Eversource 2012 Annual Report Download - page 124

111
For the Years Ended December 31,
2012
2011
2010
(Millions of Dollars,
NSTAR
NSTAR
NSTAR
except percentages)
CL&P
Electric(1)
PSNH
WMECO
CL&P
Electric(1)
PSNH
WMECO
CL&P
Electric(1)
PSNH
WMECO
Income Before Income
Tax Expense
$
304.2
$
314.2
$
157.9
$
86.6
$
340.2
$
418.2
$
150.2
$
66.2
$
376.6
$
410.6
$
140.9
$
39.4
Statutory Federal Income
Tax Expense at 35%
106.5
110.0
55.3
30.3
119.1
146.4
52.6
23.2
131.8
143.7
49.3
13.8
Tax Effect of Differences:
Depreciation
(9.0)
-
(0.3)
0.2
(8.1)
-
(4.4)
0.1
(6.1)
-
(3.2)
0.2
Investment Tax Credit
Amortization
(1.9)
(1.4)
-
(0.5)
(2.1)
(1.4)
-
(0.3)
(2.3)
(1.4)
(0.1)
(0.3)
Other Federal Tax
Credits
-
-
(3.8)
-
(0.1)
-
(3.4)
-
(0.1)
-
(3.6)
-
State Income Taxes, Net
of Federal Impact
0.1
13.4
10.0
4.0
4.0
17.9
5.2
0.9
8.5
17.4
4.7
1.6
Medicare Subsidy -
-
-
-
-
-
-
-
7.8
-
3.8
1.5
Tax Asset Valuation
Allowance/Reserve
Adjustments
1.6
-
-
-
(22.3)
-
-
-
(4.7)
-
-
-
Regulatory Decision Non-
Plant flow through
-
-
-
(1.3)
-
-
-
-
-
-
-
-
Other, Net
(2.9)
2.0
(0.2)
(0.6)
(0.5)
2.8
(0.1)
(0.7)
(2.5)
2.3
(0.1)
(0.5)
Income Tax Expense $ 94.4
$ 124.0
$
61.0
$ 32.1
$ 90.0
$ 165.7
$
49.9
$ 23.2
$ 132.4
$ 162.0
$
50.8
$ 16.3
Effective Tax Rate
31.0%
39.5%
38.6%
37.1%
26.5%
39.6%
33.2%
35.0%
35.2%
39.5%
36.1%
41.4%
NU, CL&P, NSTAR Electric, PSNH and WMECO file a consolidated federal income tax return and unitary, combined and separate state
income tax returns. These entities are also parties to a tax allocation agreement under which taxable subsidiaries do not pay any more
taxes than they would have otherwise paid had they filed a separate company tax return, and subsidiaries generating tax losses, if any,
are paid for their losses when utilized.
Deferred tax assets and liabilities are recognized for the future tax effects of temporary differences between the carrying amounts and
the tax basis of assets and liabilities. The tax effects of temporary differences that give rise to the net accumulated deferred tax
obligations are as follows:
NU As of December 31,
(Millions of Dollars)
2012
2011
Deferred Tax Assets:
Employee Benefits
$
811.4
$
539.6
Derivative Liabilities and Change in Fair Value of Energy Contracts
380.6
415.3
Regulatory Deferrals
257.9
157.9
Allowance for Uncollectible Accounts
64.2
45.4
Tax Effect - Tax Regulatory Assets 17.2
15.5
Federal Net Operating Loss Carryforwards
214.6
178.6
Purchase Accounting Adjustment
146.4
-
Other
242.4
204.2
Total Deferred Tax Assets
2,134.7
1,556.5
Less: Valuation Allowance
4.2
4.6
Net Deferred Tax Assets
$
2,130.5
$
1,551.9
Deferred Tax Liabilities:
Accelerated Depreciation and Other Plant-Related Differences
$
3,468.8
$
1,920.5
Property Tax Accruals 89.6
58.9
Regulatory Amounts:
Other Regulatory Deferrals
1,561.1
1,135.0
Tax Effect - Tax Regulatory Assets
217.2
184.6
Goodwill - 1999 Merger
210.9
-
Derivative Assets
36.2
39.1
Securitized Contract Termination Costs
16.6
39.6
Other
136.1
24.5
Total Deferred Tax Liabilities
$
5,736.5
$
3,402.2