Comprehensive Income

12 Months Ended

Dec. 31, 2019

COMPREHENSIVE INCOME

The disclosures in this note apply to all Registrants except for AEPTCo. AEPTCo does not have any components of other comprehensive income for any period presented in the financial statements.

Presentation of Comprehensive Income

The following tables provide the components of changes in AOCI and details of reclassifications from AOCI for the years ended December 31, 2019, 2018 and 2017. The amortization of pension and OPEB AOCI components are included in the computation of net periodic pension and OPEB costs. See Note 8 - Benefit Plans for additional details.



AEP

	Cash Flow Hedges							Pension and OPEB
For the Year Ended December 31, 2019	Commodity			Interest Rate				Amortization of Deferred Costs			Changes in Funded Status			Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(23.0	)	$	(12.6	)		$	136.3		$	(221.1	)	$	(120.4	)
Change in Fair Value Recognized in AOCI	(127.2		)	(0.2		)	(a)	—			57.7			(69.7		)
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.2		)	—				—			—			(0.2		)
Purchased Electricity for Resale (b)	59.5			—				—			—			59.5
Interest Expense (b)	—			1.5				—			—			1.5
Amortization of Prior Service Cost (Credit)	—			—				(19.2		)	—			(19.2		)
Amortization of Actuarial (Gains) Losses	—			—				12.1			—			12.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	59.3			1.5				(7.1		)	—			53.7
Income Tax (Expense) Benefit	12.6			0.2				(1.5		)	—			11.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	46.7			1.3				(5.6		)	—			42.4
Net Current Period Other Comprehensive Income (Loss)	(80.5		)	1.1				(5.6		)	57.7			(27.3		)
Balance in AOCI as of December 31, 2019	$	(103.5	)	$	(11.5	)		$	130.7		$	(163.4	)	$	(147.7	)



AEP

	Cash Flow Hedges									Pension and OPEB
For the Year Ended December 31, 2018	Commodity			Interest Rate			Securities Available for Sale			Amortization of Deferred Costs			Changes in Funded Status			Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(28.4	)	$	(13.0	)	$	11.9		$	141.6		$	(179.9	)	$	(67.8	)
Change in Fair Value Recognized in AOCI	37.3			2.3			—			—			(33.0		)	6.6
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(0.1		)	—			—			—			—			(0.1		)
Purchased Electricity for Resale (b)	(32.6		)	—			—			—			—			(32.6		)
Interest Expense (b)	—			1.1			—			—			—			1.1
Amortization of Prior Service Cost (Credit)	—			—			—			(19.5		)	—			(19.5		)
Amortization of Actuarial (Gains) Losses	—			—			—			12.8			—			12.8
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(32.7		)	1.1			—			(6.7		)	—			(38.3		)
Income Tax (Expense) Benefit	(6.9		)	0.3			—			(1.4		)	—			(8.0		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(25.8		)	0.8			—			(5.3		)	—			(30.3		)
Net Current Period Other Comprehensive Income (Loss)	11.5			3.1			—			(5.3		)	(33.0		)	(23.7		)
ASU 2018-02 Adoption	(6.1		)	(2.7		)	—			—			(8.2		)	(17.0		)
ASU 2016-01 Adoption	—			—			(11.9		)	—			—			(11.9		)
Balance in AOCI as of December 31, 2018	$	(23.0	)	$	(12.6	)	$	—		$	136.3		$	(221.1	)	$	(120.4	)



	Cash Flow Hedges								Pension and OPEB
For the Year Ended December 31, 2017	Commodity			Interest Rate			Securities Available for Sale		Amortization of Deferred Costs			Changes in Funded Status			Total
	(in millions)
Balance in AOCI as of December 31, 2016	$	(23.1	)	$	(15.7	)	$	8.4	$	140.5		$	(266.4	)	$	(156.3	)
Change in Fair Value Recognized in AOCI	(20.4		)	1.6			3.5		—			86.5			71.2
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (b)	(5.6		)	—			—		—			—			(5.6		)
Purchased Electricity for Resale (b)	28.8			—			—		—			—			28.8
Interest Expense (b)	—			1.5			—		—			—			1.5
Amortization of Prior Service Cost (Credit)	—			—			—		(19.6		)	—			(19.6		)
Amortization of Actuarial (Gains) Losses	—			—			—		21.3			—			21.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit	23.2			1.5			—		1.7			—			26.4
Income Tax (Expense) Benefit	8.1			0.4			—		0.6			—			9.1
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	15.1			1.1			—		1.1			—			17.3
Net Current Period Other Comprehensive Income (Loss)	(5.3		)	2.7			3.5		1.1			86.5			88.5
Balance in AOCI as of December 31, 2017	$	(28.4	)	$	(13.0	)	$	11.9	$	141.6		$	(179.9	)	$	(67.8	)



AEP Texas

					Pension and OPEB
					Amortization			Changes in
		Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2019		Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2018		$	(4.4	)	$	4.7		$	(15.4	)	$	(15.1	)
Change in Fair Value Recognized in AOCI		—			—			1.1			1.1
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3			—			—			1.3
Amortization of Prior Service Cost (Credit)		—			(0.1		)	—			(0.1		)
Amortization of Actuarial (Gains) Losses		—			0.3			—			0.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3			0.2			—			1.5
Income Tax (Expense) Benefit		0.3			—			—			0.3
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0			0.2			—			1.2
Net Current Period Other Comprehensive Income (Loss)		1.0			0.2			1.1			2.3
Balance in AOCI as of December 31, 2019		$	(3.4	)	$	4.9		$	(14.3	)	$	(12.8	)



					Pension and OPEB
					Amortization			Changes in
		Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2018		Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2017		$	(4.5	)	$	4.5		$	(12.6	)	$	(12.6	)
Change in Fair Value Recognized in AOCI		—			—			(1.0		)	(1.0		)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3			—			—			1.3
Amortization of Prior Service Cost (Credit)		—			(0.1		)	—			(0.1		)
Amortization of Actuarial (Gains) Losses		—			0.4			—			0.4
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3			0.3			—			1.6
Income Tax (Expense) Benefit		0.3			0.1			—			0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		1.0			0.2			—			1.2
Net Current Period Other Comprehensive Income (Loss)		1.0			0.2			(1.0		)	0.2
ASU 2018-02 Adoption		(0.9		)	—			(1.8		)	(2.7		)
Balance in AOCI as of December 31, 2018		$	(4.4	)	$	4.7		$	(15.4	)	$	(15.1	)



					Pension and OPEB
					Amortization			Changes in
		Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2017		Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2016		$	(5.4	)	$	4.2		$	(13.7	)	$	(14.9	)
Change in Fair Value Recognized in AOCI		—			—			1.1			1.1
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		1.3			—			—			1.3
Amortization of Prior Service Cost (Credit)		—			(0.1		)	—			(0.1		)
Amortization of Actuarial (Gains) Losses		—			0.5			—			0.5
Reclassifications from AOCI, before Income Tax (Expense) Benefit		1.3			0.4			—			1.7
Income Tax (Expense) Benefit		0.4			0.1			—			0.5
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		0.9			0.3			—			1.2
Net Current Period Other Comprehensive Income (Loss)		0.9			0.3			1.1			2.3
Balance in AOCI as of December 31, 2017		$	(4.5	)	$	4.5		$	(12.6	)	$	(12.6	)



APCo

					Pension and OPEB
					Amortization			Changes in
		Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2019		Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2018		$	1.8		$	11.7		$	(18.5	)	$	(5.0	)
Change in Fair Value Recognized in AOCI		—			—			13.4			13.4
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		(1.1		)	—			—			(1.1		)
Amortization of Prior Service Cost (Credit)		—			(5.3		)	—			(5.3		)
Amortization of Actuarial (Gains) Losses		—			2.1			—			2.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit		(1.1		)	(3.2		)	—			(4.3		)
Income Tax (Expense) Benefit		(0.2		)	(0.7		)	—			(0.9		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		(0.9		)	(2.5		)	—			(3.4		)
Net Current Period Other Comprehensive Income (Loss)		(0.9		)	(2.5		)	13.4			10.0
Balance in AOCI as of December 31, 2019		$	0.9		$	9.2		$	(5.1	)	$	5.0



							Pension and OPEB
	Cash Flow Hedges						Amortization			Changes in
				Interest			of Deferred			Funded
For the Year Ended December 31, 2018	Commodity			Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	—		$	2.2		$	14.8		$	(15.7	)	$	1.3
Change in Fair Value Recognized in AOCI	(0.7		)	—			—			(2.6		)	(3.3		)
Amount of (Gain) Loss Reclassified from AOCI
Purchased Electricity for Resale (b)	0.9			—			—			—			0.9
Interest Expense (b)	—			(1.1		)	—			—			(1.1		)
Amortization of Prior Service Cost (Credit)	—			—			(5.2		)	—			(5.2		)
Amortization of Actuarial (Gains) Losses	—			—			1.3			—			1.3
Reclassifications from AOCI, before Income Tax (Expense) Benefit	0.9			(1.1		)	(3.9		)	—			(4.1		)
Income Tax (Expense) Benefit	0.2			(0.2		)	(0.8		)	—			(0.8		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	0.7			(0.9		)	(3.1		)	—			(3.3		)
Net Current Period Other Comprehensive Income (Loss)	—			(0.9		)	(3.1		)	(2.6		)	(6.6		)
ASU 2018-02 Adoption	—			0.5			—			(0.2		)	0.3
Balance in AOCI as of December 31, 2018	$	—		$	1.8		$	11.7		$	(18.5	)	$	(5.0	)



					Pension and OPEB
					Amortization			Changes in
		Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2017		Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2016		$	2.9		$	16.0		$	(27.3	)	$	(8.4	)
Change in Fair Value Recognized in AOCI		—			—			11.6			11.6
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)		(1.1		)	—			—			(1.1		)
Amortization of Prior Service Cost (Credit)		—			(5.2		)	—			(5.2		)
Amortization of Actuarial (Gains) Losses		—			3.4			—			3.4
Reclassifications from AOCI, before Income Tax (Expense) Benefit		(1.1		)	(1.8		)	—			(2.9		)
Income Tax (Expense) Benefit		(0.4		)	(0.6		)	—			(1.0		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit		(0.7		)	(1.2		)	—			(1.9		)
Net Current Period Other Comprehensive Income (Loss)		(0.7		)	(1.2		)	11.6			9.7
Balance in AOCI as of December 31, 2017		$	2.2		$	14.8		$	(15.7	)	$	1.3



I&M

				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2019	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(11.5	)	$	5.1		$	(7.4	)	$	(13.8	)
Change in Fair Value Recognized in AOCI	—			—			0.8			0.8
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0			—			—			2.0
Amortization of Prior Service Cost (Credit)	—			(0.8		)	—			(0.8		)
Amortization of Actuarial (Gains) Losses	—			0.6			—			0.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0			(0.2		)	—			1.8
Income Tax (Expense) Benefit	0.4			—			—			0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6			(0.2		)	—			1.4
Net Current Period Other Comprehensive Income (Loss)	1.6			(0.2		)	0.8			2.2
Balance in AOCI as of December 31, 2019	$	(9.9	)	$	4.9		$	(6.6	)	$	(11.6	)



				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2018	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(10.7	)	$	5.1		$	(6.5	)	$	(12.1	)
Change in Fair Value Recognized in AOCI	—			—			(0.6		)	(0.6		)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0			—			—			2.0
Amortization of Prior Service Cost (Credit)	—			(0.8		)	—			(0.8		)
Amortization of Actuarial (Gains) Losses	—			0.8			—			0.8
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0			—			—			2.0
Income Tax (Expense) Benefit	0.4			—			—			0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.6			—			—			1.6
Net Current Period Other Comprehensive Income (Loss)	1.6			—			(0.6		)	1.0
ASU 2018-02 Adoption	(2.4		)	—			(0.3		)	(2.7		)
Balance in AOCI as of December 31, 2018	$	(11.5	)	$	5.1		$	(7.4	)	$	(13.8	)



				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2017	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2016	$	(12.0	)	$	5.1		$	(9.3	)	$	(16.2	)
Change in Fair Value Recognized in AOCI	—			—			2.8			2.8
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.0			—			—			2.0
Amortization of Prior Service Cost (Credit)	—			(0.9		)	—			(0.9		)
Amortization of Actuarial (Gains) Losses	—			0.9			—			0.9
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.0			—			—			2.0
Income Tax (Expense) Benefit	0.7			—			—			0.7
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.3			—			—			1.3
Net Current Period Other Comprehensive Income (Loss)	1.3			—			2.8			4.1
Balance in AOCI as of December 31, 2017	$	(10.7	)	$	5.1		$	(6.5	)	$	(12.1	)

OPCo



	Cash Flow Hedge –
For the Year Ended December 31, 2019	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2018	$	1.0
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3		)
Income Tax (Expense) Benefit	(0.3		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0		)
Net Current Period Other Comprehensive Income (Loss)	(1.0		)
Balance in AOCI as of December 31, 2019	$	—



	Cash Flow Hedge –
For the Year Ended December 31, 2018	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2017	$	1.9
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.7		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.7		)
Income Tax (Expense) Benefit	(0.4		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.3		)
Net Current Period Other Comprehensive Income (Loss)	(1.3		)
ASU 2018-02 Adoption	0.4
Balance in AOCI as of December 31, 2018	$	1.0



	Cash Flow Hedge –
For the Year Ended December 31, 2017	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2016	$	3.0
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.7		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.7		)
Income Tax (Expense) Benefit	(0.6		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.1		)
Net Current Period Other Comprehensive Income (Loss)	(1.1		)
Balance in AOCI as of December 31, 2017	$	1.9

PSO



	Cash Flow Hedge –
For the Year Ended December 31, 2019	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2018	$	2.1
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3		)
Income Tax (Expense) Benefit	(0.3		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0		)
Net Current Period Other Comprehensive Income (Loss)	(1.0		)
Balance in AOCI as of December 31, 2019	$	1.1



	Cash Flow Hedge –
For the Year Ended December 31, 2018	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2017	$	2.6
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3		)
Income Tax (Expense) Benefit	(0.3		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(1.0		)
Net Current Period Other Comprehensive Income (Loss)	(1.0		)
ASU 2018-02 Adoption	0.5
Balance in AOCI as of December 31, 2018	$	2.1



	Cash Flow Hedge –
For the Year Ended December 31, 2017	Interest Rate
	(in millions)
Balance in AOCI as of December 31, 2016	$	3.4
Change in Fair Value Recognized in AOCI	—
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	(1.3		)
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(1.3		)
Income Tax (Expense) Benefit	(0.5		)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(0.8		)
Net Current Period Other Comprehensive Income (Loss)	(0.8		)
Balance in AOCI as of December 31, 2017	$	2.6



SWEPCo

				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2019	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2018	$	(3.3	)	$	(0.2	)	$	(1.9	)	$	(5.4	)
Change in Fair Value Recognized in AOCI	—			—			3.7			3.7
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	1.9			—			—			1.9
Amortization of Prior Service Cost (Credit)	—			(2.0		)	—			(2.0		)
Amortization of Actuarial (Gains) Losses	—			0.6			—			0.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	1.9			(1.4		)	—			0.5
Income Tax (Expense) Benefit	0.4			(0.3		)	—			0.1
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.5			(1.1		)	—			0.4
Net Current Period Other Comprehensive Income (Loss)	1.5			(1.1		)	3.7			4.1
Balance in AOCI as of December 31, 2019	$	(1.8	)	$	(1.3	)	$	1.8		$	(1.3	)



				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2018	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2017	$	(6.0	)	$	1.2		$	0.8		$	(4.0	)
Change in Fair Value Recognized in AOCI	2.3			—			(3.1		)	(0.8		)
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.1			—			—			2.1
Amortization of Prior Service Cost (Credit)	—			(2.0		)	—			(2.0		)
Amortization of Actuarial (Gains) Losses	—			0.2			—			0.2
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.1			(1.8		)	—			0.3
Income Tax (Expense) Benefit	0.4			(0.4		)	—			—
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.7			(1.4		)	—			0.3
Net Current Period Other Comprehensive Income (Loss)	4.0			(1.4		)	(3.1		)	(0.5		)
ASU 2018-02 Adoption	(1.3		)	—			0.4			(0.9		)
Balance in AOCI as of December 31, 2018	$	(3.3	)	$	(0.2	)	$	(1.9	)	$	(5.4	)



				Pension and OPEB
				Amortization			Changes in
	Cash Flow Hedge –			of Deferred			Funded
For the Year Ended December 31, 2017	Interest Rate			Costs			Status			Total
	(in millions)
Balance in AOCI as of December 31, 2016	$	(7.4	)	$	1.9		$	(3.9	)	$	(9.4	)
Change in Fair Value Recognized in AOCI	—			—			4.7			4.7
Amount of (Gain) Loss Reclassified from AOCI
Interest Expense (b)	2.2			—			—			2.2
Amortization of Prior Service Cost (Credit)	—			(2.0		)	—			(2.0		)
Amortization of Actuarial (Gains) Losses	—			0.9			—			0.9
Reclassifications from AOCI, before Income Tax (Expense) Benefit	2.2			(1.1		)	—			1.1
Income Tax (Expense) Benefit	0.8			(0.4		)	—			0.4
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	1.4			(0.7		)	—			0.7
Net Current Period Other Comprehensive Income (Loss)	1.4			(0.7		)	4.7			5.4
Balance in AOCI as of December 31, 2017	$	(6.0	)	$	1.2		$	0.8		$	(4.0	)


(a)	The change in fair value includes $4 million related to AEP's investment in joint venture wind farms acquired as part of the purchase of Sempra Renewables LLC for the year ended December 31, 2019. See “Sempra Renewables LLC” section of Note 17 for additional information.

(b)

Amounts reclassified to the referenced line item on the statements of income.