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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Performance Units and Reinvested Dividends on Outstanding Performance Units
Years Ended December 31,
Performance Shares202020192018
Awarded Shares (in thousands)424.8 535.0 581.4 
Weighted-Average Share Fair Value at Grant Date$116.56 $83.21 $67.21 
Vesting Period (in years)333
Performance Shares and AEP Career Shares
(Reinvested Dividends Portion)
Years Ended December 31,
202020192018
Awarded Shares (in thousands) (a)73.4 66.4 80.2 
Weighted-Average Fair Value at Grant Date$84.87 $88.73 $70.58 
Vesting Period (in years)(b)(b)(b)

(a)All awarded dividends in both 2020 and 2019 were equity awards and awarded dividends in 2018 were a mix of equity awards and liability awards.
(b)The vesting period for the reinvested dividends on performance shares is equal to the remaining life of the related performance shares.  Dividends on AEP career shares vest immediately when the dividend is awarded but are not settled in AEP common stock until after the participant’s AEP employment ends.
Summary of Performance Scores and Performance Units Earned
Years Ended December 31,
Performance Shares202020192018
Certified Performance Score128.2 %132.7 %136.7 %
Performance Shares Earned757,858 792,897 820,780 
Performance Shares Mandatorily Deferred as AEP Career Shares13,614 10,063 11,248 
Performance Shares Voluntarily Deferred into the Incentive Compensation Deferral Program
26,936 49,392 56,826 
Performance Shares to be Settled (a)717,308 733,442 752,706 

(a)Performance shares settled for the three-year periods ended December 31, 2020 and 2019 settled in AEP common stock. Performance units settled for the three-year period ended December 31, 2018 settled in cash. In all cases, the settlement of common stock or cash occurs in the quarter following the end of the year shown.
Summary of Cash Payouts for Performance Units and Career Shares
Years Ended December 31,
Performance Shares and AEP Career Shares202020192018
(in millions)
Cash Settlements for Performance Units$— $58.3 $66.9 
AEP Common Stock Settlements for Performance Shares75.4 — — 
AEP Common Stock Settlements for Career Share Distributions1.9 6.6 5.1 
Status of Nonvested Performance Units
Nonvested Performance SharesSharesWeighted
Average
Grant Date
Fair Value
(in thousands)
Nonvested as of January 1, 20201,113.4 $73.64 
Awarded424.8 116.56 
Dividends53.8 84.91 
Vested (a)(597.0)66.45 
Forfeited(56.4)87.58 
Nonvested as of December 31, 2020938.6 98.05 

(a)The vested Performance Shares will be converted to 717 thousand shares based on the closing share price on the day before settlement.
Monte Carlo Valuation Assumptions
Years Ended December 31,
Assumptions202020192018
Valuation Period (in years) (a)2.872.872.87
Expected Volatility Minimum13.67 %14.83 %14.77 %
Expected Volatility Maximum28.15 %25.57 %26.72 %
Expected Volatility Average16.39 %17.39 %17.90 %
Dividend Rate (b)— %— %— %
Risk Free Rate1.40 %2.49 %2.34 %

(a)Period from award date to vesting date.
(b)Equivalent to reinvesting dividends.
Summary of Units Awarded and Fair Value of Restricted Stock Units
Years Ended December 31,
Restricted Stock Units202020192018
Awarded Units (in thousands)268.7 304.8 260.0 
Weighted-Average Grant Date Fair Value$94.38 $81.57 $67.96 
Total Fair Value and Total Intrinsic Value of Restricted Shares and Restricted Stock Units Vested
Years Ended December 31,
Restricted Stock Units202020192018
(in millions)
Fair Value of Restricted Stock Units Vested$22.9 $16.3 $16.6 
Intrinsic Value of Restricted Stock Units Vested (a)25.2 21.6 19.2 

(a)Intrinsic value is calculated as market price at the vesting date.
Status of Nonvested Restricted Shares and Restricted Stock Units
Nonvested Restricted Stock UnitsShares/UnitsWeighted
Average
Grant Date
Fair Value
(in thousands)
Nonvested as of January 1, 2020516.9 $75.55 
Awarded268.7 94.38 
Vested(307.6)74.58 
Forfeited(30.0)84.27 
Nonvested as of December 31, 2020448.0 86.56 
Stock Unit Accumulation Plan for Non-employee Directors
Years Ended December 31,
Stock Unit Accumulation Plan for Non-Employee Directors202020192018
Awarded Units (in thousands)12.1 10.0 11.4 
Weighted-Average Grant Date Fair Value$83.80 $89.13 $70.41 
Compensation Cost and Actual Tax Benefit Realized for Tax Deductions from Compensation Cost for Share-based Payment Arrangements
Years Ended December 31,
Share-based Compensation Plans202020192018
(in millions)
Compensation Cost for Share-based Payment Arrangements (a)$53.8 $57.9 $53.2 
Actual Tax Benefit7.2 8.4 7.7 
Total Compensation Cost Capitalized20.4 20.0 19.7 

(a)Compensation cost for share-based payment arrangements is included in Other Operation and Maintenance expenses on the statements of income.