XML 89 R19.htm IDEA: XBRL DOCUMENT
v3.19.3

Income Tax | 9 Months Ended
--- | ---
Sep. 30, 2019
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax Con Edison’s income tax expense decreased to $116 million for the three months ended September 30, 2019 from $175 million for the three months ended September 30, 2018. The decrease in income tax expense is primarily due to lower income before income tax expense (excluding income attributable to noncontrolling interest (see Note N)), lower state income taxes, the absence of a $42 million re-measurement of deferred tax assets due to the TCJA associated with Con Edison’s 2017 federal net operating loss carryforward into 2018 recognized at the filing of its 2017 federal tax return, an increase in the amortization of excess deferred federal income taxes due to the TCJA and higher renewable energy credits and adjustments for prior period federal income tax returns primarily due to increased research and development credits at the Clean Energy Businesses, offset, in part, by an increase in uncertain tax positions at the Clean Energy Businesses. CECONY’s income tax expense decreased to $119 million for the three months ended September 30, 2019 from $125 million for the three months ended September 30, 2018. The decrease in income tax expense is primarily due to lower income before income tax expense, lower state income taxes and an increase in the amortization of excess deferred federal income taxes due to the TCJA, offset, in part, by lower tax benefits in 2019 for plant-related flow through items and adjustments for the 2017 federal income tax return primarily due to increased non-deductible business expenses. Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended September 30, 2019 and 2018 is as follows:
| Con Edison | CECONY
(% of Pre-tax income) | 2019 |  | 2018 |  | 2019 |  | 2018 |
STATUTORY TAX RATE |  |  |  |
Federal | 21 | % | 21 | % | 21 | % | 21 | %
Changes in computed taxes resulting from: |  |  |  |
State income tax | 4 |  | 5 |  | 5 |  | 5 |
Other plant-related items | — |  | (1 | ) | — |  | (1 | )
Renewable energy credits | (1 | ) | (1 | ) | — |  | — |
TCJA deferred tax re-measurement | — |  | 7 |  | — |  | — |
Reserve for uncertain tax positions | 1 |  | — |  | — |  | — |
Amortization of excess deferred federal income taxes | (3 | ) | (2 | ) | (3 | ) | (2 | )
Prior period return adjustments | (2 | ) | — |  | — |  | — |
Other | — |  | (1 | ) | (1 | ) | (1 | )
Effective tax rate | 20 | % | 28 | % | 22 | % | 22 | %
Con Edison’s income tax expense decreased to $243 million for the nine months ended September 30, 2019 from $330 million for the nine months ended September 30, 2018. The decrease in income tax expense is primarily due to lower income before income tax expense (excluding income attributable to noncontrolling interest (see Note N)), lower state income taxes, the absence of a $42 million re-measurement of deferred tax assets due to the TCJA associated with Con Edison’s 2017 federal net operating loss carryforward into 2018 recognized at the filing of its 2017 federal tax return, an increase in the amortization of excess deferred federal income taxes due to the TCJA, higher renewable energy credits and adjustments for prior period federal income tax returns primarily due to increased research and development credits at the Clean Energy Businesses, offset, in part, by an increase in uncertain tax positions at the Clean Energy Businesses. CECONY’s income tax expense decreased to $271 million for the nine months ended September 30, 2019 from $274 million for the nine months ended September 30, 2018. The decrease in income tax expense is primarily due to lower state income taxes and an increase in the amortization of excess deferred federal income taxes due to the TCJA, offset, in part, by higher income before income tax expense and lower tax benefits in 2019 for plant-related flow through items and adjustments for the 2017 federal income tax returns primarily due to increased non-deductible business expenses. Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the nine months ended September 30, 2019 and 2018 is as follows:
| Con Edison | CECONY
(% of Pre-tax income) | 2019 |  | 2018 |  | 2019 |  | 2018 |
STATUTORY TAX RATE |  |  |  |
Federal | 21 | % | 21 | % | 21 | % | 21 | %
Changes in computed taxes resulting from: |  |  |  |
State income tax | 4 |  | 5 |  | 5 |  | 5 |
Cost of removal | 1 |  | 1 |  | 1 |  | 1 |
Other plant-related items | — |  | (1 | ) | (1 | ) | (1 | )
Renewable energy credits | (2 | ) | (1 | ) | — |  | — |
TCJA deferred tax re-measurement | — |  | 3 |  | — |  | — |
Amortization of excess deferred federal income taxes | (4 | ) | (3 | ) | (3 | ) | (3 | )
Other | (1 | ) | (1 | ) | (1 | ) | (1 | )
Effective tax rate | 19 | % | 24 | % | 22 | % | 22 | %
CECONY and O&R deferred as regulatory liabilities their estimated net benefits under the TCJA for the nine months ended September 30, 2018. CECONY's net benefits prior to January 1, 2019 for its electric service and amortization of excess deferred federal income taxes for its electric service for the nine months ended September 30, 2019 continue to be deferred. RECO deferred as a regulatory liability its estimated net benefits under the TCJA for the three months ended March 31, 2018. The net benefits include the revenue requirement impact of the reduction in the corporate federal income tax rate to 21 percent, the elimination for utilities of bonus depreciation and the amortization of excess deferred federal income taxes the utilities collected from customers that will not need to be paid to the Internal Revenue Service under the TCJA. See “Other Regulatory Matters” in Note B. Uncertain Tax Positions At September 30, 2019, the estimated liability for uncertain tax positions for Con Edison was $15 million ($4 million for CECONY). Con Edison reasonably expects to resolve within the next twelve months approximately $12 million of various federal and state uncertainties due to the expected completion of ongoing tax examinations, of which the entire amount, if recognized, would reduce Con Edison's effective tax rate. The amount related to CECONY is approximately $3 million, which, if recognized, would reduce CECONY’s effective tax rate. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $15 million ($14 million, net of federal taxes). The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. In the three and nine months ended September 30, 2019, the Companies recognized an immaterial amount of interest expense and penalties for uncertain tax positions in their consolidated income statements. At September 30, 2019 and December 31, 2018, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration