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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule Of Federal And State Income Taxed Charged To Income

Federal and state income taxes charged to income are as follows:



	2015			2014			2013
	(In Thousands)
Charged to utility operating expenses:
Current income taxes:
Federal	$	18,661		$	944		$	53,937
State	5,758			110			15,191
Total current income taxes	24,419			1,054			69,128
Deferred income taxes:
Federal	29,165			58,114			(8,048		)
State	5,019			12,498			(1,031		)
Total deferred income taxes	34,184			70,612			(9,079		)
Net amortization of investment credit	(1,319		)	(1,431		)	(1,501		)
Total charge to utility operating expenses	57,284			70,235			58,548
Charged to other income and deductions:
Current income taxes:
Federal	(18,661		)	(459		)	(16,909		)
State	(5,758		)	(5		)	(4,193		)
Total current income taxes	(24,419		)	(464		)	(21,102		)
Deferred income taxes:
Federal	(2,573		)	(18,082		)	246
State	1,274			(3,645		)	50
Total deferred income taxes	(1,299		)	(21,727		)	296
Net provision to other income and deductions	(25,718		)	(22,191		)	(20,806		)
Total federal and state income tax provisions	$	31,566		$	48,044		$	37,742

Schedule Of Effective Income Tax Rate

The reasons for the difference, stated as a percentage of pretax income, are as follows:



	2015		2014		2013
Federal statutory tax rate	35.0	%	35.0	%	35.0	%
State income tax, net of federal tax benefit	4.7	%	4.8	%	6.7	%
Amortization of investment tax credits	(1.5	)%	(1.2	)%	(1.5	)%
Preferred dividends of subsidiary	1.3	%	0.9	%	1.1	%
Depreciation flow through and amortization	(0.3	)%	(0.3	)%	(0.3	)%
Additional funds used during construction - equity	(3.5	)%	(0.3	)%	0.6	%
Manufacturers’ Production Deduction (Sec. 199)	—	%	—	%	(3.8	)%
Other – net	0.2	%	0.2	%	0.5	%
Effective tax rate	35.9	%	39.1	%	38.3	%

Schedule Of Deferred Tax Assets And Liabilities

The significant items comprising IPALCO’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2015 and 2014, are as follows:



	2015		2014
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	541,369	$	539,318
Regulatory assets recoverable through future rates	178,187		161,697
Other	11,768		14,211
Total deferred tax liabilities	731,324		715,226
Deferred tax assets:
Investment tax credit	1,507		2,019
Regulatory liabilities including ARO	260,555		247,118
Employee benefit plans	38,159		45,091
Net operating loss	23,161		51,364
Other	10,548		10,289
Total deferred tax assets	333,930		355,881
Net deferred tax liability	397,394		359,345
Less: deferred tax asset - current	—		(61,782		)
Deferred income taxes – net	$	397,394	$	421,127

Reconciliation Of Unrecognized Tax Benefits

The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013:



	2015			2014			2013
	(In Thousands)
Unrecognized tax benefits at January 1	$	7,042		$	6,734		$	6,138
Gross increases – current period tax positions	962			975			986
Gross decreases – prior period tax positions	(857		)	(667		)	(390		)
Unrecognized tax benefits at December 31	$	7,147		$	7,042		$	6,734

Indianapolis Power And Light Company [Member]

Entity Information [Line Items]