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102
E. Other Retirement Benefits
NU provides benefits for retirement and other benefits for certain current and past company officers of NU, including CL&P, PSNH and
WMECO. These benefits are accounted for on an accrual basis and expensed over the service lives of the employees. The
actuarially-determined liability for these benefits, which is included in Other Long-Term Liabilities on the balance sheets, as well as the
related expense, are as follows:
NU
For the Years Ended December 31,
(Millions of Dollars)
2013
2012
2011
Actuarially-Determined Liability
$
51.3
$
54.6
$
52.8
Other Retirement Benefits Expense
4.4
4.7
4.7
For the Years Ended December 31,
2013
2012
2011
(Millions of Dollars)
CL&P
PSNH
WMECO
CL&P
PSNH
WMECO
CL&P
PSNH
WMECO
Actuarially-Determined Liability
$
0.4
$
2.3
$
0.1
$
0.4
$
2.5
$
0.2
$
1.2
$
2.5
$
0.2
Other Retirement Benefits Expense
2.5
1.0
0.5
2.6
1.0
0.5
2.6
1.0
0.5
11. INCOME TAXES
The tax effect of temporary differences is accounted for in accordance with the rate-making treatment of the applicable regulatory
commissions and relevant accounting authoritative literature. The components of income tax expense are as follows:
NU
For the Years Ended December 31,
(Millions of Dollars)
2013
2012 (1)
2011
Current Income Taxes:
Federal
$
8.8
$
(30.9)
$
3.0
State
(9.4)
17.6
(26.0)
Total Current
(0.6)
(13.3)
(23.0)
Deferred Income Taxes, Net:
Federal
386.2
291.3
187.7
State
45.4
0.8
9.1
Total Deferred
431.6
292.1
196.8
Investment Tax Credits, Net
(4.1)
(3.9)
(2.8)
Income Tax Expense
$
426.9
$
274.9
$
171.0
For the Years Ended December 31,
2013
2012
2011
NSTAR
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
Current Income
Taxes:
Federal
$
20.1
$
95.8
$
(8.2)
$
(53.4)
$
(47.8)
$
93.5
$
(0.9)
$
(24.7)
$
13.9
$
64.9
$
(25.8)
$
0.1
State
(6.7)
29.6
3.6
4.2
3.1
27.6
3.4
3.4
(34.4)
30.2
0.1
0.3
Total Current
13.4
125.4
(4.6)
(49.2)
(44.7)
121.1
2.5
(21.3)
(20.5)
95.1
(25.7)
0.4
Deferred Income
Taxes, Net:
Federal
114.9
49.8
64.5
84.7
141.5
11.4
46.5
51.2
106.4
74.8
67.7
22.1
State
15.1
(1.0)
11.2
2.3
(0.5)
(7.1)
12.0
2.7
6.2
(2.8)
7.9
1.0
Total Deferred
130.0
48.8
75.7
87.0
141.0
4.3
58.5
53.9
112.6
72.0
75.6
23.1
Investment Tax
Credits, Net
(1.7)
(1.3)
-
(0.4)
(1.9)
(1.4)
-
(0.5)
(2.1)
(1.4)
-
(0.3)
Income Tax Expense
$
141.7
$
172.9
$
71.1
$
37.4
$
94.4
$
124.0
$
61.0
$
32.1
$
90.0
$
165.7
$
49.9
$
23.2
(1) NSTAR amounts were included in NU beginning April 10, 2012.
A reconciliation between income tax expense and the expected tax expense at the statutory rate is as follows:
NU
For the Years Ended December 31,
(Millions of Dollars, except percentages)
2013
2012 (1)
2011
Income Before Income Tax Expense
$
1,220.6
$
808.0
$
571.5
Statutory Federal Income Tax Expense at 35%
427.2
282.8
200.0
Tax Effect of Differences:
Depreciation
(7.4)
(10.8)
(14.2)
Investment Tax Credit Amortization
(4.1)
(3.9)
(2.8)
Other Federal Tax Credits
(3.7)
(3.8)
(3.5)
State Income Taxes, Net of Federal Impact
27.6
4.4
22.1
ESOP
(8.0)
(6.4)
(2.2)
Tax Asset Valuation Allowance/Reserve Adjustments
(4.3)
7.6
(33.1)
Other, Net
(0.4)
5.0
4.7
Income Tax Expense
$
426.9
$
274.9
$
171.0
Effective Tax Rate
35.0%
34.0%
29.9%