PG&E 2007 Annual Report Download - page 114
Download and view the complete annual report
Please find page 114 of the 2007 PG&E annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
 |
 |
112
NOTE 11: INCOME TAXES
The signifi cant components of income tax (benefi t) expense for continuing operations were:
PG&E Corporation Utility
Year ended December 31,
(in millions) 2007 2006 2005 2007 2006 2005
Current:
Federal $526 $ 743 $1,027 $563 $ 771 $1,048
State 140 201 189 149 210 196
Deferred:
Federal (81) (286) (574) (92) (276) (572)
State (40) (98) (89) (43) (97) (89)
Tax credits, net (6) (6) (9) (6) (6) (9)
Income tax expense $539 $ 554 $ 544 $571 $ 602 $ 574
The following describes net deferred income tax liabilities:
PG&E Corporation Utility
Year ended December 31,
(in millions) 2007 2006 2007 2006
Deferred income tax assets:
Customer advances for construction $ 143 $ 170 $ 143 $ 170
Reserve for damages 173 165 173 165
Environmental reserve 172 177 172 177
Compensation 162 131 129 95
Other 289 206 261 166
Total deferred income tax assets $ 939 $ 849 $ 878 $ 773
Deferred income tax liabilities:
Regulatory balancing accounts $1,219 $1,305 $1,219 $1,305
Property related basis differences 2,290 2,142 2,293 2,142
Income tax regulatory asset 298 243 298 243
Unamortized loss on reacquired debt 110 120 110 120
Other 75 27 66 53
Total deferred income tax liabilities $3,992 $3,837 $3,986 $3,863
Total net deferred income tax liabilities $3,053 $2,988 $3,108 $3,090
Classifi cation of net deferred income tax liabilities:
Included in current liabilities $ — $ 148 $ 4 $ 118
Included in noncurrent liabilities 3,053 2,840 3,104 2,972
Total net deferred income tax liabilities $3,053 $2,988 $3,108 $3,090
The differences between income taxes and amounts calculated by applying the federal statutory rate to income before
income tax expense for continuing operations were:
PG&E Corporation Utility
Year ended December 31,
2007 2006 2005 2007 2006 2005
Federal statutory income tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Increase (decrease) in income tax rate resulting from:
State income tax (net of federal benefi t) 4.2 4.3 4.5 4.3 4.6 4.6
Effect of regulatory treatment of fi xed asset differences (3.0) (1.2) (0.6) (2.9) (1.1) (0.6)
Tax credits, net (0.7) (0.6) (1.0) (0.7) (0.6) (0.9)
Other, net (0.6) (1.6) (0.3) 0.1 0.1 (0.1)
Effective tax rate 34.9% 35.9% 37.6% 35.8% 38.0% 38.0%