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<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(7)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Commitments and Contingencies</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We have entered into an employment agreement with our Chairman of the Board, President and Chief Executive Officer and change of control agreements with our other four officers.  The agreements expire or may be terminated at various times.  The agreements provide for continuing monthly payments or lump sum payments and the continuation of specified benefits over varying periods in certain cases following defined changes in ownership of the Company.  In the event all of these agreements were exercised in the form of lump sum payments, approximately $3.7 million would be paid in addition to continuation of specified benefits for up to five years.  Additionally, upon a change in control, all unvested shares awarded under our Incentive Compensation Plan, as further discussed in Note 11 of the Notes to Condensed Consolidated Financial Statements, would immediately vest.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The Kentucky Department of Revenue has assessed Delta Resources $5,565,000, which includes $3,013,000 in taxes, $1,963,000 in penalties and $589,000 in interest, for failure to collect and remit a 3% Utility Gross Receipts License Tax for the period July, 2005 through June, 2011.  The tax is a 3% license tax levied on the gross receipts derived from furnishing utility services and is passed through to customers.  The Kentucky Department of Revenue has not asserted a claim for the tax periods after June, 2011 or interest accrued subsequent to the initial assessments.  Regarding the penalties, Kentucky law provides for the assessment of penalties for failure to pay a tax, unless it is shown to the satisfaction of the Kentucky Department of Revenue that the failure to pay is due to reasonable cause.  Applicable regulatory authority provides that reasonable cause exists when the tax position is based on advice by a tax advisor on whom the taxpayer had a reasonable right to rely or substantial legal authority, as we have done in this matter.  Therefore, as of September 30, 2012, we estimate the total liability, including the original assessment, plus unasserted claims for taxes and interest to date and excluding penalties, to be $3,978,000, which includes $3,055,000 in taxes and $923,000 in interest.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We protested the assessment with the Kentucky Department of Revenue.  Our position with the Department is that the Utility Gross Receipts License Tax applies only to utilities regulated by the Kentucky Public Service Commission.  Delta Resources is a natural gas marketer which is not regulated by the Kentucky Public Service Commission and, thus, we contend, it is exempt from the utility tax.  The position is based on case law and long-standing opinions issued by the State Attorney General and was further upheld in an opinion by the Commonwealth of Kentucky Fayette Circuit Court in May, 2010 in a case styled Commonwealth of Kentucky, Finance and Administration Cabinet, Department of Revenue v. Saint Joseph Health System, Inc.; Constellation New Energy-Gas Division, LLC; and Board of Education of Fayette County, Kentucky, stating that the Utility Gross Receipts License Tax did not apply to sales of gas by Constellation, a gas marketer, because it is not a utility.  </div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">However, in October, 2011, the Kentucky Court of Appeals reversed the May, 2010 Fayette Circuit Court opinion and Saint Joseph Health System, Inc. subsequently filed a petition for rehearing the Kentucky Court of Appeals decision.  In  January, 2012, upon the denial of the petition for re-hearing, Saint Joseph Health System, Inc. filed a petition for discretionary review of the case by the Kentucky Supreme Court. In October, 2012, the Kentucky Supreme Court denied discretionary review of the case, therefore, the October, 2011 Kentucky Court of Appeals decision will likely become final in November, 2012.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">As a result of the uncertainty created by the October, 2011 opinion issued by the Kentucky Court of Appeals, in September, 2011 we accrued $3,803,000 of taxes and interest and continue to accrue interest on the assessment.  Delta Resources' began billing customers the Utility Gross Receipts License Tax prospectively with our October, 2011 billings and since then has billed its customers $189,000, substantially all of which has been collected.  The publication of the October, 2011 Kentucky Court of Appeals decision increases the probability of Delta Resources having to either pay the assessment or appeal the denial of the assessment through the courts.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">In the event we are required to pay the assessment of $3,978,000, Delta Resources would have the right to seek reimbursement from its customers for $3,055,000 of taxes, leaving Delta Resources liable for $923,000 of interest in addition to any uncollectible amounts.  We estimate that Delta Resources' potential liability for interest and taxes deemed uncollectible from Delta Resources' customers to be in the range of $930,000 to $3,978,000.  This estimate is based on the assumption that we will not be held liable for any penalties.</div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;"> </div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">As of September 30, 2012, we have recorded the total liability of $3,978,000, a receivable, net of an allowance for uncollectible amounts, of $3,048,000 and $923,000 of accrued interest and $7,000 of allowance for doubtful accounts.  Included in the receivable is $196,000 due from a Delta Resources customer which is wholly-owned by a Director of Delta Natural Gas Company, Inc. and his immediate family.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">On the Condensed Consolidated Balance Sheets, the liability for taxes is included in accrued taxes, the receivable from Delta Resources' customers is included in accounts receivable, less accumulated allowances for doubtful accounts, and the liability for interest is included in accrued interest on debt.  In the Condensed Consolidated Statements of Loss, interest accrued is included in interest charges and uncollectible amounts are included in operation and maintenance.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We are not a party to any other material pending legal proceedings.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We have entered into forward purchase agreements beginning in October, 2012 and expiring at various dates through December, 2013.  These agreements require us to purchase minimum amounts of natural gas throughout the term of the agreements.  These agreements are established in the normal course of business to ensure adequate gas supply to meet our customers' gas requirements.  These agreements have aggregate minimum purchase obligations of $614,000 and $211,000 for our fiscal year ended June 30, 2013 and June 30, 2014, respectively.</div><div><br /></div></div>
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<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(6)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Debt Instruments</td></tr></table></div><div><br /></div><div style="text-align: justify; font-style: italic; text-indent: 0pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Notes Payable</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The current bank line of credit with Branch Banking and Trust Company permits borrowings up to $40,000,000, all of which was available as of September 30, 2012 and June 30, 2012.  The bank line of credit extends through June 30, 2013.  The interest rate on the used bank line of credit is the London Interbank Offered Rate plus 1.15%.  The annual cost of the unused bank line of credit is .125%.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We were not in default on our bank line of credit during any period presented in the Condensed Consolidated Financial Statements.</div><div><br /></div><div style="text-align: justify; font-style: italic; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Long-Term Debt</div><div><br /></div><div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our Series A Notes are unsecured, bear interest at a rate of 4.26% per annum, which is payable quarterly, and mature on December 20, 2031.  Beginning in December, 2012, we are required to make an annual $1,500,000 principal payment on the Series A Notes. The following table summarizes the contractual maturities of our Series A Notes by fiscal year:</div><div><br /></div><div><table border="0" cellpadding="0" cellspacing="0" style="width: 35%; font-family: 'Times New Roman', Times, Serif; 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width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 1px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">Thereafter</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: #000000 1px solid; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">50,500</div><div> </div></div></div></td></tr><tr style="height: 24px;"><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">    Total long-term debt</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: #000000 4px double; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">58,000</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom-style: none; width: 19.9%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td></tr></table></div></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Any additional prepayment of principal by the Company is subject to a prepayment premium which varies depending on the yields of United States Treasury securities with a maturity equal to the remaining average life of the Series A Notes.</div><div><br /></div><div style="text-align: justify; 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<div><div style="text-align: left;"><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;"> (11)</font><font style="font-size: 5.14pt;">            </font><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">Share-Based Compensation</font></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We have a shareholder approved incentive compensation plan (the "Plan") that provides for incentive compensation awards payable in shares of our common stock. The Plan is administered by our Corporate Governance and Compensation Committee of our Board of Directors, which has complete discretion in determining which employees, officers and outside directors shall be eligible to participate in the Plan, as well as the type, amount, terms and conditions of each award, subject to the limitations of the Plan.  In accordance with the provisions of the Plan, the number of shares that may be issued under the Plan and all unvested shares have been adjusted for the two-for-one stock split that was distributed on May 1, 2012, as further discussed in Note 12 of Notes to Condensed Consolidated Financial Statements.</div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The number of shares of our common stock that may be issued pursuant to the Plan may not exceed in the aggregate 1,000,000 shares.  As of September 30, 2012, 889,000 shares of common stock were available for issuance under the Plan.  Shares of common stock may be issued from authorized but unissued shares, shares reacquired by us or shares that we purchase in the open market. </div><div><br /></div><div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Compensation expense for share-based compensation is recorded in operation and maintenance expense in the Condensed Consolidated Statements of Loss based on the fair value of the awards at the grant date and is amortized over the requisite service period.  Fair value is the closing price of our common shares at the grant date.  The grant date is the date at which our commitment to issue the share-based awards arises, which is generally when the award is approved and the terms of the awards are communicated to the employee or director.  We initially recognize expense for our performance shares when it is probable that any stipulated performance criteria will be met.</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 4.11%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 31.42%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Three Months Ended</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 31.42%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2011</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Share-based compensation expense</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">368</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">415</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr style="height: 14px;"><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr></table></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">For the three months ended September 30, 2012 and 2011, a $26,000 and $22,000 tax benefit, respectively, was recognized as an increase to premium on common shares on our Condensed Consolidated Balance Sheets, which decreased our taxes payable as the deduction for income tax purposes exceeds the compensation expense recognized for share-based compensation.  This excess tax benefit can be utilized to offset tax deficiencies related to share-based compensation in subsequent periods.</div><div><br /></div><div style="text-align: justify; font-style: italic; text-indent: 0pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Stock Awards</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">For the three months ended September 30, 2012 and 2011, common stock was awarded as a stock bonus to virtually all Delta employees and directors having grant date fair values of $264,000 (12,000 shares) and $337,000 (22,000 shares), respectively.  The recipients vested in the awards shortly after the awards were granted, but during the time between the vesting dates and the grant dates the shares awarded were not transferable by the holders. Once the shares were vested, the shares received under the stock bonus awards were immediately transferable.</div><div><br /></div><div style="text-align: justify; font-style: italic; text-indent: 0pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Performance Shares</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">For the three months ended September 30, 2012 and 2011, performance shares were awarded to the Company's executive officers having grant date fair values of $844,000 (39,000 shares) and $552,000 (36,000 shares),  respectively. The performance share awards vest only if the performance objectives of the awards are met, which are based on the Company's earnings per common share for the fiscal year in which the performance shares are awarded, before any cash bonuses or share-based compensation. Upon satisfaction of the performance objectives, unvested shares are issued to the recipients and vest equally over a three-year period beginning each August 31 subsequent to achieving the performance objectives as long as the recipients are employees throughout each such service period.  The recipients of the awards also become vested as a result of certain events such as death or disability of the holders. The unvested shares have both dividend participation rights and voting rights during the remaining terms of the awards.  Holders of performance shares may not sell, transfer or pledge their shares until the shares vest.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">For the three months ended September 30, 2012 and 2011, compensation expense related to the performance shares was $104,000 and $78,000, respectively.   As of September 30, 2012 and 2011, there were 29,000 and 21,000 unvested performance shares outstanding, respectively, for which the performance objectives have been satisfied.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our performance shares have graded vesting schedules, and each separate annual vesting tranche is treated as a separate award for expense recognition.  Compensation expense is amortized over the vesting period of the individual awards based on the probable outcome of meeting the performance objectives.</div></div>
0
0
1235873
1235873
0
0
1187651
1187651
-0.02
-0.12
-0.02
-0.12
<div><div style="text-align: left;"><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">(10)</font><font style="font-size: 5.14pt;">            </font><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">Loss per Common Share</font></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Under our incentive compensation plan, recipients of performance share awards receive unvested non-participating shares, as further discussed in Note 11 of the Notes to Condensed Consolidated Financial Statements.  Unvested non-participating shares become dilutive in the interim quarter-end in which the performance objective is met.  If the performance objective continues to be met through the end of the performance period, these shares become unvested participating shares as of the fiscal year-end.  The weighted average number of unvested non-participating shares outstanding during a period is included in the diluted earnings per common share calculation using the treasury stock method, unless the effect of including such shares would be antidilutive.  As of September 30, 2012 and 2011, there were 39,000 and 36,000 unvested non-participating shares outstanding, respectively, which are not dilutive as the underlying performance condition has not yet been met.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Additionally, certain awards provide recipients of the awards all the rights of a shareholder of Delta including a right to dividends declared on common shares.  Any unvested shares which are participating in dividends are considered participating securities and are included in our computation of basic and diluted earnings per share using the two-class method unless the effect of including such shares would be antidilutive.  As of September 30, 2012 and 2011 there were 29,000 and 21,000 unvested participating shares outstanding, respectively.  The unvested participating shares are excluded from the computation of diluted weighted average common shares as of September 30, 2012 and 2011, as the shares would have an antidilutive effect on the net loss per common share.</div></div>
0
26166
0
26166
0
21562
0
21562
8553442
6932807
35111
21562
-8945
0
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(2)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Fair Value Measurements</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our financial assets and liabilities measured at fair value on a recurring basis consist of the assets of our supplemental retirement benefit trust, which are included in other non-current assets on the Condensed Consolidated Balance Sheets.  Contributions to the trust are presented in other investing activities on the Condensed Consolidated Statements of Cash Flows.  The assets of the trust are recorded at fair value and consist of exchange traded mutual funds.  The mutual funds are recorded at fair value using observable market prices from active markets, which are categorized as Level 1 in the fair value hierarchy.  The fair value of the trust assets are as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 52.09%; vertical-align: bottom;"><div> </div></td><td style="width: 19.39%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="width: 17.11%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">June 30,</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></td><td style="border-bottom: #000000 2px solid; width: 19.39%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 5.7%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></td><td style="border-bottom: #000000 2px solid; width: 17.11%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 5.7%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div> </div></td><td style="width: 19.39%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="width: 17.11%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Trust assets</div></td><td style="width: 19.39%; vertical-align: bottom;"><div> </div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="width: 17.11%; vertical-align: bottom;"><div> </div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">Money market</div></td><td style="width: 19.39%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">10</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="width: 17.11%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">6</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">U.S. equity securities</div></td><td style="width: 19.39%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">384</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="width: 17.11%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">364</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">U.S. fixed income securities</div></td><td style="border-bottom: #000000 2px solid; width: 19.39%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">224</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 17.11%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">220</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 4px double; width: 19.39%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">618</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 4px double; width: 17.11%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">590</div></td><td style="width: 5.7%; vertical-align: bottom;"><div> </div></td></tr></table><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The carrying amounts of our other financial instruments including cash equivalents, accounts receivable, notes receivable and accounts payable approximate their fair value.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our Series A Notes, presented as current portion of long-term debt and long-term debt on the Condensed Consolidated Balance Sheets, are stated at historical cost.  Fair value of our long-term debt is based on the expected future cash flows of the debt discounted using a credit adjusted risk-free rate.  The credit adjusted risk-free rate for our 4.26% Series A Notes is the estimated cost to borrow a debt instrument with the same terms from a private lender at the measurement date.  The fair value of our long-term debt is categorized as Level 2 in the fair value hierarchy.</div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 34.21%; vertical-align: bottom;"><div> </div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 22%; vertical-align: bottom;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 23%; vertical-align: bottom;"><div> </div></td><td style="width: 2%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 9.91%; vertical-align: bottom;"><div> </div></td><td style="width: 2.09%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div> </div></td><td style="width: 3.79%; vertical-align: middle;"><div> </div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 22%; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30, 2012</div></td><td style="width: 3%; vertical-align: middle;"><div> </div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 23%; vertical-align: middle;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">June 30, 2012</div></td><td style="width: 2%; vertical-align: middle;"><div> </div></td><td colspan="3" style="width: 9.91%; vertical-align: middle;"><div> </div></td><td style="width: 2.09%; vertical-align: middle;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Amount</div></td><td style="width: 3%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 9%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Fair</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Value</div></td><td style="width: 3%; vertical-align: middle;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Amount</div></td><td style="width: 3%; vertical-align: middle;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Fair</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Value</div></td><td style="width: 2%; vertical-align: middle;"><div> </div></td><td style="width: 5%; vertical-align: middle;"><div> </div></td><td style="width: 2%; vertical-align: middle;"><div> </div></td><td style="width: 2.91%; vertical-align: middle;"><div> </div></td><td style="width: 2.09%; vertical-align: top;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div> </div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 9%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 2%; vertical-align: bottom;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div> </div></td><td style="width: 2%; vertical-align: top;"><div> </div></td><td style="width: 2.91%; vertical-align: top;"><div> </div></td><td style="width: 2.09%; vertical-align: top;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">4.26% Series A Notes</div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">58,000</div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 9%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">61,509</div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">58,000</div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">59,027</div></td><td style="width: 2%; vertical-align: bottom;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div> </div></td><td style="width: 2%; vertical-align: top;"><div> </div></td><td style="width: 2.91%; vertical-align: top;"><div> </div></td><td style="width: 2.09%; vertical-align: top;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div> </div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: bottom;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 9%; vertical-align: bottom;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div> </div></td><td style="width: 2%; vertical-align: bottom;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div> </div></td><td style="width: 2%; vertical-align: top;"><div> </div></td><td style="width: 2.91%; vertical-align: top;"><div> </div></td><td style="width: 2.09%; vertical-align: top;"><div> </div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div> </div></td><td style="width: 3.79%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: bottom;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 9%; vertical-align: bottom;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div> </div></td><td style="width: 3%; vertical-align: bottom;"><div> </div></td><td style="width: 10%; vertical-align: middle;"><div> </div></td><td style="width: 2%; vertical-align: bottom;"><div> </div></td><td style="width: 5%; vertical-align: top;"><div> </div></td><td style="width: 2%; vertical-align: top;"><div> </div></td><td style="width: 2.91%; vertical-align: top;"><div> </div></td><td style="width: 2.09%; vertical-align: top;"><div> </div></td></tr></table></div>
<div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our financial assets and liabilities measured at fair value on a recurring basis consist of the assets of our supplemental retirement benefit trust, which are included in other non-current assets on the Condensed Consolidated Balance Sheets.  Contributions to the trust are presented in other investing activities on the Condensed Consolidated Statements of Cash Flows.  The assets of the trust are recorded at fair value and consist of exchange traded mutual funds.  The mutual funds are recorded at fair value using observable market prices from active markets, which are categorized as Level 1 in the fair value hierarchy.  The fair value of the trust assets are as follows:</div><div><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 19.39%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 17.11%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">June 30,</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></div></td><td style="border-bottom: #000000 2px solid; width: 19.39%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></div></td><td style="border-bottom: #000000 2px solid; width: 17.11%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 19.39%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 17.11%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Trust assets</div></div></td><td style="width: 19.39%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 17.11%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">Money market</div></div></td><td style="width: 19.39%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">10</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 17.11%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">6</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">U.S. equity securities</div></div></td><td style="width: 19.39%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">384</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 17.11%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">364</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div style="text-align: justify; font-family: 'Times New Roman', serif; margin-left: 11.1pt; font-size: 10pt;">U.S. fixed income securities</div></div></td><td style="border-bottom: #000000 2px solid; width: 19.39%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">224</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 17.11%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">220</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 52.09%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 19.39%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">618</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 17.11%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">590</div></div></td><td style="width: 5.7%; vertical-align: bottom;"><div><div> </div></div></td></tr></table></div></div>
<div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our Series A Notes, presented as current portion of long-term debt and long-term debt on the Condensed Consolidated Balance Sheets, are stated at historical cost.  Fair value of our long-term debt is based on the expected future cash flows of the debt discounted using a credit adjusted risk-free rate.  The credit adjusted risk-free rate for our 4.26% Series A Notes is the estimated cost to borrow a debt instrument with the same terms from a private lender at the measurement date.  The fair value of our long-term debt is categorized as Level 2 in the fair value hierarchy.</div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 34.21%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="width: 22%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="width: 23%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 2%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="width: 9.91%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3.79%; vertical-align: middle;"><div><div> </div></div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 22%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30, 2012</div></div></td><td style="width: 3%; vertical-align: middle;"><div><div> </div></div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 23%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">June 30, 2012</div></div></td><td style="width: 2%; vertical-align: middle;"><div><div> </div></div></td><td colspan="3" style="width: 9.91%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Amount</div></div></td><td style="width: 3%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 9%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Fair</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Value</div></div></td><td style="width: 3%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Carrying</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Amount</div></div></td><td style="width: 3%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Fair</div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Value</div></div></td><td style="width: 2%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 5%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.91%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: top;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 9%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 2%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.91%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: top;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">4.26% Series A Notes</div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">58,000</div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 9%; vertical-align: bottom;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">61,509</div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">58,000</div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt;">59,027</div></div></td><td style="width: 2%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.91%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: top;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 9%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.91%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: top;"><div><div> </div></div></td></tr><tr><td style="width: 34.21%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3.79%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 9%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 3%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 10%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 5%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.91%; vertical-align: top;"><div><div> </div></div></td><td style="width: 2.09%; vertical-align: top;"><div><div> </div></div></td></tr></table></div></div>
-279869
-1265695
923000
-120966
-468569
-3201233
-10783104
-1913990
2025760
29000
21000
1068933
1026387
744823
1757131
563294
557118
14621816
14162883
44588178
46012073
115709994
116674956
181076595
182895363
8918
-26924
40000000
0.00125
<div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our Series A Notes are unsecured, bear interest at a rate of 4.26% per annum, which is payable quarterly, and mature on December 20, 2031.  Beginning in December, 2012, we are required to make an annual $1,500,000 principal payment on the Series A Notes. The following table summarizes the contractual maturities of our Series A Notes by fiscal year:</div><div><br /></div><div><table border="0" cellpadding="0" cellspacing="0" style="width: 35%; font-family: 'Times New Roman', Times, Serif; height: 334px; font-size: 10pt;"><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 8pt; font-weight: normal;">($000)</div><div> </div></div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 19.9%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">2013</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">2014</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr style="height: 30px;"><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">2015</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">2016</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">2017</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 1px; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">1,500</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">Thereafter</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: #000000 1px solid; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">50,500</div><div> </div></div></div></td></tr><tr style="height: 24px;"><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div style="text-align: justify; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">    Total long-term debt</div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: #000000 4px double; width: 19.9%; vertical-align: top;"><div><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">58,000</div><div> </div></div></div></td></tr><tr><td style="border-bottom: 4px; width: 78.61%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom: 4px; width: 1%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td><td style="border-bottom-style: none; width: 19.9%; vertical-align: top;"><div><div><div> </div><div> </div></div></div></td></tr></table></div></div>
1500000
1500000
1500000
1500000
1500000
1500000
1500000
56500000
56500000
50500000
5565000
-1735161
-2071391
-1053603
1566014
-158903
-797126
-158903
-797126
0
0
0
0
-244951
-348961
86048
-448164
-2704962
-6698411
49008
-74665
2
415946
566101
617563
589992
397080
436281
745534
705094
1735876
2122327
1235873
1187651
2761948
2393674
147159
111551
0
3839409
715
50936
134485083
134337000
218700655
217172542
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(8)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Regulatory Matters</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The Kentucky Public Service Commission exercises regulatory authority over our retail natural gas distribution and transportation services.  Their regulation of our business includes approving the rates we are permitted to charge our regulated customers.  We monitor our need to file requests with them for a general rate increase for our natural gas and transportation services.  They have historically utilized cost-of-service ratemaking where our base rates are established to recover normal operating expenses, exclusive of gas costs, and a reasonable rate of return.  We do not have any matters pending before the Kentucky Public Service Commission which would have a material impact on our results of operations, financial positions or cash flows.</div></div>
614000
211000
5741471
5622636
11452315
12896327
1321363
1380838
16868676
16517812
0
1132857
0
86000
13973489
15368265
793661
763779
-793661
-763779
5741471
5622636
5710844
7273691
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(5)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Defined Benefit Retirement Plan</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Net periodic benefit cost for our trusteed, noncontributory defined benefit retirement plan for the periods ended September 30 include the following:</div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 2.7%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></td><td style="width: 57.77%; vertical-align: top;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 33.45%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Three Months Ended</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 33.45%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 15.2%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 14.19%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2011</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="width: 14.19%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Service cost</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">279</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="width: 14.19%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">231</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Interest cost</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">228</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="width: 14.19%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">230</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Expected return on plan assets</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(394</div></td><td style="width: 4.05%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">)</div></td><td style="width: 14.19%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(369</div></td><td style="width: 3.04%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">)</div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Amortization of unrecognized net loss</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">153</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="width: 14.19%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">50</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Amortization of prior service cost</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 15.2%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(21</div></td><td style="width: 4.05%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 14.19%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(22</div></td><td style="width: 3.04%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">)</div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div style="text-align: left; text-indent: 12pt; font-family: 'Times New Roman', serif; font-size: 10pt;">Net periodic benefit cost</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 4px double; width: 15.2%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">245</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 4px double; width: 14.19%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">120</div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 2.7%; vertical-align: bottom;"><div> </div></td><td style="width: 57.77%; vertical-align: top;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td><td style="width: 15.2%; vertical-align: bottom; border-top: #000000 1.5pt double;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td><td style="width: 14.19%; vertical-align: bottom; border-top: #000000 1.5pt double;"><div> </div></td><td style="width: 3.04%; vertical-align: bottom;"><div> </div></td></tr></table></div>
<div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Compensation expense for share-based compensation is recorded in operation and maintenance expense in the Condensed Consolidated Statements of Loss based on the fair value of the awards at the grant date and is amortized over the requisite service period.  Fair value is the closing price of our common shares at the grant date.  The grant date is the date at which our commitment to issue the share-based awards arises, which is generally when the award is approved and the terms of the awards are communicated to the employee or director.  We initially recognize expense for our performance shares when it is probable that any stipulated performance criteria will be met.</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 4.11%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="width: 31.42%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Three Months Ended</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 31.42%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2011</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Share-based compensation expense</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">368</div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">415</div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr><tr style="height: 14px;"><td style="width: 4.11%; vertical-align: bottom;"><div> </div></td><td style="width: 55.2%; vertical-align: top;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div> </div></td><td style="width: 5.07%; vertical-align: bottom;"><div> </div></td><td style="width: 13.18%; vertical-align: bottom;"><div> </div></td><td style="width: 4.05%; vertical-align: bottom;"><div> </div></td></tr></table></div>
<div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Segment information is shown in the following table:</div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td colspan="2" style="width: 35.18%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></div></td><td style="width: 26.71%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="width: 31.27%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Three Months Ended</div></div></td><td style="width: 4.89%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td colspan="2" style="width: 35.18%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 26.71%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 31.27%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></div></td><td style="width: 4.89%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></div></td><td style="width: 2.93%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2011</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Operating Revenues</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">External customers</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,741</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,622</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">Intersegment</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">794</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">764</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Total regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">6,535</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">6,386</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Non-regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">External customers</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,711</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">7,274</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Eliminations for intersegment</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(794</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(764</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Consolidated operating revenues</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">11,452</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">12,896</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: 1.5pt;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: 1.5pt;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Net Income (Loss)</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(245</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(349</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Non-regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">86</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(448</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Consolidated net loss</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(159</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 4px double; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(797</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr></table></div></div>
6535132
6386415
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(9)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Operating Segments</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Our Company has two reportable segments:  (i) a regulated natural gas distribution and transmission segment and (ii) a non-regulated segment that participates in related ventures, consisting of natural gas marketing, natural gas production and sales of natural gas liquids.  Virtually all of the revenues recorded under both segments come from the sale or transportation of natural gas, or related sales of natural gas liquids.  The regulated segment serves residential, commercial and industrial customers in the single geographic area of central and southeastern Kentucky.  Price risk for the regulated segment is mitigated through our gas cost recovery clause, approved quarterly by the Kentucky Public Service Commission.  Price risk for the non-regulated segment is mitigated by efforts to balance supply and demand.  However, there are greater risks in the non-regulated segment because of the practical limitations on the ability to perfectly predict our demand.  In addition, we are exposed to price risk resulting from changes in the market price of natural gas, natural gas liquids and uncommitted natural gas inventory of our non-regulated companies.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The reportable segments follow the same accounting policies as described in the Summary of Significant Accounting Policies in Note 1 of the Notes to Consolidated Financial Statements that are included in our Annual Report on Form 10-K for the year ended June 30, 2012.  Intersegment revenues and expenses consist of intercompany revenues and expenses from intercompany gas transportation and gas storage services.  Intersegment transportation revenues and expenses represent the natural gas transportation costs from the regulated segment to the non-regulated segment at our tariff rates.  Operating expenses, taxes and interest are allocated to the non-regulated segment.</div><div style="margin-top: 2pt;"><br /></div><div><br /></div><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Segment information is shown in the following table:</div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td colspan="2" style="width: 35.18%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;"> </div></div></td><td style="width: 26.71%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="width: 31.27%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">Three Months Ended</div></div></td><td style="width: 4.89%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td colspan="2" style="width: 35.18%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 26.71%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td colspan="3" style="border-bottom: #000000 2px solid; width: 31.27%; vertical-align: middle;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></div></td><td style="width: 4.89%; vertical-align: bottom;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">($000)</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></div></td><td style="width: 2.93%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2011</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Operating Revenues</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">External customers</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,741</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,622</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">Intersegment</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">794</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">764</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Total regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">6,535</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">6,386</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Non-regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 21.6pt; font-size: 10pt;">External customers</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">5,711</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">7,274</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Eliminations for intersegment</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(794</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(764</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Consolidated operating revenues</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">11,452</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">12,896</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div> </div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle; border-top: 1.5pt;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle; border-top: 1.5pt;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Net Income (Loss)</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 13.68%; vertical-align: middle;"><div><div> </div></div></td><td style="width: 4.89%; vertical-align: middle;"><div><div> </div></div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(245</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(349</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 10.3pt; font-size: 10pt;">Non-regulated</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 14.66%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">86</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div><div> </div></div></td><td style="border-bottom: #000000 2px solid; width: 13.68%; vertical-align: middle;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(448</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr><tr><td style="width: 5.21%; vertical-align: middle;"><div><div> </div></div></td><td colspan="2" style="width: 56.68%; vertical-align: top;"><div><div style="text-align: left; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Consolidated net loss</div></div></td><td style="width: 1.95%; vertical-align: bottom;"><div><div> </div></div></td><td style="border-bottom: #000000 4px double; width: 14.66%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(159</div></div></td><td style="width: 2.93%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td><td style="border-bottom: #000000 4px double; width: 13.68%; vertical-align: middle; border-top: #000000 0.5pt solid;"><div><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">(797</div></div></td><td style="width: 4.89%; vertical-align: middle;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">)</div></td></tr></table></div></div><div><br /></div></div>
367645
415017
29000000
21000000
The award shall vest in one-third increments each year beginning August 31, 2012 and annual each Augst 31 thereafter until fully vested as long as the recipients are employees throughtout each such service period
39000
36000
12000
22000
39000
36000
889000
1000000
7305
139854
0
147159
6958
104593
0
111551
31876
232226
0
264102
22000
315040
0
337040
65366601
66220407
6803941
44048201
15368265
6732344
42688316
14346524
63767184
6843122
44549990
13973489
6771970
43196820
12361747
62330537
2
<div><div style="text-align: left;"><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">(12)</font><font style="font-size: 5.14pt;">            </font><font style="font-family: 'Times New Roman', serif; font-size: 10pt; font-weight: bold;">Two-for-One Stock Split</font></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">On February 17, 2012, the Company's Board of Directors declared a two-for-one stock split of the Company's issued and outstanding common stock, par value $1.00 per share.  The stock split was distributed May 1, 2012 to all shareholders of record on April 17, 2012.  As a result of the stock split, all amounts related to shares, share prices and earnings per share have been retroactively restated, where appropriate, in the condensed consolidated financial statements and notes thereto.</div></div>
4595753
4154064
618000
590000
102304
104104
5710844
7273691
3467423
3135215
1326003
1201397
11036369
12330226
1507878
1460575
589908
527887
6822304
6750512
6822304
6750512
4145157
6005152
2012-05-01
264000
337000
844000
552000
384000
364000
224000
220000
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(1)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Nature of Operations and Basis of Presentation</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Delta Natural Gas Company, Inc. ("Delta" or "the Company") distributes or transports natural gas to approximately 36,000 customers.  Our distribution and transmission systems are located in central and southeastern Kentucky, and we own and operate an underground storage field in southeastern Kentucky.  We transport natural gas to our industrial customers who purchase their natural gas in the open market and we transport natural gas on behalf of local producers and customers not on our distribution system.  We also sell liquids extracted from natural gas in our storage field and on our distribution system.  We have three wholly-owned subsidiaries.  Delta Resources, Inc. ("Delta Resources") buys natural gas and resells it to industrial or other large use customers on Delta's system. Delgasco, Inc. ("Delgasco") buys gas and resells it to Delta Resources and to customers not on Delta's system.  Enpro, Inc. ("Enpro") owns and operates production properties and undeveloped acreage.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">All subsidiaries of Delta are included in the condensed consolidated financial statements. Intercompany balances and transactions have been eliminated.  All adjustments necessary for a fair presentation of the unaudited results of operations for the three months ended September 30, 2012 and 2011 are included.  All such adjustments are accruals of a normal and recurring nature other than the amounts accrued by Delta Resources related to an assessment of the Utility Gross Receipts License Tax discussed in Note 7.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The results of operations for the period ended September 30, 2012 are not necessarily indicative of the results of operations to be expected for the full fiscal year.  Because of the seasonal nature of our sales, we generate the smallest proportion of cash from operations during the warmer months, when sales volumes decrease considerably.  Most construction activity and gas storage injections take place during these warmer months.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the financial statements, and the notes thereto, included in our Annual Report on Form 10-K for the year ended June 30, 2012.</div></div>
3
36000
10000
6000
58000000
61509000
58000000
59027000
0
1478000
1358000
<div><div style="text-align: justify; margin-left: 0pt;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr><td style="width: 36pt; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold; align: right;">(4)</td><td style="width: auto; font-family: 'Times New Roman', serif; font-size: 10pt; vertical-align: top; font-weight: bold;">Unbilled Revenue</td></tr></table></div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">We bill our customers on a monthly meter reading cycle. At the end of each month, gas service which has been rendered from the date the customer's meter was last read to the month-end is unbilled.</div><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Unbilled revenues and gas costs include the following:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div> </div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="width: 17.08%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">September 30,</div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="width: 18.15%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">June 30,</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 8pt;">(000)</div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 17.08%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="border-bottom: #000000 2px solid; width: 18.15%; vertical-align: bottom;"><div style="text-align: center; font-family: 'Times New Roman', serif; font-size: 8pt;">2012</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div> </div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="width: 17.08%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="width: 18.15%; vertical-align: bottom; border-top: #000000 0.5pt solid;"><div> </div></td></tr><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Unbilled revenues ($)</div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="width: 17.08%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">1,478</div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="width: 18.15%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">1,358</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Unbilled gas costs ($)</div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="width: 17.08%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">451</div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="width: 18.15%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">392</div></td></tr><tr style="background-color: #ffffff;"><td style="width: 2.85%; vertical-align: top;"><div> </div></td><td style="width: 42.7%; vertical-align: bottom;"><div style="text-align: left; font-family: 'Times New Roman', serif; font-size: 10pt;">Unbilled volumes (Mcf)</div></td><td style="width: 12.81%; vertical-align: bottom;"><div> </div></td><td style="width: 17.08%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">55</div></td><td style="width: 6.41%; vertical-align: bottom;"><div> </div></td><td style="width: 18.15%; vertical-align: bottom;"><div style="text-align: right; font-family: 'Times New Roman', serif; font-size: 10pt; margin-right: 0.7pt;">46</div></td></tr></table><div><br /></div><div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', serif; margin-left: 36pt; font-size: 10pt;">Unbilled revenues are included in accounts receivable and unbilled gas costs are included in deferred gas costs on the accompanying Condensed Consolidated Balance Sheets.  Unbilled revenues are included in regulated revenues and unbilled gas costs are included in regulated purchased gas on the accompanying Condensed Consolidated Statements of Loss.</div></div>
451000
392000
55000
46000
58000000
4
3700000
P5Y
3013000
1963000
589000
0.03
3055000
189000
930000
3048000
196000
2012-02-17
2012-04-17