Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Other Comprehensive Income

10. Other Comprehensive Income

TECO Energy reported the following OCI (loss) for the years ended Dec. 31, 2015, 2014 and 2013, related to changes in the fair value of cash flow hedges and amortization of unrecognized benefit costs associated with the company’s benefit plans:

(millions)	Gross			Tax			Net
2015
Unrealized gain (loss) on cash flow hedges	$	4.3		$	(1.5	)	$	2.8
Reclassification from AOCI to net income (1)		1.4			(0.7	)		0.7
Gain (Loss) on cash flow hedges		5.7			(2.2	)		3.5
Amortization of unrecognized benefit costs and other (2)		3.4			(1.3	)		2.1
Change in benefit obligation due to valuation (3)		(15.5	)		5.7			(9.8	)
Recognized cost due to settlement (4)		12.1			(4.4	)		7.7
Total other comprehensive income (loss)	$	5.7		$	(2.2	)	$	3.5
2014
Unrealized gain (loss) on cash flow hedges	$	(0.5	)	$	0.2		$	(0.3	)
Reclassification from AOCI to net income (1)		1.6			(0.6	)		1.0
Gain (Loss) on cash flow hedges		1.1			(0.4	)		0.7
Amortization of unrecognized benefit costs and other (2)		(4.8	)		1.8			(3.0	)
Increase in unrecognized postemployment costs (5)		(12.9	)		4.7			(8.2	)
Change in benefit obligation due to valuation (6)		12.6			(4.6	)		8.0
Total other comprehensive income (loss)	$	(4.0	)	$	1.5		$	(2.5	)
2013
Unrealized gain (loss) on cash flow hedges	$	1.0		$	(0.4	)	$	0.6
Reclassification from AOCI to net income (1)		1.3			(0.5	)		0.8
Gain (Loss) on cash flow hedges		2.3			(0.9	)		1.4
Amortization of unrecognized benefit costs and other (2)		23.6			(8.8	)		14.8
Recognized costs due to settlement		2.6			(1.0	)		1.6
Total other comprehensive income (loss)	$	28.5		$	(10.7	)	$	17.8

(1) Related to interest rate contracts 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 TSI, the TECO Energy shared services company. TEC recognized these deferred costs as regulatory assets, whereas TSI recognized them in AOCI.

(4) Related to the settlement of the TECO Coal black lung obligation at the closing of the sale. See Note 19 for additional information.

(5) Amounts reflect an out-of-period adjustment related to TECO Coal’s unfunded black lung liability.

(6) Includes an adjustment to eliminate TECO Coal’s OPEB liability.  See Note 5 for additional information.

Accumulated Other Comprehensive Loss

(millions) Dec. 31,	2015			2014
Unamortized pension losses and prior service credits (1)	$	(34.2	)	$	(22.5	)
Unamortized other benefit gains, prior service costs and transition obligations (2)		25.6			13.9
Net unrealized losses from cash flow hedges (3)		(3.6	)		(7.1	)
Total accumulated other comprehensive loss	$	(12.2	)	$	(15.7	)

(1) Net of tax benefit of $21.5 million and $13.8 million as of Dec. 31, 2015 and 2014, respectively.

(2) Net of tax expense of $16.1 million and $8.3 million as of Dec. 31, 2015 and 2014, respectively. The Dec. 31, 2014 balance included a $7.7 million loss related to TECO Coal’s unfunded black lung liability that was reclassified from AOCI to net income from discontinued operations upon the settlement of the black lung obligation at the sale date. See Note 5.

(3) Net of tax benefit of $2.3 million and $4.5 million as of Dec. 31, 2015 and 2014, respectively.

Tampa Electric Company [Member]

Other Comprehensive Income

8. Other Comprehensive Income

TEC reported the following OCI (loss) for the years ended Dec. 31, 2015, 2014 and 2013, related to the amortization of prior settled amounts and changes in the fair value of cash flow hedges:

Other Comprehensive Income

(millions)	Gross		Tax			Net
2015
Unrealized gain (loss) on cash flow hedges	$	4.3	$	(1.5	)	$	2.8
Reclassification from AOCI to net income		1.4		(0.7	)		0.7
Gain (Loss) on cash flow hedges		5.7		(2.2	)		3.5
Total other comprehensive income (loss)	$	5.7	$	(2.2	)	$	3.5
2014
Unrealized gain (loss) on cash flow hedges	$	0.0	$	0.0		$	0.0
Reclassification from AOCI to net income		1.1		(0.4	)		0.7
Gain (Loss) on cash flow hedges		1.1		(0.4	)		0.7
Total other comprehensive income (loss)	$	1.1	$	(0.4	)	$	0.7
2013
Unrealized gain (loss) on cash flow hedges	$	0.0	$	0.0		$	0.0
Reclassification from AOCI to net income		1.4		(0.5	)		0.9
Gain (Loss) on cash flow hedges		1.4		(0.5	)		0.9
Total other comprehensive income (loss)	$	1.4	$	(0.5	)	$	0.9

Accumulated Other Comprehensive Loss

(millions) As of Dec. 31,	2015			2014
Net unrealized losses from cash flow hedges (1)	$	(3.6	)	$	(7.1	)
Total accumulated other comprehensive loss	$	(3.6	)	$	(7.1	)

(1) Net of tax benefit of $2.3 million and $4.5 million as of Dec. 31, 2015 and 2014, respectively.