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TAXES (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
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 |  |

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