Segment Information

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Note 13 — 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 March 31, 2016:

			Reportable Segments
	Total		Gas Utility		Electric Utility
Revenues	$	322,047	$	298,088	$	23,959
Cost of sales	$	137,434	$	123,702	$	13,732
Depreciation and amortization	$	17,030	$	15,822	$	1,208
Operating income	$	114,481	$	111,004	$	3,477
Interest expense	$	9,270	$	8,847	$	423
Income before income taxes	$	105,211	$	102,157	$	3,054
Capital expenditures (including the effects of accruals)	$	48,113	$	46,003	$	2,110

Three Months Ended March 31, 2015:

			Reportable Segments
	Total		Gas Utility		Electric Utility		Other
Revenues	$	500,573	$	468,000	$	32,323	$	250
Cost of sales	$	278,336	$	258,155	$	20,181	$	—
Depreciation and amortization	$	15,644	$	14,489	$	1,155	$	—
Operating income (loss)	$	142,699	$	139,303	$	3,510	$	(114	)
Interest expense	$	10,611	$	10,104	$	507	$	—
Income (loss) before income taxes	$	132,088	$	129,199	$	3,003	$	(114	)
Capital expenditures (including the effects of accruals)	$	41,280	$	39,202	$	2,078	$	—

Six Months Ended March 31, 2016:

			Reportable Segments
	Total		Gas Utility		Electric Utility
Revenues	$	520,029	$	475,030	$	44,999
Cost of sales	$	212,873	$	187,931	$	24,942
Depreciation and amortization	$	33,731	$	31,326	$	2,405
Operating income	$	162,777	$	156,824	$	5,953
Interest expense	$	18,764	$	17,913	$	851
Income before income taxes	$	144,013	$	138,911	$	5,102
Capital expenditures (including the effects of accruals)	$	109,577	$	105,273	$	4,304
As of March 31, 2016
Total assets (at period end)	$	2,641,587	$	2,488,191	$	153,396
Goodwill (at period end)	$	182,145	$	182,145	$	—

Six Months Ended March 31, 2015:

			Reportable Segments
	Total		Gas Utility		Electric Utility		Other
Revenues	$	787,879	$	728,478	$	58,746	$	655
Cost of sales	$	421,388	$	385,363	$	36,025	$	—
Depreciation and amortization	$	31,069	$	28,769	$	2,300	$	—
Operating income	$	218,339	$	211,149	$	7,229	$	(39	)
Interest expense	$	21,260	$	20,234	$	1,026	$	—
Income before income taxes	$	197,079	$	190,915	$	6,203	$	(39	)
Capital expenditures (including the effects of accruals)	$	96,309	$	92,694	$	3,615	$	—
As of March 31, 2015
Total assets (at period end)	$	2,506,043	$	2,359,060	$	146,983	$	—
Goodwill (at period end)	$	182,145	$	182,145	$	—	$	—