Comprehensive Income

12 Months Ended

Dec. 31, 2023

Comprehensive Income

COMPREHENSIVE INCOME

The disclosures in this note apply to AEP only. The impact of AOCI is not material to the financial statements of the Registrant Subsidiaries.

Presentation of Comprehensive Income

The following tables provide AEP’s components of changes in AOCI and details of reclassifications from AOCI for the years ended December 31, 2023, 2022 and 2021.  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 information.

	Cash Flow Hedges				Pension and OPEB
For the Year Ended December 31, 2023	Commodity		Interest Rate		Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2022	$	223.5	$	0.3	$	105.2	$	(245.3)	$	83.7
Change in Fair Value Recognized in AOCI, Net of Tax	(175.8)		(6.4)		—		(16.3)		(198.5)
Amount of (Gain) Loss Reclassified from AOCI
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation (a)	72.2		—		—		—		72.2
Interest Expense (a)	—		(2.4)		—		—		(2.4)
Amortization of Prior Service Cost (Credit)	—		—		(21.2)		—		(21.2)
Amortization of Actuarial (Gains) Losses	—		—		5.2		—		5.2
Reclassifications from AOCI, before Income Tax (Expense) Benefit	72.2		(2.4)		(16.0)		—		53.8
Income Tax (Expense) Benefit	15.0		(0.4)		(3.4)		—		11.2
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	57.2		(2.0)		(12.6)		—		42.6
Reclassifications of KPCo Pension and OPEB Regulatory Assets from AOCI, before Income Tax (Expense) Benefit	—		—		—		21.1		21.1
Income Tax (Expense) Benefit	—		—		—		4.4		4.4
Reclassifications of KPCo Pension and OPEB Regulatory Assets from AOCI, Net of Income Tax (Expense) Benefit	—		—		—		16.7		16.7
Net Current Period Other Comprehensive Income (Loss)	(118.6)		(8.4)		(12.6)		0.4		(139.2)
Balance in AOCI as of December 31, 2023	$	104.9	$	(8.1)	$	92.6	$	(244.9)	$	(55.5)

	Cash Flow Hedges				Pension and OPEB
For the Year Ended December 31, 2022	Commodity		Interest Rate		Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2021	$	163.7	$	(21.3)	$	115.6	$	(73.2)	$	184.8
Change in Fair Value Recognized in AOCI, Net of Tax	477.3		18.4		—		(155.4)		340.3
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (a)	0.1		—		—		—		0.1
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation (a)	(528.6)		—		—		—		(528.6)
Interest Expense (a)	—		4.0		—		—		4.0
Amortization of Prior Service Cost (Credit)	—		—		(21.8)		—		(21.8)
Amortization of Actuarial (Gains) Losses	—		—		8.6		—		8.6
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(528.5)		4.0		(13.2)		—		(537.7)
Income Tax (Expense) Benefit	(111.0)		0.8		(2.8)		—		(113.0)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(417.5)		3.2		(10.4)		—		(424.7)
Reclassifications of KPCo Pension and OPEB Regulatory Assets to AOCI, before Income Tax (Expense) Benefit	—		—		—		(21.1)		(21.1)
Income Tax (Expense) Benefit	—		—		—		(4.4)		(4.4)
Reclassifications of KPCo Pension and OPEB Regulatory Assets to AOCI, Net of Income Tax (Expense) Benefit	—		—		—		(16.7)		(16.7)
Net Current Period Other Comprehensive Income (Loss)	59.8		21.6		(10.4)		(172.1)		(101.1)
Balance in AOCI as of December 31, 2022	$	223.5	$	0.3	$	105.2	$	(245.3)	$	83.7

	Cash Flow Hedges				Pension and OPEB
For the Year Ended December 31, 2021	Commodity		Interest Rate		Amortization of Deferred Costs		Changes in Funded Status		Total
	(in millions)
Balance in AOCI as of December 31, 2020	$	(60.6)	$	(47.5)	$	123.7	$	(100.7)	$	(85.1)
Change in Fair Value Recognized in AOCI, Net of Tax	488.2		21.1		—		27.5		536.8
Amount of (Gain) Loss Reclassified from AOCI
Generation & Marketing Revenues (a)	0.7		—		—		—		0.7
Purchased Electricity, Fuel and Other Consumables Used for Electric Generation (a)	(334.8)		—		—		—		(334.8)
Interest Expense (a)	—		6.5		—		—		6.5
Amortization of Prior Service Cost (Credit)	—		—		(19.4)		—		(19.4)
Amortization of Actuarial (Gains) Losses	—		—		9.1		—		9.1
Reclassifications from AOCI, before Income Tax (Expense) Benefit	(334.1)		6.5		(10.3)		—		(337.9)
Income Tax (Expense) Benefit	(70.2)		1.4		(2.2)		—		(71.0)
Reclassifications from AOCI, Net of Income Tax (Expense) Benefit	(263.9)		5.1		(8.1)		—		(266.9)
Net Current Period Other Comprehensive Income (Loss)	224.3		26.2		(8.1)		27.5		269.9
Balance in AOCI as of December 31, 2021	$	163.7	$	(21.3)	$	115.6	$	(73.2)	$	184.8

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