Operating Lease, Payments

  
  
INDIANA MICHIGAN POWER COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Six Months Ended June 30, 2022 and 2021 (in millions)(Unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Six Months Ended June 30, |
|   |  | 2022 |  | 2021 |
| OPERATING ACTIVITIES |  |   |  |   |
| Net Income |  | $ | 156.7  |  |  | $ | 128.0  |  |
| Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: |  |   |  |  |
| Depreciation and Amortization |  | 268.6  |  |  | 218.1  |  |
| Rockport Plant, Unit 2 Operating Lease Amortization |  | —  |  |  | 33.9  |  |
| Deferred Income Taxes |  | 0.3  |  |  | (8.2) |  |
| Deferral of Incremental Nuclear Refueling Outage Expenses, Net |  | (38.3) |  |  | (14.3) |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Allowance for Equity Funds Used During Construction |  | (5.4) |  |  | (7.0) |  |
| Mark-to-Market of Risk Management Contracts |  | (11.6) |  |  | (3.1) |  |
| Amortization of Nuclear Fuel |  | 39.0  |  |  | 40.4  |  |
|  |  |  |  |  |
| Deferred Fuel Over/Under-Recovery, Net |  | (17.5) |  |  | (5.7) |  |
| Change in Other Noncurrent Assets |  | 3.3  |  |  | 11.7  |  |
| Change in Other Noncurrent Liabilities |  | 22.2  |  |  | 26.2  |  |
| Changes in Certain Components of Working Capital: |  |   |  |   |
| Accounts Receivable, Net |  | 24.0  |  |  | (0.4) |  |
| Fuel, Materials and Supplies |  | 4.5  |  |  | 27.1  |  |
|  |  |  |  |  |
| Accounts Payable |  | 13.6  |  |  | 16.4  |  |
|  |  |  |  |  |
| Accrued Taxes, Net |  | (2.4) |  |  | (5.3) |  |
|  |  |  |  |  |
| Rockport Plant, Unit 2 Operating Lease Payments |  | —  |  |  | (36.9) |  |
| Other Current Assets |  | 15.2  |  |  | 2.0  |  |
| Other Current Liabilities |  | (20.1) |  |  | (29.1) |  |
| Net Cash Flows from Operating Activities |  | 452.1  |  |  | 393.8  |  |
|  |  |  |  |  |
| INVESTING ACTIVITIES |  |   |  |   |
| Construction Expenditures |  | (262.5) |  |  | (241.0) |  |
| Change in Advances to Affiliates, Net |  | (1.0) |  |  | (86.6) |  |
| Purchases of Investment Securities |  | (1,253.2) |  |  | (1,149.7) |  |
| Sales of Investment Securities |  | 1,229.9  |  |  | 1,122.7  |  |
| Acquisitions of Nuclear Fuel |  | (67.7) |  |  | (63.0) |  |
|  |  |  |  |  |
| Other Investing Activities |  | 3.0  |  |  | 4.5  |  |
| Net Cash Flows Used for Investing Activities |  | (351.5) |  |  | (413.1) |  |
|  |  |  |  |  |
| FINANCING ACTIVITIES |  |   |  |   |
|  |  |  |  |  |
| Capital Contribution from Parent |  | 1.3  |  |  | —  |  |
| Issuance of Long-term Debt – Nonaffiliated |  | 72.8  |  |  | 507.0  |  |
| Change in Advances from Affiliates, Net |  | (42.8) |  |  | (103.0) |  |
| Retirement of Long-term Debt – Nonaffiliated |  | (40.7) |  |  | (282.7) |  |
| Principal Payments for Finance Lease Obligations |  | (40.1) |  |  | (3.3) |  |
| Dividends Paid on Common Stock |  | (50.0) |  |  | (100.0) |  |
| Other Financing Activities |  | 0.4  |  |  | 0.5  |  |
| Net Cash Flows from (Used for) Financing Activities |  | (99.1) |  |  | 18.5  |  |
|  |  |  |  |  |
| Net Increase (Decrease) in Cash and Cash Equivalents |  | 1.5  |  |  | (0.8) |  |
| Cash and Cash Equivalents at Beginning of Period |  | 1.3  |  |  | 3.3  |  |
| Cash and Cash Equivalents at End of Period |  | $ | 2.8  |  |  | $ | 2.5  |  |
|  |  |  |  |  |
| SUPPLEMENTARY INFORMATION |  |   |  |   |
| Cash Paid for Interest, Net of Capitalized Amounts |  | $ | 59.2  |  |  | $ | 52.2  |  |
| Net Cash Paid (Received) for Income Taxes |  | (4.9) |  |  | 4.1  |  |
| Noncash Acquisitions Under Finance Leases |  | 0.4  |  |  | 2.8  |  |
| Construction Expenditures Included in Current Liabilities as of June 30, |  | 68.2  |  |  | 59.9  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| See Condensed Notes to Condensed Financial Statements of Registrants beginning on page [138](#i06a79327713d4f6ab4e79d7445380253_346). |

102
