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Capitalization (Tables) | 9 Months Ended
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Sep. 30, 2019
Regulated Operations [Abstract] |
Schedule of Stockholders Equity | The changes in stockholders’ equity for the three and nine months ended September 30, 2019 for FirstEnergy are included in the following table:
|  | Series A Convertible Preferred Stock |  | Common Stock |  | OPIC |  | AOCI |  | Accumulated Deficit |  | Total Stockholders’ Equity
(In millions) |  | Shares |  | Amount |  | Shares |  | Amount |  |  |
Balance, January 1, 2019 |  | 0.7 |  |  | $ | 71 |  |  | 512 |  |  | $ | 51 |  |  | $ | 11,530 |  |  | $ | 41 |  |  | $ | (4,879 | ) |  | $ | 6,814 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  | 320 |  |  | 320 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  | (5 | ) |  |  |  | (5 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  | 7 |  |  |  |  |  |  | 7 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  | 1 |  |  |  |  | 1 |  |  |  |  |  |  | 1 |
Cash dividends declared on common stock ($0.38/common share) |  |  |  |  |  |  |  |  |  | (202 | ) |  |  |  |  |  | (202 | )
Cash dividends declared on preferred stock ($0.38/as-converted share) |  |  |  |  |  |  |  |  |  | (3 | ) |  |  |  |  |  | (3 | )
Conversion of Series A Convertible Preferred Stock |  | (0.5 | ) |  | (50 | ) |  | 18 |  |  | 2 |  |  | 48 |  |  |  |  |  |  | — |
Balance, March 31, 2019 |  | 0.2 |  |  | $ | 21 |  |  | 531 |  |  | $ | 53 |  |  | $ | 11,381 |  |  | $ | 36 |  |  | $ | (4,559 | ) |  | $ | 6,932 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 312 |  |  | 312 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  | (5 | ) |  |  |  |  | (5 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 9 |  |  |  |  |  |  |  |  | 9 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  | 1 |  |  |  |  |  | 21 |  |  |  |  |  |  |  |  | 21 |
Balance, June 30, 2019 |  | 0.2 |  |  | $ | 21 |  |  | 532 |  |  | $ | 53 |  |  | $ | 11,411 |  |  | $ | 31 |  |  | $ | (4,247 | ) |  | $ | 7,269 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 391 |  |  | 391 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  | (4 | ) |  |  |  |  | (4 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 7 |  |  |  |  |  |  |  |  | 7 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  | 1 |  |  |  |  | 20 |  |  |  |  |  |  | 20 |
Cash dividends declared on common stock ($0.38/share in July and September) |  |  |  |  |  |  |  |  |  | (411 | ) |  |  |  |  |  | (411 | )
Conversion of Series A Convertible Preferred Stock |  | (0.2 | ) |  | (21 | ) |  | 7 |  |  | 1 |  |  | 20 |  |  |  |  |  |  |  |  | — |
Balance, September 30, 2019 |  | — |  |  | $ | — |  |  | 540 |  |  | $ | 54 |  |  | $ | 11,047 |  |  | $ | 27 |  |  | $ | (3,856 | ) |  | $ | 7,272 |
The changes in stockholders’ equity for the three and nine months ended September 30, 2018 for FirstEnergy are included in the following table:
|  | Series A Convertible Preferred Stock |  | Common Stock |  | OPIC |  | AOCI |  | Accumulated Deficit |  | Total Stockholders’ Equity
(In millions) |  | Shares |  | Amount |  | Shares |  | Amount |  |  |
Balance, January 1, 2018 |  | — |  |  | $ | — |  |  | 445 |  |  | $ | 44 |  |  | $ | 10,001 |  |  | $ | 142 |  |  | $ | (6,262 | ) |  | $ | 3,925 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,369 |  |  | 1,369 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  | (56 | ) |  |  |  | (56 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  | 19 |  |  |  |  |  |  | 19 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  | 2 |  |  | 1 |  |  | 5 |  |  |  |  |  |  | 6 |
Cash dividends declared on common stock ($0.36/common share in January and March) |  |  |  |  |  |  |  |  |  | (343 | ) |  |  |  |  |  | (343 | )
Cash dividends declared on preferred stock ($0.36/as-converted share in January and March) |  |  |  |  |  |  |  |  |  | (42 | ) |  |  |  |  |  | (42 | )
Stock issuance (1) |  | 1.6 |  |  | 162 |  |  | 30 |  |  | 3 |  |  | 2,297 |  |  |  |  |  |  | 2,462 |
Impact of adopting new accounting pronouncements (2) |  |  |  |  |  |  |  |  |  |  |  |  |  | 35 |  |  | 35 |
Balance, March 31, 2018 |  | 1.6 |  |  | $ | 162 |  |  | 477 |  |  | $ | 48 |  |  | $ | 11,937 |  |  | $ | 86 |  |  | $ | (4,858 | ) |  | $ | 7,375 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 299 |  |  | $ | 299 |
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13 | ) |  |  |  |  | (13 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  |  |  |  |  | 19 |  |  |  |  |  |  |  |  | 19 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  |  |  | 1 |  |  |  |  |  | 19 |  |  |  |  |  |  |  |  | 19 |
Balance, June 30, 2018 |  | 1.6 |  |  | $ | 162 |  |  | 478 |  |  | $ | 48 |  |  | $ | 11,975 |  |  | $ | 73 |  |  | $ | (4,559 | ) |  | $ | 7,699 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (458 | ) |  | $ | (458 | )
Other comprehensive loss, net of tax |  |  |  |  |  |  |  |  |  |  |  | (12 | ) |  |  |  | (12 | )
Stock-based compensation |  |  |  |  |  |  |  |  |  | 10 |  |  |  |  |  |  |  | 10 |
Stock Investment Plan and certain share-based benefit plans |  |  |  |  |  | 1 |  |  |  |  | 21 |  |  |  |  |  |  | 21 |
Cash dividends declared on common stock ($0.36/common share in July and September) |  |  |  |  |  |  |  |  |  | (368 | ) |  |  |  |  |  | (368 | )
Cash dividends declared on preferred stock ($0.36/as-converted share in July and September) |  |  |  |  |  |  |  |  |  | (19 | ) |  |  |  |  |  | (19 | )
Conversion of Series A Convertible Preferred Stock |  | (0.9 | ) |  | (92 | ) |  | 33 |  |  | 3 |  |  | 89 |  |  |  |  |  |  | — |
Balance, September 30, 2018 |  | 0.7 |  |  | $ | 70 |  |  | 512 |  |  | $ | 51 |  |  | $ | 11,708 |  |  | $ | 61 |  |  | $ | (5,017 | ) |  | $ | 6,873 |
(1) The preferred stock included an embedded conversion option at a price that was below the fair value of the common stock on the commitment date. This beneficial conversion feature (BCF), which was approximately $296 million, was recorded to OPIC as well as the amortization of the BCF (deemed dividend of $35 million and $296 million for the three and nine months ended September 30, 2018, respectively) through the period from the issue date to the first allowable conversion date (July 22, 2018). There is no net impact to OPIC for the three and nine months ended September 30, 2018. Please see below and Note 4, “Earnings Per Share” for additional information. (2) FirstEnergy adopted ASU 2016-01, “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” standard on January 1, 2018, and subsequently recorded a cumulative effect adjustment to retained earnings of $57 million representing unrealized gains on equity securities with FES NDTs that were previously recorded to AOCI. In addition, FirstEnergy adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” and upon adoption, recorded a $22 million cumulative effect adjustment for stranded tax effects, such as pension and OPEB prior service costs and losses on derivative hedges, to retained earnings on January 1, 2018. These amounts are offset in other comprehensive loss and do not have an impact on total stockholders’ equity.

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- Definition Tabular disclosure of changes in the separate accounts comprising stockholders' equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative if both financial position and results of operations are presented. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21463-112644 + Details
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