NWN » Topics » Income Taxes

This excerpt taken from the NWN 10-Q filed Aug 6, 2008.

Income Taxes

Income tax expense totaled $27.5 million in the six months ended June 30, 2008 compared to $29.9 million in the six months ended June 30, 2007. The effective tax rate was 37.2 percent in the first half of 2008 compared to 37.1 percent in the first half of 2007. The lower income tax expense in 2008 was primarily due to lower taxable income, which declined to $74.0 million from $80.6 million for the same period in 2007.

 

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This excerpt taken from the NWN 10-Q filed May 2, 2008.

Income Taxes

Income tax expense totaled $25.7 million in the first quarter of 2008 compared to $28.5 million in the first quarter of 2007. The effective tax rate was 37.3 percent in the first quarter of 2008 compared to 37.2 percent in the first quarter of 2007. The lower income tax expense in 2008 is due primarily to pre-tax book income of $68.9 million compared to $76.5 million for the same period in 2007, resulting in lower income tax expense of $2.8 million.

This excerpt taken from the NWN 10-Q filed Nov 8, 2007.

Income Taxes

Income tax expense totaled $26.2 million in the nine months ended September 30, 2007 compared to $18.7 million in the nine months ended September 30, 2006. The effective tax rate was 36.9 percent in 2007 compared to 35.9 percent in 2006. The higher income tax expense in 2007 is due primarily to pre-tax book income of $71.0 million compared to $52.0 million for the same period in 2006, while the increase in the effective tax rate was largely due to a $0.7 million decrease in non-taxable gains on life insurance.

 

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This excerpt taken from the NWN 10-Q filed Aug 7, 2007.

Income Taxes

Income tax expense totaled $29.9 million in the six months ended June 30, 2007 compared to $24.5 million in the six months ended June 30, 2006. The effective tax rate was 37.1 percent in the first half of 2007 compared to 36.3 percent in the first half of 2006. The higher income tax expense in 2007 is due primarily to pre-tax book income of $80.6 million compared to $67.5 million for the same period in 2006. The increase in the effective tax rate was largely due to a $0.9 million decrease in non-taxable gains on life insurance.

This excerpt taken from the NWN 10-Q filed May 4, 2007.

Income Taxes

Income tax expense totaled $28.5 million in the first quarter of 2007 compared to $23.4 million in the first quarter of 2006. The effective tax rate was 37.2 percent in the first quarter of 2007 compared to 36.4 percent in the first quarter of 2006. The higher income tax expense in 2007 is due primarily to pre-tax book income of $76.5 million compared to $64.5 million for the same period in 2006, resulting in higher income tax expenses. The increase in effective tax rate in 2007 was largely due to a decrease in tax benefits from a $0.9 million decrease in non-taxable gains on life insurance.

 

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This excerpt taken from the NWN 10-Q filed Nov 2, 2006.

Income Taxes

The effective corporate income tax rate on income from operations was 35.9 percent for the nine-month period ended Sept. 30, 2006, compared to 35.7 percent for the nine-month period ended Sept. 30, 2005.

This excerpt taken from the NWN 10-Q filed May 4, 2006.

Income Taxes

The effective corporate income tax rate from operations was 36.4 percent for each of the three-month periods ended March 31, 2006 and 2005.

This excerpt taken from the NWN 10-K filed Mar 1, 2006.

Income Taxes

NW Natural accounts for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” SFAS No. 109 requires recognition of deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the financial statements or tax returns. Deferred income taxes represent the future net tax effects resulting from temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse (see Note 8).

SFAS No. 109 also requires recognition of the additional deferred income tax assets and liabilities for temporary differences where regulators prohibit deferred income tax treatment for ratemaking purposes. The Company has recorded a deferred tax liability equivalent to $65.8 million and $64.7 million at Dec. 31, 2005 and 2004, to recognize future taxes payable resulting from transactions that have previously been reflected in the financial statements for these temporary differences. Regulatory assets or liabilities corresponding to such additional deferred income tax assets or liabilities may be recorded to the extent the Company believes they will be recoverable from or payable to customers through the ratemaking process. Pursuant to SFAS No. 71, a corresponding regulatory asset has been recorded which represents the probable future revenue that will result from inclusion in rates charged to customers of taxes which will be paid in the future. The probable future revenue to be recorded takes into consideration the additional future taxes which will be generated by that revenue. Amounts applicable to income taxes due from customers primarily represent differences between the book and tax bases of net utility plant in service and actual removal costs incurred.

Investment tax credits on utility plant additions and leveraged leases, which reduce income taxes payable, are deferred for financial statement purposes and amortized over the life of the related plant or lease. Investment and energy tax credits generated by the non-regulated subsidiary are amortized over a period of one to five years.

This excerpt taken from the NWN 10-Q filed Nov 3, 2005.

Income Taxes

 

The effective corporate income tax rate was 35.7 percent for the nine-month period ended Sept. 30, 2005, compared to 34.7 percent for the nine-month period ended Sept. 30, 2004. The increase in the effective income tax rate reflected the effect of higher federal and state income taxes attributed to a $14.1 million dollar increase in pre-tax income.

 

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This excerpt taken from the NWN 10-Q filed Aug 4, 2005.

Income Taxes

 

The effective corporate income tax rate from operations was 36.3 percent and 36.0 percent for the six-month periods ended June 30, 2005 and 2004, respectively.

 

This excerpt taken from the NWN 10-Q filed May 4, 2005.

Income Taxes

 

The effective corporate income tax rate from operations was 36.4 percent for each of the three-month periods ended March 31, 2005 and 2004.

 

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This excerpt taken from the NWN 10-K filed Mar 1, 2005.

Income Taxes

 

The Company accounts for income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under SFAS No. 109, the Company recognizes deferred income taxes for all temporary differences between the financial statement and tax basis of assets and liabilities at current income tax rates. Deferred tax liabilities and assets reflect the expected future tax consequences, based on enacted tax law, of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts (see Note 8).

 

SFAS No. 109 also requires recognition of the additional deferred income tax assets and liabilities for temporary differences where regulators prohibit deferred income tax treatment for

 

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ratemaking purposes. Consistent with rate and accounting orders of regulatory authorities, deferred income taxes are not currently collected for those temporary income tax differences where the prescribed regulatory accounting methods do not provide for current recovery in rates. NW Natural has recorded a regulatory tax asset for amounts pending recovery from customers in future rates, equivalent to $64.7 million and $63.4 million at Dec. 31, 2004 and 2003, respectively. These amounts are primarily based on differences between the book and tax bases of net utility plant in service.

 

Investment tax credits on utility plant additions and leveraged leases, which reduce income taxes payable, are deferred for financial statement purposes and are amortized over the life of the related plant or lease. Investment and energy tax credits generated by non-regulated subsidiaries are amortized over a period of one to five years.

 

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