Eversource 2001 Annual Report Download - page 36

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Consolidated Statements of Income Taxes
For the Years Ended December 31,
(Thousands of Dollars) 2001 2000 1999
The components of the federal and state income tax provisions
charged to the operations are:
Current income taxes:
Federal $244,501 $ 154,790 $ 248,012
State 46,155 23,052 33,955
Total current 290,656 177,842 281,967
Deferred income taxes, net:
Federal (80,968) 7,297 (134,773)
State (15,644) (5,529) (28,789)
Total deferred (96,612) 1,768 (163,562)
Investment tax credits, net (20,092) (17,885) (19,794)
Total income tax expense $ 173,952 $ 161,725 $ 98,611
Deferred income taxes are comprised of the tax effects of
temporary differences as follows:
Deferred tax asset associated with net operating losses $2,206 $ 1,563 $ 14,801
Depreciation, leased nuclear fuel, settlement credits and disposal costs (185,850) 9,514 (4,580)
Regulatory deferral (33,187) (34,486) (27,297)
Regulatory disallowance 2,323 — (30,719)
Sale of generation assets (225,019) — (125,807)
Pension 24,183 25,751 8,936
Loss on bond redemptions 12,396 655 314
Securitized contract termination costs and other 279,673 ——
Contract settlements 16,640 (4,442) (7,622)
Other 10,023 3,213 8,412
Deferred income taxes, net $ (96,612) $ 1,768 $ (163,562)
A reconciliation between income tax expense and the expected
tax expense at the statutory rate is as follows:
Expected federal income tax $156,500 $ 133,413 $ 54,454
Tax effect of differences:
Depreciation 5,313 2,882 24,583
Amortization of regulatory assets 5,748 16,835 45,825
Amortization of PSNH acquisition costs 4,512 9,946 9,946
Investment tax credit amortization (20,092) (17,885) (19,794)
State income taxes, net of federal benefit 19,832 11,390 3,358
Nondeductible stock expenses 12,388 ——
Dividends received deduction (3,382) (8,618) (1,314)
Tax asset valuation allowance/reserve adjustments (7,000) (2,136) (23,129)
Merger-related expenditures (4,589) 5,829 4,597
Other, net 4,722 10,069 85
Total income tax expense $ 173,952 $ 161,725 $ 98,611
The accompanying notes are an integral part of these financial statements.
34
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