APS 2011 Annual Report Download - page 128

PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
103
Year Ended December 31,
2011 2010 2009
Current:
Federal $ (310) $ (108,827) $ (38,502)
State 15,140 25,545 (38,080)
Total current 14,830 (83,282) (76,582)
Deferred:
Federal 159,566 260,236 62,874
State 16,626 10,911 42,618
Discontinued operations -- (10,736) --
Total deferred 176,192 260,411 105,492
Total income tax expense 191,022 177,129 28,910
Less: income tax expense (benefit) on
discontinued operations 7,418 16,260 (109,641)
Income tax expense – continuing operations $ 183,604 $ 160,869 $ 138,551
The following chart compares pretax income from continuing operations at the 35% federal
income tax rate to income tax expense – continuing operations (dollars in thousands):
Year Ended December 31,
2011 2010 2009
Federal income tax expense at 35%
statutory rate $ 188,733 $ 177,002 $ 138,110
Increases (reductions) in tax expense
resulting from:
State income tax net of federal income
tax benefit 19,594 17,485 15,068
Credits and favorable adjustments
related to prior years resolved in
current year -- (17,300) --
Medicare Subsidy Part-D 823 1,311 (2,095)
Allowance for equity funds used during
construction (see Note 1) (6,881) (6,563) (4,265)
Palo Verde VIE noncontrolling interest
(see Note 20) (9,636) (7,057) (6,723)
Other (9,029) (4,009) (1,544)
Income tax expense – continuing operations $ 183,604 $ 160,869 $ 138,551