Income Taxes (Table)

12 Months Ended

Sep. 30, 2014

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense from continuing operations for 2014, 2013 and 2012 were as follows:



	2014			2013			2012
	(In thousands)
Current
Federal	$	—		$	—		$	631
State	5,527			8,178			6,888
Deferred
Federal	169,106			124,836			103,971
State	12,375			9,605			(13,237		)
Investment tax credits	(6		)	(20		)	(27		)
	$	187,002		$	142,599		$	98,226

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of the provision for income taxes computed at the statutory rate to the reported provisions for income taxes from continuing operations for 2014, 2013 and 2012 are set forth below:



	2014			2013			2012
	(In thousands)
Tax at statutory rate of 35%	$	166,887		$	130,655		$	101,648
Common stock dividends deductible for tax reporting	(2,307		)	(2,153		)	(2,096		)
State taxes (net of federal benefit)	11,636			11,559			(4,127		)
Change in valuation allowance	6,969			1,085			—
Other, net	3,817			1,453			2,801
Income tax expense	$	187,002		$	142,599		$	98,226

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that gave rise to significant components of the deferred tax liabilities and deferred tax assets at September 30, 2014 and 2013 are presented below:



	2014			2013
	(In thousands)
Deferred tax assets:
Employee benefit plans	$	116,157		$	115,970
Interest rate agreements	10,565			—
Net operating loss carryforwards	236,626			196,296
Charitable and other credit carryforwards	21,614			20,939
Other	28,849			38,013
Total deferred tax assets	413,811			371,218
Valuation allowance	(6,969		)	(1,085		)
Net deferred tax assets	406,842			370,133
Deferred tax liabilities:
Difference in net book value and net tax value of assets	(1,655,894		)	(1,445,450		)
Pension funding	(17,890		)	(23,480		)
Gas cost adjustments	(31,252		)	(19,182		)
Interest rate agreements	—			(21,726		)
Other	(37,173		)	(39,045		)
Total deferred tax liabilities	(1,742,209		)	(1,548,883		)
Net deferred tax liabilities	$	(1,335,367	)	$	(1,178,750	)
Deferred credits for rate regulated entities	$	(109	)	$	(51	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table reconciles the beginning and ending balance of our unrecognized tax benefits:



	2014			2013
	(In thousands)
Unrecognized tax benefits - beginning balance	$	4,158		$	2,817
Increase resulting from prior period tax positions	3,846			—
Increase resulting from current period tax positions	4,625			1,341
Unrecognized tax benefits - ending balance	12,629			4,158
Accrued interest and penalties	411			—
Gross unrecognized tax benefits	13,040			4,158
Less: deferred federal and state income tax benefits	(4,564		)	(1,455		)
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year	$	8,476		$	2,703