Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Income Tax Expense Disclosure

The components of CERC’s income tax expense were as follows:

	Year Ended December 31,
	2014		2013		2012
	(in millions)
Current income tax expense:
Federal	$	—	$	5	$	—
State	10		9		1
Total current expense	10		14		1
Deferred income tax expense:
Federal	171		350		198
State	7		7		47
Total deferred expense	178		357		245
Total income tax expense	$	188	$	371	$	246

Reconciliation Of Expected Federal Income Tax Expense To Actual

A reconciliation of income tax expense using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows:

	Year Ended December 31,
	2014			2013			2012
	(in millions)
Income before income taxes	$	511		$	435		$	383
Federal statutory income tax rate	35		%	35		%	35		%
Expected federal income tax expense	179			152			134
Increase (decrease) in tax expense resulting from:
State income tax expense, net of federal income tax	11			23			31
Decrease in settled and uncertain income tax positions	—			(2		)	(7		)
Tax effect related to the formation of Enable Midstream Partnership	—			198			—
Goodwill impairment	—			—			88
Other, net	(2		)	—			—
Total	9			219			112
Total income tax expense	$	188		$	371		$	246
Effective tax rate	36.8		%	85.3		%	64.2		%

Income Tax Asset Liability Disclosure

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows:

	December 31,
	2014			2013
	(in millions)
Deferred tax assets:
Current:
Allowance for doubtful accounts	$	9		$	10
Deferred gas costs	—			7
Other	8			7
Total current deferred tax assets	17			24
Non-current:
Employee benefits	44			41
Loss and credit carryforwards	326			193
Other	71			59
Total non-current deferred tax assets before valuation allowance	441			293
Valuation allowance	(2		)	(2		)
Total non-current deferred tax assets, net of valuation allowance	439			291
Total deferred tax assets, net of valuation allowance	456			315
Deferred tax liabilities:
Current:
Deferred gas costs	6			—
Other	10			3
Total current deferred tax liabilities	16			3
Non-current:
Depreciation	865			746
Regulatory assets, net	16			17
Investment in unconsolidated affiliates (1)	1,789			1,600
Other (1)	21			21
Total non-current deferred tax liabilities (1)	2,691			2,384
Total deferred tax liabilities (1)	2,707			2,387
Accumulated deferred income taxes, net (1)	$	2,251		$	2,072

(1) For tax year ended December 31, 2013, the amounts are presented after the effect of the revisions to the prior period financial statement discussed in Note 2(p).

Uncertain Income Tax Positions

Uncertain Income Tax Positions. The following table reconciles the beginning and ending balance of CERC’s unrecognized tax benefits (expenses):

	December 31,
	2014		2013			2012
	(in millions)
Balance, beginning of year	$	—	$	(20	)	$	8
Tax Positions related to prior years:
Additions	—		(2		)	—
Reductions	—		—			(27		)
Tax Positions related to current year:
Settlements	—		22			(1		)
Balance, end of year	$	—	$	—		$	(20	)