Eversource 2013 Annual Report Download - page 116

104
As of December 31,
2013
2012
NSTAR
NSTAR
(Millions of Dollars)
CL&P
Electric
PSNH
WMECO
CL&P
Electric
PSNH
WMECO
Deferred Tax Assets:
Employee Benefits
$
56.0
$
38.3
$
15.5
$
(1.8)
$
141.2
$
116.3
$
64.8
$
16.3
Derivative Liabilities and Change in
Fair Value of Energy Contracts
272.4
3.3
-
(2.9)
375.9
5.8
-
(1.7)
Regulatory Deferrals
61.5
114.7
40.9
1.0
35.5
123.6
43.9
6.3
Allowance for Uncollectible Accounts
31.2
15.4
3.1
3.3
30.4
16.2
2.9
3.2
Tax Effect - Tax Regulatory Assets
4.7
5.4
2.1
1.6
5.2
6.0
1.7
1.7
Federal Net Operating Loss Carryforwards
51.0
-
56.6
18.6
82.0
-
71.4
15.1
Other
75.3
31.3
40.3
8.3
82.8
26.0
33.7
8.0
Total Deferred Tax Assets
552.1
208.4
158.5
28.1
753.0
293.9
218.4
$
48.9
Less: Valuation Allowance
23.1
-
-
-
-
-
-
-
Net Deferred Tax Assets
$
529.0
$
208.4
$
158.5
$
28.1
$
753.0
$
293.9
$
218.4
$
48.9
Deferred Tax Liabilities:
Accelerated Depreciation and Other
Plant-Related Differences
$
1,238.1
$
1,179.4
$
526.6
$
361.1
$
1,194.7
$
1,079.3
$
476.5
$
261.3
Property Tax Accruals
49.3
25.3
7.1
5.9
44.4
23.1
6.8
5.1
Regulatory Amounts:
Other Regulatory Deferrals
550.4
276.2
109.3
49.3
677.7
379.6
149.3
74.5
Tax Effect - Tax Regulatory Assets
160.1
36.0
16.3
18.2
151.8
20.9
15.8
13.9
Goodwill Regulatory Asset - 1999 Merger
-
181.6
-
-
-
181.0
-
-
Derivative Assets
29.0
0.5
-
-
36.2
-
-
-
Securitized Contract Termination Costs
-
-
-
0.3
-
5.5
7.9
3.3
Other
20.6
26.4
28.0
3.3
10.1
30.2
14.1
2.3
Total Deferred Tax Liabilities
$
2,047.5
$
1,725.4
$
687.3
$
438.1
$
2,114.9
$
1,719.6
$
670.4
$
360.4
Carryforwards: The following tables provide the amounts and expiration dates of state tax credit and loss carryforwards and federal tax
credit and net operating loss carryforwards:
As of December 31, 2013
NSTAR
Year
(Millions of Dollars)
NU
CL&P
Electric
PSNH
WMECO
Expiration Begins
Federal Net Operating Loss
$
451.3
$
145.8
$
-
$
161.8
$
53.3
2031
Federal Tax Credit
8.0
-
-
7.6
-
2031
State Tax Credit
104.7
86.8
-
-
-
2013
State Loss Carryforwards
12.1
-
-
-
-
2013
As of December 31, 2012
NSTAR
Year
(Millions of Dollars)
NU
CL&P
Electric
PSNH
WMECO
Expiration Begins
Federal Net Operating Loss
$
606.9
$
234.3
$
-
$
204.0
$
43.3
2031
Federal Tax Credit
3.8
-
-
3.8
-
2031
State Tax Credit
110.2
75.2
-
-
-
2013
State Loss Carryforwards
74.9
-
-
-
-
2013
For 2013, state credit and state loss carryforwards have been partially reserved by a valuation allowance of $23.7 million (net of federal
income tax). For 2012, the state loss carryforwards had been partially reserved by a valuation allowance of $0.3 million (net of federal
income tax).
Unrecognized Tax Benefits: A reconciliation of the activity in unrecognized tax benefits, all of which would impact the effective tax rate
if recognized, is as follows:
(Millions of Dollars)
NU
CL&P
Balance as of January 1, 2011
$
101.2
$
80.8
Gross Increases - Current Year
8.0
1.4
Gross Decreases - Prior Year
(35.7)
(35.7)
Balance as of December 31, 2011
73.5
46.5
Gross Increases - Current Year
10.3
2.5
Gross Increases - Prior Year
0.1
-
Gross Decreases - Prior Year
(0.8)
-
Balance as of December 31, 2012
83.1
49.0
Gross Increases - Current Year
8.2
2.1
Gross Decreases - Prior Year
(1.1)
(0.3)
Settlements
(49.8)
(39.4)
Lapse of Statute of Limitations
(2.2)
-
Balance as of December 31, 2013
$
38.2
$
11.4
Interest and Penalties: Interest on uncertain tax positions is recorded and generally classified as a component of Other Interest
Expense on the statements of income. However, when resolution of uncertainties results in the Company receiving interest income,
any related interest benefit is recorded in Other Income, Net on the statements of income. No penalties have been recorded. If
penalties are recorded in the future, then the estimated penalties would be classified as a component of Other Income, Net on the