Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income

The components of federal and state income taxes included in the Consolidated Statements of Income are as follows:

	Year Ended September 30
	2020		2019		2018
	(Thousands)
Current Income Taxes —
Federal	$	(42,548)	$	(41,645)	$	2,025
State	6,974		4,601		8,634
Deferred Income Taxes —
Federal	4,538		98,514		(38,927)
State	49,775		23,751		20,774
	18,739		85,221		(7,494)
Deferred Investment Tax Credit	(13)		(91)		(105)
Total Income Taxes	$	18,726	$	85,130	$	(7,599)
Presented as Follows:
Other (Income) Deductions	$	(13)	$	(91)	$	(105)
Income Tax Expense (Benefit)	18,739		85,221		(7,494)
Total Income Taxes	$	18,726	$	85,130	$	(7,599)

Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate

The following is a reconciliation of this difference:

	Year Ended September 30
	2020		2019		2018
	(Thousands)
U.S. Income (Loss) Before Income Taxes	$	(105,046)	$	389,420	$	383,922
Income Tax Expense, Computed at U.S. Federal Statutory Rate(1)	$	(22,060)	$	81,778	$	94,061
State Valuation Allowance(2)	63,205		—		—
State Income Tax (3)	(18,374)		22,397		22,203
Amortization of Excess Deferred Federal Income Taxes(4)	(4,749)		(3,185)		(1,336)
Plant Flow Through Items	(2,848)		(1,544)		(872)
Stock Compensation	3,867		(1,491)		(321)
Federal Tax Credits	(217)		(7,361)		(6,576)
Impact of 2017 Tax Reform Act(5)	—		(5,000)		(112,598)
Miscellaneous	(98)		(464)		(2,160)
Total Income Taxes	$	18,726	$	85,130	$	(7,599)

(1)For fiscal 2020 and 2019, the statutory rate of 21% was utilized. For fiscal 2018, a blended rate of 24.5% was utilized, calculated as 35% for the first quarter of the fiscal year and 21% for the remaining three quarters.

(2)During fiscal 2020, a valuation allowance was recorded against certain state deferred tax assets, as discussed below.

(3)The state income tax expense (benefit) shown above includes the impact of state enhanced oil recovery tax credits and adjustments to the estimated state effective tax rates utilized in the calculation of deferred income taxes.

(4)Represents amortization of net excess deferred federal income taxes under the 2017 Tax Reform Act.

(5)The $5.0 million benefit in fiscal 2019 represents the reversal of the estimated sequestration of AMT credit refunds. The amount for fiscal 2018 represents the remeasurement of deferred income taxes as a result of the lower U.S. corporate income tax rate, including a $5.0 million estimate for the potential sequestration of AMT credit refunds and the benefit of $9.1 million as a result of the blended tax rate.

Significant Components Of Deferred Tax Liabilities And Assets

Significant components of the Company’s deferred tax liabilities and assets were as follows:

	At September 30
	2020		2019
	(Thousands)
Deferred Tax Liabilities:
Property, Plant and Equipment	$	874,607	$	861,278
Pension and Other Post-Retirement Benefit Costs	54,066		55,795
Other	23,377		54,486
Total Deferred Tax Liabilities	952,050		971,559
Deferred Tax Assets:
Tax Loss and Credit Carryforwards	(179,363)		(175,542)
Pension and Other Post-Retirement Benefit Costs	(95,599)		(87,280)
Other	(44,239)		(55,355)
Total Gross Deferred Tax Assets	(319,201)		(318,177)
Valuation Allowance	63,205		—
Total Deferred Tax Assets	(255,996)		(318,177)
Total Net Deferred Income Taxes	$	696,054	$	653,382

Reconciliation Of The Change In Unrecognized Tax Benefits

The following is a reconciliation of the change in unrecognized tax benefits:

	Year Ended September 30
	2020		2019		2018
	(Thousands)
Balance at Beginning of Year	$	—	$	—	$	1,251
Additions for Tax Positions of Prior Years	—		—		—
Reductions for Tax Positions of Prior Years	—		—		(788)
Reductions Related to Settlements with Taxing Authorities	—		—		(463)
Balance at End of Year	$	—	$	—	$	—

Summary of Operating Loss and Tax Credit Carryforwards

Tax carryforwards available, prior to valuation allowance, at September 30, 2020, were as follows:

Jurisdiction	Tax Attribute	Amount (Thousands)		Expires
Federal Pre-Fiscal 2019	Net Operating Loss	$	205,918	2032-2038
Federal Post-Fiscal 2018	Net Operating Loss	185,779		Unlimited
Pennsylvania	Net Operating Loss	428,672		2031-2041
California	Net Operating Loss	224,159		2031-2041
Federal	Enhanced Oil Recovery Credit	26,790		2029-2039
California	Enhanced Oil Recovery Credit	8,502		2037-2039
California	Alternative Minimum Tax Credit	8,864		Unlimited
Federal	R&D Tax Credit	6,550		2031-2040
Federal	Charitable Contributions	1,559		2025