XML 47 R7.htm IDEA: XBRL DOCUMENT v3.23.3
Significant Accounting Matters
 9 Months Ended
Sep. 30, 2023
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 and nine months ended September 30, 2023 is not necessarily indicative of results that may be expected for the year ending December 31, 2023.  The condensed financial statements are unaudited and should be read in conjunction with the audited 2022 financial statements and notes thereto, which are included in the Registrants’ Annual Reports on Form 10-K as filed with the SEC on February 23, 2023.

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 September 30,
20232022
(in millions, except per share data)
 $/share$/share
Earnings Attributable to AEP Common Shareholders
$953.7  $683.7  
Weighted-Average Number of Basic AEP Common Shares Outstanding520.5 $1.83 513.7 $1.33 
Weighted-Average Dilutive Effect of Stock-Based Awards0.9 — 1.6 — 
Weighted-Average Number of Diluted AEP Common Shares Outstanding521.4 $1.83 515.3 $1.33 
Nine Months Ended September 30,
20232022
(in millions, except per share data)
 $/share$/share
Earnings Attributable to AEP Common Shareholders
$1,871.9  $1,922.9  
Weighted-Average Number of Basic AEP Common Shares Outstanding516.5 $3.62 511.2 $3.76 
Weighted-Average Dilutive Effect of Stock-Based Awards1.3 — 1.5 (0.01)
Weighted-Average Number of Diluted AEP Common Shares Outstanding517.8 $3.62 512.7 $3.75 

There were no antidilutive shares outstanding as of September 30, 2023 and 2022, respectively.
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:
September 30, 2023
AEPAEP TexasAPCo
(in millions)
Cash and Cash Equivalents
$353.3 $0.1 $4.5 
Restricted Cash
53.8 46.9 6.9 
Total Cash, Cash Equivalents and Restricted Cash
$407.1 $47.0 $11.4 

December 31, 2022
AEPAEP TexasAPCo
(in millions)
Cash and Cash Equivalents
$509.4 $0.1 $7.5 
Restricted Cash
47.1 32.7 14.4 
Total Cash, Cash Equivalents and Restricted Cash
$556.5 $32.8 $21.9 
Supplementary Information
Nine Months Ended September 30,
Cash Flow Information20232022
(in millions)
Cash Paid for:
Interest, Net of Capitalized Amounts$1,148.7 $856.8 
Income Taxes26.7 104.1 
Noncash Investing and Financing Activities:
Acquisitions Under Finance Leases38.5 22.3 
Construction Expenditures Included in Current Liabilities as of September 30,975.0 985.8 
Acquisition of Nuclear Fuel Included in Current Liabilities as of September 30,9.5 8.5 
Noncash Increase in Noncurrent Assets from the Sale of the Competitive Contracted Renewables Portfolio74.7 —