Gain on sale of Yards Creek (Note 12)

  
FIRSTENERGY CORP.CONSOLIDATED STATEMENTS OF INCOME

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | For the Years Ended December 31, |
| (In millions, except per share amounts) |  | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  |  |  |
| REVENUES: |  |  |  |  |  |  |
| Distribution services and retail generation  |  | $ | 9,009  |  |  | $ | 8,688  |  |  | $ | 8,720  |  |
| Transmission |  | 1,608  |  |  | 1,613  |  |  | 1,510  |  |
| Other  |  | 515  |  |  | 489  |  |  | 805  |  |
| Total revenues(1) |  | 11,132  |  |  | 10,790  |  |  | 11,035  |  |
|  |  |  |  |  |  |  |
| OPERATING EXPENSES: |  |  |  |  |  |  |
| Fuel |  | 481  |  |  | 369  |  |  | 497  |  |
| Purchased power |  | 2,964  |  |  | 2,701  |  |  | 2,927  |  |
| Other operating expenses |  | 3,196  |  |  | 3,291  |  |  | 2,952  |  |
|  |  |  |  |  |  |  |
| Provision for depreciation |  | 1,302  |  |  | 1,274  |  |  | 1,220  |  |
|  |  |  |  |  |  |  |
| Amortization (deferral) of regulatory assets, net |  | 269  |  |  | (53) |  |  | (79) |  |
| General taxes |  | 1,073  |  |  | 1,046  |  |  | 1,008  |  |
| DPA penalty (Note 13) |  | 230  |  |  | —  |  |  | —  |  |
| Gain on sale of Yards Creek (Note 12) |  | (109) |  |  | —  |  |  | —  |  |
|  |  |  |  |  |  |  |
| Total operating expenses |  | 9,406  |  |  | 8,628  |  |  | 8,525  |  |
|  |  |  |  |  |  |  |
| OPERATING INCOME  |  | 1,726  |  |  | 2,162  |  |  | 2,510  |  |
|  |  |  |  |  |  |  |
| OTHER INCOME (EXPENSE): |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Miscellaneous income, net |  | 517  |  |  | 432  |  |  | 243  |  |
| Pension and OPEB mark-to-market adjustment |  | 382  |  |  | (477) |  |  | (674) |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Interest expense |  | (1,141) |  |  | (1,065) |  |  | (1,033) |  |
| Capitalized financing costs |  | 75  |  |  | 77  |  |  | 71  |  |
| Total other expense |  | (167) |  |  | (1,033) |  |  | (1,393) |  |
|  |  |  |  |  |  |  |
| INCOME BEFORE INCOME TAXES |  | 1,559  |  |  | 1,129  |  |  | 1,117  |  |
|  |  |  |  |  |  |  |
| INCOME TAXES  |  | 320  |  |  | 126  |  |  | 213  |  |
|  |  |  |  |  |  |  |
| INCOME FROM CONTINUING OPERATIONS |  | 1,239  |  |  | 1,003  |  |  | 904  |  |
|  |  |  |  |  |  |  |
| Discontinued operations (Note 14)(2)  |  | 44  |  |  | 76  |  |  | 8  |  |
|  |  |  |  |  |  |  |
| NET INCOME |  | $ | 1,283  |  |  | $ | 1,079  |  |  | $ | 912  |  |
|  |  |  |  |  |  |  |
| INCOME ALLOCATED TO PREFERRED STOCKHOLDERS (Note 1) |  | —  |  |  | —  |  |  | 4  |  |
|  |  |  |  |  |  |  |
| NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |  | $ | 1,283  |  |  | $ | 1,079  |  |  | $ | 908  |  |
|  |  |  |  |  |  |  |
| EARNINGS PER SHARE OF COMMON STOCK: |  |  |  |  |  |  |
| Basic - Continuing Operations |  | $ | 2.27  |  |  | $ | 1.85  |  |  | $ | 1.69  |  |
| Basic - Discontinued Operations |  | 0.08  |  |  | 0.14  |  |  | 0.01  |  |
| Basic - Net Income Attributable to Common Stockholders |  | $ | 2.35  |  |  | $ | 1.99  |  |  | $ | 1.70  |  |
|  |  |  |  |  |  |  |
| Diluted - Continuing Operations |  | $ | 2.27  |  |  | $ | 1.85  |  |  | $ | 1.67  |  |
| Diluted - Discontinued Operations |  | 0.08  |  |  | 0.14  |  |  | 0.01  |  |
| Diluted - Net Income Attributable to Common Stockholders |  | $ | 2.35  |  |  | $ | 1.99  |  |  | $ | 1.68  |  |
|  |  |  |  |  |  |  |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |  |  |  |  |  |  |
| Basic |  | 545  |  |  | 542  |  |  | 535  |  |
| Diluted |  | 546  |  |  | 543  |  |  | 542  |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |

(1) Includes excise and gross receipts tax collections of $374 million, $362 million and $373 million in 2021, 2020 and 2019, respectively.  
(2) Net of income tax benefit of $48 million, $59 million, and $5 million in 2021, 2020 and 2019, respectively.   
The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements.  
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