Income Taxes (Notes)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note 8 - Income Taxes

Questar

Details of Questar's income tax expense and deferred income taxes are provided in the following tables. The components of income tax expense were as follows:

	Year Ended December 31,
	2013			2012			2011
	(in millions)
Federal
Current	$	66.5		$	1.3		$	—
Deferred	18.4			112.0			110.8
State
Current	10.7			—			(1.3		)
Deferred	5.9			3.6			7.3
Deferred investment tax credits recognized	(0.2		)	(0.4		)	(0.4		)
Total income tax expense	$	101.3		$	116.5		$	116.4

The difference between the statutory federal income tax rate and the Company's effective income tax rate is explained as follows:

	Year Ended December 31,
	2013		2012		2011
Federal income taxes statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rate as a result of:
State income taxes, net of federal income tax benefit	4.0		1.0		1.3
Tax benefits from dividends paid to employee stock plan	(1.0	)	(0.5	)	(0.5	)
Other	0.6		—		0.1
Effective income tax rate	38.6	%	35.5	%	35.9	%

The 2013 combined effective federal and state income tax rate increased due to the impairment of Southern Trails Pipeline. There was no state tax benefit recorded in association with the impairment charge because the Company has limited state operations for Southern Trails Pipeline. The effective combined federal and state income tax rate also increased in 2013 due to adjustments to estimated state income taxes for the consolidated Questar return that were in excess of state income taxes calculated on a separate return basis for the operating companies.

Significant components of Questar's deferred income taxes were as follows:

	December 31,
	2013			2012
	(in millions)
Deferred income taxes - noncurrent
Deferred tax liabilities
Property, plant and equipment	$	797.5		$	767.0
Employee benefits	30.2			33.9
Other	4.9			3.2
Deferred tax liabilities - noncurrent	832.6			804.1
Deferred tax assets
Asset retirement obligations	22.7			23.2
Pension and other postretirement benefits	73.7			138.3
Deferred compensation	14.5			8.6
Hedging activities	13.4			13.6
State tax credits	3.4			3.4
Net operating loss carryforward	—			15.8
Valuation allowance	(2.3		)	(2.2		)
Deferred tax assets, net of allowance - noncurrent	125.4			200.7
Net deferred income tax liability - noncurrent	$	707.2		$	603.4
Deferred income taxes - current
Deferred tax assets - current	$	10.1		$	17.6
Deferred tax liabilities - current	0.4			4.6
Net deferred income tax asset - current	$	9.7		$	13.0

Questar Gas

Details of Questar Gas's income tax expense and deferred income taxes are provided in the following tables. The components of income tax expense were as follows:

	Year Ended December 31,
	2013			2012			2011
	(in millions)
Federal
Current	$	6.0		$	(18.7	)	$	—
Deferred	23.5			45.1			26.3
State
Current	0.6			—			(1.6		)
Deferred	2.0			1.2			3.2
Deferred investment tax credit recognized	(0.2		)	(0.4		)	(0.4		)
Total income tax expense	$	31.9		$	27.2		$	27.5

The difference between the statutory federal income tax rate and Questar Gas's effective income tax rate is explained as follows:

	Year Ended December 31,
	2013		2012		2011
Federal income taxes statutory rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in rate as a result of:
State income taxes, net of federal income tax benefit	2.1		1.0		1.4
Amortization of investment tax credits related to rate-regulated assets	(0.3	)	(0.4	)	(0.5	)
Other	0.9		1.0		1.5
Effective income tax rate	37.7	%	36.6	%	37.4	%

Significant components of Questar Gas's deferred income taxes were as follows:

	December 31,
	2013		2012
	(in millions)
Deferred income taxes - noncurrent
Deferred tax liabilities
Property, plant and equipment	$	322.6	$	293.0
Employee benefits	14.0		17.2
Other	4.9		3.4
Deferred tax liabilities - noncurrent	341.5		313.6
Deferred tax assets
Deferred compensation	0.8		0.9
Net operating loss carryforward	—		11.1
Deferred tax assets - noncurrent	0.8		12.0
Net deferred income tax liability - noncurrent	$	340.7	$	301.6
Deferred income taxes - current
Deferred tax assets - current	$	3.3	$	6.1
Deferred tax liabilities - current	0.4		4.6
Net deferred income tax asset - current	$	2.9	$	1.5

Questar Pipeline

Details of Questar Pipeline's income tax expense and deferred income taxes are provided in the following tables. The components of income tax expense were as follows:

	Year Ended December 31,
	2013			2012			2011
	(in millions)
Federal
Current	$	20.2		$	(5.4	)	$	—
Deferred	(15.2		)	40.4			37.0
State
Current	1.3			1.6			(0.7		)
Deferred	0.7			0.7			1.9
Total income tax expense	$	7.0		$	37.3		$	38.2

The difference between the statutory federal income tax rate and Questar Pipeline's effective income tax rate is explained as follows:

	Year Ended December 31,
	2013		2012		2011
Federal income taxes statutory rate	35.0	%	35.0	%	35.0	%
Increase in rate as a result of:
State income taxes, net of federal income tax benefit	8.5		1.6		1.0
Other	2.6		—		—
Effective income tax rate	46.1	%	36.6	%	36.0	%

The 2013 combined effective federal and state income tax rate increased due to the impairment of Southern Trails Pipeline. There was no state tax benefit recorded in association with the impairment charge because the company has limited state operations for Southern Trails Pipeline.

Significant components of Questar Pipeline's deferred income taxes were as follows:

	December 31,
	2013		2012
	(in millions)
Deferred income taxes - noncurrent
Deferred tax liabilities
Property, plant and equipment	$	237.1	$	250.8
Employee benefits	7.4		8.4
Deferred tax liabilities - noncurrent	244.5		259.2
Deferred tax assets
Deferred compensation	1.8		1.5
Hedging activities	13.4		13.6
State tax credits	0.7		0.7
Net operating loss carryforward	—		1.0
Other	—		(0.1		)
Deferred tax assets - noncurrent	15.9		16.7
Net deferred income tax liability - noncurrent	$	228.6	$	242.5
Net deferred income tax asset - current	$	1.8	$	1.6