Significant Accounting Matters

3 Months Ended

Mar. 31, 2024

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 statement 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, 2024 is not necessarily indicative of results that may be expected for the year ending December 31, 2024.  The condensed financial statements are unaudited and should be read in conjunction with the audited 2023 financial statements and notes thereto, which are included in the Registrants’ Annual Reports on Form 10-K as filed with the SEC on February 26, 2024.

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 awards.

The following table presents AEP’s basic and diluted EPS calculations included on the statements of income:

	Three Months Ended March 31,
	2024				2023
	(in millions, except per share data)
			$/share				$/share
Earnings Attributable to AEP Common Shareholders	$	1,003.1			$	397.0
Weighted-Average Number of Basic AEP Common Shares Outstanding	526.6		$	1.91	514.2		$	0.77
Weighted-Average Dilutive Effect of Stock-Based Awards	1.0		(0.01)		1.4		—
Weighted-Average Number of Diluted AEP Common Shares Outstanding	527.6		$	1.90	515.6		$	0.77

There were no antidilutive shares outstanding as of March 31, 2024 and 2023.

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

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 sheets that sum to the total of the same amounts shown on the statements of cash flows:

	March 31, 2024
	AEP		AEP Texas		APCo
	(in millions)
Cash and Cash Equivalents	$	230.7	$	0.1	$	7.6
Restricted Cash	51.1		42.7		8.4
Total Cash, Cash Equivalents and Restricted Cash	$	281.8	$	42.8	$	16.0

	December 31, 2023
	AEP		AEP Texas		APCo
	(in millions)
Cash and Cash Equivalents	$	330.1	$	0.1	$	5.0
Restricted Cash	48.9		34.0		14.9
Total Cash, Cash Equivalents and Restricted Cash	$	379.0	$	34.1	$	19.9