XML 34 R22.htm IDEA: XBRL DOCUMENT
v3.20.2

Note 14 - Income Tax Expense | 6 Months Ended
--- | ---
Jun. 30, 2020
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 1 4. Income Tax Expense The following table provides a reconciliation of income tax expense calculated at the net composite federal and state statutory rate on income before income taxes and income tax expense reported on the Company’s consolidated statements of income for the three- and six-month periods ended June 30, 2020 and 2019:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Income Before Income Taxes |  | $ | 20,789 |  |  | $ | 18,769 |  |  | $ | 50,695 |  |  | $ | 50,721 |
Tax Computed at Company’s Net Composite Federal and State Statutory Rate (26%) |  | $ | 5,405 |  |  | $ | 4,879 |  |  | $ | 13,181 |  |  | $ | 13,187 |
(Decreases) Increases in Tax from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Differences Reversing in Excess of Federal Rates |  |  | (543 | ) |  |  | (774 | ) |  |  | (1,772 | ) |  |  | (1,757 | )
Allowance for Funds Used During Construction – Equity |  |  | (248 | ) |  |  | (94 | ) |  |  | (560 | ) |  |  | (180 | )
Excess Tax Deduction – Equity Method Stock Awards |  |  | - |  |  |  | - |  |  |  | (535 | ) |  |  | (827 | )
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes |  |  | (258 | ) |  |  | (258 | ) |  |  | (516 | ) |  |  | (516 | )
Research and Development and Other Tax Credits |  |  | (333 | ) |  |  | (187 | ) |  |  | (387 | ) |  |  | (375 | )
Corporate Owned Life Insurance |  |  | (193 | ) |  |  | (150 | ) |  |  | 14 |  |  |  | (559 | )
Other Items – Net |  |  | (22 | ) |  |  | (73 | ) |  |  | 21 |  |  |  | (2 | )
Income Tax Expense |  | $ | 3,808 |  |  | $ | 3,343 |  |  | $ | 9,446 |  |  | $ | 8,971 |
Effective Income Tax Rate |  |  | 18.3 | % |  |  | 17.8 | % |  |  | 18.6 | % |  |  | 17.7 | %
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
(in thousands) |  | 2020 |  |  | 2019 |
Balance on January 1 |  | $ | 1,488 |  |  | $ | 1,282 |
Decreases Related to Tax Positions for Prior Years |  |  | (42 | ) |  |  | - |
Increases Related to Tax Positions for Current Year |  |  | 81 |  |  |  | 75 |
Uncertain Positions Resolved During Year |  |  | - |  |  |  | (42 | )
Balance on June 30 |  | $ | 1,527 |  |  | $ | 1,315 |
The balance of unrecognized tax benefits as of June 30, 2020 would reduce the Company’s effective tax rate if recognized. The total amount of unrecognized tax benefits as of June 30, 2020 could be reduced by as much as $725,000 within the next 12 months due to expected settlement. The Company classifies interest and penalties on tax uncertainties as components of the provision for income taxes in its consolidated statement of income. The Company and its subsidiaries file a consolidated U.S. federal income tax return and various state income tax returns. As of August 1, 2020, with limited exceptions, the Company is no longer subject to examinations by taxing authorities for tax years prior to 2016 for federal, Minnesota and North Dakota income taxes.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration