XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.2
INCOME TAXES
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:
 
 
Three Months Ended June 30, 2019
 
Three Months Ended June 30, 2018
(in millions)
 
Amount
 
Effective Tax Rate
 
Amount
 
Effective Tax Rate
Statutory federal income tax
 
$
11.4

 
21.0
 %
 
$
14.3

 
21.0
 %
State income taxes net of federal tax benefit
 
3.3

 
6.1
 %
 
4.2

 
6.2
 %
Federal excess deferred tax amortization
 
(1.2
)
 
(2.2
)%
 
7.5

 
11.1
 %
Other
 
(0.6
)
 
(1.2
)%
 
(0.7
)
 
(1.1
)%
Total income tax expense
 
$
12.9

 
23.7
 %
 
$
25.3

 
37.2
 %

 
 
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
(in millions)
 
Amount
 
Effective Tax Rate
 
Amount
 
Effective Tax Rate
Statutory federal income tax
 
$
22.7

 
21.0
 %
 
$
28.1

 
21.0
 %
State income taxes net of federal tax benefit
 
6.7

 
6.2
 %
 
8.3

 
6.2
 %
Federal excess deferred tax amortization
 
(2.5
)
 
(2.3
)%
 
5.9

 
4.4
 %
Other
 
(1.1
)
 
(1.1
)%
 
(1.1
)
 
(0.8
)%
Total income tax expense
 
$
25.8

 
23.8
 %
 
$
41.2

 
30.8
 %


The effective tax rates of 23.7% and 23.8% for the three and six months ended June 30, 2019, respectively, differ from the United States statutory federal income tax rate of 21%, primarily due to state income taxes, partially offset by the impact of the Tax Legislation.

The effective tax rates of 37.2% and 30.8% for the three and six months ended June 30, 2018, respectively, differ from the United States statutory federal income tax rate of 21%, primarily due to state income taxes and the accounting treatment of the PSCW's order regarding the benefits associated with the Tax Legislation.

The Tax Legislation, signed into law in December 2017, required our regulated utilities to remeasure their deferred income taxes and we began to amortize the resulting excess deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization line above). See Note 18, Regulatory Environment, for more information about the Wisconsin rate settlement.