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Section 1: 11-K (11-K)

Document
 
 
UNITED STATES
 
 
 
 
SECURITIES AND EXCHANGE COMMISSION
 
 
 
 
Washington, D.C. 20549
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FORM 11-K
 
 
 
 
 
 
 
 
 
 
ANNUAL REPORT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pursuant to Section 15(d) of the
 
 
 
 
Securities Exchange Act of 1934
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Mark One)
 
 
 
 
 
 
 
 
 
 
 
{X}
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
 
 
 
ACT OF 1934
 
 
 
 
For the fiscal year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
OR
 
 
 
 
 
 
 
 
{ }
 
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
 
 
 
 
EXCHANGE ACT OF 1934
 
 
 
 
For the transition period from _________ to __________.
 
 
 
 
 
 
 
 
 
 
Commission file number 333-21011
 
 
 
 
 
 
 
 
 
A.
Full title of the plan and the address of the plan, if different from that of the
 
 
 
 
issuer named below:
 
 
 
 
 
 
 
 
 
 
FIRSTENERGY CORP. SAVINGS PLAN
 
 
 
 
 
 
 
 
 
B.
Name of issuer of the securities held pursuant to the plan and the address
 
 
 
 
of its principal executive office:
 
 
 
 
 
 
 
 
 
 
FIRSTENERGY CORP.
 
 
 
 
76 SOUTH MAIN STREET
 
 
 
 
AKRON, OH 44308
 
 
 
 
 
 
 
 




FirstEnergy Corp. Savings Plan
Table of Contents
 
 
 
Page

 
 
 
 
Report of Independent Registered Public Accounting Firm
1-2

 
 
Financial Statements:
 
Statements of Net Assets Available for Benefits as of
 
December 31, 2017 and 2016
3

 
 
Statement of Changes in Net Assets Available for Benefits
 
for the Year Ended December 31, 2017
4

 
 
Notes to Financial Statements
5-10

 
 
Supplemental Schedules:
 
Schedule H, line 4i – Schedule of Assets (Held at End of Year)
 
as of December 31, 2017
11-29

Schedule H, line 4j - Schedule of Reportable Transactions
 
for the Year Ended December 31, 2017
30

 
 



Other schedules of additional financial information have been omitted as they are not applicable or are not required based on the disclosure requirements of the Employee Retirement Income Security Act of 1974 and applicable regulations issued by the United States Department of Labor.




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Participants and Savings Plan Committee of the
FirstEnergy Corp. Savings Plan
Akron, Ohio

Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the FirstEnergy Corp. Savings Plan (the “Plan”) as of December 31, 2017 and 2016, the related statement of changes in net assets available for benefits for the year ended December 31, 2017, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental Information
The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2017 and the schedule of reportable transactions for the year then ended has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether


1


the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

We have served as the Plan’s auditor since 2003.





/s/ BOBER, MARKEY, FEDOROVICH & COMPANY
Akron, Ohio

June 27, 2018








2


FirstEnergy Corp. Savings Plan

Statements of Net Assets Available for Benefits
___________________________________________________________________________________________________________________________________________

 
 
As of December 31,
 
 
2017
 
2016
 Assets
 

 
 
 Investments:
 
 
 
 
 Investments, at fair value (see Note 5)
 
$
3,375,225,535

 
$
2,944,601,484

 Investments, at contract value (see Note 6)
 
522,144,768

 
565,637,389

        Total investments
 
3,897,370,303

 
3,510,238,873

 
 
 
 
 
 Receivables:
 
 
 
 
    Accrued interest and dividends
 
2,181,468

 
2,014,476

    Employer contributions
 
1,143,953

 
1,195,559

    Employee contributions
 
3,487,944

 
3,549,535

    Notes receivable from participants
 
62,281,227

 
60,108,033

    Due from brokers
 
7,806,556

 
2,867,791

        Total receivables
 
76,901,148

 
69,735,394

    Total assets
 
3,974,271,451

 
3,579,974,267

 
 
 
 
 
 
 

 
 
 Liabilities
 
 
 
 
 Administrative expenses payable
 
1,285,311

 
2,402,346

 Due to brokers
 
30,609,643

 
24,798,263

    Total liabilities
 
31,894,954

 
27,200,609

 
 
 
 
 
 Net assets available for benefits
 
$
3,942,376,497

 
$
3,552,773,658























The accompanying notes are an integral part of these financial statements.


3


FirstEnergy Corp. Savings Plan

Statement of Changes in Net Assets Available for Benefits
___________________________________________________________________________________________________________________________________

 
 
For the Year Ended
 
 
December 31, 2017
Additions:
 
 
Contributions:
 
 
   Employer
 
$
48,702,781

   Participant
 
151,399,174

        Total contributions
 
200,101,955

 
 
 
Investment Income:
 
 
   Interest and dividends
 
57,523,555

   Net appreciation in fair value of investments
 
411,234,443

        Total investment income
 
468,757,998

 
 
 
Interest income on notes receivable from participants
 
2,653,202

 
 
 
Deductions:
 
 
Distributions to participants
 
(276,057,021
)
Administrative expenses
 
(5,853,295
)
   Total deductions
 
(281,910,316
)
 
 
 
Increase in net assets available for benefits
 
389,602,839

 
 
 
Net assets available for benefits, beginning of year
 
3,552,773,658

 
 
 
Net assets available for benefits, end of year
 
$
3,942,376,497




















The accompanying notes are an integral part of these financial statements.


4






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________

1.
Description of the Plan

The following brief description of the FirstEnergy Corp. Savings Plan (Plan) is provided for general information purposes only. Participants should refer to the Plan documents for more complete information.

General
The Plan is a defined contribution plan and was established to provide a systematic savings program for eligible employees and to supplement such savings with employer contributions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA) and the Internal Revenue Code of 1986, as amended (IRC).

Administration
FirstEnergy Corp. (FirstEnergy) is the sponsor of the Plan. The FirstEnergy Savings Plan Committee is the administrator of the Plan and has responsibility for the day-to-day administration of the Plan. Plan assets are held in trust under an arrangement with State Street Bank & Trust Company (State Street). Record keeping with respect to individual participant accounts is maintained by Fidelity Investments (Fidelity).

Participation
Generally, all full-time and part-time employees of FirstEnergy's subsidiaries and participating employers not represented by a collective bargaining union are eligible to participate in the Plan. Full-time and part-time employees represented by a labor union may participate to the extent permitted by their respective collective bargaining agreement.

Except as further noted, new employees who do not make an affirmative election to make (or not make) pre-tax contributions to the Plan are deemed to have made an election to contribute 3% of eligible earnings for each payroll period increasing by 1% each April until the employee contribution rate reaches the maximum amount that will be subject to matching contributions. Effective January 1, 2018, except as further noted, new employees who do not make an affirmative election are deemed to have made an election to contribute 6% of eligible earnings for each payroll period increasing by 1% each April until the employee contribution rate reaches 10%. Certain union participants are automatically enrolled at 2%, Utility Workers Union of America (UWUA) Local 180 is without escalation and International Brotherhood of Electrical Workers (IBEW) Local 777 has an increase of 1% per year up to 4%. A new employee who has not made an affirmative election as to the investment of his or her account shall have his or her account invested in the age appropriate LifePath Portfolio Fund made available to Plan participants. A LifePath Portfolio Fund is an investment alternative that provides a mixture of fixed income and equity investments that are matched to an individual’s age and assumed retirement date. A participant may change any automatic contribution at any time.

Contributions
Subject to IRC limitations, the Plan allows each participant to contribute 1% to 75% (22% for participants represented by UWUA Local 180) of their eligible earnings to the Plan through payroll deductions. Participant contributions may be made as before-tax, after-tax or Roth 401(k) contributions (UWUA Local 180 and IBEW Local 777 are not eligible to elect Roth 401(k) contributions). During any calendar year in which a participant attains age 50 or older, he or she may elect to make additional pre-tax contributions and/or Roth contributions, called “catch-up” contributions. In order to be eligible to make catch-up contributions, the participant must anticipate that his or her pre-tax contributions and/or Roth contributions to the Plan will reach the applicable annual IRC limit on that type of contribution.

FirstEnergy makes a matching contribution of 50% on the first 6% of eligible compensation contributed by an employee, except for IBEW Local 777 and UWUA Local 180 participants who receive a matching contribution of 80% and 60%, respectively, on the first 4% of eligible contributions. All employer matching contributions are invested in FirstEnergy common stock, except for certain IBEW Local 777 and UWUA Local 180 participants whose matching contributions are invested in cash. Catch-up contributions are not eligible for matching contributions. The number of shares of FirstEnergy common stock contributed to each participant is based on the market price of FirstEnergy common stock as of the end of each pay period. FirstEnergy matching contributions are non-cash contributions made by issuing shares of common stock. Plan participants may diversify matching contributions held in FirstEnergy common stock at any time, subject to certain limitations.




5






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________

Participant Accounts
Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contributions, employer matching contributions and allocated Plan earnings. Participants are vested in the entire value of their account at all times.

Investments
Participants direct the investment of their contributions and account balances into various investment options including ten LifePath Funds that include a diversified mix of asset classes based on expected retirement dates, sixteen Plan investment options with different objectives covering a range of asset classes and risk levels and a self-managed brokerage account that offers participants the ability to invest in any security listed on the New York Stock Exchange (NYSE), the NYSE MKT LLC (formerly known as the American Stock Exchange or NYSE Amex LLC) or the NASDAQ and a wide range of mutual funds.

The Plan’s investment options include a fund of shares of FirstEnergy common stock, which together with a small portion of cash maintained for liquidity purposes, are recorded on a unit basis. FirstEnergy’s common shares are traded on the NYSE and participation units in the FirstEnergy Common Stock Fund are valued at the NYSE closing price on the last business day of the plan year. The valuation per share of FirstEnergy’s common stock was $30.62 and $30.97 at December 31, 2017 and 2016, respectively. The valuation per unit of the FirstEnergy Common Stock Fund was $37.42 and $37.86 at December 31, 2017 and 2016, respectively, due to cash maintained in the fund for liquidity purposes.

Notes Receivable from Participants
Participants may borrow up to 50% of their total account balance, excluding their Roth 401(k) balance, not exceeding $50,000, including loans outstanding and the highest unpaid loan balance over the previous 12 months. The interest rate for new loans is adjusted each quarter to the prime rate plus 1% based on the prime rate on approximately the 15th day of the last month of the preceding quarter. The range of interest rates on outstanding loan balances during the year ended December 31, 2017 was 4.25% to 10%. Participants may have up to two loans outstanding at one time. The minimum loan amount is $1,000 and must be repaid within 6 to 60 months. If the loan is for the purchase of a principal residence, the loan repayment period can be extended up to 30 years. Principal repayments and interest are credited to the participant’s account when made, generally through payroll deduction.

Payment of Benefits
Upon termination of service due to disability, retirement or any other reason, a participant may elect to receive the full value or a portion of his or her account, defer payment to a later date (not beyond age 70-1/2) or receive installment payments. In the event of a participant’s death, the participant’s spouse may elect to withdraw all or a portion of the former participant’s account or keep the funds in the Plan in accordance with provisions of the Plan, all other beneficiaries must withdraw or rollover the former participant's account within 180 days.

Subsequent Events
Management evaluates events and transactions occurring subsequent to the date of the financial statements that affect recognition or disclosure to the financial statements.

2.
Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis of accounting. Benefits are recorded when paid. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results may differ from these estimates.

The Plan’s investments are stated at fair value. Fair value reflects the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants on the measurement date. See Note 5 for a discussion of fair value measurements. Contract value is the relevant measurement attribute for that portion of the net assets available for benefits of the Plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.

Notes receivable from participants represent participant loans and are measured at their unpaid principal balance plus any accrued interest. Delinquent participant loans are reclassified as distributions based upon the terms of the


6






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________

Plan document. Repayments of principal and interest are recognized in the period in which payroll deductions are processed.

Investment income consists of interest and dividend income. The net appreciation (depreciation) in the fair value of investments consists of realized gains (losses) and unrealized appreciation (depreciation) on those investments. Dividend income is accrued on the ex-dividend date. Purchases and sales of securities are recorded on a trade-date basis. Realized gains and losses from security transactions are reported based on historical cost.

Expenses for the administration of the Plan are generally paid by the Plan.

3.
Recent Accounting Pronouncements

In February 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-06, Employee Benefit Master Trust Reporting. ASU 2017-06 requires an interest in a master trust and any change in the value of that interest to be reported in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. In addition, disclosure is required for the investments and other assets and liabilities of the master trust, as well as the dollar amount of its interest in these balances. The ASU is effective in 2019 and early adoption is permitted. This ASU does not impact the plan financials.

4.
Plan Termination

Although FirstEnergy has not expressed any intent to do so, it reserves the right to discontinue or terminate the Plan at any time. If the Plan were terminated, in whole or in part, participants would be entitled to withdraw the full value of their accounts, to the extent allowed by law.

5.
Investments and Fair Value Measurements

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Benefits.

Authoritative accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements.

The three levels of the fair value hierarchy are as follows:

Level 1
 
– Quoted prices for identical instruments in active markets.
 
 
 
Level 2
 
– Quoted prices for similar instruments in active markets;
 
 
– Quoted prices for identical or similar instruments in markets that are not active; and
 
 
– Model-derived valuations for which all significant inputs are observable market data.
 
 
 
 
 
Models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures.
 
 
 
Level 3
 
– Valuation inputs are unobservable and significant to the fair value measurement.

The Plan did not hold any Level 3 investments as of December 31, 2017 or 2016 or during the year ended December 31, 2017.


7






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________


There were no changes in valuation methodologies for assets measured at fair value during 2017.

The following tables set forth, by level within the fair value hierarchy, the fair value of the Plan’s investments as of December 31, 2017 and 2016:

 
 
December 31, 2017
 
 
Level 1
 
Level 2
 
Total
 
 
 
 
 
 
 
Cash and Cash Equivalents
 
$

 
$
6,332,431

 
$
6,332,431

 
 
 
 
 
 
 
Common Collective Trusts
 

 
1,793,543,746

 
1,793,543,746

 
 
 
 
 
 
 
FirstEnergy Common Stock Fund
 
 
 
 
 

FirstEnergy Common Stock
 
322,564,666

 

 
322,564,666

Cash and Cash Equivalents
 

 
2,542,282

 
2,542,282

Total FirstEnergy Common Stock Fund
 
322,564,666

 
2,542,282

 
325,106,948

 
 
 
 
 
 
 
Registered Investment Companies
 
832,633,686

 
281,469,385

 
1,114,103,071

 
 
 
 
 
 

Self Managed Brokerage Accounts1
 

 
136,139,339

 
136,139,339

 
 
 
 
 
 
 
Total Investments at Fair Value2
 
$
1,155,198,352

 
$
2,220,027,183

 
$
3,375,225,535

 
 
 
 
 
 
 
 
 
 
 
 
 
 
1  The brokerage account investments are directed by participants.
2  Values do not include investments at contract value.

 
 
December 31, 2016
 
 
Level 1
 
Level 2
 
Total
 
 
 
 
 
 
 
Cash and Cash Equivalents
 
$

 
$
4,944,296

 
$
4,944,296

 
 
 
 
 
 
 
Common Collective Trusts
 

 
1,583,189,917

 
1,583,189,917

 
 

 

 

FirstEnergy Common Stock Fund
 
 
 
 
 

FirstEnergy Common Stock
 
330,093,147

 

 
330,093,147

Cash and Cash Equivalents
 

 
1,417,891

 
1,417,891

Total FirstEnergy Common Stock Fund
 
330,093,147

 
1,417,891

 
331,511,038

 
 
 
 
 
 

Registered Investment Companies
 
686,285,793

 
229,962,736

 
916,248,529

 
 

 

 

Self Managed Brokerage Accounts1
 

 
108,707,704

 
108,707,704

 
 
 
 
 
 

Total Investments at fair value 2
 
$
1,016,378,940

 
$
1,928,222,544

 
$
2,944,601,484

 
 
 
 
 
 
 
1  The brokerage account investments are directed by participants.
2  Values do not include investments at contract value.


8






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________


6.
Fully Benefit-Responsive Investment Contracts

The Plan has an interest in synthetic guaranteed investment contracts (GICs) as part of the Capital Preservation Fund, which is managed by PIMCO.

In accordance with authoritative guidance for defined contribution plans, investment contracts are generally measured at contract value rather than fair value to the extent they are fully benefit-responsive. Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. Participants transact with their investment in the Capital Preservation Fund at contract value as determined by the insurers and banks. No valuation reserve in relation to the contract value was deemed necessary. The Statement of Changes in Net Assets Available for Benefits and the Statements of Net Assets Available for Benefits present the Synthetic GIC's on a contract value basis.

A synthetic investment contract includes a wrapper contract, which is an agreement for the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan.

The synthetic investment contracts held by the Plan include wrapper contracts that provide a guarantee that the credit rate will not fall below zero percent. Cash flow volatility (for example, timing of benefit payments) as well as asset underperformance can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in each contract that adjusts renewal crediting rates to recognize the difference between the fair value and the book value of the underlying assets. Crediting rates are reviewed monthly for resetting.

Certain events limit the ability of the Plan to transact with the issuer at contract value. These events include closings (location, subsidiary, division), layoffs, Plan termination, bankruptcy or reorganization, corporate merger, early retirement incentive programs or similar events. The Plan Administrator does not believe any such events, of the magnitude that would limit the Plan’s ability to transact at contract value, are probable. The GICs do not permit the issuers to terminate the contracts at an amount other than contract value.

The following represents the disaggregation of contract value between types of investment contracts held by the Plan at December 31, 2017 and 2016:
 
2017
 
2016
 
 
 
 
Short-term investment fund
$
2,674,077

 
$
23,933,495

Synthetic GIC's
519,470,691

 
541,703,894

Total Investments at contract value
$
522,144,768

 
$
565,637,389


The synthetic GIC's are presented on Schedule H, line 4i - Schedule of Assets (Held at End of Year) at fair value as a requirement of the Form 5500. The fair value of the synthetic GICs represents the total fair value of the underlying assets plus the wrap value, which is calculated by using the discounted cash flows of the difference between the current wrap fee and the market indication wrap fee.

7.
Tax Considerations

The Plan is exempt from federal, state and local income taxes. The Plan obtained its latest favorable determination letter on October 27, 2016, in which the Internal Revenue Service (IRS) stated that the Plan, as then designed, was in compliance with the applicable requirements of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan Administrator and the Plan's tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC.

The federal, state and local income tax treatments of distributions from the Plan depend upon when they are made and their form. The withdrawal of the principal amount of a participant's after-tax contribution is not, however, subject to tax. For tax years beginning after December 31, 1986, the Tax Reform Act of 1986 requires that an additional tax of 10% be applied to participant withdrawals from the Plan prior to death, disability, attainment of age 59-1/2 or


9






FirstEnergy Corp. Savings Plan

Notes to Financial Statements
____________________________________________________________________________________________________________________________________________________

under certain other limited circumstances. In the case of withdrawal by a participant employed by FirstEnergy prior to the attainment of age 59-1/2, the excess of the value of the withdrawal over the total amount of the participant's after-tax contributions, is taxable at ordinary income tax rates. The value of FirstEnergy’s common stock withdrawn is considered to be its fair value on the date it is withdrawn.

In the case of a distribution that qualifies as a lump-sum distribution upon a participant's termination of employment with FirstEnergy or after attaining the age of 59-1/2, only the excess of the value of the lump sum distribution over the amount of the participant's after-tax contributions to the Plan (less withdrawals) is taxable at ordinary income tax rates. In determining the value of the lump-sum distribution, the FirstEnergy common stock distributed in-kind or in cash is measured at fair value on the date it is withdrawn.

The Plan is subject to audits by taxing jurisdictions. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more than likely would not be sustained upon examination by taxing authorities. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2017 and 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements.

8.
Party-In-Interest Transactions

Certain Plan investments are shares of mutual funds managed by State Street Global Advisors. State Street, a related company, is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions.

PIMCO is the fund manager of the Capital Preservation Fund and invests in certain investments managed by PIMCO and therefore, these transactions qualify as party-in-interest transactions.

Certain Plan investments are shares of FirstEnergy common stock with sales and purchases of the stock commencing on an as-needed basis. The investments and transactions qualify as party-in-interest transactions.

Additionally, the Plan uses the services of other fund managers that are paid directly by the Plan.

All of the above transactions are exempt from the prohibited transaction rules of ERISA.

9.
Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets available for benefits, investment income and interest income on notes receivable per the financial statements to Form 5500 as of December 31, 2017 and 2016, and for the year ended December 31, 2017:

 
2017
 
2016
 
 
 
 
Net assets available for benefits per the financial statements
$
3,942,376,497

 
$
3,552,773,658

Adjustment from contract value to fair value for fully-benefit
 
 
 
   responsive investment contracts
(2,363,082
)
 
(2,198,445
)
Net assets available for benefits per Form 5500
$
3,940,013,415

 
$
3,550,575,213

 
 
 
 
Total investment income and interest income on notes receivable
 
 
 
   from participants per the financial statements
$
471,411,200

 
 
Adjustment from contract value to fair value for fully-benefit
 
 
 
   responsive investment contracts
(164,637
)
 
 
Investment income per Form 5500
$
471,246,563

 
 




10







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost ($)
 
Current Value ($)
 
 
 
 
 
 
 
 
 
 
 
*
 
STATE STREET STIF
 
Money market fund
 
 **
 
$
6,332,431

*
 
FIRSTENERGY COMMON STOCK FUND
 
FirstEnergy common stock
 
 **
 
325,106,948

 
 
FIDELITY PURITAN FUND
 
Balanced fund
 
 **
 
145,510,107

 
 
ACWI EX US - M
 
International stocks
 
 **
 
42,563,055

 
 
DFA US SMALL CAP VALUE PORTFOLIO
 
Small cap value stocks
 
 **
 
120,697,980

 
 
PIMCO REAL RETURN FUND INSTITUTIONAL CLASS
 
Bonds
 
 **
 
17,886,332

 
 
AMERICAN FUNDS EUROPACIFIC GROWTH FUND
 
International stocks
 
 **
 
169,948,952

 
 
BLACKROCK LIFEPATH INDEX RETIREMENT FUND L
 
Blend of stocks, fixed income
 
 **
 
89,053,469

 
 
BLACKROCK LIFEPATH INDEX 2020 FUND L
 
Blend of stocks, fixed income
 
 **
 
150,495,638

 
 
BLACKROCK LIFEPATH INDEX 2025 FUND L
 
Blend of stocks, fixed income
 
 **
 
151,283,090

 
 
BLACKROCK LIFEPATH INDEX 2030 FUND L
 
Blend of stocks, fixed income
 
 **
 
99,353,726

 
 
BLACKROCK LIFEPATH INDEX 2035 FUND L
 
Blend of stocks, fixed income
 
 **
 
58,276,032

 
 
BLACKROCK LIFEPATH INDEX 2040 FUND L
 
Blend of stocks, fixed income
 
 **
 
37,003,629

 
 
BLACKROCK LIFEPATH INDEX 2045 FUND L
 
Blend of stocks, fixed income
 
 **
 
37,155,545

 
 
BLACKROCK LIFEPATH INDEX 2050 FUND L
 
Blend of stocks, fixed income
 
 **
 
46,361,109

 
 
BLACKROCK LIFEPATH INDEX 2055 FUND L
 
Blend of stocks, fixed income
 
 **
 
33,555,820

 
 
BLACKROCK LIFEPATH INDEX 2060 FUND L
 
Blend of stocks, fixed income
 
 **
 
4,987,712

 
 
DODGE & COX INTERNATIONAL FUND
 
International stocks
 
 **
 
94,478,131

 
 
SELF MANAGED BROKERAGE ACCOUNTS
 
Equities, fixed income
 
 **
 
136,139,339

 
 
TOTAL BOND MARKET INDEX
 
Bonds
 
 **
 
45,344,896

 
 
SMALL CAP GROWTH EQUITY
 
Small cap growth stocks
 
 **
 
17,088,256

 
 
MARKET COMPLETION INDEX
 
Blend of large, mid cap and small cap stocks
 
 **
 
158,221,029

 
 
MID CAP VALUE - I
 
Mid cap value stocks
 
 **
 
101,541,027

 
 
EQUITY INDEX
 
Large cap stocks
 
 **
 
868,145,638

 
 
 
 
 
 
 
 
 
*
 
CAPITAL PRESERVATION FUND
 
 
 
 
 
 
 
 
 
 
STATE STREET STIF
 
Money market fund
 
 **
 
2,674,077

 
 
 
 
ABBVIE INC SR UNSEC
 
Corporate Bonds - 2.85%, 2023
 
 **
 
200,247

 
 
 
 
ABU DHABI GOVT
 
Government, Non US - 2.50%, 2022
 
 **
 
2,167,098

 
 
 
 
AMERICAN EXPRESS CREDIT SR UNSEC
 
Cash Equivalent - 2.19%, 2020
 
 **
 
404,277

 
 
 
 
AT&T INC SR UNSEC
 
Corporate Bonds - 3.20%, 2022
 
 **
 
1,018,039

 
 
 
 
AT&T INC SR UNSEC 144A
 
Corporate Bonds - 4.10%, 2028
 
 **
 
1,946,188

 
 
 
 
BAB UT ST-B
 
Municipals - 3.54%, 2025
 
 **
 
2,845,502

 
 
 
 
BAIDU INC SR UNSEC
 
Corporate Bonds - 2.75%, 2019
 
 **
 
3,008,249

 
 
 
 
BANK OF AMERICA CORP SR UNSEC 144A
 
Corporate Bonds - 3.00%, 2023
 
 **
 
5,010,958

 
 
 
 
BARCLAYS PLC SR UNSEC
 
Corporate Bonds - 3.20%, 2021
 
 **
 
709,800

 
 
 
 
BAT CAPITAL CORP SR UNSEC 144A
 
Corporate Bonds - 2.30%, 2022
 
 **
 
1,115,801



11







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BK TOKYO-MITSUBISHI UFJ UNSEC 144A
 
Corporate Bonds - 2.35%, 2019
 
 **
 
2,511,735

 
 
 
 
BNP PARIBAS GLBL SR UNSEC BKNT
 
Corporate Bonds - 5.00%, 2021
 
 **
 
3,811,284

 
 
 
 
BP CAPITAL MARKETS PLC CO GTD
 
Corporate Bonds - 4.74%, 2021
 
 **
 
2,159,717

 
 
 
 
CALIFORNIA ST-B-TXBL
 
Municipals - 2.19%, 2020
 
 **
 
2,711,255

 
 
 
 
CASH COLLATERAL CME FOB USD
 
Cash Equivalent - 1.23%, 2060
 
 **
 
127,071

 
 
 
 
CASH COLLATERAL FUT FOB USD
 
Cash Equivalent - 1.23%, 2060
 
 **
 
48,786

 
 
 
 
CCCIT 2013-A7 A7
 
Cash Equivalent - 1.86%, 2020
 
 **
 
1,755,617

 
 
 
 
CGCMT 2013-GC11 AAB
 
Mortgage - 2.69%, 2046
 
 **
 
804,029

 
 
 
 
CGCMT 2015-GC29 AAB WM24 WC4.173211878
 
Mortgage - 2.98%, 2048
 
 **
 
1,518,991

 
 
 
 
CHAIT 2015-A5 A
 
Cash Equivalent - 1.36%, 2020
 
 **
 
1,299,098

 
 
 
 
CHEVRON CORP UNSEC FRN
 
Cash Equivalent - 1.83%, 2019
 
 **
 
1,866,026

 
 
 
 
CITIGROUP INC SR UNSEC
 
Corporate Bonds - 2.45%, 2020
 
 **
 
907,011

 
 
 
 
COMM 2013-CR11 ASB WM23 WC5.205219817
 
Mortgage - 3.66%, 2050
 
 **
 
1,449,789

 
 
 
 
COMM 2014-CR19 ASB WM14
 
Mortgage - 3.50%, 2047
 
 **
 
1,859,847

 
 
 
 
COMM 2014-UBS6 ASB WM14
 
Mortgage - 3.39%, 2047
 
 **
 
1,854,863

 
 
 
 
COMM 2015-CR23 A3 WM15
 
Mortgage - 3.23%, 2048
 
 **
 
1,758,959

 
 
 
 
COMM 2015-CR23 ASB WM15
 
Mortgage - 3.26%, 2048
 
 **
 
1,231,630

 
 
 
 
COMM 2015-DC1 ASB WM15
 
Mortgage - 3.14%, 2048
 
 **
 
1,681,349

 
 
 
 
COMM 2015-LC19 ASB
 
Mortgage - 3.04%, 2048
 
 **
 
1,319,485

 
 
 
 
COMM 2015-LC21 ASB
 
Mortgage - 3.42%, 2048
 
 **
 
2,272,284

 
 
 
 
COMPASS BANK SR UNSEC
 
Corporate Bonds - 2.75%, 2019
 
 **
 
1,913,892

 
 
 
 
CRED SUIS GP FUN LTD SR UNSEC
 
Corporate Bonds - 3.80%, 2023
 
 **
 
361,852

 
 
 
 
CREDIT SUISSE NEW YORK SR UNSEC
 
Corporate Bonds - 3.00%, 2021
 
 **
 
2,027,701

 
 
 
 
CSAIL 2015-C1 ASB WM15
 
Mortgage - 3.35%, 2050
 
 **
 
1,082,416

 
 
 
 
CSAIL 2015-C4 ASB WM25 WC4.608
 
Mortgage - 3.62%, 2048
 
 **
 
2,391,212

 
 
 
 
CSAIL 2017-CX9 ASB
 
Mortgage - 3.26%, 2050
 
 **
 
1,023,043

 
 
 
 
DAIMLER FINANCE NA LLC SR UNSEC 144A
 
Corporate Bonds - 2.20%, 2020
 
 **
 
1,594,683

 
 
 
 
DBS GROUP HOLDINGS LTD SR UNSEC 144A
 
Cash Equivalent - 1.86%, 2019
 
 **
 
1,003,810

 
 
 
 
DEUTSCHE BANK AG SR UNSEC
 
Corporate Bonds - 4.25%, 2021
 
 **
 
1,883,934

 
 
 
 
DEVELOPMENT BK OF JAPAN SR UNSEC REGS
 
Cash Equivalent - 1.00%, 2018
 
 **
 
501,071

 
 
 
 
DEXIA CREDIT LOCAL
 
Corporate Bonds - 2.25%, 2020
 
 **
 
2,808,158

 
 
 
 
DISCOVER FINANCIAL SVS SR UNSEC
 
Corporate Bonds - 3.20%, 2021
 
 **
 
3,068,151

 
 
 
 
EL PASO PIPELINE PART OP SR UNSEC
 
Corporate Bonds - 4.30%, 2024
 
 **
 
1,570,157

 
 
 
 
ENBRIDGE INC SR UNSEC
 
Corporate Bonds - 1.75%, 2020
 
 **
 
803,242

 
 
 
 
ENBRIDGE INC SR UNSEC
 
Corporate Bonds - 2.29%, 2020
 
 **
 
2,121,519

 
 
 
 
EUROPEAN INVESTMENT BANK SR UNSEC
 
Corporate Bonds - 2.00%, 2021
 
 **
 
2,742,561

 
 
 
 
FED HOME LN MTGE GLBL NT (2.5MMM)
 
Corporate Bonds - 1.63%, 2020
 
 **
 
2,974,259

 
 
 
 
FHA 221D4 P4/02 GREY 54 NCP
 
Mortgage - 7.43%, 2023
 
 **
 
199

 
 
 
 
FHLMC GOLD 30YR #Q3-1614
 
Mortgage - 3.00%, 2045
 
 **
 
2,550,896



12







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FHLMC GOLD 30YR #Q3-3509
 
Mortgage - 3.00%, 2045
 
 **
 
695,723

 
 
 
 
FHLMC GOLD 30YR GNT #G0-8687
 
Mortgage - 3.50%, 2046
 
 **
 
7,243,985

 
 
 
 
FHLMC GOLD 30YR GNT #G0-8693
 
Mortgage - 3.50%, 2046
 
 **
 
186,089

 
 
 
 
FHLMC TBA GOLD 3.5% FEB 30YR
 
Mortgage - 3.50%, 2048
 
 **
 
(4,944
)
 
 
 
 
FHLMC TBA GOLD 3.5% JAN 30YR
 
Mortgage - 3.50%, 2048
 
 **
 
7,329

 
 
 
 
FHLMC TBA GOLD 4.0% FEB 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
16,500

 
 
 
 
FHLMC TBA GOLD 4.0% JAN 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
(16,750
)
 
 
 
 
FHMS K065 A1 WM27 WC4.3550
 
Mortgage - 2.86%, 2026
 
 **
 
1,407,504

 
 
 
 
FHMS K070 A1
 
Mortgage - 3.03%, 2027
 
 **
 
4,085,931

 
 
 
 
FHMS KJ11 A1
 
Mortgage - 2.05%, 2022
 
 **
 
1,278,869

 
 
 
 
FHMS KP03 A2 WM16WC.000
 
Mortgage - 1.78%, 2019
 
 **
 
423,419

 
 
 
 
FHR 2666 OD PAC WM23 WC5.84
 
Mortgage - 5.50%, 2023
 
 **
 
543,907

 
 
 
 
FHR 2739 PG PAC WM33 WC5.552
 
Mortgage - 5.00%, 2034
 
 **
 
811,167

 
 
 
 
FHR 2764 UE WM32 WC5.4879
 
Cash Equivalent - 5.00%, 2032
 
 **
 
94,156

 
 
 
 
FHR 2950 FN 1MLIB+45
 
Cash Equivalent - 1.93%, 2035
 
 **
 
219,545

 
 
 
 
FHR 3185 GT SEQ WM26 WC6.43
 
Mortgage - 6.00%, 2026
 
 **
 
193,100

 
 
 
 
FHR 3225 HF 1MLIB+51BP
 
Cash Equivalent - 1.99%, 2036
 
 **
 
267,027

 
 
 
 
FHR 3311 FN 1MLIB+30BP
 
Cash Equivalent - 1.78%, 2037
 
 **
 
87,450

 
 
 
 
FHR 3318 FL 1MLIB+40
 
Cash Equivalent - 1.88%, 2037
 
 **
 
254,727

 
 
 
 
FHR 3339 FL 1MLIB+58
 
Cash Equivalent - 2.06%, 2037
 
 **
 
166,490

 
 
 
 
FHR 3355 BF 1MLIB+70
 
Cash Equivalent - 2.18%, 2037
 
 **
 
297,102

 
 
 
 
FHR 3368 AF 1MLIB+72
 
Cash Equivalent - 2.20%, 2037
 
 **
 
39,265

 
 
 
 
FHR 3666 FC 1MLIB+73
 
Cash Equivalent - 2.21%, 2040
 
 **
 
138,123

 
 
 
 
FHR 3699 FD VA 1MLIB+60
 
Cash Equivalent - 2.08%, 2040
 
 **
 
380,961

 
 
 
 
FHR 3740 DF 1MLIB+48
 
Cash Equivalent - 1.96%, 2040
 
 **
 
669,208

 
 
 
 
FHR 3743 FA 1MLIB+60
 
Cash Equivalent - 2.08%, 2040
 
 **
 
1,113,646

 
 
 
 
FHR 3747 WF VA 1MLIB+48
 
Cash Equivalent - 1.96%, 2040
 
 **
 
964,100

 
 
 
 
FHR 3751 FG 1MLIB+50
 
Cash Equivalent - 1.98%, 2050
 
 **
 
95,458

 
 
 
 
FHR 3843 FE 1MLIB+55BP
 
Cash Equivalent - 2.03%, 2041
 
 **
 
1,356,041

 
 
 
 
FHR 3843 FG 1MLIB+55BP
 
Cash Equivalent - 2.03%, 2041
 
 **
 
1,355,207

 
 
 
 
FHR 3977 FB 1MLIB+52BP
 
Cash Equivalent - 2.00%, 2041
 
 **
 
1,585,913

 
 
 
 
FHR 3984 DF 1M LIBOR +55BP
 
Cash Equivalent - 2.03%, 2042
 
 **
 
2,008,271

 
 
 
 
FHR 4400 FA 1MLIB + 40 BP
 
Cash Equivalent - 1.88%, 2041
 
 **
 
976,163

 
 
 
 
FIN FUT EURO$ CME (WHT) 03/19/18
 
Future - 0.00%, 2018
 
 **
 
2,700

 
 
 
 
FIN FUT EURO$ CME (WHT) 06/18/18
 
Future - 0.00%, 2018
 
 **
 
4,350

 
 
 
 
FIN FUT US 2YR CBT 03/29/18
 
Future - 6.00%, 2018
 
 **
 
(625
)
 
 
 
 
FIN FUT US ULTRA 30YR CBT 03/20/18
 
Future - 6.00%, 2018
 
 **
 
(10,500
)
 
 
 
 
FL ST BRD OF ADMIN
 
Municipals - 2.64%, 2021
 
 **
 
1,110,411

 
 
 
 
FN ARM AL7090 H15T1Y+222.1 9.447
 
Cash Equivalent - 3.32%, 2037
 
 **
 
958,820



13







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FNA 2017-M8 A1 WM27 WC4.598
 
Mortgage - 2.65%, 2027
 
 **
 
2,269,641

 
 
 
 
FNMA NT (3MMM)
 
Corporate Bonds - 1.50%, 2020
 
 **
 
8,936,619

 
 
 
 
FNMA PASS THRU 20YR #254916
 
Cash Equivalent - 5.50%, 2023
 
 **
 
179,424

 
 
 
 
FNMA PASS THRU 20YR #255075
 
Cash Equivalent - 5.50%, 2024
 
 **
 
206,070

 
 
 
 
FNMA PASS THRU 20YR #AL6722
 
Cash Equivalent - 5.00%, 2030
 
 **
 
2,684,476

 
 
 
 
FNMA PASS THRU 30YR #848210
 
Cash Equivalent - 5.50%, 2035
 
 **
 
245,719

 
 
 
 
FNMA PASS THRU 30YR #884863
 
Cash Equivalent - 5.50%, 2036
 
 **
 
202,515

 
 
 
 
FNMA PASS THRU 30YR #890365
 
Cash Equivalent - 5.50%, 2041
 
 **
 
251,718

 
 
 
 
FNMA PASS THRU 30YR #938504
 
Cash Equivalent - 5.50%, 2037
 
 **
 
135,872

 
 
 
 
FNMA TBA 3.0% FEB 30YR
 
Mortgage - 3.00%, 2047
 
 **
 
97,231

 
 
 
 
FNMA TBA 3.0% JAN 15YR
 
Mortgage - 3.00%, 2033
 
 **
 
(2,922
)
 
 
 
 
FNMA TBA 3.0% JAN 30YR
 
Mortgage - 3.00%, 2048
 
 **
 
(78,217
)
 
 
 
 
FNMA TBA 3.5% FEB 30YR
 
Mortgage - 3.50%, 2048
 
 **
 
55,778

 
 
 
 
FNMA TBA 3.5% JAN 30YR
 
Mortgage - 3.50%, 2048
 
 **
 
(42,305
)
 
 
 
 
FNMA TBA 3.5% MAR 30YR
 
Mortgage - 3.50%, 2048
 
 **
 
7,617

 
 
 
 
FNMA TBA 4.0% FEB 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
(2,796
)
 
 
 
 
FNMA TBA 4.0% JAN 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
(45,877
)
 
 
 
 
FNMA TBA 4.0% MAR 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
23,795

 
 
 
 
FNMA TBA 5.0% FEB 30YR
 
Mortgage - 5.00%, 2048
 
 **
 
7,129

 
 
 
 
FNMA TBA 5.0% JAN 30YR
 
Mortgage - 5.00%, 2048
 
 **
 
(41,016
)
 
 
 
 
FNR 2005-109 PV WM32 WC6.509500
 
Cash Equivalent - 6.00%, 2032
 
 **
 
953

 
 
 
 
FNR 2005-13 FA 1MLIB+45
 
Cash Equivalent - 2.00%, 2035
 
 **
 
618,149

 
 
 
 
FNR 2005-29 JB WM33 WC7.0709
 
Mortgage - 4.50%, 2035
 
 **
 
1,278

 
 
 
 
FNR 2005-68 PC WM34 WC6.55
 
Mortgage - 5.50%, 2035
 
 **
 
3,312

 
 
 
 
FNR 2006-129 FM 1MLIB+25
 
Cash Equivalent - 1.80%, 2037
 
 **
 
89,614

 
 
 
 
FNR 2007-109 GF 1MLIB+68
 
Cash Equivalent - 2.23%, 2037
 
 **
 
690,611

 
 
 
 
FNR 2007-25 FB 1MLIB+33BP
 
Cash Equivalent - 1.88%, 2037
 
 **
 
48,542

 
 
 
 
FNR 2007-27 FA 1MLIB+31BP
 
Cash Equivalent - 1.86%, 2037
 
 **
 
23,649

 
 
 
 
FNR 2007-38 FC 1MLIB+42
 
Cash Equivalent - 1.97%, 2037
 
 **
 
156,522

 
 
 
 
FNR 2007-70 FA 1MLIB+35BP
 
Cash Equivalent - 1.90%, 2037
 
 **
 
129,220

 
 
 
 
FNR 2008-12 FA 1MLIB+67BP FRN
 
Cash Equivalent - 2.22%, 2038
 
 **
 
1,003,235

 
 
 
 
FNR 2010-111 FC 1MLIB+52
 
Cash Equivalent - 2.07%, 2040
 
 **
 
146,329

 
 
 
 
FNR 2010-115 FM 1MLIB+50
 
Cash Equivalent - 2.05%, 2040
 
 **
 
1,107,001

 
 
 
 
FNR 2010-117 FE 1MLIB+40BP
 
Cash Equivalent - 1.95%, 2040
 
 **
 
99,301

 
 
 
 
FNR 2010-129 FM 1MLIB+50
 
Cash Equivalent - 2.05%, 2040
 
 **
 
269,387

 
 
 
 
FNR 2010-135 LF 1MLIB+45
 
Cash Equivalent - 2.00%, 2040
 
 **
 
483,018

 
 
 
 
FNR 2010-141 FB 1MLIB+47
 
Cash Equivalent - 2.02%, 2040
 
 **
 
142,329

 
 
 
 
FNR 2010-2 GF 1MLIB+55BP
 
Cash Equivalent - 2.10%, 2049
 
 **
 
323,074

 
 
 
 
FNR 2010-46 WF 1MLIB+75BP
 
Cash Equivalent - 2.30%, 2040
 
 **
 
1,313,376



14







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FNR 2010-59 FA 1MLIB+73BP
 
Cash Equivalent - 2.28%, 2040
 
 **
 
1,954,774

 
 
 
 
FNR 2011-3 FA 1MLIB+68
 
Cash Equivalent - 2.23%, 2041
 
 **
 
2,526,576

 
 
 
 
FNR 2011-86 KF 1MLIB+55
 
Cash Equivalent - 2.10%, 2041
 
 **
 
369,391

 
 
 
 
FNR 2011-86 NF 1MLIB+55
 
Cash Equivalent - 2.10%, 2041
 
 **
 
803,125

 
 
 
 
FNR 2011-87 FJ 1MLIB+55BP
 
Cash Equivalent - 2.10%, 2041
 
 **
 
1,273,826

 
 
 
 
FNR 2012-141 FA 1MLIB+30BP
 
Cash Equivalent - 1.85%, 2042
 
 **
 
1,028,525

 
 
 
 
FNR 2013-39 FA 1MLIB+35BP
 
Cash Equivalent - 1.90%, 2043
 
 **
 
1,090,246

 
 
 
 
FNR 2015-79 FE 1MLIB+25BP
 
Cash Equivalent - 1.80%, 2045
 
 **
 
2,278,721

 
 
 
 
FNR 2015-87 BF 1MLIB+30BP
 
Cash Equivalent - 1.85%, 2045
 
 **
 
1,424,929

 
 
 
 
FNR 2016-11 CF 1MLIB+35BP
 
Cash Equivalent - 1.90%, 2046
 
 **
 
2,624,181

 
 
 
 
FNR 2016-40 AF 1MLIB+45BP
 
Cash Equivalent - 1.81%, 2046
 
 **
 
2,983,623

 
 
 
 
FNR 2016-64 KF WM38 WC3.3381
 
Cash Equivalent - 1.83%, 2046
 
 **
 
3,390,695

 
 
 
 
FNR 2016-82 FM 1MLIB+40BP
 
Cash Equivalent - 1.76%, 2046
 
 **
 
4,209,748

 
 
 
 
FNR 2016-87 AF 1MLIB+40BP
 
Cash Equivalent - 1.76%, 2046
 
 **
 
4,606,748

 
 
 
 
FORD MOTOR CREDIT CO LLC SR UNSEC
 
Corporate Bonds - 5.00%, 2018
 
 **
 
4,563,167

 
 
 
 
GE CAPITAL INTL FUNDING SR UNSEC
 
Corporate Bonds - 2.34%, 2020
 
 **
 
3,932,400

 
 
 
 
GENERAL ELECTRIC CO GLBL NT
 
Corporate Bonds - 4.63%, 2021
 
 **
 
769,322

 
 
 
 
GENERAL ELECTRIC CO SR UNSEC
 
Corporate Bonds - 2.70%, 2022
 
 **
 
752,070

 
 
 
 
GENERAL MOTORS FINL CO SR UNSEC
 
Corporate Bonds - 2.35%, 2019
 
 **
 
500,416

 
 
 
 
GNMA I TBA 4.0% FEB 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
7,775

 
 
 
 
GNMA I TBA 4.0% JAN 30YR
 
Mortgage - 4.00%, 2048
 
 **
 
(26,641
)
 
 
 
 
GNMA II MULTPL SGL 30YR #MA3105M
 
Mortgage - 3.50%, 2045
 
 **
 
6,483,294

 
 
 
 
GNMA II TBA 4.0% FEB 30YR JMBO
 
Mortgage - 4.00%, 2048
 
 **
 
(10,718
)
 
 
 
 
GNMA II TBA 4.0% JAN 30YR JMBO
 
Mortgage - 4.00%, 2048
 
 **
 
(38,797
)
 
 
 
 
GNR 2012-149 GF 1MLIB+30BP
 
Cash Equivalent - 1.80%, 2042
 
 **
 
2,698,683

 
 
 
 
GNR 2016-154 WF 1MLIB+40BP
 
Cash Equivalent - 1.76%, 2045
 
 **
 
1,006,684

 
 
 
 
GNR 2017-57 WF 1MLIB+40BP
 
Cash Equivalent - 1.76%, 2045
 
 **
 
1,969,866

 
 
 
 
GOLDCORP INC GLBL SR UNSEC
 
Corporate Bonds - 3.63%, 2021
 
 **
 
716,842

 
 
 
 
GOLDMAN SACHS GROUP INC GLBL SR UNSEC
 
Corporate Bonds - 5.25%, 2021
 
 **
 
2,743,897

 
 
 
 
GOLDMAN SACHS GROUP INC SR NT
 
Corporate Bonds - 5.38%, 2020
 
 **
 
1,685,235

 
 
 
 
GOLDMAN SACHS GROUP INC SR UNSEC
 
Corporate Bonds - 4.00%, 2024
 
 **
 
2,538,539

 
 
 
 
HSBC HOLDINGS PLC SR UNSEC
 
Corporate Bonds - 3.60%, 2023
 
 **
 
1,341,254

 
 
 
 
HSBC HOLDINGS PLC SR UNSEC
 
Corporate Bonds - 3.76%, 2021
 
 **
 
2,110,527

 
 
 
 
HYUNDAI CAPITAL AMERICA
 
Corporate Bonds - 1.75%, 2019
 
 **
 
492,073

 
 
 
 
HYUNDAI CAPITAL AMERICA SR UNSEC 144A
 
Corporate Bonds - 2.55%, 2019
 
 **
 
1,105,019

 
 
 
 
IND & COMM BK CHINA/NY SR UNSEC
 
Cash Equivalent - 2.15%, 2020
 
 **
 
1,703,291

 
 
 
 
INTESA SANPAOLO SPA UNSEC
 
Corporate Bonds - 3.88%, 2018
 
 **
 
1,516,719

 
 
 
 
IRS USD 1.25000 12/21/16-3Y CME
 
Interest Rate Swap - 1.25%, 2019
 
 **
 
(250,512
)
 
 
 
 
IRS USD 1.50000 06/21/17-10Y CME
 
Interest Rate Swap - 1.50%, 2027
 
 **
 
379,069



15







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
IRS USD 1.75000 12/21/16-10Y CME
 
Interest Rate Swap - 1.75%, 2026
 
 **
 
383,890

 
 
 
 
IRS USD 2.00000 07/12/17-6Y CME
 
Interest Rate Swap - 2.00%, 2023
 
 **
 
170,864

 
 
 
 
ITAU CORPBANCA 144A SR UNSEC
 
Corporate Bonds - 3.88%, 2019
 
 **
 
1,540,740

 
 
 
 
JACKSON NATL LIFE GLOBAL SEC 144A
 
Cash Equivalent - 1.88%, 2018
 
 **
 
1,702,459

 
 
 
 
JACKSON NATL LIFE GLOBAL SEC 144A
 
Corporate Bonds - 2.50%, 2022
 
 **
 
1,979,325

 
 
 
 
JAPAN FIN ORG MUNICIPAL REGS
 
Cash Equivalent - 1.38%, 2018
 
 **
 
501,382

 
 
 
 
JPMBB 2013-C17 ASB WM23 WC4.9082
 
Mortgage - 3.71%, 2047
 
 **
 
1,454,871

 
 
 
 
JPMBB 2014-C22 ASB WM24 WC4.580566404
 
Mortgage - 3.50%, 2047
 
 **
 
1,809,287

 
 
 
 
JPMBB 2015-C27 ASB
 
Mortgage - 3.02%, 2048
 
 **
 
1,623,270

 
 
 
 
JPMORGAN CHASE & CO SR UNSEC
 
Corporate Bonds - 2.78%, 2023
 
 **
 
1,506,863

 
 
 
 
JPMORGAN CHASE & CO SR UNSEC
 
Corporate Bonds - 4.25%, 2020
 
 **
 
3,231,187

 
 
 
 
JPMORGAN CHASE & CO UNSEC
 
Corporate Bonds - 3.90%, 2025
 
 **
 
2,649,848

 
 
 
 
JPN BANK FOR INT'L COOP
 
Corporate Bonds - 2.13%, 2020
 
 **
 
3,094,715

 
 
 
 
KFW SR UNSEC
 
Corporate Bonds - 1.50%, 2019
 
 **
 
1,798,556

 
 
 
 
KINDER MORGAN ENER PART
 
Corporate Bonds - 3.95%, 2022
 
 **
 
2,159,713

 
 
 
 
KINDER MORGAN INC SNR S* ICE
 
Credit Default Swap - 1.00%, 2021
 
 **
 
8,230

 
 
 
 
KRAFT FOODS GROUP INC WI SR UNSEC
 
Corporate Bonds - 5.38%, 2020
 
 **
 
107,243

 
 
 
 
KRAFT HEINZ FOODS CO SR UNSEC
 
Corporate Bonds - 1.82%, 2019
 
 **
 
1,807,524

 
 
 
 
KRAFT HEINZ FOODS CO SR UNSEC
 
Corporate Bonds - 1.98%, 2021
 
 **
 
100,465

 
 
 
 
LLOYDS BANKING GROUP PLC SR UNSEC
 
Corporate Bonds - 2.91%, 2023
 
 **
 
1,890,714

 
 
 
 
LOS ANGELES CO REDEV
 
Municipals - 2.00%, 2023
 
 **
 
1,835,019

 
 
 
 
MEXICO LA SP GST
 
Credit Default Swap - 1.00%, 2019
 
 **
 
28,106

 
 
 
 
MIZUHO FINANCIAL GROUP SR UNSEC
 
Corporate Bonds - 2.70%, 2021
 
 **
 
3,154,702

 
 
 
 
MOODY'S CORPORATION SR UNSEC
 
Corporate Bonds - 4.88%, 2024
 
 **
 
3,332,050

 
 
 
 
MORGAN STANLEY
 
Corporate Bonds - 5.50%, 2020
 
 **
 
2,173,921

 
 
 
 
MORGAN STANLEY NT
 
Corporate Bonds - 5.50%, 2020
 
 **
 
4,404,157

 
 
 
 
MSBAM 2013-C13 ASB WM23 WC4.922172434
 
Mortgage - 3.56%, 2046
 
 **
 
1,137,186

 
 
 
 
MSBAM 2014-C16 A4 WM23 C4.78111
 
Mortgage - 3.60%, 2047
 
 **
 
2,130,141

 
 
 
 
MSBAM 2014-C18 A2 WM14
 
Mortgage - 3.19%, 2047
 
 **
 
2,183,130

 
 
 
 
MSBAM 2015-C20 ASB WM24 WC4.486757058
 
Mortgage - 3.07%, 2048
 
 **
 
1,219,633

 
 
 
 
NA DEVELOPMENT BANK GLBL SR UNSECURED
 
Corporate Bonds - 4.38%, 2020
 
 **
 
5,051,117

 
 
 
 
NATIONAL AUSTRALIA BK/NY SR UNSEC
 
Corporate Bonds - 2.25%, 2020
 
 **
 
2,111,755

 
 
 
 
NAVSL 2015-1 A1 1MLIB+30BP
 
Cash Equivalent - 1.85%, 2022
 
 **
 
180,072

 
 
 
 
NISSAN MOTOR ACCEPTANCE SR UNSEC 144A
 
Corporate Bonds - 2.25%, 2020
 
 **
 
2,009,371

 
 
 
 
NISSAN MOTOR ACCEPTANCE SR UNSEC 144A
 
Corporate Bonds - 2.15%, 2020
 
 **
 
398,160

 
 
 
 
PENSKE TRUCK LEASING/PTL SR UNSEC 144A
 
Corporate Bonds - 3.05%, 2020
 
 **
 
1,633,689

 
 
 
 
PRIVATE EXPORT FUNDING SR UNSEC 144A
 
Corporate Bonds - 2.10%, 2019
 
 **
 
1,598,982



16







FirstEnergy Corp. Savings Plan
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2017
#34-1843785 Plan 002
_________________________________________________________________________________________________________________________________________________________

(a)
 
(b)
 
(c)
 
(d)
 
(e)
 
 
Identity of issue, borrower, lessor or similar party
 
Description of investment, including maturity date, rate of interest, collateral, par or maturity value
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROTECTIVE LIFE GLOBAL SEC 144A
 
Corporate Bonds - 2.16%, 2020
 
 **
 
1,687,947

 
 
 
 
PRUDENTIAL FINANCIAL INC SNR S* ICE
 
Credit Default Swap - 1.00%, 2021
 
 **
 
37,366

 
 
 
 
QUALCOMM INC SR UNSEC
 
Corporate Bonds - 2.10%, 2020
 
 **
 
1,197,058

 
 
 
 
RABOBANK NEDERLAND UTREC
 
Corporate Bonds - 3.88%, 2022
 
 **
 
3,710,190

 
 
 
 
SANTANDER HOLDINGS USA SR UNSEC
 
Corporate Bonds - 4.50%, 2025
 
 **
 
1,162,434

 
 
 
 
SANTANDER UK GROUP HLDGS SR UNSEC
 
Corporate Bonds - 2.88%, 2021
 
 **
 
1,508,433

 
 
 
 
SAUDI INTERNATIONAL BOND
 
Government, Non US - 2.88%, 2023
 
 **
 
2,965,830

 
 
 
 
SBA TOWER TRUST NT SEC 144A 1A C
 
Corporate Bonds - 2.90%, 2044
 
 **
 
2,207,908

 
 
 
 
SINOPEC GRP OVERSEA 2014
 
Corporate Bonds - 2.75%, 2019
 
 **
 
3,018,454

 
 
 
 
SLCLT 2005-1 A3 3MLIB+10BP
 
Cash Equivalent - 1.52%, 2025
 
 **
 
1,177,331

 
 
 
 
SLCLT 2005-2 A3 3MLIB+11BP
 
Cash Equivalent - 1.70%, 2027
 
 **
 
1,242,596

 
 
 
 
SLCLT 2006-1 A5 3MLIB+11BP
 
Cash Equivalent - 1.70%, 2027
 
 **
 
1,051,495

 
 
 
 
SLCLT 2006-2 A5 3MLIB+10BP
 
Cash Equivalent - 1.69%, 2026
 
 **
 
1,135,597

 
 
 
 
SLMA 2004-1 A3
 
Cash Equivalent - 1.58%, 2023
 
 **
 
322,442

 
 
 
 
SLMA 2004-3 A5 3MLIB+17
 
Cash Equivalent - 1.54%, 2023
 
 **
 
622,341

 
 
 
 
SLMA 2005-3 A5
 
Cash Equivalent - 1.46%, 2024
 
 **
 
715,955

 
 
 
 
SLMA 2005-4 A3
 
Cash Equivalent - 1.49%, 2027
 
 **
 
1,250,516

 
 
 
 
SLMA 2005-6 A5A 3MLIB+11BP
 
Cash Equivalent - 1.48%, 2026
 
 **
 
209,157

 
 
 
 
SLMA 2005-7 A4 3MLIB+15BP
 
Cash Equivalent - 1.52%, 2029
 
 **
 
1,065,466

 
 
 
 
SLMA 2005-8 A4 3MLIB **PUT REDEMPTION**
 
Cash Equivalent - 1.92%, 2028
 
 **
 
160,042

 
 
 
 
SLMA 2006-6 A3 3MLIB+11BP
 
Cash Equivalent - 1.48%, 2025
 
 **
 
596,577

 
 
 
 
SLMA 2007-1 A5 3MLIB+9
 
Cash Equivalent - 1.46%, 2026
 
 **
 
906,719

 
 
 
 
SOLVAY FINANCE (AMERICA) SR UNSEC 144A
 
Corporate Bonds - 3.40%, 2020
 
 **
 
1,739,700

 
 
 
 
SOUTHERN CO SR UNSEC 144A
 
Corporate Bonds - 2.39%, 2020
 
 **
 
1,614,732

 
 
 
 
STATE STREET STIF
 
Cash Equivalent - 1.27%, 2030
 
 **
 
579,303

 
 
 
 
SUMITOMO MITSUI BANKING SR UNSEC FRN
 
Cash Equivalent - 1.94%, 2018
 
 **
 
2,406,070

 
 
 
 
SUMITOMO MITSUI FINL GRP SR UNSEC
 
Corporate Bonds - 2.44%, 2021
 
 **
 
2,978,637

 
 
 
 
TECH DATA CORP SR UNSEC
 
Corporate Bonds - 3.70%, 2022
 
 **
 
708,591

 
 
 
 
TELEFONICA EMISIONES SAU
 
Corporate Bonds - 5.46%, 2021
 
 **
 
547,282