nix-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-16189

NiSource Inc.

(Exact name of registrant as specified in its charter)


DE		35-2108964
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

801 East 86th Avenue
Merrillville,	IN	46410
(Address of principal executive offices)		(Zip Code)

(877) 647-5990

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	NI	NYSE
Depositary Shares, each representing a 1/1,000th ownership interest in a share of 6.50% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share, liquidation preference $25,000 per share and a 1/1,000th ownership interest in a share of Series B-1 Preferred Stock, par value $0.01 per share, liquidation preference $0.01 per share	NI PR B	NYSE
Series A Corporate Units	NIMC	NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)

Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Emerging growth company ☐ Non-accelerated filer ¨ Smaller reporting company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: Common Stock, $0.01 Par Value: 406,134,342 shares outstanding at October 31, 2022.

NISOURCE INC.

FORM 10-Q QUARTERLY REPORT

FOR THE QUARTER ENDED SEPTEMBER 30, 2022

Table of Contents


			Page

	Defined Terms		3

PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements - unaudited

		Condensed Statements of Consolidated Income (unaudited)	7

		Condensed Statements of Consolidated Comprehensive Income (unaudited)	8

		Condensed Consolidated Balance Sheets (unaudited)	9

		Condensed Statements of Consolidated Cash Flows (unaudited)	11

		Condensed Statements of Consolidated Equity (unaudited)	12

		Notes to Condensed Consolidated Financial Statements (unaudited)	15

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57

	Item 4.	Controls and Procedures	57

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	58

	Item 1A.	Risk Factors	58

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

	Item 3.	Defaults Upon Senior Securities	58

	Item 4.	Mine Safety Disclosures	58

	Item 5.	Other Information	58

	Item 6.	Exhibits	59

	Signature		60


DEFINED TERMS
The following is a list of frequently used abbreviations or acronyms that are found in this report:

NiSource Subsidiaries and Affiliates
Columbia of Kentucky			Columbia Gas of Kentucky, Inc.
Columbia of Maryland			Columbia Gas of Maryland, Inc.
Columbia of Massachusetts			Bay State Gas Company
Columbia of Ohio			Columbia Gas of Ohio, Inc.
Columbia of Pennsylvania			Columbia Gas of Pennsylvania, Inc.
Columbia of Virginia			Columbia Gas of Virginia, Inc.
NIPSCO			Northern Indiana Public Service Company LLC
NiSource ("we," "us" or "our")			NiSource Inc.
Rosewater			Rosewater Wind Generation LLC and its wholly owned subsidiary, Rosewater Wind Farm LLC
Indiana Crossroads Wind			Indiana Crossroads Wind Generation LLC and its wholly owned subsidiary, Indiana Crossroads Wind Farm LLC

Abbreviations and Other

AFUDC			Allowance for funds used during construction

AOCI			Accumulated Other Comprehensive Income (Loss)
ASC			Accounting Standards Codification
ASU			Accounting Standards Update
ATM			At-the-market
BTA			Build-transfer agreement


CCRs			Coal Combustion Residuals
CEP			Capital Expenditure Program
CERCLA			Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
Corporate Units			Series A Corporate Units
COVID-19 ("the COVID-19 pandemic" or "the pandemic")			Novel Coronavirus 2019 and its variants, including the Delta and Omicron variants, and any other variant that may emerge

DPU			Department of Public Utilities
DSIC			Distribution System Improvement Charge

EPA			United States Environmental Protection Agency
EPS			Earnings per share
Equity Units			Series A Equity Units
FAC			Fuel adjustment clause
FASB			Financial Accounting Standards Board

FMCA			Federally Mandated Cost Adjustment
GAAP			Generally Accepted Accounting Principles
GCA			Gas cost adjustment
GHG			Greenhouse gases
GWh			Gigawatt hours

IRA			Inflation Reduction Act
IRP			Infrastructure Replacement Program

IURC			Indiana Utility Regulatory Commission
LIBOR			London InterBank Offered Rate


DEFINED TERMS
LIHEAP			Low Income Heating Energy Assistance Programs
Massachusetts Business			All of the assets sold to, and liabilities assumed by, Eversource pursuant to the Asset Purchase Agreement
MGP			Manufactured Gas Plant
MISO			Midcontinent Independent System Operator
MMDth			Million dekatherms
MW			Megawatts
MWh			Megawatt hours
NTSB			National Transportation Safety Board
NYMEX			New York Mercantile Exchange
OPEB			Other Postemployment Benefits


PHMSA			Pipeline and Hazardous Materials Safety Administration
PPA			Power Purchase Agreement


PUCO			Public Utilities Commission of Ohio


RNG			Renewable Natural Gas

SAVE			Steps to Advance Virginia's Energy Plan
Scope 1 GHG Emissions			Direct emissions from sources owned or controlled by us (e.g., emissions from our combustion of fuel, vehicles, and process emissions and fugitive emissions)
SEC			Securities and Exchange Commission
Section 201 Tariffs			Tariffs imposed by Executive Order from the President of the U.S. on certain imported solar cells and modules at a rate of 15%, which were recently extended to 2026
SMRP			Safety Modification and Replacement Program
STRIDE			Strategic Infrastructure Development Enhancement
TCJA			An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (commonly known as the Tax Cuts and Jobs Act of 2017)
TDSIC			Transmission, Distribution and Storage System Improvement Charge
U.S. Attorney's Office			U.S. Attorney's Office for the District of Massachusetts

VIE			Variable Interest Entity

Note regarding forward-looking statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning our plans, strategies, objectives, expected performance, expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this Quarterly Report on Form 10-Q include, among other things, our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to adapt to, and manage costs related to, advances in technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and natural gas costs and supply risks; fluctuations in demand from residential

and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demands; the attraction and retention of a qualified, diverse workforce and ability to maintain good labor relations; our ability to manage new initiatives and organizational changes; the actions of activist stockholders; the performance of third-party suppliers and service providers; potential cybersecurity attacks; increased requirements and costs related to cybersecurity; any damage to our reputation; any remaining liabilities or impact related to the sale of the Massachusetts Business; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net-Zero Goal (as defined below); our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; any adverse effects related to our equity units; adverse economic and capital market conditions or increases in interest rates; inflation; recessions; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; continuing and potential future impacts from the COVID-19 pandemic; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; changes in the method for determining LIBOR and the potential replacement of the LIBOR benchmark interest rate; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; potential remaining liabilities related to the Greater Lawrence Incident; compliance with the agreements entered into with the U.S. Attorney's Office to settle the U.S. Attorney's Office's investigation relating to the Greater Lawrence Incident; compliance with applicable laws, regulations and tariffs; compliance with environmental laws and the costs of associated liabilities; changes in taxation; other matters in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022, many of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.


Index			Page
Condensed Statements of Consolidated Income (unaudited)			7
Condensed Statements of Consolidated Comprehensive Income (unaudited)			8
Condensed Consolidated Balance Sheets (unaudited)			9
Condensed Statements of Consolidated Cash Flows (unaudited)			11
Condensed Statements of Consolidated Equity (unaudited)			12
Notes to Condensed Consolidated Financial Statements (unaudited)			15
1. Basis of Accounting Presentation			15
2. Recent Accounting Pronouncements			15
3. Revenue Recognition			15
4. Earnings Per Share			19
5. Equity			20



6. Regulatory Matters			21
7. Risk Management Activities			22
8. Fair Value			24


9. Income Taxes			27
10. Pension and Other Postretirement Benefits			27
11. Variable Interest Entities			28
12. Long-Term Debt			30
13. Short-Term Borrowings			30
14. Other Commitments and Contingencies			31
15. Accumulated Other Comprehensive Loss			34
16. Other, Net			35
17. Business Segment Information			35

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS

NiSource Inc.

Condensed Statements of Consolidated Income (unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share amounts)	2022		2021		2022		2021
Operating Revenues
Customer revenues	$	1,058.2	$	918.8	$	4,055.0	$	3,377.7
Other revenues	31.3		40.6		91.0		113.3
Total Operating Revenues	1,089.5		959.4		4,146.0		3,491.0
Operating Expenses
Cost of energy	330.8		208.3		1,421.2		913.4
Operation and maintenance	347.9		351.1		1,124.1		1,075.4
Depreciation and amortization	203.2		188.9		604.6		560.2
Loss (gain) on sale of assets, net	(0.3)		(1.1)		(105.3)		6.9
Other taxes	51.2		65.1		201.1		212.6
Total Operating Expenses	932.8		812.3		3,245.7		2,768.5

Operating Income	156.7		147.1		900.3		722.5
Other Income (Deductions)
Interest expense, net	(91.6)		(84.4)		(259.8)		(253.5)
Other, net	10.1		14.3		30.0		37.2

Total Other Deductions, Net	(81.5)		(70.1)		(229.8)		(216.3)
Income before Income Taxes	75.2		77.0		670.5		506.2
Income Taxes	11.7		14.8		119.9		90.6


Net Income	63.5		62.2		550.6		415.6
Net loss attributable to noncontrolling interest	(2.3)		(1.0)		(9.0)		(3.4)
Net Income Attributable to NiSource	65.8		63.2		559.6		419.0
Preferred dividends	(13.8)		(13.8)		(41.4)		(41.4)
Net Income Available to Common Shareholders	52.0		49.4		518.2		377.6
Earnings Per Share
Basic Earnings Per Share	$	0.13	$	0.13	$	1.28	$	0.96
Diluted Earnings Per Share	$	0.12	$	0.12	$	1.18	$	0.91
Basic Average Common Shares Outstanding	406.5		393.2		406.3		392.9
Diluted Average Common Shares	443.4		430.3		441.7		415.8

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Comprehensive Income (unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, net of taxes)	2022		2021		2022		2021
Net Income	$	63.5	$	62.2	$	550.6	$	415.6
Other comprehensive income:
Net unrealized loss on available-for-sale debt securities(1)	(4.5)		(0.8)		(14.1)		(2.4)
Net unrealized gain on cash flow hedges(2)	16.2		6.6		119.2		41.4
Unrecognized pension and OPEB benefit (costs)(3)	0.6		0.4		(1.8)		0.3
Total other comprehensive income	12.3		6.2		103.3		39.3
Comprehensive Income	$	75.8	$	68.4	$	653.9	$	454.9

(1)Net unrealized loss on available-for-sale debt securities, net of $1.1 million and $0.2 million tax benefit in the third quarter of 2022 and 2021, respectively, and $3.7 million and $0.6 million tax benefit for the nine months ended 2022 and 2021, respectively.

(2)Net unrealized gain on cash flow hedges, net of $5.3 million and $2.2 million tax expense in the third quarter of 2022 and 2021, respectively, and $39.4 million and $13.7 million tax expense for the nine months ended 2022 and 2021, respectively.

(3)Unrecognized pension and OPEB benefit (costs), net of $0.2 million and $0.2 million tax expense in the third quarter of 2022 and 2021, respectively, and $0.6 million tax benefit and $1.3 million tax expense for the nine months ended 2022 and 2021, respectively.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Consolidated Balance Sheets (unaudited)


(in millions)	September 30, 2022		December 31, 2021
ASSETS
Property, Plant and Equipment
Plant	$	26,641.1	$	25,171.3
Accumulated depreciation and amortization	(7,650.1)		(7,289.5)


Net Property, Plant and Equipment(1)	18,991.0		17,881.8
Investments and Other Assets
Unconsolidated affiliates	1.6		0.8
Available-for-sale debt securities (amortized cost of $174.6 and $169.3, allowance for credit losses of $1.7 and $0.2, respectively)	157.8		171.8
Other investments	68.8		87.1
Total Investments and Other Assets	228.2		259.7
Current Assets
Cash and cash equivalents	35.8		84.2
Restricted cash	42.8		10.7
Accounts receivable	605.9		849.1
Allowance for credit losses	(19.2)		(23.5)
Accounts receivable, net	586.7		825.6
Gas inventory	606.3		327.4
Materials and supplies, at average cost	141.4		139.1
Electric production fuel, at average cost	52.4		32.2
Exchange gas receivable	184.7		99.6

Regulatory assets	245.7		206.2

Prepayments and other	332.8		195.8
Total Current Assets(1)	2,228.6		1,920.8
Other Assets
Regulatory assets	2,240.3		2,286.0
Goodwill	1,485.9		1,485.9

Deferred charges and other	402.4		322.7
Total Other Assets	4,128.6		4,094.6
Total Assets	$	25,576.4	$	24,156.9

(1)Includes $678.8 million and $695.9 million at September 30, 2022 and December 31, 2021, respectively, of net property, plant and equipment assets and $20.4 million and $14.3 million at September 30, 2022 and December 31, 2021, respectively, of current assets of consolidated VIEs that may be used only to settle obligations of the consolidated VIEs. Refer to Note 11, "Variable Interest Entities," for additional information.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Consolidated Balance Sheets (unaudited) (continued)


(in millions, except share amounts)	September 30, 2022		December 31, 2021
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders’ Equity
Common stock - $0.01 par value, 600,000,000 shares authorized; 406,049,747 and 405,303,023 shares outstanding, respectively	$	4.1	$	4.1
Preferred stock - $0.01 par value, 20,000,000 shares authorized; 1,302,500 shares outstanding	1,546.5		1,546.5
Treasury stock	(99.9)		(99.9)
Additional paid-in capital	7,224.8		7,204.3
Retained deficit	(1,458.1)		(1,580.9)
Accumulated other comprehensive loss	(23.5)		(126.8)
Total NiSource Stockholders’ Equity	7,193.9		6,947.3
Noncontrolling interest in consolidated subsidiaries	311.8		325.6
Total Equity	7,505.7		7,272.9
Long-term debt, excluding amounts due within one year	9,521.2		9,183.4
Total Capitalization	17,026.9		16,456.3
Current Liabilities
Current portion of long-term debt	28.6		58.1
Short-term borrowings	1,274.2		560.0
Accounts payable	666.5		697.8
Dividends payable - common stock	95.6		—
Dividends payable - preferred stock	19.4		—
Customer deposits and credits	314.5		237.9
Taxes accrued	189.7		277.1
Interest accrued	124.1		105.5

Exchange gas payable	170.9		107.7
Regulatory liabilities	288.9		137.4


Accrued compensation and employee benefits	150.5		182.7

Other accruals	588.2		382.0
Total Current Liabilities(1)	3,911.1		2,746.2
Other Liabilities

Deferred income taxes	1,803.7		1,659.4


Accrued liability for postretirement and postemployment benefits	277.2		292.5
Regulatory liabilities	1,810.3		1,842.6
Asset retirement obligations	458.7		469.7
Other noncurrent liabilities	288.5		690.2
Total Other Liabilities(1)	4,638.4		4,954.4
Commitments and Contingencies (Refer to Note 14, "Other Commitments and Contingencies")
Total Capitalization and Liabilities	$	25,576.4	$	24,156.9

(1)Includes $7.8 million and $10.0 million at September 30, 2022 and December 31, 2021, respectively, of current liabilities and $20.9 million and $20.5 million at September 30, 2022 and December 31, 2021, respectively, of other liabilities of consolidated VIEs that creditors do not have recourse to our general credit. Refer to Note 11, "Variable Interest Entities," for additional information.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Cash Flows (unaudited)


Nine Months Ended September 30, (in millions)	2022		2021
Operating Activities
Net Income	$	550.6	$	415.6
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:

Depreciation and amortization	604.6		560.2
Deferred income taxes and investment tax credits	118.3		89.0



Loss (gain) on sale of assets	(105.3)		6.4
Other adjustments	27.7		17.3
Changes in Assets and Liabilities:










Components of working capital	(115.2)		(154.4)
Regulatory assets/liabilities	(17.4)		54.8


Deferred charges and other noncurrent assets	(16.8)		1.4
Other noncurrent liabilities	(10.3)		(51.0)

Net Cash Flows from Operating Activities	1,036.2		939.3
Investing Activities
Capital expenditures	(1,523.0)		(1,292.8)
Insurance recoveries	105.0		—

Cost of removal	(108.6)		(94.0)


Payment to renewable generation asset developer	(150.9)		(7.4)
Other investing activities	(5.2)		—

Net Cash Flows used for Investing Activities	(1,682.7)		(1,394.2)
Financing Activities
Issuance of long-term debt, net of discount and underwriting costs	345.6		—
Repayments of long-term debt and finance lease obligations	(52.5)		(18.7)


Change in short-term borrowings, net (maturity ≤ 90 days)	714.2		(123.0)
Issuance of common stock, net of issuance costs	9.1		8.8

Equity costs, premiums and other debt related costs	(10.1)		(9.7)
Contributions from noncontrolling interest	—		7.0
Distributions to noncontrolling interest	(4.8)		—
Issuance of equity units, net of underwriting costs	—		839.9
Dividends paid - common stock	(286.0)		(258.8)
Dividends paid - preferred stock	(35.7)		(35.7)
Contract liability payment	(49.6)		(24.2)

Net Cash Flows from Financing Activities	630.2		385.6
Change in cash, cash equivalents and restricted cash	(16.3)		(69.3)
Cash, cash equivalents and restricted cash at beginning of period	94.9		125.6
Cash, Cash Equivalents and Restricted Cash at End of Period	$	78.6	$	56.3

Reconciliation to Balance Sheet


Nine Months Ended September 30, (in millions)			2022
Cash and cash equivalents			35.8
Restricted Cash			42.8
Total Cash, Cash Equivalents and Restricted Cash			78.6

Supplemental Disclosures of Cash Flow Information


Nine Months Ended September 30, (in millions)	2022		2021
Non-cash transactions:
Capital expenditures included in current liabilities	$	280.4	$	217.0
Dividends declared but not paid	115.0		105.8

Purchase contract liability(1)	81.1		145.4

Obligation to developer at formation of joint venture	$	—	$	6.0

(1)Refer to Note 5, "Equity," for additional information.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Equity (unaudited)


(in millions)	Common Stock		Preferred Stock(1)		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of July 1, 2022	$	4.1	$	1,546.5	$	(99.9)	$	7,218.6	$	(1,408.9)	$	(35.8)	$	315.8	$	7,540.4
Comprehensive Income:
Net income (loss)	—		—		—		—		65.8		—		(2.3)		63.5
Other comprehensive income, net of tax	—		—		—		—		—		12.3		—		12.3
Dividends:
Common stock ($0.24 per share)	—		—		—		—		(95.6)		—		—		(95.6)
Preferred stock (See Note 5)	—		—		—		—		(19.4)		—		—		(19.4)
Distributions to noncontrolling interests	—		—		—		—		—		—		(1.7)		(1.7)

Stock issuances:


Employee stock purchase plan	—		—		—		1.3		—		—		—		1.3
Long-term incentive plan	—		—		—		2.6		—		—		—		2.6
401(k) and profit sharing	—		—		—		2.4		—		—		—		2.4
ATM program	—		—		—		(0.1)		—		—		—		(0.1)
Balance as of September 30, 2022	$	4.1	$	1,546.5	$	(99.9)	$	7,224.8	$	(1,458.1)	$	(23.5)	$	311.8	$	7,505.7
(1)Series A, Series B, and Series C shares have an aggregate liquidation preference of $400M, $500M, and $863M, respectively. See Note 5, "Equity," for additional information.

(in millions)	Common Stock		Preferred Stock(1)		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of January 1, 2022	$	4.1	$	1,546.5	$	(99.9)	$	7,204.3	$	(1,580.9)	$	(126.8)	$	325.6	$	7,272.9
Comprehensive Income:
Net income (loss)	—		—		—		—		559.6		—		(9.0)		550.6
Other comprehensive income, net of tax	—		—		—		—		—		103.3		—		103.3
Dividends:
Common stock ($0.94 per share)	—		—		—		—		(381.7)		—		—		(381.7)
Preferred stock (See Note 5)	—		—		—		—		(55.1)		—		—		(55.1)
Distributions to noncontrolling interests	—		—		—		—		—		—		(4.8)		(4.8)


Stock issuances:


Employee stock purchase plan	—		—		—		3.8		—		—		—		3.8
Long-term incentive plan	—		—		—		9.5		—		—		—		9.5
401(k) and profit sharing	—		—		—		7.3		—		—		—		7.3
ATM program	—		—		—		(0.1)		—		—		—		(0.1)
Balance as of September 30, 2022	$	4.1	$	1,546.5	$	(99.9)	$	7,224.8	$	(1,458.1)	$	(23.5)	$	311.8	$	7,505.7

(1)Series A, Series B, and Series C shares have an aggregate liquidation preference of $400M, $500M, and $863M, respectively. See Note 5, "Equity," for additional information.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Equity (unaudited) (continued)


(in millions)	Common Stock		Preferred Stock(1)		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of July 1, 2021	$	3.9	$	1,718.8	$	(99.9)	$	6,728.0	$	(1,704.1)	$	(123.6)	$	90.4	$	6,613.5
Comprehensive Income:
Net income (loss)	—		—		—		—		63.2		—		(1.0)		62.2
Other comprehensive income, net of tax	—		—		—		—		—		6.2		—		6.2
Dividends:
Common stock ($0.22 per share)	—		—		—		—		(86.5)		—		—		(86.5)
Preferred stock (See Note 5)	—		—		—		—		(19.4)		—		—		(19.4)
Distribution to noncontrolling interest	—		—		—		—		—		—		(