Duke Energy 2013 Annual Report Download - page 218

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PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Year Ended December 31, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Current income taxes
Federal $ (37) $(122) $ (91) $ (27) $ (60) $ (95) $ 95
State 21 30 29 21 5 1 42
Foreign 164 — — — — — —
Total current income taxes 148 (92) (62) (6) (55) (94) 137
Deferred income taxes
Federal 526 531 365 262 214 194 (38)
State 56 40 27 6 22 (2) (23)
Foreign 32 — — — — — —
Total deferred income taxes(a) 614 571 392 268 236 192 (61)
Investment tax credit amortization (10) (7) (7) (6) (1) (2) (2)
Income tax expense from continuing operations 752 472 323 256 180 96 74
Tax benefit from discontinued operations — — (3) — — — —
Total income tax expense included in Consolidated
Statements of Operations $ 752 $ 472 $320 $ 256 $180 $ 96 $ 74
(a) Includes benefits of NOL carryforwards of $274 million at Duke Energy, $79 million at Duke Energy Carolinas, $213 million at Progress Energy, $54 million at Duke Energy Progress, $41 million at Duke Energy Florida and $47
million at Duke Energy Ohio.
Duke Energy Income from Continuing Operations before Income Taxes
Years Ended December 31,
(in millions) 2013 2012 2011
Domestic $ 3,320 $1,827 $1,780
Foreign 600 624 685
Income from continuing operations before income taxes $ 3,920 $2,451 $2,465
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
Year Ended December 31, 2013
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Income tax expense, computed at the statutory rate of 35 percent $ 1,372 $ 549 $ 361 $ 276 $ 188 $ 62 $ 203
State income tax, net of federal income tax effect 67 56 31 31 20 2 23
Tax differential on foreign earnings (45) — — — — — —
AFUDC equity income (55) (32) (18) (15) (3) — (5)
Renewable energy production tax credits (59) — — — — — —
Other items, net (19) 21 (1) (4) 8 11 2
Income tax expense from continuing operations $ 1,261 $ 594 $ 373 $ 288 $ 213 $ 75 $ 223
Effective tax rate 32.2 % 37.8 % 36.2 % 36.5 % 39.6 % 42.2 % 38.4 %