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Schedule I Financial Statements of Parent Company
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
EVERGY, INC.
Statements of Income of Parent Company
 
 
 
 
 
2019
 
Period from June 4, 2018 through
December 31, 2018
OPERATING EXPENSES:
 (millions)
Operating and maintenance
$
19.4

 
$
54.6

Total Operating Expenses
19.4

 
54.6

INCOME FROM OPERATIONS
(19.4
)
 
(54.6
)
OTHER INCOME (EXPENSE)
 
 
 
Equity in earnings from subsidiaries
698.2

 
364.7

Investment earnings
32.7

 
26.3

Other expense
(0.1
)
 
(2.6
)
Total Other Income, Net
730.8

 
388.4

Interest expense
60.7

 
19.6

INCOME BEFORE INCOME TAXES
650.7

 
314.2

Income tax benefit
(13.7
)
 
(10.7
)
NET INCOME
$
664.4

 
$
324.9

COMPREHENSIVE INCOME
 
 
 
NET INCOME
$
664.4

 
$
324.9

OTHER COMPREHENSIVE INCOME

 

Derivative hedging activity


 


Loss on derivative hedging instruments
(64.4
)
 
(5.4
)
Income tax benefit
16.5

 
1.4

Net loss on derivative hedging instruments
(47.9
)
 
(4.0
)
Reclassification to expenses, net of taxes
1.5

 
—

Derivative hedging activity, net of tax
(46.4
)
 
(4.0
)
Other comprehensive income from subsidiaries, net
(0.6
)
 
1.0

Total other comprehensive loss
(47.0
)
 
(3.0
)
COMPREHENSIVE INCOME
$
617.4

 
$
321.9

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.
EVERGY, INC.
Balance Sheets of Parent Company
 
December 31
 
2019
2018
ASSETS
(millions, except share amounts)
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
11.6

 
$
107.1

Accounts receivable from subsidiaries
24.5

 
35.2

Notes receivable from subsidiaries
2.0

 
2.0

Income taxes receivable
8.0

 
0.2

Prepaid expenses and other assets
2.4

 
2.0

Total Current Assets
48.5

 
146.5

OTHER ASSETS:
 

 
 

Investment in subsidiaries
10,023.1

 
9,785.6

Note receivable from subsidiaries
634.9

 
634.9

Deferred income taxes
34.2

 
36.3

Other
0.9

 
1.1

Total Other Assets
10,693.1

 
10,457.9

TOTAL ASSETS
$
10,741.6

 
$
10,604.4

LIABILITIES AND EQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Notes payable
$
20.0

 
$
—

Accounts payable to subsidiaries
13.1

 
28.1

Accrued interest
14.6

 
2.1

Derivative instruments
—

 
5.4

Other
8.1

 
6.3

Total Current Liabilities
55.8

 
41.9

LONG-TERM LIABILITIES:
 
 
 
Long-term debt, net
2,223.7

 
638.1

Other
16.9

 
17.6

Total Long-Term Liabilities
2,240.6

 
655.7

Commitments and Contingencies (Note 15)


 


EQUITY:
 

 
 

Evergy, Inc. Shareholders' Equity:
 

 
 

Common stock - 600,000,000 shares authorized, without par value, 226,641,443 shares issued
7,053.7

 
8,668.3

Retained earnings
1,441.5

 
1,241.5

Accumulated other comprehensive loss
(50.0
)
 
(3.0
)
Total shareholders' equity
8,445.2

 
9,906.8

TOTAL LIABILITIES AND EQUITY
$
10,741.6

 
10,604.4

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.
EVERGY, INC.
Statements of Cash Flows of Parent Company
 
 
 
 
 
2019
 
Period from June 4, 2018 through
December 31, 2018
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
(millions)
Net income
$
664.4

 
$
324.9

Adjustments to reconcile income to net cash from operating activities:
 
 
 
Non-cash compensation
16.3

 
10.0

Net deferred income taxes and credits
21.4

 
(6.3
)
Equity in earnings from subsidiaries
(698.2
)
 
(364.7
)
Other
2.1

 
—

Changes in working capital items:
 
 
 
Accounts receivable from subsidiaries
8.9

 
(8.5
)
Income taxes receivable
(7.8
)
 
(0.2
)
Prepaid expenses and other current assets
(0.1
)
 
(1.0
)
Accounts payable to subsidiaries
(15.0
)
 
4.7

Accrued taxes
—

 
(35.2
)
Accrued interest
12.5

 
(13.6
)
Other current liabilities
1.7

 
2.4

Cash dividends from subsidiaries
460.0

 
236.0

Changes in other assets
0.2

 
0.1

Changes in other liabilities
(3.5
)
 
20.0

Cash Flows from Operating Activities
462.9

 
168.6

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
 
 
 
Cash acquired from the merger with Great Plains Energy
—

 
1,142.2

Proceeds from interest rate swap
—

 
140.6

Cash Flows from Investing Activities
—

 
1,282.8

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
 
 
 
Short term debt, net
20.0

 
(56.1
)
Proceeds from long-term debt
1,585.0

 
—

Payment for settlement of interest rate swap accounted for as a cash flow hedge
(69.8
)
 
—

Cash dividends paid
(462.5
)
 
(245.9
)
Repurchase of common stock
(1,628.7
)
 
(1,042.3
)
Other financing activities
(2.4
)
 
—

Cash Flows used in Financing Activities
(558.4
)
 
(1,344.3
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(95.5
)
 
107.1

CASH AND CASH EQUIVALENTS:
 
 
 
Beginning of period
107.1

 
—

End of period
$
11.6

 
$
107.1

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.
1. ORGANIZATION AND BASIS OF PRESENTATION
The Evergy, Inc. Parent Company Financial Statements have been prepared to comply with Rule 12-04 of Regulation S-X.
Evergy, Inc. was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy, Inc. and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, Inc., with Evergy, Inc. surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy, Inc. becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West.
See Note 2 to the consolidated financial statements for additional information regarding the merger.
Evergy, Inc. operates primarily through its wholly-owned direct subsidiaries. Evergy, Inc.'s investments in subsidiaries are accounted for using the equity method. Fair value adjustments and goodwill related to the acquired assets and liabilities of Great Plains Energy and its direct subsidiaries are only reflected on Evergy's consolidated financial statements and as such, are not included in Evergy, Inc.'s Parent Company Financial Statements. See Note 1 to the consolidated financial statement for additional information.
2. LONG-TERM DEBT
See Note 13 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.
3. GUARANTEES
See Note 16 to the consolidated financial statements for additional information regarding Evergy, Inc.'s guarantees.
4. DIVIDENDS
Cash dividends paid to Evergy, Inc. by its subsidiaries were $460.0 million for the year ended December 31, 2019 and $236.0 million for the period from June 4, 2018 through December 31, 2018. See Note 18 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.