Income Tax (Tables)

12 Months Ended

Dec. 31, 2011

Table Text Block

Schedule Of Components Of Income Tax Expense Benefit [Table]

Components of income tax expense shown in the Consolidated Statements of Income are shown in the following table.

In millions	2011	2010	2009
Current income taxes
Federal	$(89)	$37	$23
State	1	12	8
Deferred income taxes
Federal	196	86	94
State	18	6	11
Amortization of investment tax credits	(1)	(1)	(1)
Total	$125	$140	$135

Schedule Of Deferred Tax Assets And Liabilities [Table]

Components that give rise to the net accumulated deferred income tax liability are as follows.

	As of December 31,
In millions	2011	2010
Accumulated deferred income tax liabilities
Property – accelerated depreciation and other property-related items	$1,418	$863
Mark to market	22	11
Investments in partnerships	42	0
Other	91	0
Acquisition intangibles	34	0
Undistributed earnings of foreign subsidiaries	39	0
Total accumulated deferred income tax liabilities	1,646	874
Accumulated deferred income tax assets
Deferred investment tax credits	10	4
Unfunded pension and other retirement benefit obligation	137	94
Other	57	11
Total accumulated deferred income tax assets	204	109
Valuation allowances (1)	(3)	(3)
Total accumulated deferred income tax assets, net of valuation allowance	201	106
Net accumulated deferred tax liability	$1,445	$768

(1)Valuation allowance is due to the net operating losses on a former non-operating subsidiary that are not allowed in New Jersey.

Schedule Of Effective Income Tax Rate Reconciliation [Table]

The reconciliations between the statutory federal income tax rate, the effective rate and the related amount of tax for the years ended December 31, 2011, 2010 and 2009 on our Consolidated Statements of Income are presented in the following table.

In millions	2011	2010	2009
Computed tax expense at statutory rate	$109	$136	$134
State income tax, net of federal income tax benefit	14	15	16
Tax effect of net income attributable to the noncontrolling interest	(6)	(6)	(11)
Amortization of investment tax credits	(1)	(1)	(1)
Affordable housing credits	(1)	(2)	(2)
Flexible dividend deduction	(2)	(2)	(2)
Change in control payments	9	0	0
Merger transaction costs	3	0	0
Other – net	0	0	1
Total income tax expense on Consolidated Statements of Income	$125	$140	$135