Eversource 2013 Annual Report Download - page 115

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103
For the Years Ended December 31,
2013
2012
2011
(Millions of Dollars,
NSTAR
NSTAR
NSTAR
except percentages)
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
Income Before Income
Tax Expense
$
421.1
$
441.4
$
182.5
$
97.8
$
304.2
$
314.2
$
157.9
$
86.6
$
340.2
$
418.2
$
150.2
$
66.2
Statutory Federal Income
Tax Expense at 35%
147.4
154.5
63.9
34.2
106.5
110.0
55.3
30.3
119.1
146.4
52.6
23.2
Tax Effect of Differences:
Depreciation
(7.0)
0.1
0.6
-
(9.0)
-
(0.3)
0.2
(8.1)
-
(4.4)
0.1
Investment Tax Credit
Amortization
(1.7)
(1.3)
-
(0.4)
(1.9)
(1.4)
-
(0.5)
(2.1)
(1.4)
-
(0.3)
Other Federal Tax
Credits
-
-
(3.7)
-
-
-
(3.8)
-
(0.1)
-
(3.4)
-
State Income Taxes,
Net of Federal Impact
5.0
18.6
9.6
4.2
0.1
13.4
10.0
4.0
4.0
17.9
5.2
0.9
Tax Asset Valuation
Allowance/Reserve
Adjustments
0.4
-
-
-
1.6
-
-
-
(22.3)
-
-
-
Regulatory Decision Non-
Plant Flow Through
-
-
-
-
-
-
-
(1.3)
-
-
-
-
Other, Net
(2.4)
1.0
0.7
(0.6)
(2.9)
2.0
(0.2)
(0.6)
(0.5)
2.8
(0.1)
(0.7)
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
Effective Tax Rate
33.6%
39.2%
39.0%
38.2%
31.0%
39.5%
38.6%
37.1%
26.5%
39.6%
33.2%
35.0%
(1) NSTAR amounts were included in NU beginning April 10, 2012.
NU, CL&P, NSTAR Electric, PSNH and WMECO file a consolidated federal income tax return and unitary, combined and separate state
income tax returns. These entities are also parties to a tax allocation agreement under which taxable subsidiaries do not pay any more
taxes than they would have otherwise paid had they filed a separate company tax return, and subsidiaries generating tax losses, if any,
are paid for their losses when utilized.
Deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the carrying amounts and
the tax basis of assets and liabilities. The tax effects of temporary differences that give rise to the net accumulated deferred income tax
obligations are as follows:
NU
As of December 31,
(Millions of Dollars)
2013
2012
Deferred Tax Assets:
Employee Benefits
$
435.2
$
811.4
Derivative Liabilities and Change in Fair Value of Energy Contracts
272.9
380.6
Regulatory Deferrals
272.7
257.9
Allowance for Uncollectible Accounts
65.0
64.2
Tax Effect - Tax Regulatory Assets
16.2
17.2
Federal Net Operating Loss Carryforwards
158.0
214.6
Purchase Accounting Adjustment
132.8
146.4
Other
230.6
242.4
Total Deferred Tax Assets
1,583.4
2,134.7
Less: Valuation Allowance
24.3
4.2
Net Deferred Tax Assets
$
1,559.1
$
2,130.5
Deferred Tax Liabilities:
Accelerated Depreciation and Other Plant-Related Differences
$
3,806.5
$
3,468.8
Property Tax Accruals
95.1
89.6
Regulatory Amounts:
Other Regulatory Deferrals
1,146.7
1,561.1
Tax Effect - Tax Regulatory Assets
248.2
217.2
Goodwill Regulatory Asset - 1999 Merger
211.5
210.9
Derivative Assets
30.1
36.2
Securitized Contract Termination Costs
0.3
16.6
Other
156.8
136.1
Total Deferred Tax Liabilities
$
5,695.2
$
5,736.5