CenterPoint Energy 2013 Annual Report Download - page 131

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109
In September 2013, the U.S. Treasury issued final regulations addressing the tax consequences associated with the acquisition,
production and improvement of tangible property. CenterPoint Energy does not expect the adoption of the regulations to have a
material impact on its financial position, results of operations or cash flows.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as
follows:
December 31,
2013 2012
(in millions)
Deferred tax assets:
Current:
Allowance for doubtful accounts......................................................................................... $ 11 $ 10
Deferred gas costs................................................................................................................ 7 —
Other .................................................................................................................................... 12 1
Total current deferred tax assets........................................................................................ 30 11
Non-current:
Loss and credit carryforwards ............................................................................................. 51 90
Employee benefits ............................................................................................................... 258 383
Other .................................................................................................................................... 76 64
Total non-current deferred tax assets before valuation allowance.................................... 385 537
Valuation allowance............................................................................................................. (2)(2)
Total non-current deferred tax assets, net of valuation allowance.................................... 383 535
Total deferred tax assets, net of valuation allowance........................................................ 413 546
Deferred tax liabilities:
Current:
Unrealized gain on indexed debt securities ......................................................................... 541 439
Unrealized gain on TW securities ....................................................................................... 97 151
Deferred gas costs................................................................................................................ — 25
Total current deferred tax liabilities.................................................................................. 638 615
Non-current:
Depreciation ........................................................................................................................ 1,908 3,279
Regulatory assets, net .......................................................................................................... 1,308 1,278
Investment in unconsolidated affiliates ............................................................................... 1,590 —
Other .................................................................................................................................... 119 131
Total non-current deferred tax liabilities........................................................................... 4,925 4,688
Total deferred tax liabilities .............................................................................................. 5,563 5,303
Accumulated deferred income taxes, net ..................................................................... $ 5,150 $ 4,757
Tax Attribute Carryforwards and Valuation Allowance. At December 31, 2013, CenterPoint Energy has approximately $387
million of state net operating loss carryforwards which expire in various years between 2015 and 2033. In addition, CenterPoint
Energy has carryforward of approximately $2 million of Oklahoma State Investment Tax Credits which do not expire.
CenterPoint Energy has approximately $244 million of state capital loss carryforwards which expire in 2017 for which
management established a full valuation allowance of $3 million state tax effect ($2 million net of federal tax). The valuation
allowance was established based upon management’s evaluation that loss carryforwards may not be fully realized.