Duke Energy 2011 Annual Report Download - page 231

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Reconciliation of Income Tax Expense at the U.S. Federal
Statutory Tax Rate to the Actual Tax Expense from Continuing
Operations (Statutory Rate Reconciliation)
For the Year Ended
December 31, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense,
computed at the statutory
rate of 35% $863 $457 $102 $ 85
State income tax, net of
federal income tax
effect 50 46 (1) 13
Tax differential on
foreign earnings (44) — — —
AFUDC equity income (91) (59) (2) (31)
Other items, net (26) 28 (3) 7
Total income tax
expense from
continuing
operations $752 $472 $ 96 $ 74
Effective tax rate 30.5% 36.1% 33.1% 30.6%
For the Year Ended
December 31, 2010
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense,
computed at the statutory
rate of 35% $ 774 $ 454 $ (108) $ 155
State income tax, net of
federal income tax
effect 82 48 14 26
Tax differential on
foreign earnings (22) — — —
Goodwill impairment
charges 175 — 237 —
AFUDC equity income (82) (61) (2) (20)
Other items, net (37) 16 (9) (5)
Total income tax
expense from
continuing
operations $ 890 $ 457 $ 132 $ 156
Effective tax rate 40.3% 35.3% (43.0)% 35.5%
For the Year Ended
December 31, 2009
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense, computed at
the statutory rate of 35% $ 641 $ 378 $ (84) $ 111
State income tax, net of federal
income tax effect 98 40 9 18
Tax differential on foreign
earnings (16) — — —
Goodwill impairment charges 130 — 254 —
AFUDC equity income (53) (44) 1 (10)
Other items, net (42) 3 6 (3)
Total income tax expense
from continuing
operations $ 758 $ 377 $ 186 $ 116
Effective tax rate 41.4% 34.9% (77.5)% 36.7%
Valuation allowances have been established for certain foreign
and state net operating loss carryforwards that reduce deferred tax
assets to an amount that will be realized on a more-likely-than-not
basis. The net change in the total valuation allowance is included in
Tax differential on foreign earnings and State income tax, net of
federal income tax effect in the above table.
Net Deferred Income Tax Liability Components
For the Year Ended
December 31, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Ohio
Duke
Energy
Indiana
2Deferred credits and other
liabilities $ 790 $ 228 $ 68 $ 92
TaxCreditsandNOL
Carryforwards(a) 930 199 — 95
Investments and other assets —— 3—
Other 137 18 31 5
Total deferred income tax
assets 1,857 445 102 192
Valuation allowance (144)———
Net deferred income tax
assets 1,713 445 102 192
Investments and other assets (809) (720) — (2)
Accelerated depreciation rates (6,989) (3,576) (1,706) (968)
Regulatory assets and deferred
debits (1,219) (658) (216) (136)
Total deferred income tax
liabilities (9,017) (4,954) (1,922) (1,106)
Net deferred income tax
liabilities $(7,304) $(4,509) $(1,820) $ (914)
(a) See Tax Credits and NOL Carryforwards table below.
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