Windstream 2012 Annual Report Download - page 169

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-71
11. Accumulated Other Comprehensive Income (Loss):
Accumulated other comprehensive income (loss) balances, net of tax, were as follows for the years ended December 31:
(Millions) 2012 2011 2010
Pension and postretirement plans $ 43.9 $ 54.7 $ 38.9
Unrealized holding (losses) gains on interest rate swaps
Designated portion (9.1)(16.6) 3.5
De-designated portion (28.4)(36.2)(66.5)
Accumulated other comprehensive income (loss) $ 6.4 $ 1.9 $ (24.1)
12. Income Taxes:
Income tax expense was as follows for the years ended December 31:
(Millions) 2012 2011 2010
Current:
Federal $ 7.4 $ (97.8) $ 71.3
State 13.2 23.4 (0.8)
20.6 (74.4) 70.5
Deferred:
Federal 84.5 180.2 104.5
State (4.9)(6.4) 20.6
79.6 173.8 125.1
Income tax expense $ 100.2 $ 99.4 $ 195.6
Deferred income tax expense for all three years primarily resulted from temporary differences between depreciation and
amortization expense for income tax purposes and depreciation and amortization expense recorded in the consolidated financial
statements. Goodwill is not amortized for financial statement purposes in accordance with authoritative guidance on goodwill
and other intangible assets.
Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state
income taxes, were as follows for the years ended December 31:
2012 2011 2010
Statutory federal income tax rate 35.0% 35.0% 35.0%
Increase (decrease)
State income taxes, net of federal benefit 2.0 2.0 2.5
Adjust deferred taxes for state net operating loss carryforward — 1.9 —
Acquisition costs — (0.5) 1.2
Tax refund interest — (0.5)—
Other items, net 0.3 (0.9)(0.2)
Effective income tax rate 37.3% 37.0% 38.5%