Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components of income tax expense (benefit)


Great Plains Energy	2011			2010			2009
Current income taxes	(millions)
Federal	$	2.9		$	(7.4	)	$	(11.1	)
State		(6.0	)		(4.3	)		(0.9	)
Foreign		(0.4	)		0.1			1.3
Total		(3.5	)		(11.6	)		(10.7	)
Deferred income taxes
Federal		90.5			99.8			(13.6	)
State		20.7			24.0			10.0
Total		111.2			123.8			(3.6	)
Noncurrent income taxes
Federal		(18.0	)		(4.8	)		8.3
State		(2.1	)		(1.8	)		1.1
Foreign		(0.6	)		0.5			(1.5	)
Total		(20.7	)		(6.1	)		7.9
Investment tax credit
Deferral		-			(4.2	)		37.2
Amortization		(2.2	)		(2.9	)		(2.2	)
Total		(2.2	)		(7.1	)		35.0
Total income tax expense		84.8			99.0			28.6
Less: taxes on discontinued operations
Current tax benefit		-			-			(1.1	)
Deferred tax expense		-			-			0.2
Income tax expense on continuing operations	$	84.8		$	99.0		$	29.5


KCP&L	2011			2010			2009
Current income taxes	(millions)
Federal	$	1.0		$	5.5		$	41.2
State		(0.6	)		1.1			4.8
Total		0.4			6.6			46.0
Deferred income taxes
Federal		66.0			69.8			(41.7	)
State		14.6			13.4			3.5
Total		80.6			83.2			(38.2	)
Noncurrent income taxes
Federal		(9.3	)		(1.6	)		3.4
State		(1.1	)		(0.3	)		(0.1	)
Total		(10.4	)		(1.9	)		3.3
Investment tax credit
Deferral		-			(4.2	)		37.2
Amortization		(1.5	)		(2.1	)		(1.4	)
Total		(1.5	)		(6.3	)		35.8
Total	$	69.1		$	81.6		$	46.9

Income tax expense (benefit) and effective income tax rates


	Income Tax Expense									Income Tax Rate
Great Plains Energy	2011			2010			2009			2011			2010			2009
	(millions)
Federal statutory income tax	$	90.7		$	108.7		$	63.4			35.0	%		35.0	%		35.0	%
Differences between book and tax
depreciation not normalized		4.0			(5.2	)		(9.9	)		1.5			(1.7	)		(5.5	)
Amortization of investment tax credits		(2.2	)		(2.9	)		(2.2	)		(0.8	)		(0.9	)		(1.2	)
Federal income tax credits		(13.1	)		(12.5	)		(8.0	)		(5.0	)		(4.1	)		(4.4	)
State income taxes		10.5			11.4			7.9			4.0			3.7			4.4
Medicare Part D subsidy legislation		-			2.8			-			-			0.9			-
Changes in uncertain tax positions, net		(4.4	)		0.3			(72.1	)		(1.7	)		0.1			(39.8	)
Valuation allowance		(2.2	)		(2.7	)		55.8			(0.8	)		(0.9	)		30.8
Other		1.5			(0.9	)		(5.4	)		0.5			(0.3	)		(3.0	)
Total	$	84.8		$	99.0		$	29.5			32.7	%		31.8	%		16.3	%


	Income Tax Expense									Income Tax Rate
KCP&L	2011			2010			2009			2011			2010			2009
	(millions)
Federal statutory income tax	$	71.6		$	85.7		$	61.5			35.0	%		35.0	%		35.0	%
Differences between book and tax
depreciation not normalized		3.4			(4.5	)		(7.7	)		1.6			(1.8	)		(4.4	)
Amortization of investment tax credits		(1.5	)		(2.1	)		(1.4	)		(0.7	)		(0.9	)		(0.8	)
Federal income tax credits		(13.0	)		(8.5	)		(7.8	)		(6.3	)		(3.5	)		(4.4	)
State income taxes		8.1			8.9			5.8			3.9			3.6			3.3
Medicare Part D subsidy legislation		-			2.8			-			-			1.1			-
Changes in uncertain tax positions, net		0.3			-			(0.5	)		0.1			-			(0.3	)
Other		0.2			(0.7	)		(3.0	)		0.2			(0.2	)		(1.7	)
Total	$	69.1		$	81.6		$	46.9			33.8	%		33.3	%		26.7	%

Deferred income tax assets and liabilities


	Great Plains Energy						KCP&L
December 31	2011			2010			2011			2010
Current deferred income tax asset (liability)	(millions)
Other	$	7.9		$	14.7		$	(0.1	)	$	5.6
Net current deferred income tax asset (liability) before
valuation allowance		7.9			14.7			(0.1	)		5.6
Valuation allowance		(0.4	)		(0.4	)		-			-
Net current deferred income tax asset (liability)		7.5			14.3			(0.1	)		5.6
Noncurrent deferred income taxes
Plant related		(1,193.6	)		(975.5	)		(861.6	)		(711.5	)
Income taxes on future regulatory recoveries		(144.3	)		(142.6	)		(119.6	)		(117.2	)
Derivative instruments		43.3			46.0			31.1			34.4
Pension and postretirement benefits		(34.2	)		(16.3	)		(11.7	)		2.0
SO2 emission allowance sales		31.1			30.8			31.9			33.4
Fuel clause adjustments		(17.2	)		(16.6	)		(5.4	)		(3.2	)
Transition costs		(17.4	)		(20.0	)		(9.6	)		(11.4	)
Tax credit carryforwards		213.7			204.3			116.8			101.5
Long-term debt fair value adjustment		6.3			19.2			-			-
Customer demand programs		(26.4	)		(23.3	)		(18.6	)		(17.3	)
Net operating loss carryforward		543.7			409.2			77.9			1.1
Other		(10.1	)		(7.3	)		(3.9	)		(3.8	)
Net noncurrent deferred income tax liability before
valuation allowance		(605.1	)		(492.1	)		(772.7	)		(692.0	)
Valuation allowance		(23.5	)		(26.2	)		-			-
Net noncurrent deferred income tax liability		(628.6	)		(518.3	)		(772.7	)		(692.0	)
Net deferred income tax liability	$	(621.1	)	$	(504.0	)	$	(772.8	)	$	(686.4	)


	Great Plains Energy						KCP&L
December 31	2011			2010			2011			2010
	(millions)
Gross deferred income tax assets	$	1,203.6		$	1,140.7		$	618.7		$	602.4
Gross deferred income tax liabilities		(1,824.7	)		(1,644.7	)		(1,391.5	)		(1,288.8	)
Net deferred income tax liability	$	(621.1	)	$	(504.0	)	$	(772.8	)	$	(686.4	)

Liability for unrecognized tax benefits


	Great Plains Energy									KCP&L
	2011			2010			2009			2011			2010			2009
	(millions)
Balance at January 1	$	42.0		$	51.4		$	97.3		$	19.1		$	20.9		$	17.6
Additions for current year tax positions		1.4			2.7			13.2			-			1.3			3.9
Additions for prior year tax positions		2.4			2.1			8.2			2.3			1.5			3.0
Additions for GMO prior year tax positions		-			-			11.6			-			-			-
Reductions for prior year tax positions		(20.9	)		(10.6	)		(1.3	)		(12.6	)		(1.6	)		(0.8	)
Settlements		-			(3.8	)		(76.7	)		-			(2.9	)		(2.2	)
Statute expirations		(0.7	)		(0.3	)		(0.7	)		(0.1	)		(0.1	)		(0.6	)
Foreign currency translation adjustments		(0.2	)		0.5			(0.2	)		-			-			-
Balance at December 31	$	24.0		$	42.0		$	51.4		$	8.7		$	19.1		$	20.9

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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