Energy Transfer 2013 Annual Report Download - page 192

Table of Contents
Deferred taxes result from the temporary differences between financial reporting carrying amounts and the tax basis of existing assets and liabilities. The
table below summarizes the principal components of the deferred tax assets (liabilities) as follows:
December 31,
2013
2012
Deferred income tax assets:
Net operating losses and alternative minimum tax credit $ 217
$268
Pension and other postretirement benefits 57
127
Long term debt 108
117
Other 104
288
Total deferred income tax assets 486
800
Valuation allowance (74)
(90)
Net deferred income tax assets $412
$710
Deferred income tax liabilities:
Properties, plants and equipment $(1,522)
$ (1,938)
Inventory (302)
(516)
Investment in unconsolidated affiliates (2,244)
(1,542)
Trademarks (180)
(192)
Other (45)
(128)
Total deferred income tax liabilities (4,293)
(4,316)
Net deferred income tax liability (3,881)
(3,606)
Less: current portion of deferred income tax assets (liabilities) (119)
(130)
Accumulated deferred income taxes $ (3,762)
$(3,476)
The completion of the Southern Union Merger, Sunoco Merger and Holdco Transaction (see Note 3) significantly increased the deferred tax assets
(liabilities). The table below provides a rollforward of the net deferred income tax liability as follows:
December 31,
2013
2012
Net deferred income tax liability, beginning of year $ (3,606)
$(123)
Southern Union acquisition —
(1,420)
Sunoco acquisition —
(1,989)
SUGS Contribution to Regency (115)
—
Tax provision (including discontinued operations) (111)
(73)
Other (49)
(1)
Net deferred income tax liability $(3,881)
$ (3,606)
Holdco and other corporate subsidiaries have gross federal net operating loss carryforwards of $216 million, all of which will expire in 2032. Holdco has
$40 million of federal alternative minimum tax credits which do not expire. Holdco and other corporate subsidiaries have state net operating loss
carryforward benefits of $101 million, net of federal tax, which expire between 2013 and 2032. The valuation allowance of $74 million is applicable to the
state net operating loss carryforward benefits applicable to Sunoco pre-acquisition periods.
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