Income Taxes (Tables)

12 Months Ended

Sep. 30, 2024

Schedule of Income Tax Expense from Continuing Operations

The components of income tax expense from continuing operations for 2024, 2023, and 2022 were as follows:


	2024		2023		2022
	(In thousands)
Current
Federal	$	5,764	$	(1,274)	$	2,849
State	13,964		13,550		28,125
Deferred
Federal	150,244		83,244		43,435
State	22,909		18,259		3,101


Income tax expense	$	192,881	$	113,779	$	77,510

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of the provision for income taxes computed at the statutory rate of 21 percent to the reported provisions for income taxes from continuing operations for 2024, 2023, and 2022 are set forth below:


	2024		2023		2022
	(In thousands)
Tax at statutory rate	$	259,513	$	209,925	$	178,901
Common stock dividends deductible for tax reporting	(1,354)		(1,355)		(1,355)

State taxes (net of federal benefit)	29,130		25,129		24,669

Amortization of excess deferred taxes	(100,271)		(123,953)		(127,193)


Other, net	5,863		4,033		2,488
Income tax expense	$	192,881	$	113,779	$	77,510

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, 2024 and 2023 are presented below:


	2024		2023
	(In thousands)
Deferred tax assets:
Employee benefit plans	$	41,184	$	50,576

Net operating loss carryforwards	484,816		504,121
Charitable and other credit carryforwards	12,301		10,084
Regulatory excess deferred tax	46,330		76,943
Lease asset	63,747		58,633
Other	34,934		42,257
Total deferred tax assets	683,312		742,614
Valuation allowance	(1,457)		(351)
Net deferred tax assets	681,855		742,263
Deferred tax liabilities:
Difference in net book value and net tax value of assets	(2,914,854)		(2,674,341)

Gas cost adjustments	(49,443)		(47,822)

Winter Storm Uri regulatory asset	(20,846)		(28,116)
Lease liability	(57,177)		(51,666)
Rate deferral adjustment	(50,571)		(47,218)
Interest rate agreements	(134,536)		(149,969)
Other	(47,770)		(48,105)
Total deferred tax liabilities	(3,275,197)		(3,047,237)
Net deferred tax liabilities	$	(2,593,342)	$	(2,304,974)

Schedule of Unrecognized Tax Benefits

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


	2024		2023		2022
	(In thousands)
Unrecognized tax benefits - beginning balance	$	58,638	$	52,683	$	32,792
Increase (decrease) resulting from prior period tax positions	(2,867)		(631)		(721)
Decrease resulting from a lapse in statute of limitations	(6,188)		—		—
Increase resulting from current period tax positions	8,214		6,586		20,612
Unrecognized tax benefits - ending balance	57,797		58,638		52,683
Less: deferred federal and state income tax benefits	(12,137)		(12,314)		(11,063)
Total unrecognized tax benefits that, if recognized, would impact the effective income tax rate as of the end of the year	$	45,660	$	46,324	$	41,620