Segment Information

3 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Note 12 — Segment Information

We have determined that we have two reportable segments: (1) Gas Utility and (2) Electric Utility. Gas Utility revenues are derived principally from the sale and distribution of natural gas to customers in eastern, northeastern and central Pennsylvania. Electric Utility derives its revenues principally from the sale and distribution of electricity in two northeastern Pennsylvania counties. The HVAC Business, prior to its sale in June 2015, did not meet the quantitative thresholds for separate segment reporting under GAAP relating to business segment reporting and has been included in “Other” below.

The accounting policies of our reportable segments are the same as those described in Note 2 of the Company’s 2015 Annual Report. We evaluate the performance of our Gas Utility and Electric Utility segments principally based upon their income before income taxes.

Financial information by business segment follows:

Three Months Ended December 31, 2015:

			Reportable Segments
	Total		Gas Utility		Electric Utility
Revenues	$	197,982	$	176,942	$	21,040
Cost of sales	$	75,439	$	64,229	$	11,210
Depreciation and amortization	$	16,701	$	15,504	$	1,197
Operating income	$	48,296	$	45,820	$	2,476
Interest expense	$	9,494	$	9,066	$	428
Income before income taxes	$	38,802	$	36,754	$	2,048
Capital expenditures	$	61,464	$	59,270	$	2,194
As of December 31, 2015
Total assets (at period end)	$	2,606,299	$	2,462,508	$	143,791
Goodwill (at period end)	$	182,145	$	182,145	$	—

Three Months Ended December 31, 2014:

			Reportable Segments
	Total		Gas Utility		Electric Utility		Other
Revenues	$	287,306	$	260,478	$	26,423	$	405
Cost of sales	$	143,052	$	127,208	$	15,844	$	—
Depreciation and amortization	$	15,425	$	14,280	$	1,145	$	—
Operating income	$	75,640	$	71,846	$	3,719	$	75
Interest expense	$	10,649	$	10,130	$	519	$	—
Income before income taxes	$	64,991	$	61,716	$	3,200	$	75
Capital expenditures	$	55,029	$	53,492	$	1,537	$	—
As of December 31, 2014
Total assets (at period end)	$	2,488,621	$	2,346,169	$	142,452	$	—
Goodwill (at period end)	$	182,145	$	182,145	$	—	$	—