Allegheny Power 2013 Annual Report Download - page 124

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109
Proceeds from the sale of investments in AFS securities, realized gains and losses on those sales, OTTI and interest and dividend
income for the three years ended December 31, 2013, 2012 and 2011 were as follows:
December 31, 2013
Sale
Proceeds
Realized
Gains
Realized
Losses OTTI
Interest and
Dividend Income
(In millions)
FirstEnergy $ 2,047 $ 92 $(46) $ (90) $ 101
FES 940 70 (21)(79) 60
December 31, 2012
Sale
Proceeds
Realized
Gains
Realized
Losses OTTI
Interest and
Dividend Income
(In millions)
FirstEnergy $ 2,980 $ 179 $ (83) $ (16) $ 70
FES 1,464 124 (59)(14) 39
December 31, 2011
Sale
Proceeds
Realized
Gains
Realized
Losses OTTI
Interest and
Dividend Income
(In millions)
FirstEnergy $ 4,207 $ 229 $ (71) $ (19) $ 82
FES 1,843 80 (29)(17) 47
Held-To-Maturity Securities
The following table provides the amortized cost basis, unrealized gains (there were no unrealized losses) and approximate fair
values of investments in held-to-maturity securities as of December 31, 2013 and December 31, 2012:
December 31, 2013 December 31, 2012
Cost
Basis
Unrealized
Gains Fair Value
Cost
Basis
Unrealized
Gains Fair Value
(In millions)
Debt Securities
FirstEnergy $ 33 $ 2 $ 35 $ 54 $ 30 $ 84
Investments in emission allowances, employee benefit trusts and cost and equity method investments, including FirstEnergy's
investment in Global Holding, totaling $636 million as of December 31, 2013, and $644 million as of December 31, 2012, are
excluded from the amounts reported above.
LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS
All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are
reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature,
FirstEnergy believes that their costs approximate their fair market value. The following table provides the approximate fair value
and related carrying amounts of long-term debt and other long-term obligations, excluding capital lease obligations and net
unamortized premiums and discounts:
December 31, 2013 December 31, 2012
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
(In millions)
FirstEnergy $ 17,049 $ 17,957 $ 16,957 $ 19,460
FES 3,001 3,073 4,194 4,524
The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those
securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each respective
period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar
to those of FirstEnergy and its subsidiaries. FirstEnergy classified short-term borrowings, long-term debt and other long-term
obligations as Level 2 in the fair value hierarchy as of December 31, 2013 and December 31, 2012.