STOCKHOLDER'S EQUITY

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

STOCKHOLDER'S EQUITY

STOCKHOLDER'S EQUITY

Accumulated Other Comprehensive Income

The following table provides the components of changes in AOCI for the three and nine months ended September 30, 2017 and 2016:

	Three months ended					Nine months ended
	September 30,					September 30,
(in millions)	2017		2016			2017		2016
Balance at the beginning of period	$	—	$	(3	)	$	2	$	4
Derivative instruments
Reclassification of net loss relating to interest rate cash flow hedges from AOCI to earnings (net of tax of less than $1 for the three months ended September 30, 2017 and the nine months ended September 30, 2017 and 2016) (a)	1		—			1		1
Gain (loss) on interest rate swaps relating to interest rate cash flow hedges (net of tax of $1 for the three months ended September 30, 2017 and $6 for the nine months ended September 30, 2016)	2		—			—		(8		)
Total other comprehensive income (loss), net of tax	3		—			1		(7		)
Balance at the end of period (b)	$	3	$	(3	)	$	3	$	(3	)

____________________________

(a) The reclassification of net loss relating to interest rate cash flow hedges is reported in interest expense on a pre-tax basis.

(b) Includes unrealized gains on available-for-sale securities, net of tax, of less than $1 million for the three and nine months ended September 30, 2017 and 2016.

The amount of net loss relating to interest rate cash flow hedges to be reclassified from AOCI to earnings for the 12-month period ending September 30,2018 is expected to be approximately $2 million (net of tax of $1 million). The reclassification is reported in interest expense on a pre-tax basis.

The Merger

On October 14, 2016, ITC Holdings became a wholly-owned subsidiary of Investment Holdings, which is an indirect subsidiary of Fortis and GIC, upon the closing of the Merger. On the same date, the common shares of ITC Holdings were delisted from the NYSE. Refer to Note 2 for further details of the Merger.