APS 2013 Annual Report Download - page 108

Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Statements of Income related to unrecognized tax benefits was a pre-tax benefit of $4 million for 2013, a pre-tax expense of $4 million for 2012, and a pre-tax
expense of $3 million for 2011.
The total amount of accrued liabilities for interest recognized in the Consolidated Balance Sheets related to unrecognized tax benefits was less than $1
million as of December 31, 2013, $13 million as of December 31, 2012 and $9 million as of December 31, 2011. To the extent that matters are settled
favorably, this amount could reverse and decrease our effective tax rate. Additionally, as of December 31, 2013, we have recognized $5 million of interest
income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS.
The components of income tax expense are as follows (dollars in thousands):
Year Ended December 31,
2013 2012 2011
Current:
Federal $(81,784) $ (3,493) $ (310)
State 10,537 8,395 15,140
Total current (71,247) 4,902 14,830
Deferred:
Federal 279,973 200,322 159,566
State 21,865 28,280 16,626
Total deferred 301,838 228,602 176,192
Total income tax expense 230,591 233,504 191,022
Less: income tax expense (benefit) on discontinued operations —(3,813) 7,418
Income tax expense — continuing operations $230,591 $237,317 $183,604
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