Allegheny Power 2011 Annual Report Download - page 122

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107
December 31, 2009
FirstEnergy
FES
OE
TE
JCP&L
Met-Ed
Penelec
Sales
Proceeds
(In millions)
$ 2,229
1,379
131
169
397
68
84
Realized
Gains
$ 226
199
11
7
6
2
1
Realized
Losses
$ (155)
(117)
(4)
(1)
(12)
(13)
(8)
Interest and
Dividend
Income
$ 60
27
4
2
14
7
6
Held-To-Maturity Securities
The following table provides the amortized cost basis, unrealized gains and approximate fair values of investments in held-to-
maturity securities as of December 31, 2011 and 2010:
Debt Securities
FirstEnergy
OE
CEI
December 31, 2011
Cost
Basis
(In millions)
$ 402
163
287
Unrealized
Gains
$ 50
21
28
Fair
Value
$ 452
184
315
December 31, 2010
Cost
Basis
$ 476
190
340
Unrealized
Gains
$ 91
51
41
Fair
Value
$ 567
241
381
Investments in emission allowances, employee benefit trusts and cost and equity method investments totaling $693 million as of
December 31, 2011, and $259 million as of December 31, 2010, are excluded from the amounts reported above.
Notes Receivable
The table below provides the approximate fair value and related carrying amounts of notes receivable as of December 31, 2011
and 2010. The fair value of notes receivable represents the present value of the cash inflows based on the yield to maturity. The
yields assumed were based on financial instruments with similar characteristics and terms. The maturity date of notes receivable
due from affiliated companies is 2016.
FirstEnergy
TE(1)
December 31, 2011
Carrying
Value
(In millions)
$ —
81
Fair Value
$ —
92
December 31, 2010
Carrying
Value
$ 7
104
Fair Value
$ 8
118
(1) Represents TE's investment in the Shippingport Trust notes (see Note 6, Leases), which is
eliminated during consolidation.
RECURRING FAIR VALUE MEASUREMENTS
Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This
hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. The three levels of
the fair value hierarchy are as follows: