Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Income Tax Expense

Income tax expense consists of the following:

Income Tax Expense (Benefit)

(millions)
For the year ended Dec. 31,	2015			2014			2013
Continuing Operations
Current income taxes
Federal	$	(0.5	)	$	0.5		$	2.2
State		0.0			0.0			0.0
Deferred income taxes
Federal		133.2			111.0			98.8
State		21.1			27.7			11.9
Amortization of investment tax credits		1.5			(0.3	)		(0.3	)
Income tax expense from continuing operations		155.3			138.9			112.6
Discontinued Operations
Current income taxes
Federal		0.0			0.0			0.0
State		(0.3	)		(0.4	)		(3.5	)
Deferred income taxes
Federal		(34.7	)		(44.0	)		(0.3	)
State		(3.6	)		(5.0	)		0.0
Income tax expense from discontinued operations		(38.6	)		(49.4	)		(3.8	)
Total income tax expense	$	116.7		$	89.5		$	108.8

Schedule of Income Taxes Calculated on Income before Income Taxes and Provision for Income Taxes

The reconciliation of the federal statutory rate to the company’s effective income tax rate is as follows:

Effective Income Tax Rate

(millions)
For the year ended Dec. 31,	2015			2014			2013
Income tax expense at the federal statutory rate of 35%	$	138.8		$	120.9		$	105.5
Increase (decrease) due to:
State income tax, net of federal income tax		13.6			17.0			7.5
Valuation allowance		0.1			0.9			0.0
Other		2.8			0.1			(0.4	)
Total income tax expense from continuing operations	$	155.3		$	138.9		$	112.6
Income tax expense as a percent of income from continuing operations,    before income taxes		39.2	%		40.2	%		37.4	%

Schedule of Deferred Tax Assets and Liabilities

The major components of the company’s deferred tax assets and liabilities recognized are as follows:

(millions)
As of Dec. 31,	2015			2014
Deferred tax liabilities (1)
Property related	$	1,519.3		$	1,391.3
Pension		86.6			62.3
Total deferred tax liabilities		1,605.9			1,453.6
Deferred tax assets (1)
Alternative minimum tax credit carryforward		213.5			214.0
Loss and credit carryforwards (2)		637.5			566.7
Other postretirement benefits		69.5			71.5
Other		117.5			159.6
Total deferred tax assets		1,038.0			1,011.8
Valuation allowance (3)		(2.0	)		(4.6	)
Total deferred tax assets, net of valuation allowance		1,036.0			1,007.2
Total deferred tax liability, net		569.9			446.4
Less: Current portion of deferred tax asset		0.0			(72.8	)
Less: Long term portion of deferred tax asset		(0.8	)		0.0
Long-term portion of deferred tax liability, net	$	570.7		$	519.2

(1) Certain property related assets and liabilities have been netted.

(2) As a result of certain realization requirements of accounting guidance, loss carryforwards do not include certain deferred tax assets as of Dec. 31, 2015 that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Stockholder’s equity will be increased by $2.6 million when such deferred tax assets are ultimately realized. The company uses tax law ordering when determining when excess tax benefits have been realized.

(3) During 2015, the valuation allowance related to discontinued operations decreased from $3.6 million to $1.0 million.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(millions)	2015		2014		2013
Balance at Jan. 1,	$	0.0	$	0.0	$	2.9
Decreases due to expiration of statute of limitations		0.0		0.0		(2.9	)
Balance at Dec. 31	$	0.0	$	0.0	$	0.0

Tampa Electric Company [Member]

Schedule of Income Tax Expense

Income tax expense consists of the following components:

(millions)
For the year ending Dec. 31,	2015		2014			2013
Current income taxes
Federal	$	38.2	$	54.8		$	19.4
State		8.4		8.9			1.3
Deferred income taxes
Federal		102.9		79.0			99.8
State		14.5		13.5			18.6
Amortization of investment tax credits		1.5		(0.3	)		(0.3	)
Total income tax expense	$	165.5	$	155.9		$	138.8

Schedule of Income Taxes Calculated on Income before Income Taxes and Provision for Income Taxes

The total income tax provisions differ from amounts computed by applying the federal statutory tax rate to income before income taxes as follows:

(millions)
For the years ended Dec. 31,	2015			2014			2013
Income tax expense at the federal statutory rate of 35%	$	154.6		$	145.7		$	127.5
Increase (decrease) due to
State income tax, net of federal income tax		14.8			14.5			13.0
Other		(3.9	)		(4.3	)		(1.7	)
Total income tax expense on consolidated statements of income	$	165.5		$	155.9		$	138.8
Income tax expense as a percent of income from continuing operations,    before income taxes		37.5	%		37.5	%		38.1	%

Schedule of Deferred Tax Assets and Liabilities

The principal components of TEC’s deferred tax assets and liabilities recognized in the balance sheet are as follows:

(millions)
As of Dec. 31,	2015		2014
Deferred tax liabilities (1)
Property related	$	1,431.9	$	1,328.8
Pension and postretirement benefits		92.0		72.5
Pension		71.1		51.8
Total deferred tax liabilities		1,595.0		1,453.1
Deferred tax assets (1)
Loss and credit carryforwards		80.0		77.7
Medical benefits		47.7		51.0
Insurance reserves		27.6		29.0
Pension and postretirement benefits		92.0		72.5
Capitalized energy conservation assistance costs		21.4		20.3
Other		17.5		18.3
Total deferred tax assets		286.2		268.8
Total deferred tax liability, net		1,308.8		1,184.3
Less: Current portion of deferred tax asset		0.0		(24.8	)
Long-term portion of deferred tax liability, net	$	1,308.8	$	1,209.1

(1) Certain property related assets and liabilities have been netted.