National Grid 2008 Annual Report Download - page 329

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 38513
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: 123
Description: EXH 2(B).6.1
0/2727.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/727/2*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 38513
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: 123 Description: EXH 2(B).6.1
0/2727.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/727/2*
The Company applies SFAS No. 109, “Accounting for Income Taxes,” which requires reco
g
nition of deferred income taxes
usin
g
the liability method for temporary differences that are reported in different years for financial reportin
g
and tax purposes.
Under the liability method, deferred tax liabilities or assets are computed usin
g
the tax rates that will be in effect when
temporary differences reverse. Generally, for re
g
ulated companies, the chan
g
e in tax rates may not be immediately reco
g
nized
in operating results because of rate-making treatment and provisions in the Tax Reform Act of 1986.
The following is the detail of the Company’s accumulated deferred income taxes:
F-38
For the Year ended
March 31,
2007 2006
(In thousands
)
Total income taxes $ 184,042 $ 317,200
At March 31,
2007 2006
(In thousands
)
Deferred tax assets:
Plant related $ 53,193 $ 112,757
Alternative minimum tax 381 119,294
Unbilled revenues 21,987 17,070
Liability for environmental costs 224,069 191,307
Voluntar
y
earl
y
retirement
p
ro
g
ram 0 42,089
Bad debts 65,687 62,210
Pension and other
p
ost-retirement benefits 762,038 248,446
Investment tax credit 9,255 10,560
Other 560,914 414,343
Total deferred tax assets 1,697,524 1,218,076
Deferred tax liabilities:
Plant related (1,481,242) (1,429,641)
E
q
uit
y
AFUDC
(
65,337
)
(
63,668
)
Deferred environmental restoration costs (185,897) (186,842)
Mer
g
er rate
p
lan stranded costs
(
758,235
)
(
795,184
)
Merger fair value pension and OPEB adjustment (90,768) (109,478)
Bond redem
p
tion and debt discount
(
25,215
)
(
30,009
)
Pension and other post-retirement benefits (266,144) (61,784)
Other
(
637,358
)
(
569,349
)
Total deferred tax liabilities
(
3,510,196
)
(
3,245,955
)
Net accumulated deferred income tax liabilit
y
(
1,812,672
)
(
2,027,879
)
Current portion (net deferred tax asset) 176,208 195,476
Net accumulated deferred income tax liability (non-current) $ (1,988,880) $ (2,223,355)