Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Allocation of Income Tax Expense

Total income taxes for the years ended December 31, 2017, 2016 and 2015 were allocated as follows:

	Years Ended December 31,
	2017			2016		2015
(in thousands)
Income tax (benefit) expense on continuing operations	$	(53,133	)	$	2,840	$	27,726
Shareholders’ equity, for compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes	—			—		(679		)
Other comprehensive income for changes in cash flow hedge	522			4,162		(476		)
	$	(52,611	)	$	7,002	$	26,571

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,
(in thousands)	2017			2016			2015
Current expense
Federal taxes	$	1,552		$	44,779		$	23,579
State taxes	(630		)	10,936			5,275
Total current provision	922			55,715			28,854
Deferred expense (benefit)
Federal taxes	(52,886		)	(47,056		)	(744		)
State taxes	(1,169		)	(5,819		)	(384		)
Total deferred provision	(54,055		)	(52,875		)	(1,128		)
Income tax expense (benefit) on continuing operations	$	(53,133	)	$	2,840		$	27,726
Effective tax rate	(400.8		)%	146.0		%	40.4		%

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, 2017, 2016 and 2015:

	Years Ended December 31,
	2017			2016			2015
($ in thousands)
Computed “expected” tax expense (35%)	$	4,640		$	681		$	24,007
State income taxes, net of federal tax effect	(1,129		)	6			3,179
Changes in state DTL for mergers	—			3,320			—
Excess share based compensation	(3,314		)	(1,709		)	—
Nondeductible merger expenses	—			801			—
Revaluation of U.S. deferred income taxes	(53,449		)	—			—
Other, net	119			(259		)	540
Income tax expense (benefit) on continuing operations	$	(53,133	)	$	2,840		$	27,726

Deferred Tax Assets and Liabilities

December 31, 2017 and 2016:

	December 31,			December 31,
(in thousands)	2017			2016
Deferred tax assets:
Deferred revenues	$	3,907		$	8,849
Net operating loss carry-forwards	14,983			29,472
Accruals and reserves	5,189			10,517
Pension benefits	3,556			6,994
Asset retirement obligations	4,608			8,495
Total gross deferred tax assets	32,243			64,327
Less valuation allowance	(862		)	(709		)
Net deferred tax assets	31,381			63,618
Deferred tax liabilities:
Plant-in-service	89,494			139,753
Intangible assets	37,682			70,799
Interest rate swaps	3,511			4,433
Other, net	1,573			470
Total gross deferred tax liabilities	132,260			215,455
Net deferred tax liabilities	$	100,879		$	151,837