Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The following tables provide: (a) the components of income tax expense in 2016, 2015, and 2014; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2016, 2015, and 2014; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2016 and 2015.



	For the Year Ended December 31,
	2016			2015			2014
(in thousands)
Current Income Tax Expense
Federal	$	(4,898	)	$	4,875		$	434
State	2,053			1,533			1,311
Other	(71		)	(23		)	(35		)
Total current income tax expense	(2,916		)	6,385			1,710
Deferred Income Tax Expense ⁽¹⁾
Property, plant and equipment	31,062			21,205			20,382
Deferred gas costs	1,163			(1,539		)	1,614
Pensions and other employee benefits	237			(84		)	537
FPU merger related premium cost and deferred gain	(572		)	(556		)	(802		)
Net operating loss carryforwards	(9		)	2,078			(112		)
Other	(624		)	(584		)	616
Total deferred income tax expense	31,257			20,520			22,235
Total Income Tax Expense	$	28,341		$	26,905		$	23,945

⁽¹⁾Includes $2.1 million, $2.1 million and $2.6 million of deferred state income taxes for the years 2016, 2015 and 2014, respectively.

Summary of Reconciliation of Statutory Federal Tax and Effective Income Tax Rates



	For the Year Ended December 31,
	2016			2015			2014
(in thousands)
Reconciliation of Effective Income Tax Rates
Continuing Operations
Federal income tax expense ⁽¹⁾	$	22,759		$	23,865		$	21,121
State income taxes, net of federal benefit	3,422			3,062			2,946
ESOP dividend deduction	(264		)	(263		)	(267		)
Other	2,424			241			145
Total Income Tax Expense	$	28,341		$	26,905		$	23,945
Effective Income Tax Rate	38.81		%	39.54		%	39.88		%


⁽¹⁾	Federal income taxes were calculated at 35% for each year represented.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities



	As of December 31,
	2016		2015
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	218,074	$	185,448
Acquisition adjustment	14,840		15,490
Loss on reacquired debt	442		485
Deferred gas costs	1,846		683
Other	6,375		5,961
Total deferred income tax liabilities	241,577		208,067
Deferred income tax assets:
Pension and other employee benefits	6,230		6,570
Environmental costs	2,592		2,445
Net operating loss carryforwards	952		943
Investment tax credit carryforwards	2,643		—
Self insurance	189		278
Storm reserve liability	1,131		1,153
Other	4,946		4,078
Total deferred income tax assets	18,683		15,467
Deferred Income Taxes Per Consolidated Balance Sheets	$	222,894	$	192,600