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Significant Accounting Matters | 6 Months Ended
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Jun. 30, 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 and six months ended June 30, 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 June 30,
| 2024 |  | 2023
| (in millions, except per share data)
|  |  | $/share |  |  |  | $/share
Earnings Attributable to AEP Common Shareholders | $ | 340.3 |  |  |  |  | $ | 521.2 |  |  |
Weighted-Average Number of Basic AEP Common Shares Outstanding | 528.9 |  |  | $ | 0.64 |  |  | 514.9 |  |  | $ | 1.01 |
Weighted-Average Dilutive Effect of Stock-Based Awards | 1.2 |  |  | — |  |  | 1.3 |  |  | — |
Weighted-Average Number of Diluted AEP Common Shares Outstanding | 530.1 |  |  | $ | 0.64 |  |  | 516.2 |  |  | $ | 1.01 |
| Six Months Ended June 30,
| 2024 |  | 2023
| (in millions, except per share data)
|  |  | $/share |  |  |  | $/share
Earnings Attributable to AEP Common Shareholders | $ | 1,343.4 |  |  |  |  | $ | 918.2 |  |  |
Weighted-Average Number of Basic AEP Common Shares Outstanding | 527.7 |  |  | $ | 2.55 |  |  | 514.5 |  |  | $ | 1.78 |
Weighted-Average Dilutive Effect of Stock-Based Awards | 1.2 |  |  | (0.01) |  |  | 1.4 |  |  | — |
Weighted-Average Number of Diluted AEP Common Shares Outstanding | 528.9 |  |  | $ | 2.54 |  |  | 515.9 |  |  | $ | 1.78 |
There were no antidilutive shares outstanding as of June 30, 2024 and 2023, 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:
|  | June 30, 2024
|  | AEP |  | AEP Texas |  | APCo
|  | (in millions)
Cash and Cash Equivalents |  | $ | 202.5 |  |  | $ | 0.1 |  |  | $ | 4.0 |
Restricted Cash |  | 45.4 |  |  | 29.4 |  |  | 15.9 |
Total Cash, Cash Equivalents and Restricted Cash |  | $ | 247.9 |  |  | $ | 29.5 |  |  | $ | 19.9 |
|  | 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 |
Revision of Previously Presented Cash Flow Amounts (Applies to I&M) In the second quarter of 2024, management identified and corrected an error in I&M’s previously issued second quarter 2023 10-Q Condensed Consolidated Statements of Cash Flows. Specifically, management did not appropriately eliminate the acquisition of nuclear fuel which remained in accounts payable as of June 30, 2023. The error resulted in an overstatement of cash flows from Operating Activities and an offsetting overstatement of cash flows used for the Acquisitions of Nuclear Fuel in the Investing Activities section of the Statements of Cash Flows. The error also resulted in an understatement of the supplemental disclosure Acquisition of Nuclear Fuel Included in Current Liabilities. Management concluded the error was not material to I&M’s previously issued second quarter 2023 financial statements. However, management determined the previously issued financial statements should be revised. The impact of the error is reflected in the table below:
|  | Six Months Ended June 30, 2023
|  | As Reported |  | Adjustments |  | As Revised
|  | (in millions)
OPERATING ACTIVITIES |  |  |  |  |  |
Accounts Payable |  | $ | 46.8 |  |  | $ | (72.0) |  |  | $ | (25.2) |
Net Cash Flows from Operating Activities |  | $ | 501.7 |  |  | $ | (72.0) |  |  | $ | 429.7 |
INVESTING ACTIVITIES |  |  |  |  |  |
Acquisitions of Nuclear Fuel |  | $ | (73.9) |  |  | $ | 72.0 |  |  | $ | (1.9) |
Net Cash Flows Used for Investing Activities |  | $ | (382.2) |  |  | $ | 72.0 |  |  | $ | (310.2) |
SUPPLEMENTARY INFORMATION |  |  |  |  |  |
Acquisition of Nuclear Fuel Included in Current Liabilities |  | $ | (36.0) |  |  | $ | 72.0 |  |  | $ | 36.0 |

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