Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Federal And State Income Taxed Charged To Income

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



	2017			2016			2015
	(In Thousands)
Charged to utility operating expenses:
Current income taxes:
Federal	$	56,512		$	50,482		$	18,661
State	12,586			12,080			5,758
Total current income taxes	69,098			62,562			24,419
Deferred income taxes:
Federal	(1,668		)	11,885			29,165
State	(354		)	215			5,019
Total deferred income taxes	(2,022		)	12,100			34,184
Net amortization of investment credit	(1,455		)	(1,501		)	(1,319		)
Total charge to utility operating expenses	65,621			73,161			57,284
Charged to other income and deductions:
Current income taxes:
Federal	(13,970		)	(30,558		)	(18,661		)
State	(2,670		)	(4,807		)	(5,758		)
Total current income taxes	(16,640		)	(35,365		)	(24,419		)
Deferred income taxes:
Federal	(52		)	20,998			(2,573		)
State	22			2,415			1,274
Total deferred income taxes	(30		)	23,413			(1,299		)
Net provision to other income and deductions	(16,670		)	(11,952		)	(25,718		)
Total federal and state income tax provisions	$	48,951		$	61,209		$	31,566

Schedule Of Effective Income Tax Rate

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



	2017		2016		2015
Federal statutory tax rate	35.0	%	35.0	%	35.0	%
State income tax, net of federal tax benefit	4.1	%	4.1	%	4.7	%
Amortization of investment tax credits	(0.9	)%	(0.8	)%	(1.5	)%
Preferred dividends of subsidiary	0.7	%	0.6	%	1.3	%
Depreciation flow through and amortization	(0.1	)%	(0.5	)%	(0.3	)%
Additional funds used during construction - equity	(4.1	)%	(3.8	)%	(3.5	)%
Manufacturers’ Production Deduction (Sec. 199)	(2.5	)%	(1.3	)%	—	%
Other – net	(0.5	)%	(0.9	)%	0.2	%
Effective tax rate	31.7	%	32.4	%	35.9	%

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, 2017 and 2016, are as follows:



	2017		2016
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	475,911	$	569,204
Regulatory assets recoverable through future rates	66,661		180,608
Other	6,654		11,612
Total deferred tax liabilities	549,226		761,424
Deferred tax assets:
Investment tax credit	240		927
Regulatory liabilities including ARO	278,529		272,001
Employee benefit plans	18,564		27,358
Other	6,636		11,408
Total deferred tax assets	303,969		311,694
Deferred income taxes – net	$	245,257	$	449,730

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, 2017, 2016 and 2015:



	2017			2016			2015
	(In Thousands)
Unrecognized tax benefits at January 1	$	6,634		$	7,147		$	7,042
Gross increases – current period tax positions	470			724			962
Gross decreases – prior period tax positions	(2,453		)	(1,237		)	(857		)
Unrecognized tax benefits at December 31	$	4,651		$	6,634		$	7,147

Indianapolis Power And Light Company [Member]

Entity Information [Line Items]