Impairment of Equity Method Investment

  
  
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIESCONDENSED 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 |  | $ | 1,238.9  |  |  | $ | 1,152.6  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: |  |   |  |   |
| Depreciation and Amortization |  | 1,595.0  |  |  | 1,403.6  |  |
|  |  |  |  |  |
| Deferred Income Taxes |  | 21.4  |  |  | 86.7  |  |
| Loss on the Expected Sale of the Kentucky Operations |  | 68.8  |  |  | —  |  |
| Impairment of Equity Method Investment |  | 185.5  |  |  | —  |  |
| Allowance for Equity Funds Used During Construction |  | (59.6) |  |  | (66.9) |  |
| Mark-to-Market of Risk Management Contracts |  | 431.4  |  |  | 26.1  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Property Taxes |  | 191.6  |  |  | 167.3  |  |
| Deferred Fuel Over/Under-Recovery, Net |  | (599.5) |  |  | (1,218.2) |  |
| Gain on Sale of Mineral Rights |  | (116.3) |  |  | —  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Change in Other Noncurrent Assets |  | (49.3) |  |  | (184.7) |  |
| Change in Other Noncurrent Liabilities |  | 144.5  |  |  | 163.5  |  |
| Changes in Certain Components of Working Capital: |  |   |  |   |
| Accounts Receivable, Net |  | (445.8) |  |  | (215.5) |  |
| Fuel, Materials and Supplies |  | (110.5) |  |  | 132.3  |  |
| Accounts Payable |  | 484.8  |  |  | 97.5  |  |
| Accrued Taxes, Net |  | (218.2) |  |  | (237.4) |  |
|  |  |  |  |  |
| Other Current Assets |  | 69.9  |  |  | 10.4  |  |
| Other Current Liabilities |  | 158.1  |  |  | (273.4) |  |
| Net Cash Flows from Operating Activities |  | 2,990.7  |  |  | 1,043.9  |  |
|  |  |  |  |  |
| INVESTING ACTIVITIES |  |   |  |   |
| Construction Expenditures |  | (3,138.1) |  |  | (2,784.8) |  |
|  |  |  |  |  |
| Purchases of Investment Securities |  | (1,254.8) |  |  | (1,162.8) |  |
| Sales of Investment Securities |  | 1,244.9  |  |  | 1,131.8  |  |
| Acquisitions of Nuclear Fuel |  | (67.7) |  |  | (63.0) |  |
| Acquisition of the Dry Lake Solar Project |  | —  |  |  | (114.3) |  |
| Acquisition of the North Central Wind Energy Facilities |  | (1,207.3) |  |  | (270.0) |  |
| Proceeds from Sales of Assets |  | 208.5  |  |  | 13.2  |  |
| Other Investing Activities |  | 15.5  |  |  | 20.1  |  |
| Net Cash Flows Used for Investing Activities |  | (4,199.0) |  |  | (3,229.8) |  |
|  |  |  |  |  |
| FINANCING ACTIVITIES |  |   |  |   |
| Issuance of Common Stock |  | 812.7  |  |  | 256.9  |  |
| Issuance of Long-term Debt |  | 2,639.1  |  |  | 3,055.1  |  |
| Issuance of Short-term Debt with Original Maturities greater than 90 Days |  | 271.0  |  |  | 1,178.5  |  |
| Change in Short-term Debt with Original Maturities less than 90 Days, Net |  | (268.9) |  |  | (437.8) |  |
| Retirement of Long-term Debt |  | (582.4) |  |  | (998.1) |  |
|  |  |  |  |  |
| Redemption of Short-term Debt with Original Maturities Greater than 90 Days |  | (486.1) |  |  | (92.0) |  |
| Principal Payments for Finance Lease Obligations |  | (106.2) |  |  | (30.3) |  |
| Dividends Paid on Common Stock |  | (803.5) |  |  | (746.5) |  |
|  |  |  |  |  |
| Other Financing Activities |  | (97.6) |  |  | (78.5) |  |
| Net Cash Flows from Financing Activities |  | 1,378.1  |  |  | 2,107.3  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Net Increase (Decrease) in Cash and Cash Equivalents |  | 169.8  |  |  | (78.6) |  |
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period |  | 451.4  |  |  | 438.3  |  |
| Cash, Cash Equivalents and Restricted Cash at End of Period |  | $ | 621.2  |  |  | $ | 359.7  |  |
|  |  |  |  |  |
| SUPPLEMENTARY INFORMATION |  |  |  |  |
| Cash Paid for Interest, Net of Capitalized Amounts |  | $ | 591.2  |  |  | $ | 559.9  |  |
| Net Cash Paid for Income Taxes |  | 95.5  |  |  | 8.6  |  |
| Noncash Acquisitions Under Finance Leases |  | 13.7  |  |  | 16.3  |  |
| Construction Expenditures Included in Current Liabilities as of June 30, |  | 849.1  |  |  | 789.3  |  |
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|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
| Noncontrolling Interest Assumed - Dry Lake Solar Project |  | —  |  |  | 33.4  |  |
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|  |  |  |  |  |
| See Condensed Notes to Condensed Financial Statements of Registrants beginning on page [138](#i06a79327713d4f6ab4e79d7445380253_346). |

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