XML 160 R41.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Income tax expense for continuing operations including noncontrolling interests
Details of income tax expense for continuing operations including noncontrolling interests were as follows:
 
 
Dominion(1)
Virginia Power(2)
Year Ended December 31,
2013

2012

2011

2013

2012

2011

(millions)
 

 

 

 

 

 

Current:
 

 

 

 

 

 

Federal
$
317

$
43

$
31

$
357

$
70

$
(35
)
State
110

84

16

62

81

79

Total current expense
427

127

47

419

151

44

Deferred:
 

 

 

 

 

 

Federal
497

645

685

224

482

484

State
(31
)
40

48

17

21

13

Total deferred expense
466

685

733

241

503

497

Amortization of deferred investment tax credits
(1
)
(1
)
(2
)
(1
)
(1
)
(1
)
Total income tax expense
$
892

$
811

$
778

$
659

$
653

$
540


(1)
In 2012, Dominion’s current federal income tax expense for continuing and discontinued operations includes a $195 million benefit related to a carryback of its 2012 net operating loss. In 2011, Dominion’s deferred federal income tax expense includes the recognition of a $346 million benefit, including $51 million related to discontinued operations, for its 2011 net operating loss expected to be used to reduce taxable income in future years.
(2)
In 2011, Virginia Power’s deferred federal income tax expense includes a $54 million benefit related to a portion of its 2011 net operating loss that is expected to be used in future years. Also, Virginia Power’s current federal income tax expense reflects the amounts of its 2011 net operating losses realized through its participation in a tax sharing agreement with Dominion and its subsidiaries.
Effective income tax
For continuing operations including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to Dominion's and Virginia Power's effective income tax rate as follows:
 
 
Dominion
Virginia Power
Year Ended December 31,
2013

2012

2011

2013

2012

2011

U.S. statutory rate
35.0
 %
35.0
 %
35.0
 %
35.0
 %
35.0
 %
35.0
 %
Increases (reductions) resulting from:
 

 

 

 

 

 

State taxes, net of federal benefit
2.1

4.2

1.9

3.1

3.9

4.4

Valuation allowances
(0.1
)
(0.7
)
—

—

—

—

Investment and production tax credits
(2.4
)
(0.5
)
(0.6
)
(0.2
)
—

—

AFUDC - equity
(0.6
)
(0.9
)
(0.6
)
(0.8
)
(0.9
)
(0.8
)
Employee stock ownership plan deduction
(0.6
)
(0.7
)
(0.6
)
—

—

—

Other, net
(0.4
)
(0.6
)
(0.7
)
(0.4
)
0.3

1.1

Effective tax rate
33.0
 %
35.8
 %
34.4
 %
36.7
 %
38.3
 %
39.7
 %
The Companies deferred income taxes components
The Companies' deferred income taxes consist of the following:
 
 
Dominion
Virginia Power
At December 31,
2013

2012

2013

2012

(millions)
 
 
 
 
Deferred income taxes:
 
 
 
 
Total deferred income tax assets
$
2,142

$
2,505

$
462

$
466

Total deferred income tax liabilities
8,463

7,716

4,498

4,238

Total net deferred income tax liabilities
$
6,321

$
5,211

$
4,036

$
3,772

Total deferred income taxes:
 

 

 

 

Plant and equipment, primarily depreciation method and basis differences
$
5,383

$
4,601

$
3,628

$
3,394

Nuclear decommissioning
1,136

994

441

407

Deferred state income taxes
606

474

285

265

Federal benefit of deferred state income taxes
(212
)
(166
)
(100
)
(93
)
Deferred fuel, purchased energy and gas costs
(33
)
3

(50
)
(16
)
Pension benefits
435

231

(52
)
(17
)
Other postretirement benefits
(78
)
(171
)
(3
)
(7
)
Loss and credit carryforwards
(797
)
(656
)
(106
)
(77
)
Valuation allowances
69

93

—

—

Partnership basis differences
125

174

—

—

Other
(313
)
(366
)
(7
)
(84
)
Total net deferred income tax liabilities
$
6,321

$
5,211

$
4,036

$
3,772
Reconciliation of changes in the Companies unrecognized tax benefits
A reconciliation of changes in the Companies' unrecognized tax benefits follows:
 
 
Dominion
Virginia Power
 
2013

2012

2011

2013

2012

2011

(millions)
 
 
 
 
 
 
Balance at January 1
$
293

$
347

$
307

$
57

$
114

$
117

Increases-prior period positions
17

28

127

12

4

22

Decreases-prior period positions
(99
)
(106
)
(119
)
(42
)
(80
)
(51
)
Increases-current period positions
30

43

64

14

24

47

Decreases-current period positions
(5
)
—

(21
)
—

—

(21
)
Settlements with tax authorities
(2
)
(4
)
—

(2
)
(4
)
—

Expiration of statutes of limitations
(12
)
(15
)
(11
)
—

(1
)
—

Balance at December 31
$
222

$
293

$
347

$
39

$
57

$
114
Earliest tax year remaining
For each of the major states in which Dominion operates, the earliest tax year remaining open for examination is as follows:
 
State
Earliest
Open Tax
Year
Pennsylvania
2010
Connecticut
2010
Massachusetts
2008
Virginia(1)
2010
West Virginia
2010
(1)
Virginia is the only state considered major for Virginia Power's operations.
Schedule of Components of Income Tax Expense (Benefit) from Discontinued Operations [Table Text Block]
Details of income tax expense for discontinued operations were as follows:
 
Dominion
Year Ended December 31,
2013
2012
2011
(millions)
 
 
 
Current:
 
 
 
   Federal
(274
)
(248
)
(41
)
   State
(41
)
(6
)
(17
)
      Total current benefit
(315
)
(254
)
(58
)
Deferred:
 
 
 
   Federal
232

(368
)
10

   State
40

(70
)
15

      Total deferred expense (benefit)
272

(438
)
25

      Total income tax benefit
(43
)
(692
)
(33
)