Eversource 2009 Annual Report Download - page 125

FS-40
As of December 31,
2009 2008
(Millions of Dollars) CL&P PSNH WMECO CL&P PSNH WMECO
Deferred tax assets - current:
Derivative liability and change in fair value
of energy contracts $ 2.6 $ 7.4 $ - $3.5 $ 30.6 $-
Allowance for uncollectible accounts and other 25.3 6.0 2.8 24.3 1.4 2.6
Total deferred tax assets - current 27.9 13.4 2.8 27.8 32.0 2.6
Deferred tax liabilities - current:
Derivative asset and change in fair value
of energy contracts 8.3 0.2 - 12.2 0.3 -
Property tax accruals and other 31.2 5.1 3.0 32.3 4.4 2.5
Total deferred tax liabilities - current 39.5 5.3 3.0 44.5 4.7 2.5
Net deferred tax liabilities/(assets) - current 11.6 (8.1) 0.2 16.7 (27.3) (0.1)
Deferred tax assets - long-term:
Regulatory deferrals 70.0 36.2 5.4 82.3 51.1 12.1
Employee benefits 85.2 135.1 8.3 101.9 121.5 13.1
Income tax gross-up 12.8 2.2 7.2 14.3 2.8 7.3
Derivative liability 364.5 3.0 - 338.2 5.9 -
Other 88.8 9.5 8.4 110.7 21.2 13.9
Net deferred tax assets - long-term 621.3 186.0 29.3 647.4 202.5 46.4
Deferred tax liabilities - long-term:
Accelerated depreciation and other
plant-related differences 754.1 263.1 152.8 638.0 216.3 135.2
Regulatory amounts:
Securitized contract termination costs 9.6 69.9 22.1 19.3 88.4 27.6
Other regulatory deferrals 536.2 111.1 51.2 548.2 134.2 53.4
Income tax gross-up 145.3 10.9 14.0 158.5 9.1 15.7
Derivative assets 71.4 - - 85.8 1.5 -
Other 6.2 6.7 0.6 9.0 6.7 1.8
Total deferred tax liabilities - long-term 1,522.8 461.7 240.7 1,458.8 456.2 233.7
Net deferred tax liabilities - long-term 901.5 275.7 211.4 811.4 253.7 187.3
Net deferred tax liabilities $ 913.1 $ 267.6 $ 211.6 $828.1 $ 226.4 $187.2
Net deferred tax liabilities/(assets) - current are recorded as current liabilities or assets and are included in Current liabilities - other or
Prepayments and other, respectively, on the accompanying consolidated balance sheets.
As of December 31, 2009, NU had state net operating loss (NOL) carryforwards of $323.9 million that expire between December 31,
2010 and December 31, 2027 and state credit carryforwards of $88.7 million that expire by December 31, 2014. As of December 31,
2008, NU had state NOL carryforwards of $269.1 million that expire between December 31, 2010 and December 31, 2028 and state
credit carryforwards of $90.8 million that expire by December 31, 2013. The NOL carryforward deferred tax asset has been fully
reserved by a valuation allowance. As of December 31, 2009, CL&P had state tax credit carryforwards of $61.1 million that expire by
2014. As of December 31, 2008, CL&P had state tax credit carryforwards of $64.4 million that expire by 2013.
On July 3, 2008, Massachusetts amended its corporate excise tax provisions, which were effective for tax years beginning on or after
January 1, 2009. Companies must account for the impact of income tax law changes in the period that includes the enactment date of
the law change. As a result, WMECO recorded an estimate of the impact of the new legislation as a $11.9 million decrease to Deferred
tax liabilities and a decrease to Regulatory assets on its consolidated balance sheet as of December 31, 2008.
Unrecognized Tax Benefits: As of December 31, 2009, NU and CL&P had unrecognized tax benefits totaling $124.3 million and $89
million, all of which would impact the effective tax rate if recognized. As of December 31, 2008, the portion of NU and CL&P
unrecognized tax benefits that would impact the effective tax rate, if recognized, were $120 million and $87 million, respectively. As of
December 31, 2007, the portion of NU and CL&P unrecognized tax benefits that would impact the effective tax rate, if recognized, were
$93 million and $62.3 million, respectively. A reconciliation of the activity in unrecognized tax benefits from January 1, 2007 to
December 31, 2009 is as follows: