XML 175 R33.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Summary of Effective Tax Rates
Effective tax rates are analyzed as follows:
 
2013
 
2012
 
(dollars are in millions)
Three Months Ended June 30,
 
 
 
 
 
 
 
Tax expense (benefit) at the U.S. federal statutory income tax rate
$
141

 
35.0
 %
 
$
(858
)
 
(35.0
)%
Increase (decrease) in rate resulting from:
 
 
 
 
 
 
 
State and local taxes, net of Federal benefit
2

 
.5

 
(42
)
 
(1.7
)
Adjustment with respect to tax for prior periods(1)
14

 
3.5

 
(43
)
 
(1.7
)
Adjustment of tax rate used to value deferred taxes
(6
)
 
(1.6
)
 
—

 
—

Change in valuation allowance reserves (2)
(15
)
 
(3.8
)
 
3

 
.1

Other non-deductible/non-taxable items(4)
(5
)
 
(1.2
)
 
(2
)
 
(.1
)
Impact of foreign operations
2

 
.5

 
—

 
—

Other
—

 
—

 
3

 
.1

Total income tax expense (benefit)
$
133

 
32.9
 %
 
$
(939
)
 
(38.3
)%
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
Tax expense (benefit) at the U.S. federal statutory income tax rate
$
300

 
35.0
 %
 
$
(1,136
)
 
(35.0
)%
Increase (decrease) in rate resulting from:
 
 
 
 
 
 
 
State and local taxes, net of Federal benefit
5

 
.6

 
(45
)
 
(1.4
)
Adjustment with respect to tax for prior periods(1)
4

 
.5

 
(44
)
 
(1.4
)
Adjustment of tax rate used to value deferred taxes
(11
)
 
(1.3
)
 
(7
)
 
(.2
)
Change in valuation allowance reserves (2)
(5
)
 
(.6
)
 
10

 
.3

Uncertain tax adjustments(3)
(5
)
 
(.6
)
 
(5
)
 
(.1
)
Other non-deductible/non-taxable items(4)
(5
)
 
(.6
)
 
(3
)
 
(.1
)
Impact of foreign operations
2

 
.1

 
—

 
—

Other
—

 
—

 
3

 
.1

Total income tax expense (benefit)
$
285

 
33.1
 %
 
$
(1,227
)
 
(37.8
)%
 
(1) 
For 2013 and 2012, the amounts relate to corrections to current and deferred tax balance sheet accounts.
(2) 
For 2013 and 2012, the amounts relate to changes in valuation allowance on states with net operating loss carryforward periods of 12 to 20 years.
(3) 
For 2013 and 2012, the amounts primarily relate to the conclusion of state audits and expiration of state statutes of limitations.
(4) 
For 2013, the amount relates to a change in the estimated deductibility of accrued costs for certain regulatory matters and a correction to share-based compensation deferred balances.