Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense were:



	2019			2018		2017
Current:
Federal	$	7,577		14,485		29,377
State	2,126			5,066		6,452
Deferred:
Federal	(1,929		)	(7,702	)	(1,174	)
State	680			(1,784	)	738
	$	8,454		10,065		35,393

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 $32,081, $48,832 and $96,493 in 2019, 2018 and 2017:



	2019			2018		2017
“Expected” federal income tax	$	6,737		10,255		33,773
Increase (decrease) in taxes attributable to:
State taxes, net of federal income tax benefit	2,251			3,420		4,986
Uncertain tax positions	323			24		12
Property flow-through	(2,054		)	(839	)	(1,027	)
Capitalized merger costs	5,350			—		—
Tax reform - rate change impact on deferred taxes	77			—		(2,357	)
Reversal of excess deferred taxes recognized in regulatory liability	(2,355		)	(1,383	)	—
Pension flow-through	(1,244		)	—		—
Stock-based compensation	(223		)	(1,602	)	(552	)
Other items, net	(408		)	190		558
	$	8,454		10,065		35,393

Schedule of Deferred Tax Assets and Liabilities

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



	2019			2018
Deferred tax assets:
Advances and contributions	$	19,547		14,592
Unamortized investment tax credit	649			418
Pensions and postretirement benefits	32,450			20,439
Debt premium, net	7,002			—
California franchise tax	456			981
Net operating loss	1,046			—
Merger related expenses	—			4,527
Tax related net regulatory liability	—			16,212
Other	7,211			3,336
Gross deferred tax assets	68,361			60,505
Valuation allowance	(1,924		)	—
Total deferred tax assets	66,437			60,505
Deferred tax liabilities:
Utility plant	211,079			114,731
Pension and postretirement benefits	22,263			18,534
Deferred gain and other-property related	5,872			5,753
Regulatory asset - business combinations debt premium, net	7,002			—
Intangibles	3,693			—
Deferred revenue	1,962			—
Regulatory asset - income tax temporary differences, net	295			—
Section 481(a) adjustments	5,721			—
Other	4,148			1,138
Total deferred tax liabilities	262,035			140,156
Net deferred tax liabilities	$	195,598		79,651

Schedule of Unrecognized Tax Benefits Roll Forward

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



	2019			2018	2017
Balance at beginning of year	$	1,382		1,307	1,132
Increase related to tax positions taken during the current year, including interest	351			—	—
Increase related to tax positions taken during a prior year, including interest	3,483			75	185
Reductions related to tax positions taken in a prior year, including interest	(1,382		)	—	(10	)
Balance at end of year	$	3,834		1,382	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 2016 for federal purposes and 2015 for state purposes. The open tax years for the jurisdictions in which SJW Group files are as follows:



Jurisdiction	Years Open
Federal	2016 - 2018
California	2015 - 2018
Arizona	2015 - 2016
Tennessee	2016 - 2018
Texas	2015 - 2018
Connecticut	2016 - 2018
Maine	2016 - 2018