Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The following tables provide: (a) the components of income tax expense in 2017, 2016, and 2015; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2017, 2016, and 2015; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2017 and 2016.



	For the Year Ended December 31,
	2017			2016			2015
(in thousands)
Current Income Tax Expense
Federal	$	2,803		$	(4,898	)	$	4,875
State	492			2,053			1,533
Other	(71		)	(71		)	(23		)
Total current income tax expense	3,224			(2,916		)	6,385
Deferred Income Tax Expense ⁽¹⁾
Property, plant and equipment	8,314			31,062			21,205
Deferred gas costs	2,002			1,163			(1,539		)
Pensions and other employee benefits	180			237			(84		)
FPU merger-related premium cost and deferred gain	(1,148		)	(572		)	(556		)
Net operating loss carryforwards	193			(9		)	2,078
Other	1,544			(624		)	(584		)
Total deferred income tax expense	11,085			31,257			20,520
Total Income Tax Expense	$	14,309		$	28,341		$	26,905

⁽¹⁾Includes $873,000, $2.1 million and $2.1 million of deferred state income taxes for the years 2017, 2016 and 2015, respectively.

Summary of Reconciliation of Statutory Federal Tax and Effective Income Tax Rates



	For the Year Ended December 31,
	2017			2016			2015
(in thousands)
Reconciliation of Effective Income Tax Rates
Federal income tax expense ⁽¹⁾	$	25,351		$	22,759		$	23,865
State income taxes, net of federal benefit	1,894			3,422			3,062
ESOP dividend deduction	(257		)	(264		)	(263		)
Revaluation of deferred tax assets and liabilities	(14,299		)	—			—
Other	1,620			2,424			241
Total Income Tax Expense	$	14,309		$	28,341		$	26,905
Effective Income Tax Rate ⁽²⁾	19.75		%	38.81		%	39.54		%


⁽¹⁾	Federal income taxes were calculated at 35 percent for each year represented.


⁽²⁾	Effective tax rate for 2017 includes the impact of the revaluation of deferred tax assets and liabilities for our unregulated businesses due to implementation of the TCJA.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities



	As of December 31,
	2017		2016
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	133,581	$	218,074
Acquisition adjustment	9,323		14,840
Loss on reacquired debt	153		442
Deferred gas costs	2,574		1,846
Other	5,422		6,375
Total deferred income tax liabilities	151,053		241,577
Deferred income tax assets:
Pension and other employee benefits	4,698		6,230
Environmental costs	1,744		2,592
Net operating loss carryforwards	1,625		952
Investment tax credit carryforwards	—		2,643
Self insurance	164		189
Storm reserve liability	717		1,131
Other	6,255		4,946
Total deferred income tax assets	15,203		18,683
Deferred Income Taxes Per Consolidated Balance Sheets	$	135,850	$	222,894