Allegheny Power 2015 Annual Report Download - page 148

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132
17.SUPPLEMENTALGUARANTORINFORMATION
In2007,FGcompletedasaleandleasebacktransactionforitsundividedinterestinBruceMansfieldUnit1.FEShasfullyand
unconditionallyandirrevocablyguaranteedallofFG'sobligationsundereachoftheleases.Therelatedlessornotesandpass
throughcertificatesarenotguaranteedbyFESorFG,butthenotesaresecuredby,amongotherthings,eachlessortrust'sundivided
interestinUnit1,rightsandinterestsundertheapplicableleaseandrightsandinterestsunderotherrelatedagreements,including
FES'leaseguaranty.ThistransactionisclassifiedasanoperatingleaseforFESandFirstEnergyandasafinancingleaseforFG.
TheCondensedConsolidatingStatementsofIncome(Loss)andComprehensiveIncome(Loss)fortheyearsendedDecember31,
2015, 2014, and 2013, Condensed Consolidating Balance Sheets as of December31, 2015 and December31, 2014, and
CondensedConsolidatingStatementsofCashFlowsfortheyearsendedDecember31,2015,2014,and2013,forFES(parentand
guarantor),FGandNG(nonguarantor)arepresentedbelow.ThesestatementsareprovidedasFESfullyandunconditionally
guaranteesoutstandingregisteredsecuritiesofFGaswellasFG'sobligationsunderthefacilityleasefortheBruceMansfieldsale
andleasebackthatunderlieoutstandingregisteredpassthroughtrustcertificates.Investmentsinwhollyownedsubsidiariesare
accountedforbyFESusingtheequitymethod.ResultsofoperationsforFGandNGare,therefore,reflectedinFES’investment
accountsandearningsasifoperatingleasetreatmentwasachieved.Theprincipaleliminationentrieseliminateinvestmentsin
subsidiariesandintercompanybalancesandtransactionsandtheentriesrequiredtoreflectoperatingleasetreatmentassociatedwith
the2007BruceMansfieldUnit1saleandleasebacktransaction.
133
FIRSTENERGYSOLUTIONSCORP.
CONDENSEDCONSOLIDATINGSTATEMENTSOFINCOMEANDCOMPREHENSIVEINCOME
FortheYearEndedDecember31,2015FESFGNGEliminationsConsolidated
(Inmillions)
STATEMENTSOFINCOME
REVENUES$ 4,824 $ 1,801 $ 2,138 $ (3,758) $ 5,005
OPERATINGEXPENSES:
Fuel — 679192 — 871
Purchasedpowerfromaffiliates3,826 — 285(3,758) 353
Purchasedpowerfromnonaffiliates1,684 — — —1,684
Otheroperatingexpenses399275618491,341
PensionandOPEBmarktomarketadjustment(8) 1055 — 57
Provisionfordepreciation12124191(3) 324
Generaltaxes452627 —98
Totaloperatingexpenses5,9581,1141,368(3,712) 4,728
OPERATINGINCOME(LOSS)(1,134) 687770(46) 277
OTHERINCOME(EXPENSE):
Investmentincome(loss),includingnetincomefrom
equityinvestees84417(5) (870) (14)
Miscellaneousincome 1 2 — — 3
Interestexpense—affiliates(29) (8) (4) 34(7)
Interestexpense—other(52) (104) (49) 58(147)
Capitalizedinterest — 629 — 35
Totalotherincome(expense)764(87) (29) (778) (130)
INCOME(LOSS)BEFOREINCOMETAXES(BENEFITS)(370) 600741(824) 147
INCOMETAXES(BENEFITS)(452)2242781565
NETINCOME$ 82 $ 376 $ 463 $ (839) $ 82
STATEMENTSOFCOMPREHENSIVEINCOME
NETINCOME$ 82 $ 376 $ 463 $ (839) $ 82
OTHERCOMPREHENSIVELOSS:
PensionandOPEBpriorservicecosts(6) (5) — 5 (6)
Amortizedgainonderivativehedges(3) — — — (3)
Changeinunrealizedgainonavailableforsalesecurities(9) — (8) 8 (9)
Othercomprehensiveloss(18) (5) (8) 13(18)
Incometaxbenefitsonothercomprehensiveloss(7) (2) (3) 5(7)
Othercomprehensiveloss,netoftax(11) (3)(5) 8 (11)
COMPREHENSIVEINCOME$ 71 $ 373 $ 458 $ (831) $ 71