Income Taxes (Table)

12 Months Ended

Sep. 30, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense from continuing operations for 2019, 2018 and 2017 were as follows:



	2019		2018			2017
	(In thousands)
Current
Federal	$	—	$	(10,099	)	$	—
State	8,412		11,075			9,022
Deferred
Federal	113,331		150,556			197,013
State	17,160		15,330			15,348
TCJA Impact	—		(158,782		)	—
	$	138,903	$	8,080		$	221,383

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 2019, 2018 and 2017 are set forth below:



	2019			2018			2017
	(In thousands)
Tax at statutory rate⁽¹⁾	$	136,565		$	149,730		$	211,433
Common stock dividends deductible for tax reporting	(1,460		)	(1,745		)	(2,584		)
State taxes (net of federal benefit)	20,202			19,826			16,100
Amortization of excess deferred taxes	(14,085		)	(1,219		)	—
Remeasurement due to TCJA	—			(158,782		)	—
Other, net	(2,319		)	270			(3,566		)
Income tax expense	$	138,903		$	8,080		$	221,383

(1)

Tax expense is calculated at the statutory federal income tax rate of 21%, 24.5%, 35% for the year ended September 30, 2019, 2018 and 2017.

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, 2019 and 2018 are presented below:



	2019			2018
	(In thousands)
Deferred tax assets:
Employee benefit plans	$	70,929		$	72,745
Interest rate swaps	33,918			27,135
Net operating loss carryforwards	485,133			461,481
Charitable and other credit carryforwards	8,241			6,818
Regulatory excess deferred tax	165,701			169,947
Other	13,186			13,804
Total deferred tax assets	777,108			751,930
Valuation allowance	(1,894		)	(1,465		)
Net deferred tax assets	775,214			750,465
Deferred tax liabilities:
Difference in net book value and net tax value of assets	(2,004,516		)	(1,859,787		)
Pension funding	(4,384		)	(6,986		)
Gas cost adjustments	(18,072		)	1,005
Other	(48,257		)	(38,764		)
Total deferred tax liabilities	(2,075,229		)	(1,904,532		)
Net deferred tax liabilities	$	(1,300,015	)	$	(1,154,067	)
Deferred credits for rate regulated entities	$	2,582		$	762

Schedule of Unrecognized Tax Benefits Roll Forward

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



	2019			2018			2017
	(In thousands)
Unrecognized tax benefits - beginning balance	$	26,203		$	23,719		$	20,298
Increase (decrease) resulting from prior period tax positions	(923		)	22			(366		)
Increase resulting from current period tax positions	2,436			2,462			3,787
Unrecognized tax benefits - ending balance	27,716			26,203			23,719
Less: deferred federal and state income tax benefits	(5,820		)	(5,503		)	(8,302		)
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year	$	21,896		$	20,700		$	15,417