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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense were:



	2017			2016		2015
Current:
Federal	$	29,377		21,651		3,723
State	6,452			7,088		3,924
Deferred:
Federal	(1,174		)	6,119		16,109
State	738			(1,316	)	(484	)
	$	35,393		33,542		23,272

Schedule of Effective Income Tax Rate Reconciliation

The following table reconciles income tax expense to the amount computed by applying the federal statutory rate to income before income taxes of $96,493, $86,381 and $61,154 in 2017, 2016 and 2015:



	2017			2016		2015
“Expected” federal income tax	$	33,773		30,233		21,404
Increase (decrease) in taxes attributable to:
State taxes, net of federal income tax benefit	4,986			4,874		3,332
Dividend received deduction	(18		)	(21	)	(43	)
Uncertain tax positions	12			16		3
Sales & Use Enterprise Zone Credit	(9		)	(117	)	—
Tangible Property Regulations	(1,159		)	(1,184	)	(1,081	)
Tax reform - rate change impact on deferred taxes	(2,357		)	—		—
Noncontrolling interest income	(664		)	—		—
Other items, net	829			(259	)	(343	)
	$	35,393		33,542		23,272

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax liability as of December 31 was as follows:



	2017		2016
Deferred tax assets:
Advances and contributions	$	9,929	17,196
Unamortized investment tax credit	441		644
Pensions and postretirement benefits	21,349		3,927
California franchise tax	1,058		2,331
Other	3,110		4,802
Total deferred tax assets	$	35,887	28,900
Deferred tax liabilities:
Utility plant	$	94,414	177,338
Pension and postretirement benefits	19,184		44,737
Investment in stock	1,199		1,280
Deferred gain and other-property related	5,640		9,769
Debt reacquisition costs	204		347
Other	1,041		632
Total deferred tax liabilities	$	121,682	234,103
Net deferred tax liabilities	$	85,795	205,203

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Balance at December 31, 2016	$	1,132
Increase related to tax positions taken during a prior year, including interest	185
Reductions related to tax positions taken in a prior year, including interest	(10		)
Balance at December 31, 2017	$	1,307

Summary of Income Tax Examinations

SJW Group files U.S. federal income tax returns and income tax returns in various states. SJW Group is no longer subject to tax examination for fiscal years prior to 2014 for federal purposes and 2013 for state purposes. The open tax years for the jurisdictions in which SJW Group files are as follows:



Jurisdiction	Years Open
Federal	2014 - 2016
California	2013 - 2016
Arizona	2013 - 2016
Connecticut	2014
Tennessee	2014 - 2016
Texas	2013 - 2016