Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Entity Information [Line Items]

Schedule Of Federal And State Income Taxed Charged To Income

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

	2019			2018			2017
	(In Thousands)
Components of income tax expense:
Current income taxes:
Federal	$	17,229		$	20,341		$	42,542
State	3,022			8,843			9,916
Total current income taxes	20,251			29,184			52,458
Deferred income taxes:
Federal	7,547			(15,150		)	(1,720		)
State	7,745			326			(332		)
Total deferred income taxes	15,292			(14,824		)	(2,052		)
Net amortization of investment credit	(15		)	(911		)	(1,455		)
Total income tax expense	$	35,528		$	13,449		$	48,951

Schedule Of Effective Income Tax Rate

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

	2019		2018		2017
Federal statutory tax rate	21.0	%	21.0	%	35.0	%
State income tax, net of federal tax benefit	4.4	%	5.6	%	4.1	%
Research and development credit	—	%	(1.9	)%	—	%
Depreciation flow through and amortization	(5.7	)%	(15.6	)%	(0.1	)%
Additional funds used during construction - equity	0.2	%	0.3	%	(4.1	)%
Manufacturers’ Production Deduction (Sec. 199)	—	%	—	%	(2.5	)%
Other – net	1.3	%	(0.3	)%	(1.4	)%
Effective tax rate	21.2	%	9.1	%	31.0	%

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, 2019 and 2018, are as follows:

	2019		2018
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	406,605	$	378,460
Regulatory assets recoverable through future rates	61,984		67,721
Other	17,996		12,161
Total deferred tax liabilities	486,585		458,342
Deferred tax assets:
Investment tax credit	7		11
Regulatory liabilities including ARO	191,676		184,413
Employee benefit plans	8,556		8,335
Other	13,485		12,498
Total deferred tax assets	213,724		205,257
Deferred income tax liability – net	$	272,861	$	253,085

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, 2019, 2018 and 2017: 

	2019		2018		2017
	(In Thousands)
Unrecognized tax benefits at January 1	$	7,056	$	7,049	$	6,634
Gross increases – current period tax positions	—		—		470
Gross decreases – prior period tax positions	—		7		(55		)
Unrecognized tax benefits at December 31	$	7,056	$	7,056	$	7,049

Indianapolis Power And Light Company

Entity Information [Line Items]

Schedule Of Federal And State Income Taxed Charged To Income

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

	2019			2018			2017
	(In Thousands)
Components of income tax expense:
Current income taxes:
Federal	$	23,941		$	26,021		$	56,377
State	4,370			11,215			12,656
Total current income taxes	28,311			37,236			69,033
Deferred income taxes:
Federal	7,578			(15,080		)	(1,634		)
State	7,556			345			(353		)
Total deferred income taxes	15,134			(14,735		)	(1,987		)
Net amortization of investment credit	(15		)	(911		)	(1,455		)
Total income tax expense	$	43,430		$	21,590		$	65,591

Schedule Of Effective Income Tax Rate

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

	2019		2018		2017
Federal statutory tax rate	21.0	%	21.0	%	35.0	%
State income tax, net of federal tax benefit	4.4	%	5.6	%	4.0	%
Amortization of investment tax credits	—	%	(0.5	)%	(0.7	)%
Research and development credit	—	%	(1.6	)%	—	%
Depreciation flow through and amortization	(4.7	)%	(12.6	)%	(0.1	)%
Additional funds used during construction - equity	0.2	%	0.3	%	(3.1	)%
Manufacturers’ Production Deduction (Sec. 199)	—	%	—	%	(2.4	)%
Other – net	0.8	%	(0.1	)%	(0.2	)%
Effective tax rate	21.7	%	12.1	%	32.5	%

Schedule Of Deferred Tax Assets And Liabilities

The significant items comprising IPL’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2019 and 2018, are as follows: 

	2019		2018
	(In Thousands)
Deferred tax liabilities:
Relating to utility property, net	$	406,538	$	378,527
Regulatory assets recoverable through future rates	62,051		67,653
Other	17,547		11,812
Total deferred tax liabilities	486,136		457,992
Deferred tax assets:
Investment tax credit	7		11
Regulatory liabilities including ARO	191,676		184,413
Employee benefit plans	8,556		8,335
Other	6,738		12,504
Total deferred tax assets	206,977		205,263
Deferred income tax liability – net	$	279,159	$	252,729

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, 2019, 2018 and 2017:

	2019		2018		2017
	(In Thousands)
Unrecognized tax benefits at January 1	$	7,056	$	7,049	$	6,634
Gross increases – current period tax positions	—		—		470
Gross decreases – prior period tax positions	—		7		(55		)
Unrecognized tax benefits at December 31	$	7,056	$	7,056	$	7,049