Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The following tables provide: (a) the components of income tax expense in 2020, 2019, and 2018; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2020, 2019, and 2018 from continuing operations; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2020 and 2019.


	For the Year Ended December 31,
	2020		2019		2018
(in thousands)
Current Income Tax Expense
Federal	$	(2,777)	$	(2,252)	$	(361)
State	2,162		(491)		617
Other	(47)		(47)		(47)
Total current income tax expense (benefit)	(662)		(2,790)		209
Deferred Income Tax Expense (1)
Property, plant and equipment	23,224		25,907		19,178
Deferred gas costs	(714)		79		(1,435)
Pensions and other employee benefits	(75)		(454)		454
FPU merger-related premium cost and deferred gain	156		(278)		(528)
Net operating loss carryforwards	5,107		(3,772)		(250)
Other	(3,498)		2,422		3,495
Total deferred income tax expense	24,200		23,904		20,914
Income Tax Expense from Continuing Operations	23,538		21,114		21,123
Income Tax Expense (benefit) from Discontinued Operations	153		1,416		(129)
Total Income Tax	$	23,691	$	22,530	$	20,994

(1) Includes $4.9 million, $4.7 million, and $3.5 million of deferred state income taxes for the years 2020, 2019 and 2018, respectively.

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


	For the Year Ended December 31,
	2020			2019			2018
(in thousands)
Reconciliation of Effective Income Tax Rates for Continuing Operations
Federal income tax expense (1)	$	19,778		$	17,264		$	16,400
State income taxes, net of federal benefit	5,051			5,093			4,071
ESOP dividend deduction	(218)			(173)			(158)
CARES Act Tax Benefit	(1,841)			—			—
Other	768			(1,070)			810
Total Income Tax Expense for Continuing Operations	$	23,538		$	21,114		$	21,123
Effective Income Tax Rate for Continuing Operations	24.99		%	25.65		%	27.13		%

(1) Federal income taxes were calculated at 21 percent for 2020, 2019, and 2018.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
	2020		2019
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	199,287	$	173,466
Acquisition adjustment	6,618		6,969
Loss on reacquired debt	201		220
Deferred gas costs	509		1,223
Natural gas conversion costs	5,379		4,956
Storm reserve liability	7,073		10,316
Other	5,587		1,456
Total deferred income tax liabilities	224,654		198,606
Deferred income tax assets:
Pension and other employee benefits	4,636		3,818
Environmental costs	1,064		1,486
Net operating loss carryforwards	1,587		5,523
Self-insurance	—		146
Storm reserve liability	409		96
Accrued Expenses	6,153		2,064
Other	5,417		4,817
Total deferred income tax assets	19,266		17,950
Deferred Income Taxes Per Consolidated Balance Sheets	$	205,388	$	180,656