Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 134

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 8
Chunk 134
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In thousands)%(In thousands)%U.S federal statutory tax rate$310,387 21.0 %$259,513 21.0 %$209,925 21.0 %State and local income taxes, net of federal income tax effect (1)24,254 1.6 %27,367 2.2 %19,853 2.0 %Changes in valuation allowances— — %1,106 0.1 %— — %Changes in unrecognized tax benefits2,004 0.1 %926 0.1 %5,302 0.5 %Nontaxable or nondeductible items741 0.1 %2,464 0.2 %1,000 0.1 %Amortization of excess deferred taxes(60,727)(4.1)%(100,270)(8.1)%(123,953)(12.4)%Other, net2,621 0.2 %1,775 0.1 %1,652 0.2 %Income tax expense$279,280 18.9 %$192,881 15.6 %$113,779 11.4 %(1)    The states that contribute to the majority (greater than 50%) of the tax effect in this category include Texas and Louisiana.Deferred income taxes reflect the tax effect of differences between the basis of assets and liabilities for book and tax purposes. The tax effect of temporary differences that gave rise to significant components of the deferred tax liabilities and deferred tax assets at September 30, 2025 and 2024 are presented below:

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Table of ContentsATMOS ENERGY CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

20252024 (In thousands)Deferred tax assets:Employee benefit plans$34,202 $41,184 Net operating loss carryforwards473,642 484,816 Charitable and other credit carryforwards14,200 12,301 Regulatory excess deferred tax31,387 46,330 Lease asset72,973 63,747 Other31,145 34,934 Total deferred tax assets657,549 683,312 Valuation allowance(1,365)(1,457)Net deferred tax assets656,184 681,855 Deferred tax liabilities:Difference in