Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Other Comprehensive Income

8. Other Comprehensive Income

TECO Energy reported the following OCI for the three and nine months ended Sept. 30, 2015 and 2014, related to changes in the fair value of cash flow hedges and amortization of unrecognized benefit costs associated with the company’s postretirement plans:

Other Comprehensive Income
	Three months ended Sept. 30,									Nine months ended Sept. 30,
(millions)	Gross			Tax			Net			Gross			Tax			Net
2015
Unrealized gain on cash flow hedges	$	0.0		$	0.0		$	0.0		$	4.3		$	(1.5	)	$	2.8
Reclassification from AOCI to net income (1)		0.3			(0.1	)		0.2			1.0			(0.5	)		0.5
Gain on cash flow hedges		0.3			(0.1	)		0.2			5.3			(2.0	)		3.3
Amortization of unrecognized benefit costs (2)		0.4			(0.2	)		0.2			2.9			(1.1	)		1.8
Change in benefit obligation due to valuation (3)		(8.7	)		3.0			(5.7	)		(8.7	)		3.0			(5.7	)
Recognized cost due to settlement (4)		12.1			(4.4	)		7.7			12.1			(4.4	)		7.7
Total other comprehensive income (loss)	$	4.1		$	(1.7	)	$	2.4		$	11.6		$	(4.5	)	$	7.1
2014
Unrealized loss on cash flow hedges	$	(0.3	)	$	0.1		$	(0.2	)	$	(0.3	)	$	0.1		$	(0.2	)
Reclassification from AOCI to net income (1)		0.4			(0.1	)		0.3			0.9			(0.3	)		0.6
Gain on cash flow hedges		0.1			0.0			0.1			0.6			(0.2	)		0.4
Amortization of unrecognized benefit costs (2)		0.4			(0.2	)		0.2			2.4			(0.8	)		1.6
Increase in unrecognized postemployment costs (5)		0.0			0.0			0.0			(12.9	)		4.7			(8.2	)
Change in benefit obligation due to remeasurement		(1.1	)		0.4			(0.7	)		(1.1	)		0.4			(0.7	)
Total other comprehensive income (loss)	$	(0.6	)	$	0.2		$	(0.4	)	$	(11.0	)	$	4.1		$	(6.9	)
(1)  Related to interest rate contracts recognized in Interest expense and commodity contracts recognized in Income (loss) from discontinued operations.
(2)  Related to postretirement and postemployment benefits. See Note 5 for additional information.
(3)  Related to the transfer of employees and their associated postretirement benefits from TEC to the TECO Energy shared services company. TEC recognized these deferred costs as regulatory assets, whereas the shared services company recognized them in AOCI.
(4)  Related to the settlement of the TECO Coal black lung obligation at the closing of the sale.  See Notes 5 and 15 for additional information.
(5)  Amounts reflect an out-of-period adjustment related to TECO Coal's unfunded black lung liability.

Accumulated Other Comprehensive Loss
(millions)	Sept. 30, 2015			Dec. 31, 2014
Unamortized pension loss and prior service credit (1)	$	(25.8	)	$	(22.5	)
Unamortized other benefit gains, prior service costs and    transition obligations (2)		21.0			13.9
Net unrealized gains (losses) from cash flow hedges (3)		(3.8	)		(7.1	)
Total accumulated other comprehensive loss	$	(8.6	)	$	(15.7	)
(1)  Net of tax benefit of $16.2 million and $13.8 million as of Sept. 30, 2015 and Dec. 31, 2014, respectively.
(2)  Net of tax expense of $13.2 million and $8.3 million as of Sept. 30, 2015 and Dec. 31, 2014, respectively.
(3)  Net of tax benefit of $2.4 million and $4.5 million as of Sept. 30, 2015 and Dec. 31, 2014, respectively.

Tampa Electric Company [Member]

Other Comprehensive Income

12. Other Comprehensive Income

Other Comprehensive Income	Three months ended Sept. 30,							Nine months ended Sept. 30,
(millions)	Gross		Tax			Net		Gross		Tax			Net
2015
Unrealized gain on cash flow hedges	$	0.0	$	0.0		$	0.0	$	4.3	$	(1.5	)	$	2.8
Reclassification from AOCI to net income		0.3		(0.1	)		0.2		1.0		(0.5	)		0.5
Gain on cash flow hedges		0.3		(0.1	)		0.2		5.3		(2.0	)		3.3
Total other comprehensive income	$	0.3	$	(0.1	)	$	0.2	$	5.3	$	(2.0	)	$	3.3
2014
Unrealized gain on cash flow hedges	$	0.0	$	0.0		$	0.0	$	0.0	$	0.0		$	0.0
Reclassification from AOCI to net income		0.4		(0.1	)		0.3		0.8		(0.3	)		0.5
Gain on cash flow hedges		0.4		(0.1	)		0.3		0.8		(0.3	)		0.5
Total other comprehensive income	$	0.4	$	(0.1	)	$	0.3	$	0.8	$	(0.3	)	$	0.5

Accumulated Other Comprehensive Loss
(millions)	Sept. 30, 2015			Dec. 31, 2014
Net unrealized losses from cash flow hedges (1)	$	(3.8	)	$	(7.1	)
Total accumulated other comprehensive loss	$	(3.8	)	$	(7.1	)

(1) Net of tax benefit of $2.4 million and $4.5 million as of Sept. 30, 2015 and Dec. 31, 2014, respectively.