XML 39 R25.htm IDEA: XBRL DOCUMENT
v3.22.2

Income Tax | 6 Months Ended
--- | ---
Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax Con Edison’s income tax expense increased to $17 million for the three months ended June 30, 2022 from an $11 million income tax benefit for the three months ended June 30, 2021. The increase in income tax expense is primarily due to higher income before income tax expense, higher state income taxes, lower flow-through tax benefits in 2022 for plant related items and an increase in the reserve for uncertain tax positions for prior years at the Clean Energy Businesses, offset in part by lower income attributable to non-controlling interest, an increase in research and development credits from prior years at the Utilities and lower allowance for uncollectible accounts. CECONY’s income tax benefit decreased to $10 million for the three months ended June 30, 2022 from a $16 million income tax benefit for the three months ended June 30, 2021. The decrease in income tax benefit is primarily due to higher income before income tax expense, higher state income taxes and lower flow-through tax benefits in 2022 for plant related items, offset in part by an increase in research and development credits from prior years and lower allowance for uncollectible accounts. 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 June 30, 2022 and 2021 is as follows:
| Con Edison | CECONY
(% of Pre-tax income) | 2022 | 2021 | 2022 | 2021
STATUTORY TAX RATE |  |  |  |
Federal | 21 | % | 21 | % | 21 | % | 21 | %
Changes in computed taxes resulting from: |  |  |  |
State income tax, net of federal income tax benefit | 7 |  | 5 |  | 5 |  | 5 |
Amortization of excess deferred federal income taxes | (17) |  | (41) |  | (27) |  | (38) |
Taxes attributable to non-controlling interest | — |  | 14 |  | — |  | — |
Cost of removal | 3 |  | 5 |  | 4 |  | 5 |
Other plant-related items | (1) |  | (3) |  | (2) |  | (3) |
Renewable energy credits | (4) |  | (8) |  | — |  | — |
Allowance for uncollectible accounts | (2) |  | (1) |  | (3) |  | (1) |
Injuries and damages reserve | — |  | (2) |  | 1 |  | (2) |
Reserve for uncertain tax positions | 2 |  | — |  | — |  | — |
Research and development credits | (3) |  | — |  | (4) |  | — |
Other | — |  | — |  | (1) |  | (1) |
Effective tax rate | 6 | % | (10) | % | (6) | % | (14) | %
Con Edison’s income tax expense increased to $171 million for the six months ended June 30, 2022 from $68 million for the six months ended June 30, 2021. The increase in income tax expense is primarily due to higher income before income tax expense, higher state income taxes, lower flow-through tax benefits in 2022 for plant related items and an increase in the reserve for uncertain tax positions for prior years at the Clean Energy Businesses, offset in part by an increase in research and development credits from prior years at the Utilities, higher renewable energy credits and lower allowance for uncollectible accounts. CECONY’s income tax expense increased to $108 million for the six months ended June 30, 2022 from $98 million for the six months ended June 30, 2021. The increase in income tax expense is primarily due to higher income before income tax expense, higher state income taxes, and lower flow-through tax benefits in 2022 for plant related items, offset in part by an increase in research and development credits from prior years and lower allowance for uncollectible accounts. 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 six months ended June 30, 2022 and 2021 is as follows:
| Con Edison | CECONY
(% of Pre-tax income) | 2022 | 2021 | 2022 | 2021
STATUTORY TAX RATE |  |  |  |
Federal | 21 | % | 21 | % | 21 | % | 21 | %
Changes in computed taxes resulting from: |  |  |  |
State income tax, net of federal income tax benefit | 6 |  | 4 |  | 5 |  | 5 |
Amortization of excess deferred federal income taxes | (9) |  | (14) |  | (12) |  | (13) |
Taxes attributable to non-controlling interest | 1 |  | 2 |  | — |  | — |
Cost of removal | 1 |  | 2 |  | 2 |  | 2 |
Other plant-related items | (1) |  | (1) |  | (1) |  | (1) |
Renewable energy credits | (2) |  | (3) |  | — |  | — |
Reserve for uncertain tax positions | 1 |  | — |  | — |  | — |
Research and development credits | (1) |  | — |  | (1) |  |
Effective tax rate | 17 | % | 11 | % | 14 | % | 14 | %
In April 2021, New York State passed a law that increased the corporate franchise tax rate on business income from 6.5% to 7.25%, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875%, not to exceed an annual maximum tax liability of $5 million per taxpayer. New York State requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a business capital tax are scheduled to expire after 2023 and are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity. Uncertain Tax Positions As a result of an unfavorable settlement reached at appeals with the IRS in the second quarter of 2022, the Clean Energy Businesses increased its reserve for uncertain tax positions for prior years by $5 million. At June 30, 2022, the estimated liability for uncertain tax positions for Con Edison was $22 million ($6 million for CECONY). Con Edison reasonably expects to resolve within the next twelve months approximately $18 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 $4 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 $22 million, with $6 million attributable to CECONY. 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. For the six months ended June 30, 2022 and 2021, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At June 30, 2022 and December 31, 2021, 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration