Eversource 1999 Annual Report Download - page 40

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For the Years Ended December 31,
(Thousands of Dollars) 1999 1998 1997
The components of the federal and state income
tax provisions charged to operations are:
Current income taxes:
Federal $ 248,012 $(13,660) $(22,760)
State 33,955 (3,903) (1,727)
Total current 281,967 (17,563) (24,487)
Deferred income taxes, net:
Federal (134,773) 51,913 46,871
State (28,789) (12,948) (10,841)
Total deferred (163,562) 38,965 36,030
Investment tax credits, net (19,794) (15,463) (9,595)
Total income tax expense $ 98,611 $ 5,939 $ 1,948
The components of total income tax expense are classified as follows:
Income taxes charged to operating expenses $ 180,883 $ 82,332 $ 12,650
Other income taxes (82,272) (76,393) (10,702)
Total income tax expense $ 98,611 $ 5,939 $ 1,948
Deferred income taxes are comprised of the tax effects
of temporary differences as follows:
Deferred tax asset associated with net operating losses $ 14,801 $ 69,212 $ —
Depreciation, leased nuclear fuel, settlement credits and disposal costs (4,580) 16,217 32,932
Regulatory deferral (23,463) (26,786) 19,237
State net operating loss carryforward 7,777 1,150 (7,670)
Regulatory disallowance (30,719) (18,080) —
Sale of fossil and hydroelectric generation assets (125,807) ——
Other (1,571) (2,748) (8,469)
Deferred income taxes, net $(163,562) $ 38,965 $ 36,030
A reconciliation between income tax expense and the
expected tax expense at 35 percent of pretax income:
Expected federal income tax $ 54,454 $(40,031) $(34,205)
Tax effect of differences:
Depreciation 35,672 25,793 21,776
Amortization of regulatory assets 34,736 30,740 5,498
Amortization of PSNH acquisition costs 9,946 17,301 31,298
Investment tax credit amortization (19,794) (15,463) (9,595)
State income taxes, net of federal benefit 3,358 (10,953) (8,169)
Nondeductible penalties 17 3,589 648
Adjustment for prior years’ taxes (2,796) (7,338) (2,592)
Employee stock ownership plan 1,166 (1,670) (4,648)
Dividends received deduction (1,314) (3,218) (1,563)
Adjustment to tax asset valuation allowance (23,129) 7,000 8,750
Merger related expenditures 4,597 ——
Other, net 1,698 189 (5,250)
Total income tax expense $ 98,611 $ 5,939 $ 1,948
The accompanying notes are in integral part of these financial statements.
38
CONSOLIDATED STATEMENTS OF INCOME TAXES