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. During the third quarter of 2018, the Pleasants Power Station was also reclassified to discontinued operations following its inclusion in the definitive settlement agreement for the benefit of FES' creditors. 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 September 30, 2018, Corporate/Other had $5.35 billion of FE holding company long-term debt and $1.7 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)

September 30, 2018
Revenues	$	2,766		$	346	$	6		$	(54	)	$	3,064
Depreciation	202			64		1			16			283
Amortization of regulatory assets, net	65			2		—			—			67
Miscellaneous income (expense), net	34			4		19			(8		)	49
Interest expense	127			43		93			(8		)	255
Income taxes (benefits)	126			34		(27		)	—			133
Income (loss) from continuing operations	416			99		(128		)	—			387
Total assets	28,530			10,017		896			—			39,443
Total goodwill	5,004			614		—			—			5,618
Property additions	356			262		5			12			635

September 30, 2017
Revenues	$	2,609		$	341	$	10		$	(50	)	$	2,910
Depreciation	183			59		2			17			261
Amortization of regulatory assets, net	107			6		—			—			113
Impairment of assets	—			13		—			—			13
Miscellaneous income (expense), net	16			1		15			(13		)	19
Interest expense	133			38		104			(13		)	262
Income taxes (benefits)	183			49		(30		)	—			202
Income (loss) from continuing operations	314			84		(97		)	—			301
Total assets	27,866			9,356		938			5,489			43,649
Total goodwill	5,004			614		—			—			5,618
Property additions	286			248		14			45			593

For the Nine Months Ended

September 30, 2018
Revenues	$	7,694		$	1,010	$	28		$	(181	)	$	8,551
Depreciation	598			187		6			52			843
Amortization (deferral) of regulatory assets, net	(194		)	6		—			—			(188		)
Miscellaneous income (expense), net	146			11		34			(27		)	164
Interest expense	384			124		377			(27		)	858
Income taxes	357			104		42			—			503
Income (loss) from continuing operations	1,115			302		(577		)	—			840
Property additions	1,011			836		68			27			1,942

September 30, 2017
Revenues	$	7,380		$	981	$	37		$	(151	)	$	8,247
Depreciation	540			164		9			52			765
Amortization of regulatory assets, net	263			11		—			—			274
Impairment of assets	—			13		—			—			13
Miscellaneous income (expense), net	45			1		31			(33		)	44
Interest expense	405			116		263			(33		)	751
Income taxes (benefits)	442			154		(113		)	—			483
Income (loss) from continuing operations	756			264		(248		)	—			772
Property additions	854			717		43			233			1,847