Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
Details of Income Taxes as Reported |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2019 | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Federal: | | | | | | | | | | | | | | | | | Current | | $ | (7.4 | ) | | $ | (31.8 | ) | | $ | 23.7 |
| | $ | 36.7 |
| | $ | 48.1 |
| | $ | (10.0 | ) | | $ | 25.5 |
| | $ | 6.9 |
| Deferred | | (77.1 | ) | | (23.5 | ) | | 71.7 |
| | (125.6 | ) | | (53.5 | ) | | 40.6 |
| | (23.6 | ) | | (8.6 | ) | Deferred Investment Tax Credits | | 5.5 |
| | (1.2 | ) | | — |
| | (0.5 | ) | | (3.6 | ) | | — |
| | (2.4 | ) | | (1.4 | ) | Total Federal | | (79.0 | ) | | (56.5 | ) | | 95.4 |
| | (89.4 | ) | | (9.0 | ) | | 30.6 |
| | (0.5 | ) | | (3.1 | ) | | | | | | | | | | | | | | | | | | State and Local: | | | | | | | | | | | | | | | | | Current | | 4.4 |
| | 2.9 |
| | 2.4 |
| | 12.0 |
| | (2.4 | ) | | 1.1 |
| | 0.2 |
| | 0.8 |
| Deferred | | 59.3 |
| | — |
| | 19.6 |
| | (0.6 | ) | | 0.8 |
| | 3.2 |
| | 5.4 |
| | (2.4 | ) | Deferred Investment Tax Credits | | 2.4 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2.4 |
| | — |
| Total State and Local | | 66.1 |
| | 2.9 |
| | 22.0 |
| | 11.4 |
| | (1.6 | ) | | 4.3 |
| | 8.0 |
| | (1.6 | ) | | | | | | | | | | | | | | | | | | Income Tax Expense (Benefit) | | $ | (12.9 | ) | | $ | (53.6 | ) | | $ | 117.4 |
| | $ | (78.0 | ) | | $ | (10.6 | ) | | $ | 34.9 |
| | $ | 7.5 |
| | $ | (4.7 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2018 | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Federal: | | | | | | | | | | | | | | | | | Current | | $ | (31.7 | ) | | $ | 37.0 |
| | $ | (14.2 | ) | | $ | (31.9 | ) | | $ | 60.9 |
| | $ | 55.6 |
| | $ | 35.6 |
| | $ | 18.3 |
| Deferred | | 112.8 |
| | (16.4 | ) | | 82.3 |
| | (24.6 | ) | | (44.1 | ) | | (36.9 | ) | | (34.7 | ) | | (0.5 | ) | Deferred Investment Tax Credits | | 9.2 |
| | (1.5 | ) | | — |
| | 0.1 |
| | (4.7 | ) | | — |
| | (2.0 | ) | | (1.4 | ) | Total Federal | | 90.3 |
| | 19.1 |
| | 68.1 |
| | (56.4 | ) | | 12.1 |
| | 18.7 |
| | (1.1 | ) | | 16.4 |
| | | | | | | | | | | | | | | | | | State and Local: | | | | | | | | | | | | | | | | | Current | | 30.8 |
| | 1.8 |
| | (0.6 | ) | | 3.7 |
| | 15.8 |
| | 4.6 |
| | (0.2 | ) | | 2.3 |
| Deferred | | (8.5 | ) | | (0.1 | ) | | 16.6 |
| | 7.8 |
| | 1.2 |
| | 0.7 |
| | 3.6 |
| | 1.7 |
| Deferred Investment Tax Credits | | 2.7 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2.7 |
| | — |
| Total State and Local | | 25.0 |
| | 1.7 |
| | 16.0 |
| | 11.5 |
| | 17.0 |
| | 5.3 |
| | 6.1 |
| | 4.0 |
| | | | | | | | | | | | | | | | | | Income Tax Expense (Benefit) | | $ | 115.3 |
| | $ | 20.8 |
| | $ | 84.1 |
| | $ | (44.9 | ) | | $ | 29.1 |
| | $ | 24.0 |
| | $ | 5.0 |
| | $ | 20.4 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2017 | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | | (in millions) | Federal: | | | | | | | | | | | | | | | | | Current | | $ | (4.0 | ) | | $ | (85.7 | ) | | $ | (130.4 | ) | | $ | 15.3 |
| | $ | (106.5 | ) | | $ | 11.2 |
| | $ | (77.1 | ) | | $ | (30.1 | ) | Deferred | | 856.6 |
| | 63.3 |
| | 254.8 |
| | 166.9 |
| | 202.1 |
| | 141.3 |
| | 122.7 |
| | 84.8 |
| Deferred Investment Tax Credits | | 48.6 |
| | (1.6 | ) | | — |
| | (0.1 | ) | | (4.7 | ) | | — |
| | (1.6 | ) | | (1.4 | ) | Total Federal | | 901.2 |
| | (24.0 | ) | | 124.4 |
| | 182.1 |
| | 90.9 |
| | 152.5 |
| | 44.0 |
| | 53.3 |
| | | | | | | | | | | | | | | | | | State and Local: | | | | | | | | | | | | | | | | | Current | | 16.0 |
| | 0.6 |
| | 1.1 |
| | (1.4 | ) | | (8.1 | ) | | 0.2 |
| | (0.2 | ) | | (0.9 | ) | Deferred | | 44.9 |
| | — |
| | 16.7 |
| | 4.6 |
| | (1.4 | ) | | 6.6 |
| | 2.0 |
| | (4.3 | ) | Deferred Investment Tax Credits | | 7.6 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 4.3 |
| | — |
| Total State and Local | | 68.5 |
| | 0.6 |
| | 17.8 |
| | 3.2 |
| | (9.5 | ) | | 6.8 |
| | 6.1 |
| | (5.2 | ) | | | | | | | | | | | | | | | | | | Income Tax Expense (Benefit) | | $ | 969.7 |
| | $ | (23.4 | ) | | $ | 142.2 |
| | $ | 185.3 |
| | $ | 81.4 |
| | $ | 159.3 |
| | $ | 50.1 |
| | $ | 48.1 |
|
|
Reconciliation of Federal Statutory Tax Rate to Reported Tax Rate |
| | | | | | | | | | | | | | | | | | | AEP | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 1,919.8 | | | $ | 1,931.3 | | | $ | 1,928.9 | | Less: Equity Earnings – Dolet Hills | (3.0 | ) | | (2.7 | ) | | — | | Income Tax Expense (Benefit) | (12.9 | ) | | 115.3 | | | 969.7 | | Pretax Income | $ | 1,903.9 | | | $ | 2,043.9 | | | $ | 2,898.6 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 399.8 | | | $ | 429.2 | | | $ | 1,014.5 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 23.1 | | | 24.4 | | | 60.2 | | Investment Tax Credit Amortization | (13.0 | ) | | (20.2 | ) | | (18.8 | ) | Production Tax Credits | (59.0 | ) | | (10.3 | ) | | — | | State and Local Income Taxes, Net | 52.2 | | | 19.7 | | | 54.7 | | Removal Costs | (20.7 | ) | | (19.8 | ) | | (32.7 | ) | AFUDC | (37.1 | ) | | (29.4 | ) | | (37.4 | ) | Valuation Allowance | — | | | — | | | (1.8 | ) | Tax Reform Adjustments | — | | | (10.9 | ) | | (26.7 | ) | Tax Adjustments | — | | | — | | | (35.8 | ) | Tax Reform Excess ADIT Reversal | (353.2 | ) | | (257.2 | ) | | — | | Other | (5.0 | ) | | (10.2 | ) | | (6.5 | ) | Income Tax Expense (Benefit) | $ | (12.9 | ) | | $ | 115.3 | | | $ | 969.7 | | | | | | | | Effective Income Tax Rate | (0.7 | ) | % |
| | 5.6 |
| % |
| | 33.5 |
| % |
|
| | | | | | | | | | | | | | | | | | | AEP Texas | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 178.3 | | | $ | 211.3 | | | $ | 310.5 | | Income Tax Expense (Benefit) | (53.6 | ) | | 20.8 | | | (23.4 | ) | Pretax Income | $ | 124.7 | | | $ | 232.1 | | | $ | 287.1 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 26.2 | | | $ | 48.7 | | | $ | 100.5 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 1.0 | | | 1.4 | | | (0.5 | ) | Investment Tax Credit Amortization | (1.2 | ) | | (2.3 | ) | | (1.5 | ) | State and Local Income Taxes, Net | 2.3 | | | 1.3 | | | 0.4 | | AFUDC | (3.2 | ) | | (4.2 | ) | | (3.9 | ) | Parent Company Loss Benefit | (4.6 | ) | | (3.1 | ) | | — | | Tax Reform Adjustments | — | | | (11.0 | ) | | (117.4 | ) | Tax Adjustments | — | | | — | | | (4.2 | ) | Tax Reform Excess ADIT Reversal | (73.4 | ) | | (11.8 | ) | | — | | Other | (0.7 | ) | | 1.8 | | | 3.2 | | Income Tax Expense (Benefit) | $ | (53.6 | ) | | $ | 20.8 | | | $ | (23.4 | ) | | | | | | | Effective Income Tax Rate | (43.0 | ) | % |
| | 9.0 |
| % |
| | (8.2 | ) | % |
|
| | | | | | | | | | | | | | | | | | | AEPTCo | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 439.7 | | | $ | 315.9 | | | $ | 270.7 | | Income Tax Expense | 117.4 | | | 84.1 | | | 142.2 | | Pretax Income | $ | 557.1 | | | $ | 400.0 | | | $ | 412.9 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 117.0 | | | $ | 84.0 | | | $ | 144.5 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | AFUDC | (17.7 | ) | | (14.1 | ) | | (17.0 | ) | State and Local Income Taxes, Net | 17.4 | | | 12.6 | | | 13.1 | | Tax Reform Adjustments | — | | | — | | | 0.6 | | Other | 0.7 | | | 1.6 | | | 1.0 | | Income Tax Expense | $ | 117.4 | | | $ | 84.1 | | | $ | 142.2 | | | | | | | | Effective Income Tax Rate | 21.1 |
| % |
| | 21.0 |
| % |
| | 34.4 |
| % |
|
| | | | | | | | | | | | | | | | | | | APCo | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 306.3 | | | $ | 367.8 | | | $ | 331.3 | | Income Tax Expense (Benefit) | (78.0 | ) | | (44.9 | ) | | 185.3 | | Pretax Income | $ | 228.3 | | | $ | 322.9 | | | $ | 516.6 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 47.9 | | | $ | 67.8 | | | $ | 180.8 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 11.7 | | | 8.5 | | | 18.0 | | State and Local Income Taxes, Net | 9.0 | | | 9.1 | | | 3.5 | | Removal Costs | (6.1 | ) | | (9.6 | ) | | (12.4 | ) | AFUDC | (5.2 | ) | | (4.3 | ) | | (5.0 | ) | Parent Company Loss Benefit | (3.8 | ) | | (3.4 | ) | | (0.2 | ) | Tax Reform Adjustments | — | | | 0.1 | | | 4.3 | | Tax Reform Excess ADIT Reversal | (130.4 | ) | | (108.5 | ) | | — | | Other | (1.1 | ) | | (4.6 | ) | | (3.7 | ) | Income Tax Expense (Benefit) | $ | (78.0 | ) | | $ | (44.9 | ) | | $ | 185.3 | | | | | | | | Effective Income Tax Rate | (34.2 | ) | % |
| | (13.9 | ) | % |
| | 35.9 |
| % |
|
| | | | | | | | | | | | | | | | | | | I&M | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 269.4 | | | $ | 261.3 | | | $ | 186.7 | | Income Tax Expense (Benefit) | (10.6 | ) | | 29.1 | | | 81.4 | | Pretax Income | $ | 258.8 | | | $ | 290.4 | | | $ | 268.1 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 54.3 | | | $ | 61.0 | | | $ | 93.8 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 6.3 | | | (0.7 | ) | | 11.4 | | Investment Tax Credit Amortization | (3.6 | ) | | (4.7 | ) | | (4.7 | ) | State and Local Income Taxes, Net | (1.2 | ) | | 13.4 | | | (1.0 | ) | Removal Costs | (11.5 | ) | | (8.0 | ) | | (13.3 | ) | AFUDC | (4.1 | ) | | (2.5 | ) | | (5.6 | ) | Parent Company Loss Benefit | (4.8 | ) | | (2.3 | ) | | — | | Tax Adjustments | — | | | — | | | 2.7 | | Tax Reform Adjustments | — | | | — | | | (2.9 | ) | Tax Reform Excess ADIT Reversal | (42.5 | ) | | (25.8 | ) | | — | | Other | (3.5 | ) | | (1.3 | ) | | 1.0 | | Income Tax Expense (Benefit) | $ | (10.6 | ) | | $ | 29.1 | | | $ | 81.4 | | | | | | | | Effective Income Tax Rate | (4.1 | ) | % |
| | 10.0 |
| % |
| | 30.4 |
| % |
|
| | | | | | | | | | | | | | | | | | | OPCo | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 297.1 | | | $ | 325.5 | | | $ | 323.9 | | Income Tax Expense | 34.9 | | | 24.0 | | | 159.3 | | Pretax Income | $ | 332.0 | | | $ | 349.5 | | | $ | 483.2 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 69.7 | | | $ | 73.4 | | | $ | 169.1 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | (1.7 | ) | | 2.6 | | | 7.6 | | State and Local Income Taxes, Net | 3.4 | | | 4.2 | | | 4.4 | | AFUDC | (3.8 | ) | | (2.1 | ) | | (2.2 | ) | Tax Reform Adjustments | — | | | — | | | (14.4 | ) | Tax Reform Excess ADIT Reversal | (27.3 | ) | | (51.0 | ) | | — | | Parent Company Loss Benefit | (4.9 | ) | | (5.5 | ) | | (0.2 | ) | Other | (0.5 | ) | | 2.4 | | | (5.0 | ) | Income Tax Expense | $ | 34.9 | | | $ | 24.0 | | | $ | 159.3 | | | | | | | | Effective Income Tax Rate | 10.5 |
| % |
| | 6.9 |
| % |
| | 33.0 |
| % |
|
| | | | | | | | | | | | | | | | | | | PSO | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 137.6 | | | $ | 83.2 | | | $ | 72.0 | | Income Tax Expense | 7.5 | | | 5.0 | | | 50.1 | | Pretax Income | $ | 145.1 | | | $ | 88.2 | | | $ | 122.1 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 30.5 | | | $ | 18.5 | | | $ | 42.7 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 0.5 | | | 1.0 | | | 0.3 | | Investment Tax Credit Amortization | (0.5 | ) | | (1.7 | ) | | (1.6 | ) | Parent Company Loss Benefit | (2.5 | ) | | (1.4 | ) | | — | | State and Local Income Taxes, Net | 6.3 | | | 4.8 | | | 4.0 | | Tax Reform Adjustments | — | | | — | | | 2.8 | | Tax Reform Excess ADIT Reversal | (24.5 | ) | | (15.5 | ) | | — | | Other | (2.3 | ) | | (0.7 | ) | | 1.9 | | Income Tax Expense | $ | 7.5 | | | $ | 5.0 | | | $ | 50.1 | | | | | | | | Effective Income Tax Rate | 5.2 |
| % |
| | 5.7 |
| % |
| | 41.0 |
| % |
|
| | | | | | | | | | | | | | | | | | | SWEPCo | Years Ended December 31, | | 2019 | | 2018 | | 2017 | | (in millions) | Net Income | $ | 162.2 | | | $ | 152.2 | | | $ | 137.5 | | Less: Equity Earnings – Dolet Hills | (3.0 | ) | | (2.7 | ) | | — | | Income Tax Expense (Benefit) | (4.7 | ) | | 20.4 | | | 48.1 | | Pretax Income | $ | 154.5 | | | $ | 169.9 | | | $ | 185.6 | | | | | | | | Income Taxes on Pretax Income at Statutory Rate (21%, 21% and 35% in 2019, 2018 and 2017, Respectively) | $ | 32.4 | | | $ | 35.7 | | | $ | 65.0 | | Increase (Decrease) in Income Taxes Resulting from the Following Items: | | | | | | Depreciation | 1.9 | | | 3.4 | | | 1.9 | | Depletion | (3.6 | ) | | (3.2 | ) | | (5.7 | ) | State and Local Income Taxes, Net | (1.3 | ) | | 3.2 | | | (2.3 | ) | AFUDC | (1.4 | ) | | (1.3 | ) | | (0.9 | ) | Tax Adjustments | — | | | — | | | (9.9 | ) | Tax Reform Adjustments | — | | | — | | | (0.4 | ) | Tax Reform Excess ADIT Reversal | (29.9 | ) | | (16.0 | ) | | — | | Other | (2.8 | ) | | (1.4 | ) | | 0.4 | | Income Tax Expense (Benefit) | $ | (4.7 | ) | | $ | 20.4 | | | $ | 48.1 | | | | | | | | Effective Income Tax Rate | (3.0 | ) | % |
| | 12.0 |
| % |
| | 25.9 |
| % |
|
|
Reconciliation of Significant Temporary Differences |
| | | | | | | | | AEP | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 3,246.1 |
| | $ | 2,750.8 |
| Deferred Tax Liabilities | (10,834.3 | ) | | (9,837.3 | ) | Net Deferred Tax Liabilities | $ | (7,588.2 | ) | | $ | (7,086.5 | ) | | | | | Property Related Temporary Differences | $ | (6,602.9 | ) | | $ | (6,224.8 | ) | Amounts Due to Customers for Future Income Taxes | 1,173.5 |
| | 1,329.7 |
| Deferred State Income Taxes | (1,112.4 | ) | | (1,072.5 | ) | Securitized Assets | (178.7 | ) | | (186.6 | ) | Regulatory Assets | (371.1 | ) | | (454.1 | ) | Accrued Nuclear Decommissioning | (557.4 | ) | | (453.7 | ) | Net Operating Loss Carryforward | 77.6 |
| | 78.3 |
| Tax Credit Carryforward | 247.2 |
| | 113.7 |
| Operating Lease Liability | 182.6 |
| | — |
| Investment in Partnership | (446.6 | ) | | (300.5 | ) | All Other, Net | — |
| | 84.0 |
| Net Deferred Tax Liabilities | $ | (7,588.2 | ) | | $ | (7,086.5 | ) |
| | | | | | | | | AEP Texas | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 220.0 |
| | $ | 208.1 |
| Deferred Tax Liabilities | (1,185.4 | ) | | (1,121.2 | ) | Net Deferred Tax Liabilities | $ | (965.4 | ) | | $ | (913.1 | ) | | | | | Property Related Temporary Differences | $ | (973.5 | ) | | $ | (836.3 | ) | Amounts Due to Customers for Future Income Taxes | 126.7 |
| | 141.2 |
| Deferred State Income Taxes | (27.5 | ) | | (27.7 | ) | Regulatory Assets | (51.2 | ) | | (53.9 | ) | Securitized Transition Assets | (124.3 | ) | | (134.7 | ) | Deferred Revenues | 19.9 |
| | 4.6 |
| Operating Lease Liability | 17.2 |
| | — |
| All Other, Net | 47.3 |
| | (6.3 | ) | Net Deferred Tax Liabilities | $ | (965.4 | ) | | $ | (913.1 | ) |
| | | | | | | | | AEPTCo | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 162.9 |
| | $ | 142.9 |
| Deferred Tax Liabilities | (980.7 | ) | | (847.3 | ) | Net Deferred Tax Liabilities | $ | (817.8 | ) | | $ | (704.4 | ) | | | | | Property Related Temporary Differences | $ | (847.1 | ) | | $ | (755.0 | ) | Amounts Due to Customers for Future Income Taxes | 119.9 |
| | 121.3 |
| Deferred State Income Taxes | (86.1 | ) | | (71.6 | ) | Net Operating Loss Carryforward | 12.3 |
| | 13.4 |
| All Other, Net | (16.8 | ) | | (12.5 | ) | Net Deferred Tax Liabilities | $ | (817.8 | ) | | $ | (704.4 | ) |
| | | | | | | | | APCo | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 486.2 |
| | $ | 475.2 |
| Deferred Tax Liabilities | (2,167.0 | ) | | (2,101.0 | ) | Net Deferred Tax Liabilities | $ | (1,680.8 | ) | | $ | (1,625.8 | ) | | | | | Property Related Temporary Differences | $ | (1,420.0 | ) | | $ | (1,393.6 | ) | Amounts Due to Customers for Future Income Taxes | 222.8 |
| | 268.0 |
| Deferred State Income Taxes | (320.9 | ) | | (324.1 | ) | Regulatory Assets | (71.0 | ) | | (73.8 | ) | Securitized Assets | (49.3 | ) | | (54.3 | ) | Operating Lease Liability | 16.5 |
| | — |
| All Other, Net | (58.9 | ) | | (48.0 | ) | Net Deferred Tax Liabilities | $ | (1,680.8 | ) | | $ | (1,625.8 | ) |
| | | | | | | | | I&M | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 970.5 |
| | $ | 771.6 |
| Deferred Tax Liabilities | (1,950.2 | ) | | (1,719.6 | ) | Net Deferred Tax Liabilities | $ | (979.7 | ) | | $ | (948.0 | ) | | | | | Property Related Temporary Differences | $ | (430.7 | ) | | $ | (445.0 | ) | Amounts Due to Customers for Future Income Taxes | 169.6 |
| | 186.2 |
| Deferred State Income Taxes | (194.4 | ) | | (183.9 | ) | Accrued Nuclear Decommissioning | (557.4 | ) | | (453.7 | ) | Regulatory Assets | (26.9 | ) | | (31.9 | ) | Net Operating Loss Carryforward | — |
| | 0.2 |
| Operating Lease Liability | 61.9 |
| | — |
| All Other, Net | (1.8 | ) | | (19.9 | ) | Net Deferred Tax Liabilities | $ | (979.7 | ) | | $ | (948.0 | ) |
| | | | | | | | | OPCo | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 202.3 |
| | $ | 209.0 |
| Deferred Tax Liabilities | (1,051.6 | ) | | (972.3 | ) | Net Deferred Tax Liabilities | $ | (849.3 | ) | | $ | (763.3 | ) | | | | | Property Related Temporary Differences | $ | (890.8 | ) | | $ | (826.9 | ) | Amounts Due to Customers for Future Income Taxes | 130.2 |
| | 137.0 |
| Deferred State Income Taxes | (35.5 | ) | | (32.9 | ) | Regulatory Assets | (48.0 | ) | | (55.0 | ) | Operating Lease Liability | 18.3 |
| | — |
| All Other, Net | (23.5 | ) | | 14.5 |
| Net Deferred Tax Liabilities | $ | (849.3 | ) | | $ | (763.3 | ) |
| | | | | | | | | PSO | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 257.4 |
| | $ | 229.6 |
| Deferred Tax Liabilities | (885.7 | ) | | (837.4 | ) | Net Deferred Tax Liabilities | $ | (628.3 | ) | | $ | (607.8 | ) | | | | | Property Related Temporary Differences | $ | (627.6 | ) | | $ | (609.4 | ) | Amounts Due to Customers for Future Income Taxes | 127.2 |
| | 138.9 |
| Deferred State Income Taxes | (100.4 | ) | | (135.6 | ) | Regulatory Assets | (44.6 | ) | | (32.3 | ) | Net Operating Loss Carryforward | 10.2 |
| | 16.4 |
| All Other, Net | 6.9 |
| | 14.2 |
| Net Deferred Tax Liabilities | $ | (628.3 | ) | | $ | (607.8 | ) |
| | | | | | | | | SWEPCo | December 31, | | 2019 | | 2018 | | (in millions) | Deferred Tax Assets | $ | 359.6 |
| | $ | 317.4 |
| Deferred Tax Liabilities | (1,300.5 | ) | | (1,220.2 | ) | Net Deferred Tax Liabilities | $ | (940.9 | ) | | $ | (902.8 | ) | | | | | Property Related Temporary Differences | $ | (947.6 | ) | | $ | (913.3 | ) | Amounts Due to Customers for Future Income Taxes | 169.8 |
| | 183.4 |
| Deferred State Income Taxes | (200.3 | ) | | (193.6 | ) | Regulatory Assets | (30.2 | ) | | (30.8 | ) | Net Operating Loss Carryforward | 38.2 |
| | 36.2 |
| All Other, Net | 29.2 |
| | 15.3 |
| Net Deferred Tax Liabilities | $ | (940.9 | ) | | $ | (902.8 | ) |
|
State Net Income Tax Operating Loss Carryforwards |
| | | | | | | | | | | | | | | | State Net Income | | | | | | | | | Tax Operating | | | | | | | | | Loss | | Years of | Company | | State/Municipality | | Carryforward | | Expiration | | | | | (in millions) | | | | | AEP | | Arkansas | | $ | 102.5 |
| | 2020 | - | 2024 | AEP | | Kentucky | | 144.9 |
| | 2030 | - | 2037 | AEP | | Louisiana | | 541.0 |
| | 2025 | - | 2039 | AEP | | Oklahoma | | 544.1 |
| | 2034 | - | 2037 | AEP | | Tennessee | | 29.0 |
| | 2028 | - | 2034 | AEP | | Virginia | | 22.6 |
| | 2030 | - | 2037 | AEP | | West Virginia | | 16.1 |
| | 2029 | - | 2037 | AEP | | Ohio Municipal | | 414.1 |
| | 2020 | - | 2024 | AEPTCo | | Oklahoma | | 269.4 |
| | 2034 | - | 2037 | AEPTCo | | Ohio Municipal | | 37.3 |
| | 2020 | - | 2023 | I&M | | West Virginia | | 2.0 |
| | 2031 | - | 2037 | PSO | | Oklahoma | | 240.5 |
| | 2034 | - | 2037 | SWEPCo | | Arkansas | | 101.7 |
| | 2021 | - | 2024 | SWEPCo | | Louisiana | | 528.1 |
| | 2032 | - | 2037 |
|
Summary of Tax Credit Carryforwards |
| | | | | | | | | | | | | | | | | | | | | | Federal Tax | | | | State Tax | | | | | Credit | | | | Credit | | | Total Federal | | Carryforward | | Total State | | Carryforward | | | Tax Credit | | Subject to | | Tax Credit | | Subject to | Company | | Carryforward | | Expiration | | Carryforward | | Expiration | | | (in millions) | AEP | | $ | 247.2 |
| | $ | 239.6 |
| | $ | 36.7 |
| | $ | — |
| AEP Texas | | 1.4 |
| | 1.3 |
| | — |
| | — |
| AEPTCo | | 0.2 |
| | 0.1 |
| | — |
| | — |
| APCo | | 4.9 |
| | 2.3 |
| | — |
| | — |
| I&M | | 13.9 |
| | 13.7 |
| | — |
| | — |
| OPCo | | 5.1 |
| | 1.7 |
| | — |
| | — |
| PSO | | 1.1 |
| | 1.1 |
| | 36.7 |
| | — |
| SWEPCo | | 1.9 |
| | 1.8 |
| | — |
| | — |
|
|
Reconciliation of Beginning and Ending Unrecognized Tax Benefits |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | (in millions) | Balance as of January 1, 2019 | $ | 14.6 |
| | $ | (0.8 | ) | | $ | — |
| | $ | — |
| | $ | 3.2 |
| | $ | 6.9 |
| | $ | — |
| | $ | (0.8 | ) | Increase – Tax Positions Taken During a Prior Period | 8.8 |
| | 1.5 |
| | — |
| | — |
| | — |
| | 1.6 |
| | — |
| | 0.8 |
| Decrease – Tax Positions Taken During a Prior Period | (2.1 | ) | | (0.7 | ) | | — |
| | — |
| | (0.7 | ) | | — |
| | — |
| | — |
| Increase – Tax Positions Taken During the Current Year | 2.8 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Tax Positions Taken During the Current Year | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Settlements with Taxing Authorities | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Lapse of the Applicable Statute of Limitations | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Balance as of December 31, 2019 | $ | 24.1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2.5 |
| | $ | 8.5 |
| | $ | — |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | (in millions) | Balance as of January 1, 2018 | $ | 86.6 |
| | $ | (0.8 | ) | | $ | — |
| | $ | — |
| | $ | 3.2 |
| | $ | 6.9 |
| | $ | — |
| | $ | (0.8 | ) | Increase – Tax Positions Taken During a Prior Period | 0.1 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Tax Positions Taken During a Prior Period | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Increase – Tax Positions Taken During the Current Year | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Tax Positions Taken During the Current Year | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Settlements with Taxing Authorities | (71.0 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Lapse of the Applicable Statute of Limitations | (1.1 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Balance as of December 31, 2018 | $ | 14.6 |
| | $ | (0.8 | ) | | $ | — |
| | $ | — |
| | $ | 3.2 |
| | $ | 6.9 |
| | $ | — |
| | $ | (0.8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AEP | | AEP Texas | | AEPTCo | | APCo | | I&M | | OPCo | | PSO | | SWEPCo | | (in millions) | Balance as of January 1, 2017 | $ | 98.8 |
| | $ | 6.5 |
| | $ | — |
| | $ | — |
| | $ | 3.8 |
| | $ | 6.9 |
| | $ | 0.1 |
| | $ | 1.3 |
| Increase – Tax Positions Taken During a Prior Period | 4.5 |
| | 2.0 |
| | — |
| | — |
| | 0.2 |
| | — |
| | 0.1 |
| | 1.7 |
| Decrease – Tax Positions Taken During a Prior Period | (28.0 | ) | | (12.3 | ) | | — |
| | — |
| | (0.5 | ) | | — |
| | (0.9 | ) | | (5.4 | ) | Increase – Tax Positions Taken During the Current Year | 3.4 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Tax Positions Taken During the Current Year | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Decrease – Settlements with Taxing Authorities | 7.9 |
| | 3.0 |
| | — |
| | — |
| | (0.3 | ) | | — |
| | 0.7 |
| | 1.6 |
| Decrease – Lapse of the Applicable Statute of Limitations | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Balance as of December 31, 2017 | $ | 86.6 |
| | $ | (0.8 | ) | | $ | — |
| | $ | — |
| | $ | 3.2 |
| | $ | 6.9 |
| | $ | — |
| | $ | (0.8 | ) |
|
Unrecognized Tax Benefits Affecting Effective Tax Rate |
| | | | | | | | | | | | | | Company | | 2019 | | 2018 | | 2017 | | | (in millions) | AEP | | $ | 20.3 |
| | $ | 11.6 |
| | $ | 10.5 |
| AEP Texas | | — |
| | (0.7 | ) | | (0.5 | ) | AEPTCo | | — |
| | — |
| | — |
| APCo | | — |
| | — |
| | — |
| I&M | | 2.0 |
| | 2.6 |
| | 2.1 |
| OPCo | | 6.7 |
| | 5.4 |
| | 4.5 |
| PSO | | — |
| | — |
| | — |
| SWEPCo | | — |
| | (0.6 | ) | | (0.5 | ) |
|