TAXES ON INCOME Taxes on Income

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure

TAXES ON INCOME:

The following tables summarize the Company’s income taxes from continuing operations for the periods presented:

	Successor												Predecessor
	Three Months Ended September 30, 2013			Three Months Ended September 30, 2012			Nine Months Ended September 30, 2013			Period from Acquisition (March 26, 2012) to September 30, 2012			Period from January 1, 2012 to March 25, 2012
Income tax expense (benefit)	$	(5	)	$	27		$	80		$	21		$	12
Effective tax rate	(13		)%	69		%	47		%	(700		)%	27		%

The Company’s effective income tax rate for the three and nine months ended September 30, 2013 varied from the federal statutory rate of 35% primarily due to state income taxes. The state effective rate changed due to apportionment shifts resulting from the SUGS Contribution, completion of the sale of the MGE assets and other internal restructuring activities. The effective income tax rate for the period from March 26, 2012 to September 30, 2012 reflected the impact of the Company’s pre-tax loss as a result of merger-related expenses coupled with non-deductible executive compensation included in the merger-related expenses. The effective income tax rate for the period from January 1, 2012 to March 25, 2012 was lower than the federal statutory rate primarily due to the dividend received reduction for the anticipated receipt of dividends associated with the earnings from the Company’s prior unconsolidated investment in Citrus.