XML 59 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Matters
3 Months Ended
Mar. 31, 2018
Significant Accounting Matters
SIGNIFICANT ACCOUNTING MATTERS

The disclosures in this note apply to all Registrants unless indicated otherwise.

General

The unaudited condensed financial statements and footnotes were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements.

In the opinion of management, the unaudited condensed interim financial statements reflect all normal and recurring accruals and adjustments necessary for a fair presentation of the net income, financial position and cash flows for the interim periods for each Registrant.  Net income for the three months ended March 31, 2018 is not necessarily indicative of results that may be expected for the year ending December 31, 2018.  The condensed financial statements are unaudited and should be read in conjunction with the audited 2017 financial statements and notes thereto, which are included in the Registrants’ Annual Reports on Form 10-K as filed with the SEC on February 22, 2018.

Earnings Per Share (EPS) (Applies to AEP)

Basic EPS is calculated by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted EPS is calculated by adjusting the weighted average outstanding common shares, assuming conversion of all potentially dilutive stock options and awards.

The following table presents AEP’s basic and diluted EPS calculations included on the statements of income:
 
Three Months Ended March 31,
 
2018
 
2017
 
(in millions, except per share data)
 
 

 
$/share
 
 
 
$/share
Earnings Attributable to AEP Common Shareholders
$
454.4

 
 

 
$
592.2


 

 
 
 
 
 
 
 
 
Weighted Average Number of Basic Shares Outstanding
492.3

 
$
0.92

 
491.7

 
$
1.20

Weighted Average Dilutive Effect of Stock-Based Awards
0.8

 

 
0.3

 

Weighted Average Number of Diluted Shares Outstanding
493.1

 
$
0.92

 
492.0

 
$
1.20


There were no antidilutive shares outstanding as of March 31, 2018 and 2017.

Restricted Cash (Applies to AEP, AEP Texas, APCo and OPCo)

Restricted Cash primarily includes funds held by trustees for the payment of securitization bonds.

Reconciliation of Cash, Cash Equivalents and Restricted Cash
The following tables provide a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the balance sheet that sum to the total of the same amounts shown on the statement of cash flows:
 
 
March 31, 2018
 
 
AEP
 
AEP Texas
 
APCo
 
OPCo
 
 
(in millions)
Cash and Cash Equivalents
 
$
183.4

 
$
0.1

 
$
1.2

 
$
1.4

Restricted Cash
 
133.1

 
107.1

 
10.1

 
15.9

Total Cash, Cash Equivalents and Restricted Cash
 
$
316.5

 
$
107.2

 
$
11.3

 
$
17.3

 
 
December 31, 2017
 
 
AEP
 
AEP Texas
 
APCo
 
OPCo
 
 
(in millions)
Cash and Cash Equivalents
 
$
214.6

 
$
2.0

 
$
2.9

 
$
3.1

Restricted Cash
 
198.0

 
155.2

 
16.3

 
26.6

Total Cash, Cash Equivalents and Restricted Cash
 
$
412.6

 
$
157.2

 
$
19.2

 
$
29.7