Vectren 2012 Annual Report Download - page 89

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87
Significant components of the net deferred tax liability follow:
At December 31,
(In millions) 2012 2011
Noncurrent deferred tax liabilities (assets):
Depreciation & cost recovery timing differences $ 681.6 $ 625.5
Leveraged lease 10.8 13.8
Regulatory assets recoverable through future rates 23.5 25.1
Other comprehensive income (4.0) (10.2)
Alternative minimum tax carryforward (44.1) (35.1)
Employee benefit obligations (2.1) (9.4)
Net operating loss & other carryforwards (11.7) (6.7)
Regulatory liabilities to be settled through future rates (18.3) (17.2)
Impairments (6.1) (11.4)
Other – net 7.6 1.3
Net noncurrent deferred tax liability 637.2 575.7
Current deferred tax liabilities (assets):
Deferred fuel costs-net 25.7 6.0
Demand side management programs 2.7 0.7
Alternative minimum tax carryforward (2.7) (15.6)
Other – net (10.8) (7.1)
Net current deferred tax liability (asset) 14.9 (16.0)
Net deferred tax liability $ 652.1 $ 559.7
At December 31, 2012 and 2011, investment tax credits totaling $3.7 million and $4.3 million respectively, are included in
Deferred credits & other liabilities. At December 31, 2012, the Company has alternative minimum tax carryforwards which do
not expire. In addition, the Company has $11.7 million in net operating loss and general business credit carryforwards, which
will expire in 5 to 20 years.
Indiana House Bill 1004
In May 2011, House Bill 1004 was signed into law. This legislation phases in over four years a two percent rate reduction to the
Indiana Adjusted Gross Income Tax for corporations. Pursuant to House Bill 1004, the tax rate will be lowered by one-half
percent each year beginning on July 1, 2012, to the final rate of six and one-half percent effective July 1, 2015. Pursuant to
FASB guidance, the Company accounted for the effect of the change in tax law on its deferred taxes in the second quarter of
2011, the period of enactment. The impact was not material to results of operations or financial condition as the decrease in
Deferred tax liabilities was generally offset by a $17 million decrease in Regulatory assets.
The components of income tax expense and utilization of investment tax credits follow:
Year Ended December 31,
(In millions) 2012 2011 2010
Current:
Federal $ (8.2) $ 4.4 $ (0.8)
State 6.4 10.3 6.2
Total current taxes (1.8) 14.7 5.4
Deferred:
Federal 80.3 66.0 65.6
State 4.6 6.4 4.5
Total deferred taxes 84.9 72.4 70.1
Amortization of investment tax credits (0.6) (0.7) (0.8)
Total income tax expense $ 82.5 $ 86.4 $ 74.7