APS 2013 Annual Report Download - page 170

Table of Contents
ARIZONA PUBLIC SERVICE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The components of APS’s income tax expense are as follows (dollars in thousands):
Year Ended December 31,
2013 2012 2011
Current:
Federal $(97,531) $ (11,650) $ 4,633
State 11,983 12,308 19,104
Total current (85,548)658 23,737
Deferred:
Federal 305,389 216,367 154,632
State 25,254 27,371 14,173
Total deferred 330,643 243,738 168,805
Total income tax expense $245,095 $ 244,396 $ 192,542
On the APS Statements of Income, federal and state income taxes are allocated between operating income and other income.
The following chart compares APS’s pretax income at the 35% federal income tax rate to income tax expense (dollars in thousands):
Year Ended December 31,
2013 2012 2011
Federal income tax expense at 35% statutory rate $246,384 $ 235,027 $ 194,710
Increases (reductions) in tax expense resulting from:
State income tax net of federal income tax benefit 23,970 25,379 21,139
Credits and favorable adjustments related to prior years resolved in current
year (3,231) — —
Medicare Subsidy Part-D 823 483 823
Allowance for equity funds used during construction (see Note 1) (6,997)(6,158) (6,880)
Palo Verde VIE noncontrolling interest (see Note 19) (11,862)(11,065) (9,633)
Other (3,992)730 (7,617)
Income tax expense $245,095 $ 244,396 $ 192,542
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