XML 55 R20.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Accounting For Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Accounting for Income Taxes | NOTE 12. ACCOUNTIN G FOR INCOME TAXES Income Tax Expense Income tax expense consisted of the following for the years ended December 31 (dollars in thousands):
|  | 2021 |  |  | 2020 |  |  | 2019 |
Current income tax expense (benefit) |  | $ | 807 |  |  | $ | (37,913 | ) |  | $ | 16,276 |
Deferred income tax expense |  |  | 11,224 |  |  |  | 44,964 |  |  |  | 15,098 |
Total income tax expense |  | $ | 12,031 |  |  | $ | 7,051 |  |  | $ | 31,374 |
State income taxes do not represent a significant portion of total income tax expense on the Consolidated Statements of Income for any periods presented. A reconciliation of federal income taxes derived from the statutory federal tax rate of 21 percent applied to income before income taxes as set forth in the accompanying Consolidated Statements of Income is as follows for the years ended December 31 (dollars in thousands):
|  | 2021 |  |  | 2020 |  |  | 2019 |
Federal income taxes at statutory rates |  | $ | 33,467 |  |  |  | 21.0 | % |  | $ | 28,673 |  |  |  | 21.0 | % |  | $ | 47,909 |  |  |  | 21.0 | %
Increase (decrease) in tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax effect of regulatory treatment of utility plant differences |  |  | (13,820 | ) |  |  | (8.7 | ) |  |  | (12,893 | ) |  |  | (9.4 | ) |  |  | (9,967 | ) |  |  | (4.3 | )
State income tax expense |  |  | 1,385 |  |  |  | 0.8 |  |  |  | 814 |  |  |  | 0.6 |  |  |  | 1,465 |  |  |  | 0.6 |
Acquisition costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,712 | ) |  |  | (0.7 | )
Flow through related to deduction of meters and mixed service costs (1) |  |  | (8,678 | ) |  |  | (5.4 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Non-plant excess deferred turnaround (2) |  |  | — |  |  |  | — |  |  |  | (8,476 | ) |  |  | (6.2 | ) |  |  | (5,690 | ) |  |  | (2.5 | )
Tax loss on sale of METALfx |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,272 | ) |  |  | (0.6 | )
Customer refunds related to prior years at 35 percent |  |  | — |  |  |  | — |  |  |  | (1,189 | ) |  |  | (0.9 | ) |  |  | — |  |  |  | — |
Other |  |  | (323 | ) |  |  | (0.2 | ) |  |  | 122 |  |  |  | 0.1 |  |  |  | 641 |  |  |  | 0.3 |
Total income tax expense |  | $ | 12,031 |  |  |  | 7.5 | % |  | $ | 7,051 |  |  |  | 5.2 | % |  | $ | 31,374 |  |  |  | 13.8 | %
(1) With the approval of the Idaho and Washington general rate cases in 2021, a change in tax methodology resulted in recognizing a flow through benefit related to meters and mixed service costs. (2) In March 2020, the WUTC approved an all-party settlement agreement related to electric tax benefits that were set aside for Colstrip in the 2020 general rate case order. In the approved settlement agreement, the parties agreed to utilize $10.9 million ($8.4 million when tax-effected) of the electric benefits to offset costs associated with accelerating the depreciation of Colstrip Units, to reflect a remaining useful life through December 31, 2025. In the second quarter of 2020, the Company recorded a one-time increase to depreciation expense with an offsetting decrease to income tax expense. In March 2019, the IPUC approved an all-party settlement agreement related to electric tax benefits that were set aside for Colstrip in the 2020 general rate case order. In the approved settlement agreement, the parties agreed to utilize $6.4 million ($5.1 million when tax-effected) of the electric benefits to offset costs associated with accelerating the depreciation of Colstrip, to reflect a remaining useful life through December 31, 2027. In the second quarter of 2019, the Company recorded a one-time increase to depreciation expense with an offsetting decrease to income tax expense. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and tax credit carryforwards. The total net deferred income tax liability consisted of the following as of December 31 (dollars in thousands):
|  | 2021 |  |  | 2020 |
Deferred income tax assets: |  |  |  |  |  |
Regulatory liabilities |  | $ | 200,513 |  |  | $ | 179,871 |
Tax credits and NOL carryforwards |  |  | 64,994 |  |  |  | 57,516 |
Provisions for pensions |  |  | 25,650 |  |  |  | 37,501 |
Other |  |  | 38,181 |  |  |  | 42,641 |
Total gross deferred income tax assets |  |  | 329,338 |  |  |  | 317,529 |
Valuation allowances for deferred tax assets |  |  | (9,626 | ) |  |  | (10,021 | )
Total deferred income tax assets after valuation allowances |  |  | 319,712 |  |  |  | 307,508 |
Deferred income tax liabilities: |  |  |  |  |  |
Utility property, plant, and equipment |  |  | 688,856 |  |  |  | 666,639 |
Regulatory assets |  |  | 264,978 |  |  |  | 232,697 |
Other |  |  | 8,587 |  |  |  | 2,884 |
Total deferred income tax liabilities |  |  | 962,421 |  |  |  | 902,220 |
Net long-term deferred income tax liability |  | $ | 642,709 |  |  | $ | 594,712 |
The realization of deferred income tax assets is dependent upon the ability to generate taxable income in future periods. The Company evaluated available evidence supporting the realization of its deferred income tax assets and determined it is more likely than not that deferred income tax assets will be realized. As of December 31, 2021, the Company had $17.1 million of state tax credit carryforwards. Of the total amount, the Company believes that it is more likely than not that it will only be able to utilize $7.5 million of the state tax credits. As such, the Company has recorded a valuation allowance of $9.6 million against the state tax credit carryforwards and reflected the net amount of $7.5 million as an asset as of December 31, 2021. State tax credits expire from 2022 to 2035. Status of Internal Revenue Service (IRS) and State Examinations The Company and its eligible subsidiaries file consolidated federal income tax returns. All tax years after 2017 are open for an IRS tax examination. The Company also files state income tax returns in certain jurisdictions, including Idaho, Oregon, Montana and Alaska. Subsidiaries are charged or credited with the tax effects of their operations on a stand-alone basis. The Idaho State Tax Commission is currently reviewing tax years 2014 through 2017. All tax years after 2017 are open for examination in Idaho, Oregon, Montana and Alaska. The Company believes that any open tax years for federal or state income taxes will not result in adjustments that would be significant to the consolidated financial statements.

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 http://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 http://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 http://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 http://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 http://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 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 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 http://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