Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Allocation of Income Tax Expense

Total income taxes for the years ended December 31, 2016, 2015 and 2014 were allocated as follows:

	2016		2015			2014
	(in thousands)
Income tax expense on continuing operations	$	2,840	$	27,726		$	22,151
Shareholders’ equity, for compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes	—		(679		)	(395		)
Other comprehensive income for changes in cash flow hedge	4,162		(476		)	(993		)
	$	7,002	$	26,571		$	20,763

Components of Federal and State Income Taxes

The provision for the federal and state income taxes attributable to income from continuing operations consists of the following components:

	Years Ended December 31,
	2016			2015			2014
	(in thousands)
Current expense
Federal taxes	$	44,779		$	23,579		$	16,592
State taxes	10,936			5,275			2,562
Total current provision	55,715			28,854			19,154
Deferred expense (benefit)
Federal taxes	(47,056		)	(744		)	1,636
State taxes	(5,819		)	(384		)	1,361
Total deferred provision	(52,875		)	(1,128		)	2,997
Income tax expense on continuing operations	$	2,840		$	27,726		$	22,151
Effective tax rate	146.0		%	40.4		%	39.5		%

Reconciliation of Income Taxes

A reconciliation of income taxes determined by applying the federal and state tax rates to income from continuing operations is as follows for the years ended December 31, 2016, 2015 and 2014:

	Years Ended December 31,
	2016			2015		2014
	(in thousands)
Computed “expected” tax expense (35%)	$	681		$	24,007	$	19,612
State income taxes, net of federal tax effect	6			3,179		2,550
Changes in state DTL for mergers	3,320			$	—	—
Excess share based compensation	(1,709		)	—		—
Nondeductible merger expenses	801			$	—	—
Other, net	(259		)	540		(11		)
Income tax expense on continuing operations	$	2,840		$	27,726	$	22,151

Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities consist of the following temporary differences at December 31, 2016 and 2015:

	2016			2015
	(in thousands)
Deferred tax assets:
Deferred revenues	$	8,849		$	2,367
Net operating loss carry-forwards	29,472			717
Accruals and reserves	10,517			5,658
Pension benefits	6,994			1,023
Asset retirement obligations	8,495			2,922
Intangible assets	—			325
Total gross deferred tax assets	64,327			13,012
Less valuation allowance	(709		)	(709		)
Net deferred tax assets	63,618			12,303
Deferred tax liabilities:
Plant-in-service	139,753			85,503
Intangibles	70,799			—
Interest rate swaps	4,433			271
Other, net	470			490
Total gross deferred tax liabilities	215,455			86,264
Net deferred tax liabilities	$	151,837		$	73,961