CenterPoint Energy 2009 Annual Report Download - page 125

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103
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities
were as follows:
December 31,
2008 2009
(In millions)
Deferred tax assets:
Current:
Allowance for doubtful accounts ................................................................... $ 15 $ 10
Deferred gas costs .......................................................................................... 13 7
Othe
r
.............................................................................................................. 1
—
Total current deferred tax assets............................................................... 29 17
N
on-current:
Loss and credit carr
y
forwards ........................................................................ 36 42
Employee
b
enefits ......................................................................................... 360 366
Othe
r
.............................................................................................................. 57 51
Total non-current deferred tax assets before valuation allowance............ 453 459
Valuation allowance ...................................................................................... (5) (5)
Total non-current deferred tax assets, net of valuation allowance............ 448 454
Total deferred tax assets, ne
t
of valuation allowance ............................... 477 471
Deferred tax liabilities:
Current:
Unrealized gain on indexed debt securities.................................................... $ 373 $ 366
Unrealized gain on TW securities.................................................................. 28 57
Total current deferred tax liabilities ......................................................... 401 423
N
on-current:
Depreciation ................................................................................................... 1,679 1,887
Regulatory assets, ne
t
.................................................................................... 1,319 1,298
Othe
r
.............................................................................................................. 58 45
Total non-current deferred tax liabilities .................................................. 3,056 3,230
Total deferred tax liabilities ...................................................................... 3,457 3,653
Accumulated deferred income taxes, ne
t
............................................. $ 2,980 $ 3,182
Tax Attribute Carryforwards and Valuation Allowance. At December 31, 2009, CenterPoint Energy has
approximately $213 million of state net operating loss carryforwards which expire in various years between 2010
and 2029. A valuation allowance has been established for approximately $49 million of the state net operating loss
carryforwards that may not be realized. CenterPoint Energy has approximately $244 million of state capital loss
carryforwards which expire in 2017 for which a valuation allowance has been established.
Uncertain Income Tax Positions. The following table reconciles the beginning and ending balance of
CenterPoint Energy’s unrecognized tax benefits:
December 31,
2007 2008 2009
(In millions)
Balance, be
g
innin
g
of
y
ea
r
............................................................................. $ 72 $ 82 $ 117
Tax Positions related to prior years:
Additions .................................................................................................... 28 20 56
Reductions ................................................................................................. (20) (2) (25)
Tax Positions related to current year:
Additions .................................................................................................... 4 17 56
Settlements ..................................................................................................... (2)
—
(17)
Balance, end of
y
ea
r
....................................................................................... $82 $ 117 $ 187
The net increase in the total amount of unrecognized tax benefits during 2009 is primarily related to the tax
normalization issue described in Note 3(b) to our consolidated financial statements, a change in tax accounting
method for repairs and maintenance of our network assets and a casualty loss deduction associated with Hurricane