XML 49 R34.htm IDEA: XBRL DOCUMENT v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of Income Before Taxes and Noncontrolling Interest for Domestic and Foreign Operations
The following is a summary of income before taxes and noncontrolling interest for domestic and foreign operations:
Year ended December 31,
(Thousands of dollars)202020192018
U.S.$282,489 $261,525 $235,120 
Foreign22,249 11,145 8,216 
Total income before income taxes$304,738 $272,670 $243,336 
Summary of Income Tax Expense (Benefit)
Income tax expense (benefit) consists of the following:
Year Ended December 31,
(Thousands of dollars)202020192018
Current:
Federal$6,287 $622 $(13,476)
State8,617 (1,510)(3,219)
Foreign4,666 5,013 2,563 
19,570 4,125 (14,132)
Deferred:
Federal44,547 45,593 67,784 
State414 8,212 8,901 
Foreign1,222 (1,907)(869)
46,183 51,898 75,816 
Total income tax expense$65,753 $56,023 $61,684 
Income tax expense (benefit) consists of the following:
Year Ended December 31,
(Thousands of dollars)202020192018
Current:
Federal$(4,678)$4,109 $(17,584)
State(179)250 (6,783)
(4,857)4,359 (24,367)
Deferred:
Federal38,561 29,543 58,136 
State2,051 1,071 10,222 
40,612 30,614 68,358 
Total income tax expense$35,755 $34,973 $43,991 
Significant Components of Deferred Income Tax Expense (Benefit)
Deferred income tax expense (benefit) consists of the following significant components:
Year Ended December 31,
(Thousands of dollars)202020192018
Deferred federal and state:
Property-related items$50,504 $60,449 $94,899 
Purchased gas cost adjustments(5,726)3,834 (3,507)
Employee benefits459 7,680 (7,334)
Regulatory adjustments(9,885)(11,962)2,412 
Deferred payroll taxes(9,055)— — 
Alternative minimum tax4,409 441 849 
All other deferred15,529 (8,298)(10,890)
Total deferred federal and state46,235 52,144 76,429 
Deferred ITC, net(52)(246)(613)
Total deferred income tax expense$46,183 $51,898 $75,816 
Deferred income tax expense (benefit) consists of the following significant components:
Year Ended December 31,
(Thousands of dollars)202020192018
Deferred federal and state:
Property-related items$36,029 $34,398 $67,576 
Purchased gas cost adjustments(5,726)3,834 (3,507)
Employee benefits11,437 6,493 2,156 
Regulatory adjustments(9,885)(11,962)2,412 
Deferred payroll taxes(1,810)— — 
Alternative minimum tax4,409 441 849 
All other deferred6,210 (2,344)(515)
Total deferred federal and state40,664 30,860 68,971 
Deferred ITC, net(52)(246)(613)
Total deferred income tax expense$40,612 $30,614 $68,358 
Reconciliation of U.S Federal Statutory Rate to Consolidated Effective Tax Rate
A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows:
Year Ended December 31,
202020192018
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Net state taxes3.0 2.1 2.9 
Tax credits(0.5)(0.3)(0.3)
Company-owned life insurance(0.8)(1.5)0.1 
Amortization of excess deferred taxes(0.8)(0.9)— 
All other differences(0.3)0.1 1.6 
Consolidated effective income tax rate21.6 %20.5 %25.3 %
A reconciliation of the U.S. federal statutory rate to the consolidated effective tax rate (and the sources of these differences and the effect of each) are summarized as follows:
Year Ended December 31,
202020192018
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Net state taxes1.7 0.7 2.1 
Tax credits(0.7)(0.4)(0.4)
Company-owned life insurance(1.0)(1.9)0.3 
Amortization of excess deferred taxes(1.3)(1.2)— 
All other differences(1.4)(0.5)1.1 
Effective income tax rate18.3 %17.7 %24.1 %
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities consist of the following:
December 31,
(Thousands of dollars)20202019
Deferred tax assets:
Deferred income taxes for future amortization of ITC and excess deferred taxes$104,314 $105,077 
Employee benefits39,907 37,439 
Alternative minimum tax credit— 4,409 
Federal net operating losses4,118 7,467 
Deferred payroll taxes9,055 — 
Lease-related item20,890 21,226 
Other14,350 21,536 
Valuation allowance(22)(25)
192,612 197,129 
Deferred tax liabilities:
Property-related items, including accelerated depreciation785,734 732,798 
Regulatory balancing accounts4,205 9,931 
Debt-related costs2,585 2,818 
Intangibles13,511 10,611 
Lease-related item19,789 20,386 
Other13,786 19,569 
839,610 796,113 
Net noncurrent deferred tax liabilities$646,998 $598,984 
Deferred tax assets and liabilities consist of the following:
December 31,
(Thousands of dollars)20202019
Deferred tax assets:
Deferred income taxes for future amortization of ITC and excess deferred taxes$104,314 $105,077 
Employee benefits4,806 13,574 
Alternative minimum tax credit— 4,409 
Deferred payroll taxes1,810 — 
Other7,790 12,193 
Valuation allowance(22)(25)
118,698 135,228 
Deferred tax liabilities:
Property-related items, including accelerated depreciation680,294 644,046 
Regulatory balancing accounts4,205 9,931 
Debt-related costs2,585 2,818 
Other12,714 17,483 
699,798 674,278 
Net deferred tax liabilities$581,100 $539,050 
Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
December 31,
(Thousands of dollars)20202019
Unrecognized tax benefits at beginning of year$1,056 $971 
Gross increases – tax positions in prior period641 85 
Gross decreases – tax positions in prior period— — 
Gross increases – current period tax positions231 — 
Gross decreases – current period tax positions— — 
Settlements— — 
Lapse in statute of limitations— — 
Unrecognized tax benefits at end of year$1,928 $1,056 
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
December 31,
(Thousands of dollars)20202019
Unrecognized tax benefits at beginning of year$1,056 $971 
Gross increases – tax positions in prior period506 85 
Gross decreases – tax positions in prior period— — 
Gross increases – current period tax positions231 — 
Gross decreases – current period tax positions— — 
Settlements— — 
Lapse in statute of limitations— — 
Unrecognized tax benefits at end of year$1,793 $1,056 
Summary of Income Before Taxes for Continuing and Discontinued Operations
The following is a summary of income before taxes:
Year ended December 31,
(Thousands of dollars)202020192018
Total income before income taxes$194,873 $198,144 $182,833