Vectren 2013 Annual Report Download - page 90
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88
Significant components of the net deferred tax liability follow:
At December 31,
(In millions) 2013 2012
Noncurrent deferred tax liabilities (assets):
Depreciation & cost recovery timing differences $ 725.2 $ 681.6
Leveraged lease 10.4 10.8
Regulatory assets recoverable through future rates 22.8 23.5
Other comprehensive income (1.6) (4.0)
Alternative minimum tax carryforward (23.5) (44.1)
Employee benefit obligations (6.7) (2.1)
Net operating loss & other carryforwards (1.2) (11.7)
Regulatory liabilities to be settled through future rates (18.7) (18.3)
Impairments (6.2) (6.1)
Other – net 6.9 7.6
Net noncurrent deferred tax liability 707.4 637.2
Current deferred tax liabilities (assets):
Deferred fuel costs-net 22.9 25.7
Demand side management programs 0.1 2.7
Alternative minimum tax carryforward (33.7) (2.7)
Net operating loss & other carryforwards (4.9) —
Other – net 1.7 (10.8)
Net current deferred tax liability (asset) (13.9) 14.9
Net deferred tax liability $ 693.5 $ 652.1
At December 31, 2013 and 2012, investment tax credits totaling $5.3 million and $3.7 million respectively, are included in
Deferred credits & other liabilities. The investment tax credit generated in 2013 will expire in 20 years. At December 31, 2013,
the Company has alternative minimum tax carryforwards which do not expire. In addition, the Company has $6.1 million in net
operating loss and general business credit carryforwards, which will expire in 5 to 20 years. The net operating loss carryforward
was reduced for the impacts of unrecognized tax benefits and a valuation allowance relating to state net operating loss
carryforwards. At December 31, 2013 and 2012, the valuation allowance was $3.6 million and $1.3 million, respectively.
Indiana House Bill 1004
In May 2011, House Bill 1004 was signed into law. This legislation phases in over four years a 2 percent rate reduction to the
Indiana Adjusted Gross Income Tax for corporations. Pursuant to House Bill 1004, the tax rate will be lowered by 0.5 percent
each year beginning on July 1, 2012, to the final rate of 6.5 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 remeasurement of these temporary differences at the lower tax rate was recorded as a reduction of a
regulatory asset.