Duke Energy 2012 Annual Report Download - page 254

PART II
234
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)
Duke Energy Income from Continuing Operations before Income Taxes
Years Ended December 31,
(in millions) 2012 2011 2010
Domestic $1,827 $1,780 $1,731
Foreign 624 685 479
Income from continuing operations before income taxes $ 2,451 $2,465 $2,210
Reconciliation of Income Tax Expense at the U.S. Federal Statutory Tax Rate to the Actual Tax Expense from Continuing Operations (Statutory Rate
Reconciliation)
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
Income tax expense, computed at the statutory rate of 35% $ 858 $ 461 $ 185 $ 134 $ 145 $ 96 $ (43)
State income tax, net of federal income tax effect 64 34 33 1 14 1 1
Tax differential on foreign earnings (66) — — — — — —
AFUDC equity income (101) (54) (37) (24) (13) (2) (26)
Other items, net (50) 12 (9) (1) 1 3 (5)
Income tax expense from continuing operations $ 705 $ 453 $ 172 $ 110 $ 147 $ 98 $ (73)
Effective tax rate 28.8% 34.3% 32.7% 28.7% 35.7% 36.0% 59.5%
Year Ended December 31, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Progress
Energy
Carolinas
Progress
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense, computed at the statutory rate of 35% $ 863 $ 457 $ 319 $ 270 $ 173 $ 102 $ 85
State income tax, net of federal income tax effect 50 46 39 18 17 (1) 13
Tax differential on foreign earnings (44) — — — — — —
AFUDC equity income (91) (59) (36) (25) (11) (2) (31)
Other items, net (26) 28 1 (7) 1 (3) 7
Income tax expense from continuing operations $ 752 $ 472 $ 323 $ 256 $ 180 $ 96 $ 74
Effective tax rate 30.5% 36.1% 35.6% 33.2% 36.3% 33.1% 30.6%
Year Ended December 31, 2010
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Progress
Energy
Carolinas
Progress
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense, computed at the statutory rate of 35% $ 774 $ 454 $ 492 $ 333 $ 255 $ (108) $ 155
State income tax, net of federal income tax effect 82 48 60 30 23 14 26
Tax differential on foreign earnings (22) — — — — — —
Goodwill impairment charges 175 — — — — 237 —
AFUDC equity income (82) (61) (32) (22) (10) (2) (20)
Other items, net (37) 16 19 9 8 (9) (5)
Income tax expense from continuing operations $ 890 $ 457 $ 539 $ 350 $ 276 $ 132 $ 156
Effective tax rate 40.3% 35.3% 38.3% 36.8% 37.9% (43.0)% 35.5%