Duke Energy 2012 Annual Report Download - page 252

PART II
232
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY
CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
24. INCOME TAXES
Duke Energy and its subsidiaries fi le income tax returns in the U.S. with federal and various state governmental authorities, and in certain foreign jurisdictions.
The taxable income of Duke Energy and its subsidiaries is refl ected in Duke Energy’s U.S. federal and state income tax returns. These subsidiaries have a tax sharing
agreement with Duke Energy where the separate return method is used to allocate tax expenses and benefi ts to the subsidiaries whose investments or results of
operations provide these tax expenses and benefi ts. The accounting for income taxes essentially represents the income taxes that each of these subsidiaries would
incur if it were a separate company fi ling its own tax return as a C-Corporation.
Components of Income Tax Expense
Year Ended December 31, 2012
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Progress
Energy
Carolinas
Progress
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Current Income taxes
Federal $ (46) $ (1) $ (88) $ (48) $ 6 $ 26 $ (27)
State 35 (25) 2 (6) — 11 27
Foreign 133 — — — — — —
Total current income taxes 122 (26) (86) (54) 6 37 —
Deferred income taxes
Federal 513 408 226 162 121 72 (47)
State 64 77 40 9 21 (9) (25)
Foreign 20 — — — — — —
Total deferred income taxes(a) 597 485 266 171 142 63 (72)
Investment tax credit amortization (14) (6) (8) (7) (1) (2) (1)
Income tax expense (benefi t) from continuing operations(b) 705 453 172 110 147 98 (73)
Tax expense from discontinued operations 24 — 29 — — — —
Total income tax expense (benefi t) included in Consolidated Statements of Operations $729 $ 453 $201 $110 $147 $ 98 $(73)
(a) Includes benefi ts of net operating loss (NOL) carryforwards of $1,127 million at Duke Energy, $245 million at Duke Energy Carolinas, $357 million at Progress Energy, $257 million at Progress Energy Carolinas, $25 million at
Progress Energy Florida, $99 million at Duke Energy Ohio and $205 million at Duke Energy Indiana.
(b) Includes uncertain tax benefi ts relating primarily to certain temporary differences of $27 million at Duke Energy, $11 million at Duke Energy Carolinas, $(42) million at Progress Energy, $(6) million at Progress Energy
Carolinas, $(36) million at Progress Energy Florida, $4 million at Duke Energy Ohio and $9 million at Duke Energy Indiana. The offset to these temporary differences are included in deferred income taxes.