The following tables set forth the recurring assets and liabilities that are accounted for at fair value by level within the fair value hierarchy: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (In millions) Derivative assets FTRs(1) $ — $ — $ 11 $ 11 $ — $ — $ 9 $ 9 Equity securities 2 — — 2 2 — — 2 U.S. state debt securities — 266 — 266 — 273 — 273 Cash, cash equivalents and restricted cash(2) 206 — — 206 1,511 — — 1,511 Other(3) — 40 — 40 — 42 — 42 Total assets $ 208 $ 306 $ 11 $ 525 $ 1,513 $ 315 $ 9 $ 1,837 Liabilities Derivative liabilities FTRs(1) $ — $ — $ (2) $ (2) $ — $ — $ (1) $ (1) Total liabilities $ — $ — $ (2) $ (2) $ — $ — $ (1) $ (1) Net assets (liabilities) $ 208 $ 306 $ 9 $ 523 $ 1,513 $ 315 $ 8 $ 1,836 (1) Contracts are subject to regulatory accounting treatment and changes in market values do not impact earnings. (2) Restricted cash of $46 million and $49 million as of December 31, 2022 and 2021 respectively, primarily relates to cash collected from JCP&L, MP, PE and the Ohio Companies' customers that is specifically used to service debt of their respective funding companies. See Note 10, Capitalization for additional information. (3) Primarily consists of short-term investments. INVESTMENTS All temporary cash investments purchased with an initial maturity of three months or less are reported as cash equivalents on the Consolidated Balance Sheets at cost, which approximates their fair market value. Investments other than cash and cash equivalents include AFS debt securities and other investments. FirstEnergy has no debt securities held for trading purposes. Generally, unrealized gains and losses on equity securities are recognized in income whereas unrealized gains and losses on AFS debt securities are recognized in AOCI. However, the JCP&L spent nuclear fuel disposal trusts are subject to regulatory accounting with all gains and losses on equity and AFS debt securities offset against regulatory assets. Spent Nuclear Fuel Disposal Trusts JCP&L holds debt securities within the spent nuclear fuel disposal trust, which are classified as AFS securities, recognized at fair market value. The trust is intended for funding spent nuclear fuel disposal fees to the United States Department of Energy associated with the previously owned Oyster Creek and TMI-1 nuclear power plants. The following table summarizes the amortized cost basis, unrealized gains, unrealized losses and fair values of investments held in nuclear fuel disposal trusts as of December 31, 2022 and 2021: December 31, 2022(1) December 31, 2021(2) Cost Basis Unrealized Gains Unrealized Losses Fair Value Cost Basis Unrealized Gains Unrealized Losses Fair Value (In millions) Debt securities $ 294 $ — $ (28) $ 266 $ 280 $ 2 $ (9) $ 273 (1) Excludes short-term cash investments of $5 million. (2) Excludes short-term cash investments of $11 million. 105
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