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Segment Information
 3 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Note 15 — 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 and central Pennsylvania. Electric Utility derives its revenues principally from the sale and distribution of electricity in two northeastern Pennsylvania counties.
The accounting policies of our reportable segments are the same as those described in Note 2 of the Company’s 2018 Annual Report. Our Chief Operating Decision Maker evaluates the performance of our Gas Utility and Electric Utility segments principally based upon their income before income taxes. Financial information by business segment follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reportable Segments
Three Months Ended December 31, 2018
 
Total
 
Gas Utility
 
Electric Utility
Revenues
 
$
322,725

 
$
297,142

 
$
25,583

Cost of sales
 
$
159,519

 
$
145,120

 
$
14,399

Depreciation
 
$
22,474

 
$
21,040

 
$
1,434

Operating income
 
$
77,074

 
$
73,584

 
$
3,490

Pension and other postretirement plans non-service income
 
$
412

 
$
361

 
$
51

Interest expense
 
$
(11,738
)
 
$
(11,218
)
 
$
(520
)
Income before income taxes
 
$
65,748

 
$
62,727

 
$
3,021

Capital expenditures (including the effects of accruals)
 
$
77,319

 
$
75,074

 
$
2,245

 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
Total assets
 
$
3,424,773

 
$
3,251,331

 
$
173,442

Goodwill
 
$
182,145

 
$
182,145

 
$
—

 
 
 
 
Reportable Segments
Three Months Ended December 31, 2017
 
Total
 
Gas Utility
 
Electric Utility
Revenues
 
$
323,105

 
$
299,965

 
$
23,140

Cost of sales
 
$
151,774

 
$
138,858

 
$
12,916

Depreciation
 
$
20,354

 
$
19,000

 
$
1,354

Operating income (a)
 
$
96,870

 
$
94,185

 
$
2,685

Pension and other postretirement plans non-service expense (a)
 
$
(575
)
 
$
(504
)
 
$
(71
)
Interest expense
 
$
(10,939
)
 
$
(10,526
)
 
$
(413
)
Income before income taxes
 
$
85,356

 
$
83,155

 
$
2,201

Capital expenditures (including the effects of accruals)
 
$
71,699

 
$
68,842

 
$
2,857

 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
Total assets
 
$
3,174,693

 
$
3,038,250

 
$
136,443

Goodwill
 
$
182,145

 
$
182,145

 
$
—


(a) Amounts reflect the reclassification of non-service income (expense) associated with our pension and other postretirement plans from “Operating and administrative expenses” to “Pension and other postretirement plans non-service income (expense)” on the Condensed Consolidated Statements of Income as a result of the adoption of ASU No. 2017-07 (see Note 3).