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2314301 - Disclosure - Income Tax Expense (Tables)
(http://www.allete.com/role/IncomeTaxExpenseTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Income Tax Disclosure [Abstract]
 
Income Tax Expense [Table Text Block]
Income Tax Expense
 
 
 
Year Ended December 31
2016

2015

2014

Millions
 
 
 
Current Tax Expense (a)
 
 
 
Federal


$1.1
State
$0.4
$0.2
2.9
Total Current Tax Expense

$0.4


$0.2


$4.0

Deferred Tax Expense
 
 
 
Federal

$12.0


$19.4


$25.3

State
8.1

6.5

8.2

Investment Tax Credit Amortization
(0.7
)
(0.8
)
(0.8
)
Total Deferred Tax Expense

$19.4


$25.1


$32.7

Total Income Tax Expense

$19.8


$25.3


$36.7

(a)
For the years ended December 31, 2016, 2015 and 2014, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012. The federal and state NOLs will be carried forward to offset future taxable income. The year ended December 31, 2014, includes the resolution of an Internal Revenue Service examination for tax years 2005 through 2009 and the impacts of initiatives implemented on the 2013 federal and state tax returns to utilize tax carryforwards that may have expired.
 
 
Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense [Table Text Block]
Reconciliation of Taxes from Federal Statutory
 
 
 
Rate to Total Income Tax Expense
 
 
 
Year Ended December 31
2016

2015

2014

Millions
 
 
 
Income Before Non-Controlling Interest and Income Taxes

$175.6


$166.8


$162.2

Statutory Federal Income Tax Rate
35
%
35
%
35
%
Income Taxes Computed at 35 percent Statutory Federal Rate

$61.5


$58.4


$56.8

Increase (Decrease) in Tax Due to:
 
 
 
State Income Taxes – Net of Federal Income Tax Benefit
5.6

4.4

7.2

Regulatory Differences for Utility Plant
(0.1
)
(0.6
)
(3.5
)
Production Tax Credits
(41.5
)
(37.0
)
(23.7
)
Change in Fair Value of Contingent Consideration
(3.8
)


Other
(1.9
)
0.1

(0.1
)
Total Income Tax Expense

$19.8


$25.3


$36.7

 
 
Deferred Tax Assets and Liabilities [Table Text Block]
Deferred Tax Assets and Liabilities
 
 
As of December 31
2016

2015

Millions
 
 
Deferred Tax Assets
 
 
Employee Benefits and Compensation

$104.6


$105.4

Property Related
117.8

126.6

NOL Carryforwards
185.6

186.4

Tax Credit Carryforwards
227.4

164.8

Power Sales Agreements
59.3

73.0

Other
46.9

21.8

Gross Deferred Tax Assets
741.6

678.0

Deferred Tax Asset Valuation Allowance
(43.0
)
(31.6
)
Total Deferred Tax Assets

$698.6


$646.4

Deferred Tax Liabilities
 
 
Property Related

$1,094.7


$1,053.0

Regulatory Asset for Benefit Obligations
91.9

89.4

Unamortized Investment Tax Credits
33.3

26.0

Partnership Basis Differences
50.9

47.8

Other
11.9

10.0

Total Deferred Tax Liabilities

$1,282.7


$1,226.2

Net Deferred Income Taxes (a)

$584.1


$579.8


(a)
Recorded as a net long-term Deferred Income Tax liability on the Consolidated Balance Sheet.

 
 
NOL and Tax Credit Carryforwards [Table Text Block]
NOL and Tax Credit Carryforwards
 
 
As of December 31
2016
2015

Millions
 
 
Federal NOL Carryforwards (a)
$485.3

$493.0

Federal Tax Credit Carryforwards
$163.7
$113.6
State NOL Carryforwards (a)
$294.4
$228.6
State Tax Credit Carryforwards (b)
$21.0
$20.0

(a)
Pre-tax amounts.
(b)
Net of a $42.7 million valuation allowance as of December 31, 2016 ($31.2 million as of December 31, 2015).
 
 
NOL and Tax Credit Carryforwards [Table Text Block]
NOL and Tax Credit Carryforwards
 
 
As of December 31
2016
2015

Millions
 
 
Federal NOL Carryforwards (a)
$485.3

$493.0

Federal Tax Credit Carryforwards
$163.7
$113.6
State NOL Carryforwards (a)
$294.4
$228.6
State Tax Credit Carryforwards (b)
$21.0
$20.0

(a)
Pre-tax amounts.
(b)
Net of a $42.7 million valuation allowance as of December 31, 2016 ($31.2 million as of December 31, 2015).
 
 
Gross Unrecognized Income Tax Benefits [Table Text Block]
Gross Unrecognized Income Tax Benefits
2016

2015

2014

Millions
 
 
 
Balance at January 1

$2.4


$2.0


$1.2

Additions for Tax Positions Related to the Current Year
0.1

0.5


Additions for Tax Positions Related to Prior Years
0.2

0.7

1.0

Reductions for Tax Positions Related to Prior Years
(0.3
)
(0.7
)

Lapse of Statute
(0.4
)
(0.1
)
(0.2
)
Balance as of December 31

$2.0


$2.4


$2.0