CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME	$ 242,406	[1],[2]	$ 244,083	[2],[3]	$ 233,506
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	144,672		128,036		118,596
Recognition of and refund and collection of revenue accruals and deferrals — including accrued interest	(53,539)		(4,093)		(11,972)
Deferred income tax expense	77,371		90,373		76,703
Allowance for equity funds used during construction	(28,075)		(20,825)		(30,159)
Loss on extinguishment of debt	0		29,205		0
Other	22,031		17,697		17,864
Changes in assets and liabilities, exclusive of changes shown separately:
Accounts receivable	(501)		(11,869)		(16,312)
Inventory	5,140		1,094		5,371
Prepaid and other current assets	(3,214)		5,089		16,891
Accounts payable	(7,263)		(19,061)		17,638
Accrued payroll	463		525		1,619
Accrued interest	2,039		(2,511)		8,341
Accrued taxes	14,783		19,756		6,113
Tax benefit on the excess tax deduction of share-based compensation	(11,707)		(7,767)		(4,302)
Other current liabilities	5,587		(2,314)		1,630
Estimated potential refund related to return on equity complaints	120,197		47,780		0
Other non-current assets and liabilities, net	25,355		(13,697)		7,669
Net cash provided by operating activities	555,745		501,501		449,196
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(684,140)		(733,145)		(821,588)
Proceeds from sale of marketable securities	673		495		20,844
Purchases of marketable securities	(10,422)		(6,091)		(22,250)
Other	(5,456)		4,040		(3,294)
Net cash used in investing activities	(699,345)		(734,701)		(826,288)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt	225,000		798,664		933,025
Borrowings under revolving credit agreements	2,832,100		1,660,000		1,090,100
Borrowings under term loan credit agreements	200,000		110,000		675,000
Net issuance of commercial paper, net of discount	94,630		0		0
Retirement of long-term debt — including extinguishment of debt costs	(175,000)		(298,625)		(452,000)
Repayments of revolving credit agreements	(2,825,000)		(1,618,400)		(1,146,700)
Repayments of term loan credit agreements	0		(189,000)		(635,000)
Issuance of common stock	13,635		20,713		10,042
Dividends on common and restricted stock	(108,275)		(95,595)		(84,129)
Refundable deposits from generators for transmission network upgrades	12,956		5,833		32,281
Repayment of refundable deposits from generators for transmission network upgrades	(12,025)		(28,683)		(38,236)
Repurchase and retirement of common stock	(137,081)		(134,284)		(4,885)
Tax benefit on the excess tax deduction of share-based compensation	11,707		7,767		4,302
Advance for forward contract of accelerated share repurchase program	0		(20,000)		0
Return of unused advance for forward contract of accelerated share repurchase program	0		20,000		0
Other	(2,929)		(11,724)		1,380
Net cash provided by financing activities	129,718		226,666		385,180
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(13,882)		(6,534)		8,088
CASH AND CASH EQUIVALENTS — Beginning of period	27,741		34,275		26,187
CASH AND CASH EQUIVALENTS — End of period	$ 13,859		$ 27,741		$ 34,275

[1] During the third and fourth quarters of 2015, we recognized an aggregate regulatory liability for the refund relating to the formula rate template modifications filing as described in Note 4, which resulted in a reduction in operating revenues and operating income of $9.5 million and an estimated $6.2 million reduction to net income for the year ended December 31, 2015.

[2] During the year ended December 31, 2015 and the fourth quarter of 2014, we recognized an aggregate estimated regulatory liability for the potential refunds relating to the ROE complaints as described in Note 16, which resulted in a reduction in operating revenues and operating income of $115.1 million and $46.9 million and an estimated $73.2 million and $28.9 million reduction to net income for the years ended December 31, 2015 and 2014, respectively.

[3] During the second quarter of 2014, we incurred a loss on extinguishment of debt of $29.2 million related to the tender of ITC Holdings Senior Notes as described in Note 8, which resulted in an estimated reduction to net income of $18.2 million.