Income Taxes (Table)

12 Months Ended

Sep. 30, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense from continuing operations for 2017, 2016 and 2015 were as follows:



	2017		2016			2015
	(In thousands)
Current
Federal	$	—	$	—		$	—
State	9,022		5,667			6,513
Deferred
Federal	197,013		178,630			170,649
State	15,348		12,350			12,393
Investment tax credits	—		(5		)	(6		)
	$	221,383	$	196,642		$	189,549

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 2017, 2016 and 2015 are set forth below:



	2017			2016			2015
	(In thousands)
Tax at statutory rate of 35%	$	211,433		$	189,764		$	173,310
Common stock dividends deductible for tax reporting	(2,584		)	(2,570		)	(2,413		)
State taxes (net of federal benefit)	16,100			11,133			12,289
Change in valuation allowance	—			1,324			4,998
Other, net	(3,566		)	(3,009		)	1,365
Income tax expense	$	221,383		$	196,642		$	189,549

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, 2017 and 2016 are presented below:



	2017			2016
	(In thousands)
Deferred tax assets:
Employee benefit plans	$	121,288		$	122,682
Interest rate agreements	65,171			107,782
Net operating loss carryforwards	555,043			514,391
Charitable and other credit carryforwards	18,873			22,273
Other	10,218			23,648
Total deferred tax assets	770,593			790,776
Valuation allowance	(5,403		)	(10,481		)
Net deferred tax assets	765,190			780,295
Deferred tax liabilities:
Difference in net book value and net tax value of assets	(2,528,485		)	(2,259,278		)
Pension funding	(13,101		)	(30,652		)
Gas cost adjustments	(60,376		)	(54,725		)
Other	(41,927		)	(38,696		)
Total deferred tax liabilities	(2,643,889		)	(2,383,351		)
Net deferred tax liabilities	$	(1,878,699	)	$	(1,603,056	)
Deferred credits for rate regulated entities	$	985		$	861

Schedule of Unrecognized Tax Benefits Roll Forward

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



	2017			2016			2015
	(In thousands)
Unrecognized tax benefits - beginning balance	$	20,298		$	17,069		$	12,629
Increase (decrease) resulting from prior period tax positions	(366		)	(290		)	1,009
Increase resulting from current period tax positions	3,787			3,519			3,431
Unrecognized tax benefits - ending balance	23,719			20,298			17,069
Less: deferred federal and state income tax benefits	(8,302		)	(7,104		)	(5,974		)
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year	$	15,417		$	13,194		$	11,095