Date of report (Date of earliest event reported)
|
January 30, 2017
|
AMERICAN ELECTRIC POWER COMPANY, INC.
|
1-3525
|
New York
|
13-4922640
|
(Commission File Number)
|
(State or Other Jurisdiction of
Incorporation)
|
(IRS Employer Identification
No.)
|
1 Riverside Plaza, Columbus, OH
|
43215
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
614-716-1000
|
None
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit Number
|
|
|
Title
|
|
|
|
|
99.1
|
|
Unaudited pro forma condensed consolidated financial statements.
|
|
AMERICAN ELECTRIC POWER COMPANY, INC.
|
|
|
|
|
|
By:
|
/s/ Thomas G. Berkemeyer
|
|
Name:
|
Thomas G. Berkemeyer
|
|
Title
|
Assistant Secretary
|
|
|
|
|
Pro Forma
|
|
|
||||||
|
|
|
|
Disposition
|
|
|
||||||
|
|
Historical
|
|
Plants
|
|
Pro Forma
|
||||||
|
|
AEP
|
|
Adjustments
|
|
AEP
|
||||||
REVENUES
|
|
|
|
|
|
|
||||||
Vertically Integrated Utilities
|
|
$
|
6,864.6
|
|
|
$
|
—
|
|
|
$
|
6,864.6
|
|
Transmission and Distribution Utilities
|
|
3,398.9
|
|
|
—
|
|
|
3,398.9
|
|
|||
Generation & Marketing
|
|
2,192.5
|
|
|
(892.6
|
)
|
(a)
|
1,299.9
|
|
|||
Other Revenues
|
|
134.0
|
|
|
—
|
|
|
134.0
|
|
|||
TOTAL REVENUES
|
|
12,590.0
|
|
|
(892.6
|
)
|
|
11,697.4
|
|
|||
|
|
|
|
|
|
|
||||||
EXPENSES
|
|
|
|
|
|
|
|
|||||
Fuel and Other Consumables Used for Electric Generation
|
|
2,236.1
|
|
|
(438.9
|
)
|
(b), (c)
|
1,797.2
|
|
|||
Purchased Electricity for Resale
|
|
2,134.6
|
|
|
3.1
|
|
(c)
|
2,137.7
|
|
|||
Other Operation
|
|
2,150.7
|
|
|
(34.6
|
)
|
(b), (c)
|
2,116.1
|
|
|||
Maintenance
|
|
854.4
|
|
|
(39.6
|
)
|
(b)
|
814.8
|
|
|||
Asset Impairments and Other Related Charges
|
|
2,264.9
|
|
|
—
|
|
|
2,264.9
|
|
|||
Depreciation and Amortization
|
|
1,550.2
|
|
|
(54.0
|
)
|
(b), (c)
|
1,496.2
|
|
|||
Taxes Other Than Income Taxes
|
|
767.9
|
|
|
(9.6
|
)
|
(b)
|
758.3
|
|
|||
TOTAL EXPENSES
|
|
11,958.8
|
|
|
(573.6
|
)
|
|
11,385.2
|
|
|||
|
|
|
|
|
|
|
||||||
OPERATING INCOME
|
|
631.2
|
|
|
(319.0
|
)
|
|
312.2
|
|
|||
|
|
|
|
|
|
|
||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|||||
Interest and Investment Income
|
|
6.5
|
|
|
—
|
|
|
6.5
|
|
|||
Carrying Costs Income
|
|
11.9
|
|
|
—
|
|
|
11.9
|
|
|||
Allowance for Equity Funds Used During Construction
|
|
86.1
|
|
|
(0.4
|
)
|
(d)
|
85.7
|
|
|||
Interest Expense
|
|
(667.2
|
)
|
|
7.7
|
|
(e)
|
(659.5
|
)
|
|||
|
|
|
|
|
|
|
||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (CREDIT) AND EQUITY EARNINGS
|
|
68.5
|
|
|
(311.7
|
)
|
|
(243.2
|
)
|
|||
|
|
|
|
|
|
|
||||||
Income Tax Expense (Credit)
|
|
(134.0
|
)
|
|
(118.5
|
)
|
(f)
|
(252.5
|
)
|
|||
Equity Earnings of Unconsolidated Subsidiaries
|
|
42.8
|
|
|
—
|
|
|
42.8
|
|
|||
|
|
|
|
|
|
|
||||||
INCOME FROM CONTINUING OPERATIONS
|
|
245.3
|
|
|
(193.2
|
)
|
|
52.1
|
|
|||
|
|
|
|
|
|
|
||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
(2.5
|
)
|
|
—
|
|
|
(2.5
|
)
|
|||
|
|
|
|
|
|
|
||||||
NET INCOME
|
|
242.8
|
|
|
(193.2
|
)
|
|
49.6
|
|
|||
|
|
|
|
|
|
|
||||||
Net Income Attributable to Noncontrolling Interests
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|||
|
|
|
|
|
|
|
||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
237.5
|
|
|
$
|
(193.2
|
)
|
|
$
|
44.3
|
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
|
491,422,921
|
|
|
—
|
|
|
491,422,921
|
|
|||
|
|
|
|
|
|
|
||||||
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS
|
|
$
|
0.49
|
|
|
$
|
(0.39
|
)
|
|
$
|
0.10
|
|
BASIC EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM DISCONTINUED OPERATIONS
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
0.48
|
|
|
$
|
(0.39
|
)
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
|
491,596,861
|
|
|
—
|
|
|
491,596,861
|
|
|||
|
|
|
|
|
|
|
||||||
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS
|
|
$
|
0.49
|
|
|
$
|
(0.39
|
)
|
|
$
|
0.10
|
|
DILUTED EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM DISCONTINUED OPERATIONS
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
0.48
|
|
|
$
|
(0.39
|
)
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
||||||
CASH DIVIDENDS DECLARED PER SHARE
|
|
$
|
1.68
|
|
|
$
|
—
|
|
|
$
|
1.68
|
|
See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
|
|
|
|
|
Pro Forma
|
|
|
||||||
|
|
|
|
Disposition
|
|
|
||||||
|
|
Historical
|
|
Plants
|
|
Pro Forma
|
||||||
|
|
AEP
|
|
Adjustments
|
|
AEP
|
||||||
REVENUES
|
|
|
|
|
|
|
||||||
Vertically Integrated Utilities
|
|
$
|
9,069.9
|
|
|
$
|
—
|
|
|
$
|
9,069.9
|
|
Transmission and Distribution Utilities
|
|
4,392.0
|
|
|
—
|
|
|
4,392.0
|
|
|||
Generation & Marketing
|
|
2,866.7
|
|
|
(1,131.1
|
)
|
(a)
|
1,735.6
|
|
|||
Other Revenues
|
|
124.6
|
|
|
—
|
|
|
124.6
|
|
|||
TOTAL REVENUES
|
|
16,453.2
|
|
|
(1,131.1
|
)
|
|
15,322.1
|
|
|||
EXPENSES
|
|
|
|
|
|
|
||||||
Fuel and Other Consumables Used for Electric Generation
|
|
3,348.1
|
|
|
(602.3
|
)
|
(b), (c). (g)
|
2,745.8
|
|
|||
Purchased Electricity for Resale
|
|
2,760.1
|
|
|
140.6
|
|
(c), (g), (h)
|
2,900.7
|
|
|||
Other Operation
|
|
2,703.9
|
|
|
(47.2
|
)
|
(b), (c), (g)
|
2,656.7
|
|
|||
Maintenance
|
|
1,325.3
|
|
|
(83.5
|
)
|
(b)
|
1,241.8
|
|
|||
Depreciation and Amortization
|
|
2,009.7
|
|
|
(64.1
|
)
|
(b), (c), (g)
|
1,945.6
|
|
|||
Taxes Other Than Income Taxes
|
|
972.6
|
|
|
(11.4
|
)
|
(b)
|
961.2
|
|
|||
TOTAL EXPENSES
|
|
13,119.7
|
|
|
(667.9
|
)
|
|
12,451.8
|
|
|||
|
|
|
|
|
|
|
||||||
OPERATING INCOME
|
|
3,333.5
|
|
|
(463.2
|
)
|
|
2,870.3
|
|
|||
|
|
|
|
|
|
|
||||||
Other Income (Expense):
|
|
|
|
|
|
|
||||||
Interest and Investment Income
|
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|||
Carrying Costs Income
|
|
23.5
|
|
|
—
|
|
|
23.5
|
|
|||
Allowance for Equity Funds Used During Construction
|
|
131.9
|
|
|
(0.2
|
)
|
(d)
|
131.7
|
|
|||
Interest Expense
|
|
(873.9
|
)
|
|
10.8
|
|
(e)
|
(863.1
|
)
|
|||
|
|
|
|
|
|
|
||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY EARNINGS
|
|
2,622.9
|
|
|
(452.6
|
)
|
|
2,170.3
|
|
|||
|
|
|
|
|
|
|
||||||
Income Tax Expense
|
|
919.6
|
|
|
(172.0
|
)
|
(f)
|
747.6
|
|
|||
Equity Earnings of Unconsolidated Subsidiaries
|
|
65.3
|
|
|
—
|
|
|
65.3
|
|
|||
|
|
|
|
|
|
|
||||||
INCOME FROM CONTINUING OPERATIONS
|
|
1,768.6
|
|
|
(280.6
|
)
|
|
1,488.0
|
|
|||
|
|
|
|
|
|
|
||||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX
|
|
283.7
|
|
|
—
|
|
|
283.7
|
|
|||
|
|
|
|
|
|
|
||||||
NET INCOME
|
|
2,052.3
|
|
|
(280.6
|
)
|
|
1,771.7
|
|
|||
|
|
|
|
|
|
|
||||||
Net Income Attributable to Noncontrolling Interests
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|||
|
|
|
|
|
|
|
||||||
EARNINGS ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
2,047.1
|
|
|
$
|
(280.6
|
)
|
|
$
|
1,766.5
|
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE NUMBER OF BASIC AEP COMMON SHARES OUTSTANDING
|
|
490,340,522
|
|
|
—
|
|
|
490,340,522
|
|
|||
|
|
|
|
|
|
|
||||||
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS
|
|
$
|
3.59
|
|
|
$
|
(0.57
|
)
|
|
$
|
3.02
|
|
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM DISCONTINUED OPERATIONS
|
|
0.58
|
|
|
—
|
|
|
0.58
|
|
|||
TOTAL BASIC EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
4.17
|
|
|
$
|
(0.57
|
)
|
|
$
|
3.60
|
|
|
|
|
|
|
|
|
||||||
WEIGHTED AVERAGE NUMBER OF DILUTED AEP COMMON SHARES OUTSTANDING
|
|
490,574,568
|
|
|
—
|
|
|
490,574,568
|
|
|||
|
|
|
|
|
|
|
||||||
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM CONTINUING OPERATIONS
|
|
$
|
3.59
|
|
|
$
|
(0.57
|
)
|
|
$
|
3.02
|
|
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS FROM DISCONTINUED OPERATIONS
|
|
0.58
|
|
|
—
|
|
|
0.58
|
|
|||
TOTAL DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO AEP COMMON SHAREHOLDERS
|
|
$
|
4.17
|
|
|
$
|
(0.57
|
)
|
|
$
|
3.60
|
|
See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
|
|
|
|
|
Pro Forma
|
|
|
||||||
|
|
|
|
Disposition
|
|
|
||||||
|
|
Historical
|
|
Plants
|
|
Pro Forma
|
||||||
|
|
AEP
|
|
Adjustments
|
|
AEP
|
||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
212.2
|
|
|
$
|
1,441.0
|
|
(a)
|
$
|
1,653.2
|
|
Other Temporary Investments
(Amount Includes $270.5 Related to Transition Funding, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, EIS and Sabine)
|
|
279.2
|
|
|
—
|
|
|
279.2
|
|
|||
Accounts Receivable:
|
|
|
|
|
|
|
|
|
||||
Customers
|
|
628.4
|
|
|
—
|
|
|
628.4
|
|
|||
Accrued Unbilled Revenues
|
|
166.7
|
|
|
—
|
|
|
166.7
|
|
|||
Pledged Accounts Receivable – AEP Credit
|
|
1,065.5
|
|
|
—
|
|
|
1,065.5
|
|
|||
Miscellaneous
|
|
59.9
|
|
|
—
|
|
|
59.9
|
|
|||
Allowance for Uncollectible Accounts
|
|
(40.5
|
)
|
|
—
|
|
|
(40.5
|
)
|
|||
Total Accounts Receivable
|
|
1,880.0
|
|
|
—
|
|
|
1,880.0
|
|
|||
Fuel
|
|
468.0
|
|
|
—
|
|
|
468.0
|
|
|||
Materials and Supplies
|
|
556.8
|
|
|
—
|
|
|
556.8
|
|
|||
Risk Management Assets
|
|
110.8
|
|
|
—
|
|
|
110.8
|
|
|||
Accrued Tax Benefits
|
|
214.9
|
|
|
—
|
|
|
214.9
|
|
|||
Regulatory Asset for Under-Recovered Fuel Costs
|
|
107.4
|
|
|
—
|
|
|
107.4
|
|
|||
Margin Deposits
|
|
56.5
|
|
|
—
|
|
|
56.5
|
|
|||
Assets Held for Sale
|
|
1,915.3
|
|
|
(1,915.3
|
)
|
(b)
|
—
|
|
|||
Prepayments and Other Current Assets
|
|
148.1
|
|
|
—
|
|
|
148.1
|
|
|||
TOTAL CURRENT ASSETS
|
|
5,949.2
|
|
|
(474.3
|
)
|
|
5,474.9
|
|
|||
|
|
|
|
|
|
|
||||||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|
|
||||
Electric:
|
|
|
|
|
|
|
|
|
||||
Generation
|
|
19,684.2
|
|
|
—
|
|
|
19,684.2
|
|
|||
Transmission
|
|
15,157.8
|
|
|
—
|
|
|
15,157.8
|
|
|||
Distribution
|
|
18,639.0
|
|
|
—
|
|
|
18,639.0
|
|
|||
Other Property, Plant and Equipment (Amount Includes Coal Mining and Nuclear Fuel)
|
|
3,467.5
|
|
|
—
|
|
|
3,467.5
|
|
|||
Construction Work in Progress
|
|
3,651.3
|
|
|
—
|
|
|
3,651.3
|
|
|||
Total Property, Plant and Equipment
|
|
60,599.8
|
|
|
—
|
|
|
60,599.8
|
|
|||
Accumulated Depreciation and Amortization
|
|
16,337.6
|
|
|
—
|
|
|
16,337.6
|
|
|||
TOTAL PROPERTY, PLANT AND EQUIPMENT – NET
|
|
44,262.2
|
|
|
—
|
|
|
44,262.2
|
|
|||
|
|
|
|
|
|
|
||||||
OTHER NONCURRENT ASSETS
|
|
|
|
|
|
|
|
|
||||
Regulatory Assets
|
|
5,182.4
|
|
|
—
|
|
|
5,182.4
|
|
|||
Securitized Assets
|
|
1,559.0
|
|
|
—
|
|
|
1,559.0
|
|
|||
Spent Nuclear Fuel and Decommissioning Trusts
|
|
2,230.8
|
|
|
—
|
|
|
2,230.8
|
|
|||
Goodwill
|
|
52.5
|
|
|
—
|
|
|
52.5
|
|
|||
Long-term Risk Management Assets
|
|
311.7
|
|
|
—
|
|
|
311.7
|
|
|||
Deferred Charges and Other Noncurrent Assets
|
|
1,894.2
|
|
|
—
|
|
|
1,894.2
|
|
|||
TOTAL OTHER NONCURRENT ASSETS
|
|
11,230.6
|
|
|
—
|
|
|
11,230.6
|
|
|||
|
|
|
|
|
|
|
||||||
TOTAL ASSETS
|
|
$
|
61,442.0
|
|
|
$
|
(474.3
|
)
|
|
$
|
60,967.7
|
|
See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
|
|
|
|
|
|
|
|
|
Pro Forma
|
|
|
||||||
|
|
|
|
|
|
|
|
Disposition
|
|
|
||||||
|
|
|
|
|
|
Historical
|
|
Plants
|
|
Pro Forma
|
||||||
|
|
|
|
|
|
AEP
|
|
Adjustments
|
|
AEP
|
||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||
Accounts Payable
|
|
|
|
|
|
$
|
1,340.3
|
|
|
$
|
—
|
|
|
$
|
1,340.3
|
|
Short-term Debt:
|
|
|
|
|
|
|
|
|
|
|
||||||
Securitized Debt for Receivables – AEP Credit
|
|
|
|
|
|
750.0
|
|
|
—
|
|
|
750.0
|
|
|||
Other Short-term Debt
|
|
|
|
|
|
728.3
|
|
|
—
|
|
|
728.3
|
|
|||
Total Short-term Debt
|
|
|
|
|
|
1,478.3
|
|
|
—
|
|
|
1,478.3
|
|
|||
Long-term Debt Due Within One Year
(Amount Includes $393.4 Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding and Sabine)
|
|
2,384.8
|
|
|
—
|
|
|
2,384.8
|
|
|||||||
Risk Management Liabilities
|
|
|
|
|
|
79.3
|
|
|
—
|
|
|
79.3
|
|
|||
Customer Deposits
|
|
|
|
|
|
341.6
|
|
|
|
|
341.6
|
|
||||
Accrued Taxes
|
|
|
|
|
|
666.2
|
|
|
—
|
|
|
666.2
|
|
|||
Accrued Interest
|
|
|
|
|
|
230.2
|
|
|
—
|
|
|
230.2
|
|
|||
Regulatory Liability for Over-Recovered Fuel Costs
|
|
|
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|||||
Liabilities Held for Sale
|
|
|
|
|
|
231.0
|
|
|
(231.0
|
)
|
(c)
|
—
|
|
|||
Other Current Liabilities
|
|
|
|
|
|
1,019.8
|
|
|
—
|
|
|
1,019.8
|
|
|||
TOTAL CURRENT LIABILITIES
|
|
|
|
|
|
7,779.4
|
|
|
(231.0
|
)
|
|
7,548.4
|
|
|||
|
|
|
|
|
|
|
|
|
||||||||
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
||||||||||
Long-term Debt
(Amount Includes $1,727.6 Related to Transition Funding, DCC Fuel, Ohio Phase-in-Recovery Funding, Appalachian Consumer Rate Relief Funding, Transource Energy and Sabine)
|
|
17,319.9
|
|
|
—
|
|
|
17,319.9
|
|
|||||||
Long-term Risk Management Liabilities
|
|
|
|
|
|
240.0
|
|
|
—
|
|
|
240.0
|
|
|||
Deferred Income Taxes
|
|
|
|
|
|
11,815.1
|
|
|
(373.1
|
)
|
(d)
|
11,442.0
|
|
|||
Regulatory Liabilities and Deferred Investment Tax Credits
|
|
3,887.5
|
|
|
—
|
|
|
3,887.5
|
|
|||||||
Asset Retirement Obligations
|
|
|
|
|
|
1,858.0
|
|
|
—
|
|
|
1,858.0
|
|
|||
Employee Benefits and Pension Obligations
|
|
|
|
|
|
497.0
|
|
|
—
|
|
|
497.0
|
|
|||
Deferred Credits and Other Noncurrent Liabilities
|
|
702.1
|
|
|
—
|
|
|
702.1
|
|
|||||||
TOTAL NONCURRENT LIABILITIES
|
|
|
|
|
|
36,319.6
|
|
|
(373.1
|
)
|
|
35,946.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES
|
|
|
|
|
|
44,099.0
|
|
|
(604.1
|
)
|
|
43,494.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
EQUITY
|
|
|
|
|
|
|
||||||||||
Common Stock – Par Value – $6.50 Per Share:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
2016
|
|
|
|
|
|
|
|
|
||||||
Shares Authorized
|
|
600,000,000
|
|
|
|
|
|
|
|
|
||||||
Shares Issued
|
|
512,046,044
|
|
|
|
|
|
|
|
|
||||||
(20,336,592 Shares were Held in Treasury as of September 30, 2016)
|
|
3,328.3
|
|
|
—
|
|
|
3,328.3
|
|
|||||||
Paid-in Capital
|
|
|
|
|
|
6,330.0
|
|
|
—
|
|
|
6,330.0
|
|
|||
Retained Earnings
|
|
|
|
|
|
7,809.4
|
|
|
129.8
|
|
(e)
|
7,939.2
|
|
|||
Accumulated Other Comprehensive Income (Loss)
|
|
(145.8
|
)
|
|
—
|
|
|
(145.8
|
)
|
|||||||
TOTAL AEP COMMON SHAREHOLDERS’ EQUITY
|
|
17,321.9
|
|
|
129.8
|
|
|
17,451.7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Noncontrolling Interests
|
|
|
|
|
|
21.1
|
|
|
—
|
|
|
21.1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
TOTAL EQUITY
|
|
|
|
|
|
17,343.0
|
|
|
129.8
|
|
|
17,472.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND EQUITY
|
|
|
|
|
|
$
|
61,442.0
|
|
|
$
|
(474.3
|
)
|
|
$
|
60,967.7
|
|
See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements.
|
1.
|
BASIS OF PRESENTATION
|
2.
|
PRO FORMA ADJUSTMENTS
|
(a)
|
Reflects the elimination of revenues associated with the activities of the Disposition Plants.
|
(b)
|
Reflects the elimination of operating expenses associated with the activities of the Disposition Plants.
|
(c)
|
Reflects a reclassification of the amortization of the capacity deferrals discussed in (g) below. The total amortization was $3 million for the nine months ended September 30, 2016 and $2 million for the year ended December 31, 2015.
|
(d)
|
Reflects the elimination of Allowance for Equity Funds Used During Construction associated with the activities of the Lawrenceburg Plant.
|
(e)
|
Reflects the interest costs that would not have been incurred if the Company had the proceeds from the sale of the Disposition Plants at the beginning of the period.
|
(f)
|
Reflects the elimination of income tax expense, calculated at the estimated statutory rate of 38%, associated with the activities of the Disposition Plants.
|
(g)
|
Through May 2015, the Company deferred a portion of its incurred capacity costs not recovered from Competitive Retail Electric Suppliers in Ohio. For Historical AEP presentation purposes, a total of $12 million of incurred capacity costs was deferred in various operating expense income statement line items. As a result of the sale of the Disposition Plants, a portion of the deferral from January 2015 through May 2015 would have been attributable to the non-affiliated capacity purchases made to meet the Company’s obligations to Ohio Power Company (OPCo), a wholly-owned electric subsidiary of the Company. As such, a proforma adjustment is reflected to reclassify the deferral of incurred capacity costs applicable to the Disposition Plants from various operating expense line items to Purchased Electricity for Resale.
|
(h)
|
Reflects capacity purchases of $150 million required by the Company to fulfill the capacity needs of OPCo’s retail load from January 1, 2015 through May 31, 2015 as required by the Power Supply Agreement between AGR and OPCo. The Power Supply Agreement ended May 31, 2015.
|
(a)
|
Reflects the receipt of cash proceeds of $2.1 billion from the sale of the Disposition Plants, net of transaction related costs, taxes and the retirement of Lawrenceburg Plant long-term debt totaling approximately $700 million. The Company expects to use a portion of the remaining net proceeds to reduce an additional $234 million of outstanding long-term debt.
|
(b)
|
Reflects the elimination of the assets of the Disposition Plants.
|
(c)
|
Reflects the elimination of the liabilities of the Disposition Plants.
|
(d)
|
Reflects the elimination of deferred tax liabilities resulting from the sale of the Disposition Plants.
|
(e)
|
Reflects the estimated $130 million after tax gain arising from the sale of the Disposition Plants. The estimated gain has not been reflected in the pro forma consolidated statements of income as it is considered nonrecurring in nature.
|