Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes (Tables) [Abstract]

Summary of income tax expense

The following table is a summary of income tax expense for each of the years ended December 31:

Income Taxes	2013			2012			2011
	(Millions of Dollars)
Current tax expense (benefit)	$	25.2		$	13.1		$	(166.7	)
Deferred income taxes, net	313.8			294.4			434.8
Investment tax credit, net	(1.1		)	(1.2		)	(4.2		)
Total Income Tax Expense	$	337.9		$	306.3		$	263.9

The provision for income taxes for each of the years ended December 31 differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income before income taxes as a result of the following:

The provision for income taxes for each of the years ended December 31 differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income before income taxes as a result of the following:

	2013					2012					2011
				Effective					Effective					Effective
Income Tax Expense	Amount			Tax Rate		Amount			Tax Rate		Amount			Tax Rate
	(Millions of Dollars)
Expected tax at statutory federal tax rates	$	320.3		35.0	%	$	298.4		35.0	%	$	271.8		35.0	%
State income taxes net of federal tax benefit	49.0			5.3	%	43.3			5.1	%	40.1			5.2	%
Production tax credits	(16.7		)	(1.8	)%	(15.9		)	(1.9	)%	(8.7		)	(1.1	)%
Treasury Grant	(7.4		)	(0.8	)%	—			—	%	—			—	%
AFUDC - Equity	(6.4		)	(0.7	)%	(12.3		)	(1.4	)%	(20.8		)	(2.7	)%
Investment tax credit restored	(1.1		)	(0.1	)%	(1.2		)	(0.1	)%	(4.2		)	(0.5	)%
Domestic production activities deduction	—			—	%	(12.6		)	(1.5	)%	(12.6		)	(1.6	)%
Other, net	0.2			—	%	6.6			0.7	%	(1.7		)	(0.3	)%
Total Income Tax Expense	$	337.9		36.9	%	$	306.3		35.9	%	$	263.9		34.0	%

Components of deferred income taxes classified as net current assets and net long-term liabilities

The components of deferred income taxes classified as net current assets and net long-term liabilities as of December 31 are as follows:

Deferred Tax Assets	2013		2012
	(Millions of Dollars)
Current
Future federal tax benefits	$	309.7	$	59.0
Employee benefits and compensation	13.8		14.9
Other	56.0		81.1
Total Current Deferred Tax Assets	379.5		155.0
Non-current
Deferred revenues	237.0		250.0
Employee benefits and compensation	95.6		97.0
Future federal tax benefits	32.5		334.7
Property-related	28.2		28.3
Construction advances	18.3		22.2
Other	62.9		16.3
Total Non-Current Deferred Tax Assets	474.5		748.5
Total Deferred Tax Assets	$	854.0	$	903.5

Deferred Tax Liabilities	2013		2012
	(Millions of Dollars)
Current
Prepaid items	$	69.5	$	49.7
Total Current Deferred Tax Liabilities	69.5		49.7
Non-current
Property-related	2,574.4		2,339.4
Employee benefits and compensation	238.5		244.3
Investment in transmission affiliate	169.9		144.9
Deferred transmission costs	50.8		45.7
Other	74.9		91.2
Total Non-current Deferred Tax Liabilities	3,108.5		2,865.5
Total Deferred Tax Liabilities	$	3,178.0	$	2,915.2
Consolidated Balance Sheet Presentation	2013		2012
Current Deferred Tax Asset	$	310.0	$	105.3
Non-Current Deferred Tax Liability	$	2,634.0	$	2,117.0

Reconciliation of the beginning and ending amount of unrecognized tax benefits

We previously adopted accounting guidance related to uncertainty in income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2013			2012
	(Millions of Dollars)
Balance as of January 1	$	11.3		$	11.1
Additions for tax positions of prior years	—			10.8
Reductions for tax positions of prior years	(2.9		)	(10.6		)
Balance as of December 31	$	8.4		$	11.3