Amortization of net losses included in net periodic benefit costs, net of tax

[Table of Contents](#i9e3d7fad53bb42b083be8286e4319cd4_10) 

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| EVERGY, INC. |
| Consolidated Statements of Comprehensive Income |
|  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |
| Year Ended December 31 |  |  |  |  |  | 2021 |  | 2020 |  | 2019 |
|  |  |  |  |  | (millions, except per share amounts) |
| OPERATING REVENUES |  |  |  |  |  | $ | 5,586.7  |  |  | $ | 4,913.4  |  |  | $ | 5,147.8  |  |
| OPERATING EXPENSES: |  |  |  |  |  |  |  |  |  |  |
| Fuel and purchased power |  |  |  |  |  | 1,557.0  |  |  | 1,099.0  |  |  | 1,265.0  |  |
| SPP network transmission costs |  |  |  |  |  | 290.4  |  |  | 263.2  |  |  | 251.3  |  |
| Operating and maintenance |  |  |  |  |  | 1,107.5  |  |  | 1,163.0  |  |  | 1,218.5  |  |
| Depreciation and amortization |  |  |  |  |  | 896.4  |  |  | 880.1  |  |  | 861.7  |  |
| Taxes other than income tax |  |  |  |  |  | 380.5  |  |  | 364.2  |  |  | 365.5  |  |
| Total Operating Expenses |  |  |  |  |  | 4,231.8  |  |  | 3,769.5  |  |  | 3,962.0  |  |
| INCOME FROM OPERATIONS |  |  |  |  |  | 1,354.9  |  |  | 1,143.9  |  |  | 1,185.8  |  |
| OTHER INCOME (EXPENSE): |  |  |  |  |  |  |  |  |  |  |
| Investment earnings |  |  |  |  |  | 59.9  |  |  | 10.8  |  |  | 11.0  |  |
| Other income |  |  |  |  |  | 46.3  |  |  | 31.3  |  |  | 26.9  |  |
| Other expense |  |  |  |  |  | (87.4) |  |  | (78.2) |  |  | (76.9) |  |
| Total Other Income (Expense), Net |  |  |  |  |  | 18.8  |  |  | (36.1) |  |  | (39.0) |  |
| Interest expense |  |  |  |  |  | 372.6  |  |  | 383.9  |  |  | 374.0  |  |
| INCOME BEFORE INCOME TAXES |  |  |  |  |  | 1,001.1  |  |  | 723.9  |  |  | 772.8  |  |
| Income tax expense |  |  |  |  |  | 117.4  |  |  | 102.2  |  |  | 97.0  |  |
| Equity in earnings of equity method investees, net of income taxes |  |  |  |  |  | 8.2  |  |  | 8.3  |  |  | 9.8  |  |
| NET INCOME |  |  |  |  |  | 891.9  |  |  | 630.0  |  |  | 685.6  |  |
| Less: Net income attributable to noncontrolling interests |  |  |  |  |  | 12.2  |  |  | 11.7  |  |  | 15.7  |  |
| NET INCOME ATTRIBUTABLE TO EVERGY, INC. |  |  |  |  |  | $ | 879.7  |  |  | $ | 618.3  |  |  | $ | 669.9  |  |
| BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1) |  |  |  |  |  |  |  |  |  |  |
| Basic earnings per common share |  |  |  |  |  | $ | 3.84  |  |  | $ | 2.72  |  |  | $ | 2.80  |  |
| Diluted earnings per common share |  |  |  |  |  | $ | 3.83  |  |  | $ | 2.72  |  |  | $ | 2.79  |  |
| AVERAGE COMMON SHARES OUTSTANDING |  |  |  |  |  |  |  |  |  |  |
| Basic |  |  |  |  |  | 229.0  |  |  | 227.2  |  |  | 239.5  |  |
| Diluted |  |  |  |  |  | 229.6  |  |  | 227.5  |  |  | 239.9  |  |
| COMPREHENSIVE INCOME |  |  |  |  |  |  |  |  |  |  |
| NET INCOME |  |  |  |  |  | $ | 891.9  |  |  | $ | 630.0  |  |  | $ | 685.6  |  |
| Derivative hedging activity |  |  |  |  |  |  |  |  |  |  |
| Loss on derivative hedging instruments |  |  |  |  |  | —  |  |  | —  |  |  | (64.4) |  |
| Income tax benefit |  |  |  |  |  | —  |  |  | —  |  |  | 16.5  |  |
| Net loss on derivative hedging instruments |  |  |  |  |  | —  |  |  | —  |  |  | (47.9) |  |
| Reclassification to expenses, net of tax |  |  |  |  |  | 5.5  |  |  | 3.0  |  |  | 1.5  |  |
| Derivative hedging activity, net of tax |  |  |  |  |  | 5.5  |  |  | 3.0  |  |  | (46.4) |  |
| Defined benefit pension plans |  |  |  |  |  |  |  |  |  |  |
| Net loss arising during period |  |  |  |  |  | (0.1) |  |  | (3.0) |  |  | (0.8) |  |
| Income tax benefit |  |  |  |  |  | —  |  |  | 0.7  |  |  | 0.2  |  |
| Net loss arising during period, net of tax |  |  |  |  |  | (0.1) |  |  | (2.3) |  |  | (0.6) |  |
| Amortization of net losses included in net periodic benefit costs, net of tax |  |  |  |  |  | —  |  |  | (0.1) |  |  | —  |  |
| Change in unrecognized pension expense, net of tax |  |  |  |  |  | (0.1) |  |  | (2.4) |  |  | (0.6) |  |
| Total other comprehensive income (loss) |  |  |  |  |  | 5.4  |  |  | 0.6  |  |  | (47.0) |  |
| COMPREHENSIVE INCOME |  |  |  |  |  | 897.3  |  |  | 630.6  |  |  | 638.6  |  |
| Less:  comprehensive income attributable to noncontrolling interest |  |  |  |  |  | 12.2  |  |  | 11.7  |  |  | 15.7  |  |
| COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC. |  |  |  |  |  | $ | 885.1  |  |  | $ | 618.9  |  |  | $ | 622.9  |  |

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 72
