Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 8 – Income Taxes

During the year ended December 31, 2011, and pursuant to the tax matters agreement with Questar Corporation relating to the Spin-off, QEP received $15.5 million from Questar Corporation, for the use of QEP's net operating losses, or more than half of the net $28.5 million of total income tax refunds in 2011 from all taxing authorities. Details of income tax expenses and deferred income taxes from continuing operations are provided in the following tables. The components of income tax expenses were as follows:

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Federal
Current	$	(5.3	)	$	(16.6	)	$	11.5
Deferred		153.0			172.9			101.3
State
Current		2.9			(4.7	)		2.6
Deferred		3.8			15.4			2.2
Total income tax expense	$	154.4		$	167.0		$	117.6

The difference between the statutory federal income tax rate and the Company's effective income tax rate is explained as follows:

	Year Ended December 31,
	2011			2010			2009
	(in millions)
Federal income taxes statutory rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in rate as a result of:
State income taxes, net of federal income tax benefit		1.0	%		1.5	%		0.9	%
Non-deductible Spin-off costs		0.0	%		0.5	%		0.0	%
Other		0.3	%		-0.1	%		-0.6	%
Effective income tax rate		36.3	%		36.9	%		35.3	%

Significant components of the Company's deferred income taxes were as follows:

	December 31,
	2011			2010
	(in millions)
Deferred tax liabilities
Property, plant and equipment	$	1,714.6		$	1,458.9
Energy-price derivatives		45.9			44.8
Total deferred tax liabilities		1,760.5			1,503.7
Deferred tax assets
NOL and tax credit carryforwards		232.9			93.7
Employee benefits and compensation costs		42.9			32.3
Total deferred tax assets		275.8			126.0
Deferred income taxes - noncurrent	$	1,484.7		$	1,377.7
Deferred income taxes - current
Energy-price derivatives		(101.3	)		(43.9	)
Other		15.9			16.1
Deferred income taxes - current asset (liability)	$	(85.4	)	$	(27.8	)

Federal and state NOLs and credits increased in 2011 primarily due to bonus depreciation, and intangible drilling costs deductions, no longer being able to offset QEP's net operating losses against formerly affiliated Questar Company's taxable income and no longer having carryback years with positive taxable income. The amounts and expiration dates of operating loss and tax credit carryforwards at December 31, 2011:

	Expiration Dates		Amounts
	(in millions)
U.S federal net operating loss carryforwards		2030-2031	$	187.9
State net operating loss and credit carryforwards		2014-2031		29.3
U.S. alternative minimum tax credit	Indefinite			15.7
Total			$	232.9