Windstream 2013 Annual Report Download - page 211

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-75
12. Income Taxes:
Income tax expense was as follows for the years ended December 31:
(Millions) 2013 2012 2011
Current:
Federal $ (27.0) $ 6.2 $ (97.8)
State (2.5) 13.0 23.4
(29.5) 19.2 (74.4)
Deferred:
Federal 104.0 84.0 180.2
State 30.8 (5.0)(6.4)
134.8 79.0 173.8
Income tax expense $ 105.3 $ 98.2 $ 99.4
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 accompanying
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:
2013 2012 2011
Statutory federal income tax rate 35.0% 35.0% 35.0%
Increase (decrease)
State income taxes, net of federal benefit 3.3 2.0 2.0
Adjust deferred taxes for state net operating loss carryforward (0.1) — 1.9
Acquisition costs — — (0.5)
Tax refund interest — — (0.5)
Valuation allowance (0.3) — —
Income tax reserves (5.4) — —
Research and development credit (2.2) — —
Other items, net 0.6 0.1 (0.9)
Effective income tax rate 30.9% 37.1% 37.0%