Segment Information

9 Months Ended

Jun. 30, 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 PNG 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 June 30, 2016:

			Reportable Segments
	Total		Gas Utility		Electric Utility
Revenues	$	140,283	$	119,995	$	20,288
Cost of sales	$	44,415	$	33,715	$	10,700
Depreciation and amortization	$	16,550	$	15,339	$	1,211
Operating income	$	29,815	$	27,116	$	2,699
Interest expense	$	9,158	$	8,670	$	488
Income before income taxes	$	20,657	$	18,446	$	2,211
Capital expenditures (including the effects of accruals)	$	56,481	$	53,199	$	3,282

Three Months Ended June 30, 2015:

			Reportable Segments
	Total		Gas Utility		Electric Utility		Other
Revenues	$	143,490	$	119,412	$	23,875	$	203
Cost of sales	$	53,691	$	41,352	$	12,339	$	—
Depreciation and amortization	$	15,913	$	14,786	$	1,127	$	—
Operating income	$	20,184	$	15,099	$	4,071	$	1,014
Interest expense	$	9,985	$	9,483	$	502	$	—
Income before income taxes	$	10,199	$	5,616	$	3,569	$	1,014
Capital expenditures (including the effects of accruals)	$	43,315	$	41,324	$	1,991	$	—

Nine Months Ended June 30, 2016:

			Reportable Segments
	Total		Gas Utility		Electric Utility
Revenues	$	660,312	$	595,025	$	65,287
Cost of sales	$	257,288	$	221,646	$	35,642
Depreciation and amortization	$	50,281	$	46,665	$	3,616
Operating income	$	192,592	$	183,940	$	8,652
Interest expense	$	27,922	$	26,583	$	1,339
Income before income taxes	$	164,670	$	157,357	$	7,313
Capital expenditures (including the effects of accruals)	$	166,058	$	158,472	$	7,586
As of June 30, 2016
Total assets (at period end)	$	2,699,898	$	2,534,039	$	165,859
Goodwill (at period end)	$	182,145	$	182,145	$	—

Nine Months Ended June 30, 2015:

			Reportable Segments
	Total		Gas Utility		Electric Utility		Other
Revenues	$	931,369	$	847,890	$	82,621	$	858
Cost of sales	$	475,079	$	426,715	$	48,364	$	—
Depreciation and amortization	$	46,982	$	43,555	$	3,427	$	—
Operating income	$	238,523	$	226,248	$	11,300	$	975
Interest expense	$	31,245	$	29,717	$	1,528	$	—
Income before income taxes	$	207,278	$	196,531	$	9,772	$	975
Capital expenditures (including the effects of accruals)	$	139,624	$	134,018	$	5,606	$	—
As of June 30, 2015
Total assets (at period end)	$	2,423,205	$	2,278,975	$	144,230	$	—
Goodwill (at period end)	$	182,145	$	182,145	$	—	$	—