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Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes Disclosure [Line Items] 
Income Taxes

9.       INCOME TAXES

PROGRESS ENERGY

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Our federal tax years are open for examination from 2007 forward, and our open state tax years in our major jurisdictions are generally from 2003 forward. During the three months ended September 30, 2011, the IRS completed its examination of the 2004 and 2005 tax returns.

At September 30, 2011 and December 31, 2010, our liability for unrecognized tax benefits was $176 million. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for income from continuing operations was $6 million at September 30, 2011.

At September 30, 2011 and December 31, 2010, we had accrued $19 million and $45 million, respectively, for interest and penalties, which were included in interest accrued and other liabilities and deferred credits on the Consolidated Balance Sheets. The decrease in interest and penalties was due to the completion of the examination of the 2004 and 2005 tax returns previously discussed.

 

PEC
 
Income Taxes Disclosure [Line Items] 
Income Taxes

PEC

We file consolidated federal and state income tax returns that include PEC. In addition, PEC files stand-alone tax returns in various state jurisdictions. PEC's federal tax years are open for examination from 2007 forward, and PEC's open state tax years in our major jurisdictions are generally from 2003 forward. During the three months ended September 30, 2011, the IRS completed its examination of the 2004 and 2005 tax returns.

At September 30, 2011 and December 31, 2010, PEC's liability for unrecognized tax benefits was $79 million and $74 million, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for income from continuing operations was $4 million at September 30, 2011.

At September 30, 2011 and December 31, 2010, PEC had accrued $8 million and $14 million, respectively, for interest and penalties, which were included in interest accrued and other liabilities and deferred credits on the Consolidated Balance Sheets. The decrease in interest and penalties was due to the completion of the examination of the 2004 and 2005 tax returns previously discussed.

PEF
 
Income Taxes Disclosure [Line Items] 
Income Taxes

PEF

We file consolidated federal and state income tax returns that include PEF. PEF's federal tax years are open for examination from 2007 forward and PEF's open state tax years are generally from 2003 forward. During the three months ended September 30, 2011, the IRS completed its examination of the 2004 and 2005 tax returns.

At September 30, 2011 and December 31, 2010, PEF's liability for unrecognized tax benefits was $87 million and $99 million, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for income from continuing operations was $2 million at September 30, 2011.

At September 30, 2011, PEF had accrued $7 million for interest and penalties, which were included in other current assets and other liabilities and deferred credits on the Balance Sheets. At December 31, 2010, PEF had accrued $29 million for interest and penalties, which were included in interest accrued and other assets and deferred debits on the Balance Sheets. The decrease in interest and penalties was due to the completion of the examination of the 2004 and 2005 tax returns previously discussed.