Proceeds from the sale of investments in AFS debt securities, realized gains and losses on those sales and interest and dividend income for the years ended December 31, 2022, 2021 and 2020, were as follows: For the Years Ended December 31, 2022 2021 2020(1) (In millions) Sale Proceeds $ 48 $ 48 $ 186 Realized Gains 8 — 12 Realized Losses (13) (3) (8) Interest and Dividend Income 11 11 22 (1) Includes amounts associated with Nuclear Decommissioning Trusts that were previously held by JCP&L, ME, and PN. See above for additional information. Other Investments Other investments include employee benefit trusts, which are primarily invested in corporate-owned life insurance policies and equity method investments. Earnings and losses associated with corporate-owned life insurance policies and equity method investments are reflected in the “Miscellaneous Income, net” line of FirstEnergy’s Consolidated Statements of Income. Other investments were $351 million and $371 million as of December 31, 2022 and 2021, respectively, and are excluded from the amounts reported above. See Note 1, "Organization and Basis of Presentation," for additional information on FirstEnergy's equity method investments. For the years ended December 31, 2022, 2021 and 2020, pre-tax income (expense) related to corporate-owned life insurance policies were $(20) million, $13 million and $20 million, respectively. Corporate-owned life insurance policies are valued using the cash surrender value and any changes in value during the period are recognized as income or expense. LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS All borrowings with initial maturities of less than one year are defined as short-term financial instruments under GAAP and are reported as Short-term borrowings on the Consolidated Balance Sheets at cost. Since these borrowings are short-term in nature, FirstEnergy believes that their costs approximate their fair market value. The following table provides the approximate fair value and related carrying amounts of long-term debt, which excludes finance lease obligations and net unamortized debt issuance costs, unamortized fair value adjustments, premiums and discounts as of December 31, 2022 and 2021: As of December 31, 2022 2021 (In millions) Carrying Value $ 21,641 $ 23,946 Fair Value 19,784 27,043 The fair values of long-term debt and other long-term obligations reflect the present value of the cash outflows relating to those securities based on the current call price, the yield to maturity or the yield to call, as deemed appropriate at the end of each respective period. The yields assumed were based on securities with similar characteristics offered by corporations with credit ratings similar to those of FirstEnergy. FirstEnergy classified short-term borrowings, long-term debt and other long-term obligations as Level 2 in the fair value hierarchy as of December 31, 2022 and 2021. See Note 10, "Capitalization," for further information on long-term debt issued and redeemed during the twelve months ended December 31, 2022. 10. CAPITALIZATION COMMON STOCK Retained Earnings and Dividends As of December 31, 2022, FirstEnergy had an accumulated deficit of $1 billion. Dividends declared in 2022 and 2021 totaled $1.56 per share in each period. Dividends of $0.39 per share were paid in the first, second, third and fourth quarters in 2022 and 2021, respectively. On December 13, 2022, the FE Board declared a quarterly dividend of $0.39 per share to be paid from OPIC in the first quarter of 2023. The amount and timing of all dividend declarations are subject to the discretion of the FE Board and its consideration of business conditions, results of operations, financial condition, risks and uncertainties of the government investigations, and other factors. 106
RkJQdWJsaXNoZXIy NTIzOTM0