TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

Components of income tax expense are detailed in the following tables.


Evergy	2020		2019		2018
Current income taxes	(millions)
Federal	$	(26.8)	$	(39.5)	$	(67.4)
State	2.1		15.0		2.2
Total	(24.7)		(24.5)		(65.2)
Deferred income taxes
Federal	73.1		93.2		160.1
State	59.8		27.5		(32.3)
Total	132.9		120.7		127.8





Investment tax credit
Deferral	—		5.2		—
Amortization	(6.0)		(4.4)		(3.6)
Total	(6.0)		0.8		(3.6)
Income tax expense	$	102.2	$	97.0	$	59.0


Evergy Kansas Central	2020		2019		2018
Current income taxes	(millions)
Federal	$	14.5	$	37.9	$	(0.3)
State	(5.3)		2.6		(1.8)
Total	9.2		40.5		(2.1)
Deferred income taxes
Federal	(16.7)		(8.9)		43.5
State	168.1		18.4		(42.9)
Total	151.4		9.5		0.6




Investment tax credit
Deferral	—		5.2		—
Amortization	(4.8)		(3.1)		(2.8)
Total	(4.8)		2.1		(2.8)
Income tax expense (benefit)	$	155.8	$	52.1	$	(4.3)


Evergy Metro(a)	2020		2019		2018
Current income taxes	(millions)
Federal	$	(0.2)	$	43.9	$	29.8
State	10.8		22.4		8.9
Total	10.6		66.3		38.7
Deferred income taxes
Federal	29.8		(24.5)		(3.4)
State	(32.2)		(5.0)		53.0
Total	(2.4)		(29.5)		49.6




Investment tax credit

Amortization	(1.1)		(1.1)		(1.0)
Total	(1.1)		(1.1)		(1.0)
Income tax expense	$	7.1	$	35.7	$	87.3

(a) Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

Schedule of Effective Income Tax Rate Reconciliation

Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.


Evergy	2020		2019		2018
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(1.6)		(1.8)		(1.9)
State income taxes	4.3		5.0		4.9
Flow through depreciation for plant-related differences	(5.3)		(4.5)		0.8
Federal tax credits	(4.6)		(4.9)		(6.4)
Non-controlling interest	(0.3)		(0.4)		(0.4)
AFUDC equity	(0.5)		(0.1)		(0.1)
Amortization of federal investment tax credits	(0.6)		(0.5)		(0.6)
Changes in uncertain tax positions, net	—		(0.2)		0.1
Federal or state tax rate change	1.9		—		(8.7)
Valuation allowance	(0.2)		(1.0)		0.4
Stock compensation	(0.1)		0.1		(0.4)
Officer compensation limitation	0.2		0.1		1.2
Other	(0.2)		(0.4)		(0.2)
Effective income tax rate	14.0	%	12.4	%	9.7	%


Evergy Kansas Central	2020		2019		2018
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(2.8)		(3.3)		(3.3)
State income taxes	3.8		5.3		5.0
Flow through depreciation for plant-related differences	(0.1)		(0.1)		1.6
Federal tax credits	(7.1)		(7.4)		(10.4)
Non-controlling interest	(0.6)		(0.8)		(0.6)
AFUDC equity	(0.5)		(0.1)		(0.2)
Amortization of federal investment tax credits	(0.7)		(0.7)		(0.8)
Changes in uncertain tax positions, net	—		(0.4)		0.1
Federal or state tax rate change	27.8		—		(15.3)
Valuation allowance	—		(0.4)		0.5
Stock compensation	(0.1)		(0.1)		(0.8)
Officer compensation limitation	—		—		1.8
Other	(0.9)		(0.3)		0.2
Effective income tax rate	39.8	%	12.7	%	(1.2)	%


Evergy Metro(a)	2020		2019		2018
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(0.3)		(0.2)		(0.2)
State income taxes	4.9		4.7		5.5
Flow through depreciation for plant-related differences	(10.0)		(9.4)		(2.5)
Federal tax credits	(1.9)		(2.5)		(2.1)
AFUDC equity	(0.5)		(0.2)		(0.1)
Amortization of federal investment tax credits	(0.4)		(0.4)		(0.4)

Federal or state tax rate change	(10.5)		—		14.1

Stock compensation	(0.4)		—		—
Officer compensation limitation	0.4		0.3		0.6
Other	—		(1.0)		(1.0)
Effective income tax rate	2.3	%	12.3	%	34.9	%

(a)Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

Schedule of Deferred Income Tax Assets and Liabilities

The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table.


	December 31
	2020						2019
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Deferred tax assets:	(millions)
Tax credit carryforward	$	379.6	$	176.5	$	195.9	$	548.9	$	337.3	$	204.4
Income taxes refundable to customers, net	418.2		237.5		132.8		466.3		234.3		176.2
Deferred employee benefit costs	227.6		105.4		117.9		197.0		93.4		120.4
Net operating loss carryforward	51.0		—		0.2		163.4		23.1		61.9
Deferred state income taxes	145.9		101.7		37.8		64.4		64.4		—
Alternative minimum tax carryforward	—		—		—		37.9		13.4		—
Accrued liabilities	152.7		61.8		61.0		80.4		14.5		29.1
Other	181.0		91.4		44.8		183.2		99.1		55.1
Total deferred tax assets before valuation allowance	1,556.0		774.3		590.4		1,741.5		879.5		647.1
Valuation allowances	(14.4)		—		—		(17.5)		—		—
Total deferred tax assets, net	1,541.6		774.3		590.4		1,724.0		879.5		647.1
Deferred tax liabilities:
Plant-related	(2,693.7)		(1,341.2)		(972.1)		(3,004.8)		(1,428.3)		(1,143.2)
Deferred employee benefit costs	(171.4)		(75.6)		(76.3)		(173.3)		(93.4)		(79.5)
ARO regulatory assets	(136.7)		(49.9)		(54.3)		(102.3)		(53.4)		(13.8)
Acquisition premium	(46.9)		(46.9)		—		(68.2)		(68.2)		—
Other	(157.7)		(85.2)		(46.5)		(119.8)		(53.9)		(53.4)
Total deferred tax liabilities	(3,206.4)		(1,598.8)		(1,149.2)		(3,468.4)		(1,697.2)		(1,289.9)
Net deferred income tax liabilities	$	(1,664.8)	$	(824.5)	$	(558.8)	$	(1,744.4)	$	(817.7)	$	(642.8)

Summary of Related Tax Benefit Amounts

The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2020 are detailed in the following table.


	Amount of Benefit
Year of Origin	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)


2003	0.1		—		—
2004	0.1		—		—
2005	0.1		—		—
2006	0.1		—		—
2007	0.1		—		—
2008	27.4		0.5		26.6
2009	47.7		0.2		47.3
2010	18.3		—		18.2
2011	13.3		—		13.2
2012	12.8		2.0		10.7
2013	24.3		11.3		12.9
2014	24.1		10.7		13.0
2015	24.7		10.9		13.2
2016	27.1		11.0		12.4
2017	43.9		35.1		8.2
2018	43.9		36.3		7.5
2019	37.7		30.9		6.7
2020	33.9		27.6		6.0
	$	379.6	$	176.5	$	195.9

Summary of Operating Loss Carryforwards

The year of origin of Evergy's related tax benefit amounts for federal NOL carryforwards as of December 31, 2020 are detailed in the following table.


Year of Origin	Amount of Benefit
	(millions)




2005	$	10.2
2006	32.0
	$	42.2