Allegheny Power 2015 Annual Report Download - page 149

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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,2015
FES
FG
NG
Eliminations
Consolidated
(Inmillions)
STATEMENTSOFINCOME
REVENUES
$
4,824
$
1,801
$
2,138
$
(3,758
)
$
5,005
OPERATINGEXPENSES:
Fuel
—
679
192
—
871
Purchasedpowerfromaffiliates
3,826
—
285
(3,758
)
353
Purchasedpowerfromnonaffiliates
1,684
—
—
—
1,684
Otheroperatingexpenses
399
275
618
49
1,341
PensionandOPEBmarktomarketadjustment
(8
)
10
55
—
57
Provisionfordepreciation
12
124
191
(3
)
324
Generaltaxes
45
26
27
—
98
Totaloperatingexpenses
5,958
1,114
1,368
(3,712
)
4,728
OPERATINGINCOME(LOSS)
(1,134
)
687
770
(46
)
277
OTHERINCOME(EXPENSE):
Investmentincome(loss),includingnetincomefrom
equityinvestees
844
17
(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
—
6
29
—
35
Totalotherincome(expense)
764
(87
)
(29
)
(778
)
(130
)
INCOME(LOSS)BEFOREINCOMETAXES(BENEFITS)
(370
)
600
741
(824
)
147
INCOMETAXES(BENEFITS)
(452
)
224
278
15
65
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