FE 2022 Annual Report

Activity in the allowance for uncollectible accounts on receivables for the years ended December 31, 2022, 2021 and 2020 are as follows: (In millions) 2022 2021 2020(3) Customer Receivables Beginning of year balance $ 159 $ 164 $ 46 Charged to income (1) 59 54 174 Charged to other accounts (2) 62 42 46 Write-offs (143) (101) (102) End of year balance $ 137 $ 159 $ 164 Other Receivables Beginning of year balance $ 10 $ 26 $ 21 Charged to income 4 3 7 Charged to other accounts (2) 4 3 10 Write-offs (7) (22) (12) End of year balance $ 11 $ 10 $ 26 (1) Customer receivable amounts charged to income for the years ended December 31, 2022, 2021, and 2020 include approximately $11 million, $12 million, and $103 million respectively, deferred for future recovery. 2020 amounts charged to income includes $121 million of incremental expense due to pandemic conditions. (2) Represents recoveries and reinstatements of accounts previously written off for uncollectible accounts. (3) As a result of the FES Debtors’ emergence from bankruptcy in February 2020, FirstEnergy wrote off $1.1 billion in affiliated companies receivables in 2020, which were included in discontinued operations. There was no affiliated companies receivables at the end of 2022, 2021 or 2020. 3. EARNINGS PER SHARE OF COMMON STOCK EPS is calculated by dividing earnings attributable to FE by the weighted average number of common shares outstanding. Basic EPS is computed using the weighted average number of common shares outstanding during the relevant period as the denominator. The denominator for diluted EPS of common stock reflects the weighted average of common shares outstanding plus the potential additional common shares that could result if dilutive securities and other agreements to issue common stock were exercised. Diluted EPS reflects the dilutive effect of potential common shares from share-based awards. The dilutive effect of outstanding share-based awards was computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of the award would be used to purchase common stock at the average market price for the period. 89

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