Allegheny Power 2014 Annual Report Download - page 109

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94
Transfers between levels are recognized at the end of the reporting period. There were no transfers between levels during the years
ended December 31, 2014 and 2013. The following tables set forth the recurring assets and liabilities that are accounted for at fair
value by level within the fair value hierarchy:
FirstEnergy
Recurring Fair Value Measurements December 31, 2014 December 31, 2013
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets (In millions)
Corporate debt securities $ —$ 1,221 $ — $ 1,221 $ — $ 1,365 $ — $ 1,365
Derivative assets - commodity contracts 1 171 — 172 7 208 — 215
Derivative assets - FTRs —— 39 39 — — 4 4
Derivative assets - NUG contracts(1) —— 2 2 — — 20 20
Equity securities(2) 592 — — 592 317 — — 317
Foreign government debt securities —76 — 76 — 109 — 109
U.S. government debt securities —182 — 182 — 165 — 165
U.S. state debt securities —237 — 237 — 228 — 228
Other(3) 55 256 — 311 187 255 — 442
Total assets $ 648 $ 2,143 $ 41 $ 2,832 $ 511 $ 2,330 $ 24 $ 2,865
Liabilities
Derivative liabilities - commodity contracts $ (26) $ (141) $ — $ (167) $ (13) $ (100) $ — $ (113)
Derivative liabilities - FTRs —— (14) (14) — — (12) (12)
Derivative liabilities - NUG contracts(1) —— (153) (153) — — (222) (222)
Total liabilities $ (26) $ (141) $ (167) $ (334) $ (13) $ (100) $ (234) $ (347)
Net assets (liabilities)(4) $ 622 $ 2,002 $ (126) $ 2,498 $ 498 $ 2,230 $ (210) $ 2,518
(1) NUG contracts are subject to regulatory accounting treatment and do not impact earnings.
(2) NDT funds hold equity portfolios whose performance is benchmarked against the Alerian MLP Index or the Wells Fargo Hybrid and Preferred
Securities REIT index.
(3) Primarily consists of cash and short-term cash investments.
(4) Excludes $40 million and $10 million as of December 31, 2014 and December 31, 2013, respectively, of receivables, payables, taxes and
accrued income associated with financial instruments reflected within the fair value table.