Vectren 2010 Annual Report Download - page 84
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82
2009. Annual amortization associated with intangible assets totaled $0.6 million in 2010, 2009, and 2008. Amortization should
approximate that incurred in 2010 in each of the next five years. Intangible assets are primarily in the Nonutility Group.
8. Income Taxes
A reconciliation of the federal statutory rate to the effective income tax rate follows:
2008
Statutory rate: 35.0 % 35.0 % 35.0 %
State & local taxes-net of federal benefit 3.8 2.3 3.9
Amortization of investment tax credit (0.4) (0.5) (0.6)
Depletion (2.0) (2.0) (0.4)
Other tax credits (0.2) (0.2) (0.9)
Adjustment of income tax accruals (0.2) (2.1) -
All other-net (0.2) - 0.1
Effective tax rate 35.8
% 32.5
% 37.1
%
Year Ended December 31,
20092010
Significant components of the net deferred tax liability follow:
(In millions) 2010 2009
Noncurrent deferred tax liabilities (assets):
Depreciation & cost recovery timing differences 565.7$ 483.3$
Leveraged leases 14.2 14.7
Regulatory assets recoverable through future rates 20.1 25.6
Other comprehensive income (4.2) (5.7)
Alternative minimum tax carryforward (48.6) (21.6)
Employee benefit obligations (18.9) (24.0)
Net operating loss & other carryforwards (3.8) (0.5)
Regulatory liabilities to be settled through future rates (4.8) (11.7)
Other – net (4.4) (1.4)
Net noncurrent deferred tax liability 515.3 458.7
Current deferred tax (assets)/liabilities:
Deferred fuel costs-net 2.4 1.2
Demand side management programs 2.5 5.2
Alternative minimum tax carryforward (0.8) (15.8)
Other – net (7.9) (12.3)
Net current deferred tax asset (3.8) (21.7)
Net deferred tax liability 511.5$ 437.0$
At December 31,
At December 31, 2010 and 2009, investment tax credits totaling $5.0 million and $5.8 million, respectively, are included in
Deferred credits & other liabilities. At December 31, 2010, the Company has alternative minimum tax carryforwards which do
not expire. In addition, the Company has $3.8 million in net operating loss and general business credit carryforwards, which will
expire in 5 to 20 years.