Page 72 - SWGas Annual Report 2015

The average grant date fair value of performance shares and restricted stock/units granted in 2014 and 2013 was
$53.73 and $44.83, respectively.

As of December 31, 2015, total compensation cost related to nonvested performance shares and restricted stock/
units not yet recognized is $3.3 million.

Note 12 – Income Taxes
The following is a summary of income before taxes and noncontrolling interest for domestic and foreign operations
(thousands of dollars):

Year ended December 31, 2015 2014 2013
U.S.
Foreign $221,660 $221,471 $222,815
Total income before income taxes
(2,328) (1,950) —

$219,332 $219,521 $222,815

Income tax expense (benefit) consists of the following (thousands of dollars): 2015 2014 2013

Year Ended December 31, $21,321 $ 1,739 $ 3,549
Current:
9,899 5,073 5,107
Federal
State 650 2,193 —
Foreign
31,870 9,005 8,656
Deferred:
Federal 51,132 71,439 67,414
State (2,574) 614 1,872
Foreign —
(526) (2,685)
Total income tax expense
48,032 69,368 69,286

$79,902 $78,373 $77,942

Deferred income tax expense (benefit) consists of the following significant components (thousands of dollars):

Year Ended December 31, 2015 2014 2013

Deferred federal and state: $ 65,931 $52,814 $62,737
Property-related items (32,993) 15,049 16,189
Purchased gas cost adjustments 623 109 (2,769)
Employee benefits 15,332 2,257 (6,010)
All other deferred
48,893 70,229 70,147
Total deferred federal and state (861) (861) (861)
Deferred ITC, net
$ 48,032 $69,368 $69,286
Total deferred income tax expense

Southwest Gas Corporation