purchases power for its POLR, SOS, SSO and default service requirements in Ohio, Pennsylvania, New Jersey and Maryland. This segment also controls 3,790 MWs of regulated electric generation capacity located primarily in West Virginia, Virginia and New Jersey. The segment's results reflect the commodity costs of securing electric generation and the deferral and amortization of certain fuel costs.

The Regulated Transmission segment provides transmission infrastructure owned and operated by ATSI, TrAIL, MAIT and certain of FirstEnergy's utilities (JCP&L, MP, PE and WP) to transmit electricity from generation sources to distribution facilities. The segment's revenues are primarily derived from forward-looking formula rates at ATSI, TrAIL, and MAIT as well as stated transmission rates at JCP&L, MP, PE and WP. Both the forward-looking formula and stated rates recover costs that the regulatory agencies determine are permitted to be recovered and provide a return on transmission capital investment. Under forward-looking formula rates, the revenue requirement is updated annually based on a projected rate base and projected costs, which is subject to an annual true-up based on actual costs. The segment's results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities.

Corporate support not charged to FE's subsidiaries, interest expense on stand-alone holding company debt, corporate income taxes and other businesses that do not constitute an operating segment are categorized as Corporate/Other for reportable business segment purposes. Additionally, reconciling adjustments for the elimination of inter-segment transactions and discontinued operations are included in Corporate/Other. As of June 30, 2018, 1,367 MWs of electric generating capacity, representing the Pleasants Plant and AE Supply's OVEC capacity entitlement, was included in Corporate/Other. As of June 30, 2018, Corporate/Other had $5.35 billion of FE holding company long-term debt and $1.6 billion in borrowings under its revolving credit facility.

Financial information for each of FirstEnergy's reportable segments is presented in the tables below.

Segment Financial Information



For the Three Months Ended	Regulated Distribution			Regulated Transmission		Corporate/ Other			Reconciling Adjustments			Consolidated
	(In millions)

June 30, 2018
Revenues	$	2,352		$	341	$	86		$	(75	)	$	2,704
Depreciation	200			62		19			18			299
Deferral of regulatory assets, net	(107		)	—		—			—			(107		)
Miscellaneous income (expense), net	56			3		(1		)	(10		)	48
Interest expense	129			42		208			(10		)	369
Income taxes	138			38		(61		)	—			115
Income (loss) from continuing operations	377			104		(214		)	—			267
Total assets	28,088			9,833		1,050			—			38,971
Total goodwill	5,004			614		—			—			5,618
Property additions	391			282		51			—			724

June 30, 2017
Revenues	$	2,271		$	327	$	77		$	(51	)	$	2,624
Depreciation	179			54		3			18			254
Amortization of regulatory assets, net	75			3		—			—			78
Miscellaneous income (expense), net	14			—		10			(13		)	11
Interest expense	134			39		88			(13		)	248
Income taxes (benefits)	121			53		(42		)	—			132
Income (loss) from continuing operations	205			92		(78		)	—			219
Total assets	27,660			9,142		1,190			5,335			43,327
Total goodwill	5,004			614		—			—			5,618
Property additions	304			245		29			88			666

For the Six Months Ended

June 30, 2018
Revenues	$	4,928		$	664	$	211		$	(123	)	$	5,680
Depreciation	396			123		38			36			593
Amortization (deferral) of regulatory assets, net	(259		)	4		—			—			(255		)
Miscellaneous income (expense), net	112			7		15			(19		)	115
Interest expense	257			81		300			(19		)	619
Income taxes	231			70		66			—			367
Income (loss) from continuing operations	699			203		(458		)	—			444
Property additions	655			574		63			15			1,307

June 30, 2017
Revenues	$	4,771		$	640	$	169		$	(101	)	$	5,479
Depreciation	357			105		7			35			504
Amortization of regulatory assets, net	156			5		—			—			161
Miscellaneous income (expense), net	29			—		16			(20		)	25
Interest expense	272			78		163			(20		)	493
Income taxes (benefits)	259			105		(80		)	—			284
Income (loss) from continuing operations	442			180		(146		)	—			476
Property additions	568			469		39			178			1,254