National Grid 2008 Annual Report Download - page 328

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50575
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 122
Description: EXH 2(B).6.1
0/4726.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/726/4*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50575
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 122 Description: EXH 2(B).6.1
0/4726.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/726/4*
Previously recognized investment tax credits (ITC) related to the transmission and distribution facilities of the Company’s
regulated subsidiaries are amortized over their estimated productive lives.
Total income taxes, as shown above, consist of federal and state components as follows:
With re
g
ulatory approval, the subsidiaries have adopted comprehensive interperiod tax allocation (normalization) for temporary
book/tax differences.
Total income taxes differ from the amounts computed by applyin
g
the federal statutory tax rates to income before taxes. The
reasons for the differences are as follows:
F-37
For the Year Ended
March 31,
2007 2006
(In thousands
)
Deferred income taxes 114,825 41,619
Investment tax credits, net (6,246) (6,739)
Total income taxes $ 184,042 $ 317,200
For the Year Ended
March 31,
2007 2006
(In thousands
)
Federal income taxes $ 152,189 $ 272,705
State income taxes 31,853 44,495
Total income taxes $ 184,042 $ 317,200
For the Year ended
March 31,
2007 2006
(In thousands
)
Computed tax at statutory rate $ 226,133 $ 307,322
Increases
(
reductions
)
in tax resultin
g
from:
Amortization of ITC, net (6,246) (6,739)
State income tax, net of federal income tax benefit 19,334 28,336
Tax return true-ups (52,888) (16,563)
Rate recover
y
of deficienc
y
in deferred tax reserves 764 11,159
Book/tax depreciation not normalized 13,536 10,156
Unamortized debt discount not normalized
(
33
)
3,298
Cost of removal (6,861) (7,298)
Medicare act (12,713) (11,385)
All other differences 3,016
(
1,086
)