Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income

The components of federal and state income taxes included in the Consolidated Statements of Income are as follows:

	Year Ended September 30
	2021		2020		2019
	(Thousands)
Current Income Taxes —
Federal	$	(10)	$	(42,548)	$	(41,645)
State	8,699		6,974		4,601
Deferred Income Taxes —
Federal	90,970		4,538		98,514
State	15,023		49,775		23,751
Total Income Taxes	$	114,682	$	18,739	$	85,221

Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate

The following is a reconciliation of this difference:

	Year Ended September 30
	2021		2020		2019
	(Thousands)
U.S. Income (Loss) Before Income Taxes(1)	$	478,327	$	(105,046)	$	389,420
Income Tax Expense (Benefit), Computed at U.S. Federal Statutory Rate of 21%	$	100,449	$	(22,060)	$	81,778
State Valuation Allowance(2)	(5,560)		63,205		—
State Income Taxes (Benefit)(3)	24,300		(18,374)		22,397
Amortization of Excess Deferred Federal Income Taxes(4)	(5,215)		(4,749)		(3,185)
Plant Flow Through Items	(1,503)		(2,848)		(1,544)
Stock Compensation	2,239		3,867		(1,491)
Federal Tax Credits	(310)		(217)		(7,361)
Impact of 2017 Tax Reform Act(5)	—		—		(5,000)
Miscellaneous	282		(85)		(373)
Total Income Taxes	$	114,682	$	18,739	$	85,221

(1)Amounts include the impact of deferred investment tax credits reported in Other Income (Deductions) on the Consolidated Statements of Income.

(2)During fiscal 2020, a valuation allowance was recorded against certain state deferred tax assets, as discussed below.

(3)The state income tax expense (benefit) shown above includes adjustments to the estimated state effective tax rates utilized in the calculation of deferred income taxes and the impact of state enhanced oil recovery tax credits.

(4)Represents amortization of net excess deferred federal income taxes under the 2017 Tax Reform Act.

(5)The $5.0 million benefit in fiscal 2019 represents the reversal of the estimated sequestration of AMT credit refunds.

Significant Components Of Deferred Tax Liabilities And Assets

Significant components of the Company’s deferred tax liabilities and assets were as follows:

	At September 30
	2021		2020
	(Thousands)
Deferred Tax Liabilities:
Property, Plant and Equipment	$	920,692	$	874,607
Pension and Other Post-Retirement Benefit Costs	23,240		54,066
Other	35,081		23,377
Total Deferred Tax Liabilities	979,013		952,050
Deferred Tax Assets:
OCI Hedging	(170,155)		(9,546)
Tax Loss and Credit Carryforwards	(120,725)		(179,363)
Pension and Other Post-Retirement Benefit Costs	(53,765)		(95,599)
Other	(31,593)		(34,693)
Total Gross Deferred Tax Assets	(376,238)		(319,201)
Valuation Allowance	57,645		63,205
Total Deferred Tax Assets	(318,593)		(255,996)
Total Net Deferred Income Taxes	$	660,420	$	696,054

Summary of Changes in Valuation Allowances for Deferred Tax Assets

The following is a summary of changes in valuation allowances for deferred tax assets:

	Year Ended September 30
	2021		2020		2019
	(Thousands)
Balance at Beginning of Year	$	63,205	$	—	$	5,000
Additions	—		63,205		—
Deductions	5,560		—		5,000
Balance at End of Year	$	57,645	$	63,205	$	—

Summary of Operating Loss and Tax Credit Carryforwards

Tax carryforwards available, prior to valuation allowance, at September 30, 2021, were as follows:

Jurisdiction	Tax Attribute	Amount (Thousands)		Expires
Federal Pre-Fiscal 2019	Net Operating Loss	$	55,832	2033-2038
Federal Post-Fiscal 2018	Net Operating Loss	83,356		Unlimited
Pennsylvania	Net Operating Loss	385,093		2030-2041
California	Net Operating Loss	201,997		2030-2039
Federal	Enhanced Oil Recovery Credit	26,790		2029-2039
California	Enhanced Oil Recovery Credit	7,903		2031-2039
California	Alternative Minimum Tax Credit	8,737		Unlimited
Federal	R&D Tax Credit	6,919		2031-2041