SEGMENT INFORMATION

Regulated Distribution and Regulated Transmission are FirstEnergy's reportable segments.

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 costs of securing and delivering electric generation from transmission facilities to customers, including the deferral and amortization of certain related costs.

The Regulated Transmission segment provides transmission infrastructure owned and operated by the Transmission Companies 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 the Transmission Companies as well as stated transmission rates at certain of 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.

The Corporate/Other segment reflects corporate support not charged to FE's subsidiaries, interest expense on FE’s holding company debt and other businesses that do not constitute an operating segment. Reconciling adjustments for the elimination of inter-segment transactions and discontinued operations are shown separately in the following table of Segment Financial Information. As of March 31, 2019, approximately 70 MWs of electric generating capacity, representing AE Supply's OVEC capacity entitlement, was included in continuing operations of the Corporate/Other reportable segment. As of March 31, 2019, Corporate/Other had approximately $7.2 billion of FE holding company debt.

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)

March 31, 2019
External revenues	$	2,526		$	352	$	5		$	—		$	2,883
Internal revenues	47			4		—			(51		)	—
Total revenues	$	2,573		$	356	$	5		$	(51	)	$	2,883
Depreciation	209			69		2			17			297
Amortization of regulatory assets, net	3			2		—			—			5
Miscellaneous income (expense), net	46			4		11			(7		)	54
Interest expense	122			45		93			(7		)	253
Income taxes (benefits)	89			31		(27		)	—			93
Income (loss) from continuing operations	329			104		(78		)	—			355
Total assets	28,992			10,910		588			—			40,490
Total goodwill	5,004			614		—			—			5,618
Property additions	318			231		5			—			554

March 31, 2018
External revenues	$	2,538		$	319	$	5		$	—		$	2,862
Internal revenues	38			4		6			(48		)	—
Total revenues	$	2,576		$	323	$	11		$	(48	)	$	2,862
Depreciation	196			61		2			18			277
Amortization (deferral) of regulatory assets, net	(152		)	4		—			—			(148		)
Miscellaneous income (expense), net	56			4		16			(9		)	67
Interest expense	128			39		90			(9		)	248
Income taxes	93			32		108			—			233
Income (loss) from continuing operations	322			99		(240		)	—			181
Total assets	27,504			9,681		1,255			355			38,795
Total goodwill	5,004			614		—			—			5,618
Property additions	264			292		11			16			583