Xcel Energy 2009 Annual Report Download - page 113

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Other Income Tax Matters — NOL and tax credit carryforwards as of Dec. 31, 2009 and 2008 were as follows:
2009 2008
(Millions of Dollars)
Federal NOL carryforward ...................................... $ 523 $ 127
Federal tax credit carryforwards ................................... 183 223
State NOL carryforwards ...................................... 1,244 1,097
Valuation allowances for state NOL carryforwards ....................... (76) (37)
State tax credit carryforwards, net of federal detriment .................... 19 17
Valuation allowances for state tax credit carryforwards, net of federal benefit ....... (5) —
Portions of the above NOL and tax credit carryforwards are included in
Federal NOL carryforward .................................... 229 49
Federal tax credit carryforwards ................................. 70 126
State NOL carryforwards ..................................... 1,052 980
Valuation allowances for state NOL carryforwards ..................... (58) (34)
State tax credit carryforwards, net of federal detriment ................... 2 2
The federal carryforward periods expire between 2021 and 2029. The state carryforward periods expire between 2010
and 2029.
Total income tax expense from continuing operations differs from the amount computed by applying the statutory
federal income tax rate to income before income tax expense. The following reconciles such differences for the years
ending Dec. 31:
2009 2008 2007
Federal statutory rate ............................... 35.0% 35.0% 35.0%
Increases (decreases) in tax from:
State income taxes, net of federal income tax benefit ......... 4.0 4.4 4.5
Tax credits recognized, net of federal income tax expense ....... (2.0) (1.8) (2.5)
Regulatory differences — utility plant items ............... (2.0) (2.1) (1.1)
Resolution of income tax audits and other ................ 0.8 — (0.7)
Change in unrecognized tax benefits ................... (0.5) (0.1) 3.1
Life insurance policies ............................ (0.2) (0.2) (3.7)
Other, net .................................... — (0.8) (0.8)
Effective income tax rate from continuing operations ........... 35.1% 34.4% 33.8%
The components of Xcel Energy’s income tax expense from continuing operations for the years ending Dec. 31 were:
2009 2008 2007
(Thousands of Dollars)
Current federal tax expense (benefit) ..................... $(39,886) $ 56,044 $ 10,649
Current state tax expense ............................ 8,672 26,904 6,726
Current change in unrecognized tax expense (benefit) .......... (7,627) 3,891 20,512
Deferred federal tax expense .......................... 360,252 236,307 225,971
Deferred state tax expense ........................... 69,947 38,758 47,555
Deferred change in unrecognized tax expense (benefit) .......... 2,387 (4,535) 6,926
Deferred tax credits ............................... (16,005) (11,485) (15,175)
Deferred investment tax credits ........................ (6,426) (7,198) (8,680)
Total income tax expense from continuing operations .......... $371,314 $338,686 $294,484
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