Allegheny Power 2011 Annual Report Download - page 85

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Receivables from customers include distribution and retail electric sales to residential, commercial and industrial customers for the
Utilities, and retail and wholesale sales to customers for FES and AE Supply. There were no material concentration of receivables
as of December 31, 2011 and 2010 with respect to any particular segment of FirstEnergy’s customers. Billed and unbilled customer
receivables as of December 31, 2011 and 2010 are shown below.
Customer
Receivables
December 31, 2011
Billed
Unbilled
Total
December 31, 2010
Billed
Unbilled
Total
FirstEnergy
(In millions)
$ 800
725
$ 1,525
$ 752
640
$ 1,392
FES
$ 220
204
$ 424
$ 196
170
$ 366
OE
$ 67
96
$ 163
$ 81
96
$ 177
CEI
$ 40
52
$ 92
$ 95
89
$ 184
TE(1)
$ 24
25
$ 49
$ —
—
$ —
JCP&L
$ 117
118
$ 235
$ 178
145
$ 323
Met-Ed
$ 79
60
$ 139
$ 101
78
$ 179
Penelec
$ 72
54
$ 126
$ 82
67
$ 149
(1) During 2011, TE's accounts receivable financing arrangement with Centerior Funding Corporation was terminated.
EARNINGS PER SHARE OF COMMON STOCK
Basic earnings per share of common stock are computed using the weighted average number of common shares outstanding
during the relevant period as the denominator. The denominator for diluted earnings per share of common stock reflects the weighted
average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other
agreements to issue common stock were exercised. The following table reconciles basic and diluted earnings per share of common
stock:
Reconciliation of Basic and Diluted Earnings per Share of Common Stock
Weighted average number of basic shares outstanding(1)
Assumed exercise of dilutive stock options and awards(2)
Weighted average number of diluted shares outstanding(1)
Earnings available to FirstEnergy Corp.
Basic earnings per share of common stock
Diluted earnings per share of common stock
2011
(In millions, except per share amounts)
399
2
401
$ 885
$ 2.22
$ 2.21
2010
304
1
305
$ 742
$ 2.44
$ 2.42
2009
304
2
306
$ 872
$ 2.87
$ 2.85
(1) Includes 113 million shares issued to AE shareholders for the periods subsequent to the merger date (see Note 2, Merger).
(2) The number of potentially dilutive securities not included in the calculation of diluted shares outstanding due to their antidilutive effect were
not significant for the years ending December 31, 2011, 2010 or 2009.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment reflects original cost (net of any impairments recognized), including payroll and related costs such
as taxes, employee benefits, administrative and general costs, and interest costs incurred to place the assets in service. The costs
of normal maintenance, repairs and minor replacements are expensed as incurred. FirstEnergy recognizes liabilities for planned
major maintenance projects as they are incurred. Property, plant and equipment balances as of December 31, 2011 and 2010 were
as follows:
Property, Plant and Equipment
In service
Less - Accumulated depreciation
Net plant in service
December 31, 2011
Unregulated
(In millions)
$ 15,472
(4,424)
$ 11,048
Regulated
$ 24,650
(7,415)
$ 17,235
Total
$ 40,122
(11,839)
$ 28,283
December 31, 2010
Unregulated
$ 12,104
(4,255)
$ 7,849
Regulated
$ 18,172
(7,028)
$ 11,144
Total
$ 30,276
(11,283)
$ 18,993
FirstEnergy provides for depreciation on a straight-line basis at various rates over the estimated lives of property included in plant
in service. The respective annual composite rates for FirstEnergy’s subsidiaries’ electric plant in 2011, 2010 and 2009 are shown
in the following table: