Despite the many disruptions FirstEnergy is currently facing, the leadership team remains committed and focused on executing its strategy and running the business. See “Outlook - Other Legal Proceedings” below for additional details on the government investigations, the DPA, and subsequent litigation surrounding the investigation of HB 6. See also “Outlook - State Regulation - Ohio” below for details on the PUCO proceeding reviewing political and charitable spending and legislative activity in response to the investigation of HB 6. The outcome of the government investigations, PUCO proceedings, legislative activity, and any of these lawsuits is uncertain and could have a material adverse effect on FirstEnergy’s financial condition, results of operations and cash flows. The Form 10-K discusses 2022 and 2021 items and year-over-year comparisons between 2022 and 2021. Discussions of 2020 items and year-over-year comparisons between 2021 and 2020 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of FirstEnergy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 16, 2022. RESULTS OF OPERATIONS The financial results discussed below include revenues and expenses from transactions among FirstEnergy’s business segments. A reconciliation of segment financial results is provided in Note 14, "Segment Information," of the Notes to Consolidated Financial Statements. Net income by business segment was as follows: (In millions, except per share amounts) For the Years Ended December 31, Increase (Decrease) 2022 2021 2020 2022 vs 2021 2021 vs 2020 Net Income By Business Segment: Regulated Distribution $ 957 $ 1,288 $ 959 $ (331) $ 329 Regulated Transmission 394 408 464 (14) (56) Corporate/Other (912) (457) (420) (455) (37) Income from Continuing Operations $ 439 $ 1,239 $ 1,003 $ (800) $ 236 Discontinued Operations — 44 76 (44) (32) Net Income $ 439 $ 1,283 $ 1,079 $ (844) (65.8)% $ 204 18.9 % Income attributable to noncontrolling interest (continuing operations) 33 — — 33 — Earnings attributable to FE $ 406 $ 1,283 $ 1,079 $ (877) (68.4)% $ 204 18.9 % EPS Attributable to FE: Income from continuing operations, basic $ 0.71 $ 2.27 $ 1.85 $ (1.56) $ 0.42 Discontinued operation, basic — 0.08 0.14 (0.08) (0.06) Basic EPS $ 0.71 $ 2.35 $ 1.99 $ (1.64) (69.8)% $ 0.36 18.1 % Income from continuing operations, diluted $ 0.71 $ 2.27 $ 1.85 $ (1.56) $ 0.42 Discontinued operation, diluted — 0.08 0.14 (0.08) (0.06) Diluted EPS $ 0.71 $ 2.35 $ 1.99 $ (1.64) (69.8)% $ 0.36 18.1 % 34
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