Allegheny Power 2014 Annual Report Download - page 113

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98
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, 2014, 2013 and 2012 were as follows:
December 31, 2014 Sale
Proceeds Realized
Gains Realized
Losses OTTI Interest and
Dividend Income
(In millions)
FirstEnergy $ 2,133 $ 146 $ (75) $ (37) $ 96
FES 1,163 113 (54)(33) 56
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
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, 2014 and December 31, 2013:
December 31, 2014 December 31, 2013
Cost
Basis Unrealized
Gains Fair Value Cost
Basis Unrealized
Gains Fair Value
(In millions)
Debt Securities
FirstEnergy $ 13 $ 4 $ 17 $ 33 $ 2 $ 35
The held-to-maturity debt securities contractually mature by June 30, 2017. Investments in employee benefit trusts and cost and
equity method investments, including FirstEnergy's investment in Global Holding, totaling $626 million as of December 31, 2014,
and $636 million as of December 31, 2013, are excluded from the amounts reported above.
During 2012, FE increased its ownership interest in a cost method investment. The increased investment triggered a change in the
investment accounting from the cost method to the equity method. As a result of this change, FE recorded a reduction of $9 million
to retained earnings in 2012 to reflect the investment as if it had been historically accounted for under the equity method.
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, 2014 December 31, 2013
Carrying
Value Fair
Value Carrying
Value Fair
Value
(In millions)
FirstEnergy $ 19,828 $ 21,733 $ 17,049 $ 17,957
FES 3,097 3,241 3,001 3,073
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