Eversource 2002 Annual Report Download - page 42

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Consolidated Statements of Income Taxes
For the Years Ended December 31,
(Thousands of Dollars) 2002 2001 2000
The components of the federal and state income tax provisions are:
Current income taxes:
Federal $197,426 $244,501 $154,790
State 34,204 46,155 23,052
Total current 231,630 290,656 177,842
Deferred income taxes, net:
Federal (108,524) (80,968) 7,297
State (14,210) (15,644) (5,529)
Total deferred (122,734) (96,612) 1,768
Investment tax credits, net (26,592) (20,092) (17,885)
Total income tax expense $82,304 $173,952 $161,725
Deferred income taxes are comprised of the tax effects of
temporary differences as follows:
Deferred tax asset associated with net operating losses $—$2,206 $ 1,563
Depreciation, leased nuclear fuel, settlement credits and disposal costs 89,621 (185,850) 9,514
Regulatory deferral (141,592) (33,187) (34,486)
Regulatory disallowance 345 2,323 —
Sale of generation assets (20,500) (225,019) —
Pension (1,720) 24,183 25,751
Loss on bond redemptions (1,084) 12,396 655
Securitized contract termination costs and other (23,044) 279,673 —
Contract settlements (14,991) 16,640 (4,442)
Other (9,769) 10,023 3,213
Deferred income taxes, net $(122,734) $(96,612) $ 1,768
A reconciliation between income tax expense and the expected
tax expense at the statutory rate is as follows:
Expected federal income tax $81,400 $156,500 $133,413
Tax effect of differences:
Depreciation 10,404 5,313 2,882
Amortization of regulatory assets 13,540 5,748 16,835
Investment tax credit amortization (26,592) (20,092) (17,885)
State income taxes, net of federal benefit 12,996 19,832 11,390
Dividends received deduction (3,237) (3,382) (8,618)
Tax asset valuation allowance/reserve adjustments (1,310) (7,000) (2,136)
Merger-related expenditures — (4,589) 5,829
Amortization of PSNH acquisition costs 1,426 4,512 9,946
Nondeductible stock expenses — 12,388 —
Other, net (6,323) 4,722 10,069
Total income tax expense $82,304 $173,952 $161,725
The accompanying notes are an integral part of these consolidated financial statements.
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