Discontinued Operations

12 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On April 1, 2013, we completed the sale of substantially all of our natural gas distribution assets and certain related nonregulated assets located in Georgia to Liberty Energy (Georgia) Corp., an affiliate of Algonquin Power & Utilities Corp. for a cash price of approximately $153 million, pursuant to an asset purchase agreement executed on August 8, 2012. In connection with the sale, we recognized a pre-tax gain of approximately $8.2 million.

On August 1, 2012, we completed the sale of substantially all of our natural gas distribution assets located in Missouri, Illinois and Iowa to Liberty Energy (Midstates) Corp., an affiliate of Algonquin Power & Utilities Corp. for a cash price of approximately $128 million, pursuant to an asset purchase agreement executed on May 12, 2011. In connection with the sale, we recognized a pre-tax gain of approximately $9.9 million.

As required under generally accepted accounting principles, the operating results of our Georgia, Missouri, Illinois and Iowa operations have been aggregated and reported on the consolidated statements of income as income from discontinued operations, net of income tax. Expenses related to general corporate overhead and interest expense allocated to their operations are not included in discontinued operations.

The tables below set forth selected financial and operational information related to net assets and operating results related to discontinued operations.

The following table presents statement of income data related to discontinued operations in our Georgia, Missouri, Illinois and Iowa service areas.

	Year Ended September 30
	2013		2012		2011
	(In thousands)
Operating revenues	$	37,962	$	114,703	$	141,227
Purchased gas cost	21,464		62,902		83,537
Gross profit	16,498		51,801		57,690
Operating expenses	5,858		24,174		27,362
Operating income	10,640		27,627		30,328
Other nonoperating income	548		611		57
Income from discontinued operations before income taxes	11,188		28,238		30,385
Income tax expense	3,986		10,066		12,372
Income from discontinued operations	7,202		18,172		18,013
Gain on sale of discontinued operations, net of tax	5,294		6,349		—
Net income from discontinued operations	$	12,496	$	24,521	$	18,013

The following table presents balance sheet data related to assets held for sale. At September 30, 2013 we did not have any assets or liabilities held for sale. At September 30, 2012 assets held for sale include assets and liabilities associated with our Georgia operations.

	September 30, 2012
	(In thousands)
Net plant, property & equipment	$	142,865
Gas stored underground	4,688
Other current assets	6,931
Deferred charges and other assets	87
Assets held for sale	$	154,571
Accounts payable and accrued liabilities	$	2,114
Other current liabilities	3,776
Regulatory cost of removal	3,257
Deferred credits and other liabilities	2,426
Liabilities held for sale	$	11,573