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Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME

The changes in AOCI, net of tax, in the three and nine months ended September 30, 2014 and 2013, for FirstEnergy and FES are shown in the following tables:
 
FirstEnergy
 
 
 
 
 
 
 
 
 
 
Gains & Losses on Cash Flow Hedges
 
Unrealized Gains on AFS Securities
 
Defined Benefit Pension & OPEB Plans
 
Total
 
 
(In millions)
AOCI Balance as of July 1, 2014
 
$
(36
)
 
$
41

 
$
259

 
$
264

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications
 
—

 
2

 
—

 
2

Amounts reclassified from AOCI
 
—

 
(8
)
 
(26
)
 
(34
)
Net other comprehensive loss
 
—

 
(6
)
 
(26
)
 
(32
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2014
 
$
(36
)
 
$
35

 
$
233

 
$
232

 
 
 
 
 
 
 
 
 
AOCI Balance as of July 1, 2013
 
$
(37
)
 
$
13

 
$
347

 
$
323

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(1)
 
—

 
5

 
—

 
5

Amounts reclassified from AOCI
 
1

 
(1
)
 
(29
)
 
(29
)
Net other comprehensive income (loss)
 
1

 
4

 
(29
)
 
(24
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2013
 
$
(36
)
 
$
17

 
$
318

 
$
299

 
 
 
 
 
 
 
 
 
(1) Unrealized Gains on AFS Securities is net of tax of $3 million.
 
 
 
 
 
 
 
 
 
FES
 
 
 
 
 
 
 
 
 
 
Gains & Losses on Cash Flow Hedges
 
Unrealized Gains on AFS Securities
 
Defined Benefit Pension & OPEB Plans
 
Total
 
 
(In millions)
AOCI Balance as of July 1, 2014
 
$
(5
)
 
$
36

 
$
41

 
$
72

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(1)
 
—

 
1

 
—

 
1

Amounts reclassified from AOCI
 
(1
)
 
(6
)
 
(3
)
 
(10
)
Net other comprehensive loss
 
(1
)
 
(5
)
 
(3
)
 
(9
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2014
 
$
(6
)
 
$
31

 
$
38

 
$
63

 
 
 
 
 
 
 
 
 
AOCI Balance as of July 1, 2013
 
$
1

 
$
12

 
$
49

 
$
62

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(2)
 
—

 
4

 
—

 
4

Amounts reclassified from AOCI
 
—

 
(1
)
 
(3
)
 
(4
)
Net other comprehensive income (loss)
 
—

 
3

 
(3
)
 
—

 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2013
 
$
1

 
$
15

 
$
46

 
$
62

 
 
 
 
 
 
 
 
 
(1) Unrealized Gains on AFS Securities is net of tax of $1 million.
(2) Unrealized Gains on AFS Securities is net of tax of $3 million.
FirstEnergy
 
 
 
 
 
 
 
 
 
 
Gains & Losses on Cash Flow Hedges
 
Unrealized Gains on AFS Securities
 
Defined Benefit Pension & OPEB Plans
 
Total
 
 
(In millions)
AOCI Balance as of January 1, 2014
 
$
(36
)
 
$
9

 
$
311

 
$
284

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(1)
 
1

 
55

 
—

 
56

Amounts reclassified from AOCI
 
(1
)
 
(29
)
 
(78
)
 
(108
)
Net other comprehensive income (loss)
 
—

 
26

 
(78
)
 
(52
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2014
 
$
(36
)
 
$
35

 
$
233

 
$
232

 
 
 
 
 
 
 
 
 
AOCI Balance as of January 1, 2013
 
$
(38
)
 
$
15

 
$
408

 
$
385

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(2)
 
—

 
19

 
—

 
19

Amounts reclassified from AOCI
 
2

 
(17
)
 
(90
)
 
(105
)
Net other comprehensive income (loss)
 
2

 
2

 
(90
)
 
(86
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2013
 
$
(36
)
 
$
17

 
$
318

 
$
299

 
 
 
 
 
 
 
 
 
(1) Unrealized Gains on AFS Securities is net of tax of $30 million.
(2) Unrealized Gains on AFS Securities is net of tax of $11 million.
 
 
 
 
 
 
 
 
 
FES
 
 
 
 
 
 
 
 
 
 
Gains & Losses on Cash Flow Hedges
 
Unrealized Gains on AFS Securities
 
Defined Benefit Pension & OPEB Plans
 
Total
 
 
(In millions)
AOCI Balance as of January 1, 2014
 
$
(1
)
 
$
8

 
$
47

 
$
54

 
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications(1)
 
(1
)
 
50

 
—

 
49

Amounts reclassified from AOCI
 
(4
)
 
(27
)
 
(9
)
 
(40
)
Net other comprehensive income (loss)
 
(5
)
 
23

 
(9
)
 
9

 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2014
 
$
(6
)
 
$
31

 
$
38

 
$
63

 
 
 
 
 
 
 
 
 
AOCI Balance as of January 1, 2013
 
$
3

 
$
13

 
$
56

 
$
72

 
 
 
 
 
 
 
 
 
Other comprehensive income before reclassifications(2)
 
—

 
17

 
—

 
17

Amounts reclassified from AOCI
 
(2
)
 
(15
)
 
(10
)
 
(27
)
Net other comprehensive income (loss)
 
(2
)
 
2

 
(10
)
 
(10
)
 
 
 
 
 
 
 
 
 
AOCI Balance as of September 30, 2013
 
$
1

 
$
15

 
$
46

 
$
62

 
 
 
 
 
 
 
 
 
(1) Unrealized Gains on AFS Securities is net of tax of $29 million.
(2) Unrealized Gains on AFS Securities is net of tax of $9 million.


The following amounts were reclassified from AOCI in the three months ended September 30, 2014 and 2013:
FE
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Affected Line Item in Consolidated Statements of Income
Reclassifications from AOCI (2)
 
2014
 
2013
 
2014
 
2013
 
 
 
(In millions)
 
 
Gains & losses on cash flow hedges
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(2
)
 
$
(1
)
 
$
(7
)
 
$
(5
)
 
Other operating expenses
Long-term debt
 
2

 
3

 
6

 
9

 
Interest expense
 
 
—

 
2

 
(1
)
 
4

 
Total before taxes
 
 
—

 
(1
)
 
—

 
(2
)
 
Income taxes
 
 
$
—

 
$
1

 
$
(1
)
 
$
2

 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
Unrealized gains on AFS securities
 
 
 
 
 
 
 
 
 
 
Realized gains on sales of securities
 
$
(13
)
 
$
(2
)
 
$
(46
)
 
$
(27
)
 
Investment income
 
 
5

 
1

 
17

 
10

 
Income taxes
 
 
$
(8
)
 
$
(1
)
 
$
(29
)
 
$
(17
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
Defined benefit pension and OPEB plans
 
 
 
 
 
 
 
 
 
 
Prior-service costs
 
$
(42
)
 
$
(47
)
 
$
(126
)
 
$
(148
)
 
(1) 
 
 
16

 
18

 
48

 
58

 
Income taxes
 
 
$
(26
)
 
$
(29
)
 
$
(78
)
 
$
(90
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 4, Pensions and Other Postemployment Benefits for additional details.
(2) Parenthesis represent credits to the Consolidated Statements of Income from AOCI.
 
 
 
 
 
 
 
 
 
 
 
FES
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Affected Line Item in Consolidated Statements of Income (Loss)
Reclassifications from AOCI (2)
 
2014
 
2013
 
2014
 
2013
 
 
 
(In millions)
 
 
Gains & losses on cash flow hedges
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
$
(2
)
 
$
(1
)
 
$
(7
)
 
$
(5
)
 
Other operating expenses
Long-term debt
 
—

 
—

 
—

 
2

 
Interest expense — other
 
 
(2
)
 
(1
)
 
(7
)
 
(3
)
 
Total before taxes
 
 
1

 
1

 
3

 
1

 
Income taxes (benefits)
 
 
$
(1
)
 
$
—

 
$
(4
)
 
$
(2
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
Unrealized gains on AFS securities
 
 
 
 
 
 
 
 
 
 
Realized gains on sales of securities
 
$
(11
)
 
$
(2
)
 
$
(43
)
 
$
(24
)
 
Investment income (loss)
 
 
5

 
1

 
16

 
9

 
Income taxes (benefits)
 
 
$
(6
)
 
$
(1
)
 
$
(27
)
 
$
(15
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
Defined benefit pension and OPEB plans
 
 
 
 
 
 
 
 
 
 
Prior-service costs
 
$
(4
)
 
$
(5
)
 
$
(14
)
 
$
(16
)
 
(1) 
 
 
1

 
2

 
5

 
6

 
Income taxes (benefits)
 
 
$
(3
)
 
$
(3
)
 
$
(9
)
 
$
(10
)
 
Net of tax
 
 
 
 
 
 
 
 
 
 
 
(1) These AOCI components are included in the computation of net periodic pension cost. See Note 4, Pensions and Other Postemployment Benefits for additional details.
(2) Parenthesis represent credits to the Consolidated Statements of Income (Loss) from AOCI.