10-K - SCANA Corporation

Table of Contents
The difference between actual income tax expense and the amount calculated from the application of the statutory 35%
federal income tax rate to pre-tax income is reconciled as follows:
Millions of dollars 2011 2010 2009
Income $ 387 $ 376 $ 348
Income tax expense 168 159 167
Preferred stock dividends — — 9
Total pre-tax income $ 555 $ 535 $ 524
Income taxes on above at statutory federal income tax rate $ 194 $ 187 $ 183
Increases (decreases) attributed to:
State income taxes (less federal income tax effect) 15 9 14
Amortization of state investment tax credits (less federal
income tax effect) (16) (18) (6)
Allowance for equity funds used during construction (5) (8) (10)
Deductible dividends—Stock Purchase Savings Plan (9) (9) (8)
Amortization of federal investment tax credits (3) (3) (3)
Other differences, net (2) 1 1
Total income tax expense $ 168 $ 159 $ 167
Domestic production activities deduction (6) — (4)
The tax effects of significant temporary differences comprising the Company’s net deferred tax liability of $1.5 billion at
December 31, 2011 and $1.4 billion at December 31, 2010 are as follows:
Millions of dollars 2011 2010
Deferred tax assets:
Nondeductible reserves $ 99 $ 103
Nuclear decommissioning 47 45
Financial instruments 50 22
Unamortized investment tax credits 29 41
Deferred compensation 23 25
Unbilled revenue 19 19
Monetization of bankruptcy claim 13 14
Other 15 11
Total deferred tax assets $ 295 $ 280
Deferred tax liabilities:
Property, plant and equipment $ 1,561 $ 1,418
Pension plan income 1 23
Deferred employee benefit plan costs 128 106
Deferred fuel costs 47 42
Other 65 61
Total deferred tax liabilities 1,802 1,650
Net deferred tax liability $ 1,507 $ 1,370
The Company files a consolidated federal income tax return, and the Company and its subsidiaries file various applicable
state and local income tax returns. The IRS has completed examinations of the Company’s federal returns through 2004, and the
Company’s federal returns through 2007 are closed for additional assessment. With few exceptions, the Company is no longer subject
to state and local income tax examinations by tax authorities for years before 2008.
In the first quarter of 2010, in connection with a fuel cost recovery settlement (see Note 2), SCE&G accelerated the
recognition of certain previously deferred state income tax credits. In the second quarter of 2010, the Company revised (reduced) its
estimate of the benefit to be realized from the domestic production activities deduction as a result of a change in method of accounting
for certain repairs for tax purposes. In the third quarter of 2010, in connection with the adoption of new retail electric base rates, and
pursuant to an SCPSC order, SCE&G accelerated the recognition of additional previously deferred state income tax credits (see
Note 2) and also adopted the flow through method of accounting for current and future state tax credits.
71