FIRSTENERGY CORP. CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, (In millions, except per share amounts) 2022 2021 2020 REVENUES: Distribution services and retail generation $ 9,916 $ 9,009 $ 8,688 Transmission 1,863 1,608 1,613 Other 680 515 489 Total revenues(1) 12,459 11,132 10,790 OPERATING EXPENSES: Fuel 730 481 369 Purchased power 3,863 2,964 2,701 Other operating expenses 3,817 3,196 3,291 Provision for depreciation 1,375 1,302 1,274 Amortization (deferral) of regulatory assets, net (365) 269 (53) General taxes 1,129 1,073 1,046 DPA penalty (Note 13) — 230 — Gain on sale of Yards Creek (Note 14) — (109) — Total operating expenses 10,549 9,406 8,628 OPERATING INCOME 1,910 1,726 2,162 OTHER INCOME (EXPENSE): Debt redemption costs (Note 10) (171) (2) — Equity method investment earnings (Note 1) 168 31 2 Miscellaneous income, net 415 486 430 Pension and OPEB mark-to-market adjustment 72 382 (477) Interest expense (1,039) (1,139) (1,065) Capitalized financing costs 84 75 77 Total other expense (471) (167) (1,033) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 1,439 1,559 1,129 INCOME TAXES 1,000 320 126 INCOME FROM CONTINUING OPERATIONS 439 1,239 1,003 Discontinued operations (Note 15)(2) — 44 76 NET INCOME $ 439 $ 1,283 $ 1,079 Income attributable to noncontrolling interest (continuing operations) 33 — — EARNINGS ATTRIBUTABLE TO FIRSTENERGY CORP. $ 406 $ 1,283 $ 1,079 EARNINGS PER SHARE ATTRIBUTABLE TO FIRSTENERGY CORP. Basic - Continuing Operations $ 0.71 $ 2.27 $ 1.85 Basic - Discontinued Operations — 0.08 0.14 Basic - Earnings Per Share Attributable to FirstEnergy Corp. $ 0.71 $ 2.35 $ 1.99 Diluted - Continuing Operations $ 0.71 $ 2.27 $ 1.85 Diluted - Discontinued Operations — 0.08 0.14 Diluted - Earnings Per Share Attributable to FirstEnergy Corp. $ 0.71 $ 2.35 $ 1.99 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 571 545 542 Diluted 572 546 543 (1) Includes excise and gross receipts tax collections of $406 million, $374 million and $362 million in 2022, 2021 and 2020, respectively. (2) Net of income tax benefit of $48 million and $59 million in 2021 and 2020, respectively. The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 73
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