Other Comprehensive Income

9 Months Ended

Sep. 30, 2016

Other Comprehensive Income

12. Other Comprehensive Income

TECO Energy reported the following OCI related to changes in the fair value of cash flow hedges, recognized cost due to curtailment, change in benefit obligation due to remeasurement 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
2016
Unrealized gain on cash flow hedges	$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0
Reclassification from AOCI to net income (1)		0.3			(0.1	)		0.2			1.0			(0.4	)		0.6
Gain on cash flow hedges		0.3			(0.1	)		0.2			1.0			(0.4	)		0.6
Amortization of unrecognized benefit costs and other (2)		0.8			(0.3	)		0.5			1.3			(0.5	)		0.8
Change in benefit obligation due to remeasurement (3)		(11.2	)		4.3			(6.9	)		(11.2	)		4.3			(6.9	)
Recognized cost due to curtailment (4)		0.0			0.0			0.0			0.1			0.0			0.1
Total other comprehensive loss	$	(10.1	)	$	3.9		$	(6.2	)	$	(8.8	)	$	3.4		$	(5.4	)
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 (5)		(8.7	)		3.0			(5.7	)		(8.7	)		3.0			(5.7	)
Recognized cost due to settlement (6)		12.1			(4.4	)		7.7			12.1			(4.4	)		7.7
Total other comprehensive income	$	4.1		$	(1.7	)	$	2.4		$	11.6		$	(4.5	)	$	7.1
(1)  Related to interest rate contracts recognized in Interest expense.
(2)  Related to postretirement benefits. See Note 5 for additional information.
(3)  Related to remeasurement of employee postretirement benefit plans on the Merger closing date. See Note 5 for additional information.
(4)  Related to the estimated curtailment loss for the SERP.  See Note 5 for additional information.
(5)  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.
(6)  Related to the settlement of the TECO Coal black lung obligation at the closing of the sale.  See Notes 15 for additional information.

Accumulated Other Comprehensive Loss
(millions)	Sept. 30, 2016			Dec. 31, 2015
Unamortized pension loss and prior service credit (1)	$	(37.7	)	$	(34.2	)
Unamortized other benefit gains, prior service costs and transition obligations (2)		23.1			25.6
Net unrealized losses from cash flow hedges (3)		(3.0	)		(3.6	)
Total accumulated other comprehensive loss	$	(17.6	)	$	(12.2	)
(1)  Net of tax benefit of $23.5 million and $21.5 million as of Sept. 30, 2016 and Dec. 31, 2015, respectively.
(2)  Net of tax expense of $14.3 million and $16.1 million as of Sept. 30, 2016 and Dec. 31, 2015, respectively.
(3)  Net of tax benefit of $1.9 million and $2.3 million as of Sept. 30, 2016 and Dec. 31, 2015, 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
2016
Unrealized gain on cash flow hedges	$	0.0	$	0.0		$	0.0	$	0.0	$	0.0		$	0.0
Reclassification from AOCI to net income		0.3		(0.1	)		0.2		1.0		(0.4	)		0.6
Gain on cash flow hedges		0.3		(0.1	)		0.2		1.0		(0.4	)		0.6
Total other comprehensive income	$	0.3	$	(0.1	)	$	0.2	$	1.0	$	(0.4	)	$	0.6
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

Accumulated Other Comprehensive Loss
(millions)	Sept. 30, 2016			Dec. 31, 2015
Net unrealized losses from cash flow hedges (1)	$	(3.0	)	$	(3.6	)
Total accumulated other comprehensive loss	$	(3.0	)	$	(3.6	)

(1) Net of tax benefit of $1.9 million and $2.3 million as of Sept. 30, 2016 and Dec. 31, 2015, respectively.