Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income Tax Expense

Income tax expense consists of the following:

Income Tax Expense (Benefit)
(millions) For the year ended Dec. 31,	2013			2012			2011
Continuing Operations
Current income taxes
Federal	$	2.2		$	15.7		$	0.0
State		(3.5	)		1.1			0.9
Deferred income taxes
Federal		98.6			102.9			124.0
State		11.9			18.4			18.2
Amortization of investment tax credits		(0.3	)		(0.3	)		(0.4	)
Income tax expense from continuing operations	$	108.9		$	137.8		$	142.7
Discontinued Operations
Current income taxes
Federal	$	0.0		$	0.0		$	0.0
Foreign		0.0			6.8			7.4
State		0.0			0.0			0.0
Deferred income taxes
Federal		(0.1	)		14.9			4.4
Foreign		0.0			0.0			(0.3	)
State		0.0			0.7			(0.3	)
Income tax expense from discontinued operations		(0.1	)		22.4			11.2
Total income tax expense	$	108.8		$	160.2		$	153.9

Schedule of Income Taxes Calculated on Income before Income Taxes and Provision for Income Taxes

The reconciliation of the federal statutory rate to the company’s effective income tax rate is as follows:

Effective Income Tax Rate
(millions) For the year ended Dec. 31,	2013			2012			2011
Income tax expense at the federal statutory rate of 35%	$	107.3		$	134.3		$	137.7
Increase (decrease) due to:
State income tax, net of federal income tax		5.5			12.7			12.4
Equity portion of AFUDC		(2.2	)		(0.9	)		(0.4	)
Valuation allowance		0.0			1.1			0.0
Depletion		(3.7	)		(8.5	)		(9.1	)
Other		2.0			(0.9	)		2.1
Total income tax expense from continuing operations	$	108.9		$	137.8		$	142.7
Income tax expense as a percent of income from continuing operations, before income taxes		35.5	%		35.9	%		36.3	%

Schedule of Deferred Tax Assets and Liabilities

The major components of the company’s deferred tax assets and liabilities recognized are as follows:

Deferred Income Taxes
(millions)
As of Dec. 31,	2013			2012
Deferred tax liabilities (1)
Property related	$	1,164.2		$	1,023.3
Deferred fuel		1.6			11.3
Pension		52.8			43.0
Total deferred tax liabilities		1,218.6			1,077.6
Deferred tax assets (1)
Alternative minimum tax credit carryforward		213.0			211.8
Loss and credit carryforwards (2)		479.8			473.2
Other postretirement benefits		68.9			68.0
Other		113.2			113.0
Total deferred tax assets		874.9			866.0
Valuation allowance		0.0			(3.0	)
Total deferred tax assets, net of valuation allowance		874.9			863.0
Total deferred tax liability, net		343.7			214.6
Less: Current portion of deferred tax asset		(100.3	)		(63.3	)
Long-term portion of deferred tax liability, net	$	444.0		$	277.9

(1) Certain property related assets and liabilities have been netted.

(2) As a result of certain realization requirements of accounting guidance, loss carryforwards do not include certain deferred tax assets as of Dec. 31, 2013 that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Stockholder’s equity will be increased by $1.1 million when such deferred tax assets are ultimately realized. The company uses tax law ordering when determining when excess tax benefits have been realized.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Unrecognized Tax Benefits
(millions)	2013			2012
Balance at Jan. 1,	$	2.9		$	4.1
Decreases due to tax positions related to prior years		0.0			0.0
Decreases due to settlements with taxing authorities		0.0			0.0
Decreases due to expiration of statute of limitations		(2.9	)		0.0
Dispositions		0.0			(1.2	)
Balance at Dec. 31,	$	0.0		$	2.9

Tampa Electric Company [Member]

Schedule of Income Tax Expense

Income tax expense consists of the following components:

Income Tax Expense (Benefit)
(millions) For the year ending Dec. 31,	2013			2012			2011
Current income taxes
Federal	$	19.4		$	(19.5	)	$	(30.7	)
State		1.3			5.6			2.9
Deferred income taxes
Federal		99.8			141.2			155.6
State		18.6			14.7			18.0
Amortization of investment tax credits		(0.3	)		(0.3	)		(0.4	)
Total income tax expense	$	138.8		$	141.7		$	145.4

Schedule of Income Taxes Calculated on Income before Income Taxes and Provision for Income Taxes

The total income tax provisions differ from amounts computed by applying the federal statutory tax rate to income before income taxes as follows:

Effective Income Tax Rate
(millions) For the years ended Dec. 31,	2013			2012			2011
Income tax expense at the federal statutory rate of 35%	$	127.5		$	129.1		$	133.2
Increase (decrease) due to
State income tax, net of federal income tax		13.0			13.2			13.6
Equity portion of AFUDC		(2.2	)		(0.9	)		(0.4	)
Domestic production deduction		(0.6	)		(0.4	)		(1.5	)
Other		1.1			0.7			0.5
Total income tax expense on consolidated statements of income	$	138.8		$	141.7		$	145.4
Income tax expense as a percent of income from continuing operations, before income taxes		38.1	%		38.4	%		38.2	%

Schedule of Deferred Tax Assets and Liabilities

The principal components of TEC’s deferred tax assets and liabilities recognized in the balance sheet are as follows:

Deferred Income Taxes
(millions) As of Dec. 31,	2013			2012
Deferred tax liabilities (1)
Property related	$	1,166.4		$	1,016.2
Deferred fuel		1.6			11.3
Pension and postretirement benefits		70.5			106.6
Pension		43.2			36.7
Other		0.0			22.2
Total deferred tax liabilities		1,281.7			1,193.0
Deferred tax assets (1)
Medical benefits		50.9			49.0
Insurance reserves		29.1			31.1
Investment tax credits		5.3			5.5
Hedging activities		4.9			5.5
Pension and postretirement benefits		70.5			106.6
Unbilled revenue		12.1			14.8
Capitalized energy conservation assistance costs		19.6			19.6
Other		4.4			0.0
Total deferred tax assets		196.8			232.1
Total deferred tax liability, net		1,084.9			960.9
Less: Current portion of deferred tax asset		(29.4	)		(20.0	)
Long-term portion of deferred tax liability, net	$	1,114.3		$	980.9

(1) Certain property related assets and liabilities have been netted.