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108
TheeffectofactivederivativeinstrumentsnotinahedgingrelationshipontheConsolidatedStatementsofIncomeduring2015
and2014aresummarizedinthefollowingtables:
YearEndedDecember31,
Commodity
ContractsFTRsTotal
(Inmillions)
2015
UnrealizedGain(Loss)Recognizedin:
OtherOperatingExpense(1) $ 93
$ (20)
$ 73
RealizedGain(Loss)Reclassifiedto:
Revenues(2) $ 111
$ 50
$ 161
PurchasedPowerExpense(3)(130)
—
(130)
OtherOperatingExpense(4) —
(49)
(49)
FuelExpense(34) —
(34)
(1)Includes$93millionforcommoditycontractsand($19)millionforFTRsassociatedwithFES.
(2)Includes$111millionforcommoditycontractsand$49millionforFTRsassociatedwithFES.
(3)Includes($130)millionforcommoditycontractsassociatedwithFES.
(4)Includes($49)millionforFTRsassociatedwithFES.
YearEndedDecember31,
Commodity
ContractsFTRsInterest
RateSwapsTotal
(Inmillions)
2014
UnrealizedGain(Loss)Recognizedin:
OtherOperatingExpense(5) $ (86)
$ 22
$ —
$ (64)
RealizedGain(Loss)Reclassifiedto:
Revenues(6) $ (6)
$ 68
$ —
$ 62
PurchasedPowerExpense(7)365
—
—
365
OtherOperatingExpense(8) —
(44)
—
(44)
FuelExpense(6)
—
—
(6)
InterestExpense —
—
14
14
(5)Includes($86)millionforcommoditycontractsand$21millionforFTRsassociatedwithFES.
(6)Includes($6)millionforcommoditycontractsand$67millionforFTRsassociatedwithFES.
(7)Realizedlossesonfinanciallysettledwholesalesalescontractsof$252millionresultingfromhighermarketpriceswerenettedinpurchased
power.Includes$365millionforcommoditycontractsassociatedwithFES.
(8)Includes($43)millionforFTRsassociatedwithFES.
109
ThefollowingtableprovidesareconciliationofchangesinthefairvalueofFirstEnergy'sderivativeinstrumentssubjecttoregulatory
accountingduring2015and2014.Changesinthevalueofthesecontractsaredeferredforfuturerecoveryfrom(orcreditto)
customers:
YearEndedDecember31,
DerivativesNotinaHedgingRelationshipwith
RegulatoryOffset
NUGs
Regulated
FTRs
Total
(Inmillions)
Outstandingnetasset(liability)asofJanuary1,2015
$
(151
)
$
11
$
(140
)
Unrealizedloss
(47
)
(9
)
(56
)
Purchases
—
12
12
Settlements
62
(13
)
49
Outstandingnetasset(liability)asofDecember31,2015
$
(136
)
$
1
$
(135
)
OutstandingnetliabilityasofJanuary1,2014
$
(202
)
$
—
$
(202
)
Unrealizedgain(loss)
(1
)
13
12
Purchases
—
11
11
Settlements
52
(13
)
39
Outstandingnetasset(liability)asofDecember31,2014
$
(151
)
$
11
$
(140
)
11.CAPITALIZATION
COMMONSTOCK
RetainedEarningsandDividends
AsofDecember31,2015,FirstEnergy’sunrestrictedretainedearningswere$2.3billion.Dividendsdeclaredin2015and2014were
$1.44pershare,whichincludeddividendsof$0.36persharepaidinthefirst,second,thirdandfourthquarters.Theamountand
timingofalldividenddeclarationsaresubjecttothediscretionoftheBoardofDirectorsanditsconsiderationofbusinessconditions,
resultsofoperations,financialconditionandotherfactors.OnJanuary19,2016theBoardofDirectorsdeclaredaquarterlydividend
of$0.36persharetobepaidinthefirstquarterof2016.
Inadditiontopayingdividendsfromretainedearnings,OE,CEI,TE,Penn,JCP&L,MEandPNhaveauthorizationfromtheFERCto
paycashdividendstoFirstEnergyfrompaidincapitalaccounts,aslongastheirFERCdefinedequitytototalcapitalizationratio
remainsabove35%.Inaddition,TrAILandAGChaveauthorizationfromtheFERCtopaycashdividendstotheirrespectiveparents
frompaidincapitalaccounts,aslongastheirFERCdefinedequitytototalcapitalizationratioremainsabove45%.Thearticlesof
incorporation,indentures,regulatorylimitationsandvariousotheragreementsrelatingtothelongtermdebtofcertainFirstEnergy
subsidiariescontainprovisionsthatcouldfurtherrestrictthepaymentofdividendsontheircommonstock.Noneoftheseprovisions
materiallyrestrictedFirstEnergy’ssubsidiaries’abilitiestopaycashdividendstoFirstEnergyasofDecember31,2015.
StockIssuance
Ineachof2015and2014,FEissuedapproximately2.5millionsharesofcommonstocktoregisteredshareholdersanditsemployees
andtheemployeesofitssubsidiariesunderitsStockInvestmentPlanandcertainsharebasedbenefitplans.