Segment Information

3 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate the Company through the following three segments:

• The regulated distribution segment, which includes our regulated natural gas distribution and related sales operations,

• The regulated pipeline segment, which includes the regulated pipeline and storage operations of our Atmos Pipeline — Texas Division and

• The nonregulated segment, which is comprised of our nonregulated natural gas management, nonregulated natural gas transmission, storage and other services.

Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. Although our regulated distribution segment operations are geographically dispersed, they are reported as a single segment as each regulated distribution division has similar economic characteristics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014. We evaluate performance based on net income or loss of the respective operating units.

Income statements for the three month periods ended December 31, 2014 and 2013 by segment are presented in the following tables:

	Three Months Ended December 31, 2014
	Regulated Distribution			Regulated Pipeline			Nonregulated		Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	845,404		$	20,551		$	392,810	$	—		$	1,258,765
Intersegment revenues	1,368			63,016			69,478		(133,862		)	—
	846,772			83,567			462,288		(133,862		)	1,258,765
Purchased gas cost	522,960			—			446,249		(133,729		)	835,480
Gross profit	323,812			83,567			16,039		(133		)	423,285
Operating expenses
Operation and maintenance	86,985			24,615			7,115		(133		)	118,582
Depreciation and amortization	55,086			11,382			1,125		—			67,593
Taxes, other than income	43,644			4,865			876		—			49,385
Total operating expenses	185,715			40,862			9,116		(133		)	235,560
Operating income	138,097			42,705			6,923		—			187,725
Miscellaneous income (expense)	(1,329		)	(252		)	300		(426		)	(1,707		)
Interest charges	21,640			8,324			226		(426		)	29,764
Income before income taxes	115,128			34,129			6,997		—			156,254
Income tax expense	43,741			12,094			2,824		—			58,659
Net income	$	71,387		$	22,035		$	4,173	$	—		$	97,595
Capital expenditures	$	166,247		$	94,754		$	312	$	—		$	261,313

	Three Months Ended December 31, 2013
	Regulated Distribution			Regulated Pipeline			Nonregulated		Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	842,432		$	21,170		$	380,256	$	—		$	1,243,858
Intersegment revenues	1,433			50,171			56,175		(107,779		)	—
	843,865			71,341			436,431		(107,779		)	1,243,858
Purchased gas cost	544,694			—			417,865		(107,658		)	854,901
Gross profit	299,171			71,341			18,566		(121		)	388,957
Operating expenses
Operation and maintenance	89,663			17,300			8,915		(121		)	115,757
Depreciation and amortization	49,551			9,786			1,132		—			60,469
Taxes, other than income	37,084			4,663			264		—			42,011
Total operating expenses	176,298			31,749			10,311		(121		)	218,237
Operating income	122,873			39,592			8,255		—			170,720
Miscellaneous income (expense)	(471		)	(1,181		)	324		(804		)	(2,132		)
Interest charges	23,325			8,957			637		(804		)	32,115
Income before income taxes	99,077			29,454			7,942		—			136,473
Income tax expense	36,320			10,008			3,129		—			49,457
Net income	$	62,757		$	19,446		$	4,813	$	—		$	87,016
Capital expenditures	$	127,506		$	52,921		$	140	$	—		$	180,567

Balance sheet information at December 31, 2014 and September 30, 2014 by segment is presented in the following tables:

	December 31, 2014
	Regulated Distribution		Regulated Pipeline		Nonregulated			Eliminations			Consolidated
	(In thousands)
ASSETS
Property, plant and equipment, net	$	5,310,469	$	1,544,320	$	57,752		$	—		$	6,912,541
Investment in subsidiaries	949,428		—		(2,096		)	(947,332		)	—
Current assets
Cash and cash equivalents	79,345		—		44,487			—			123,832
Assets from risk management activities	852		—		17,402			—			18,254
Other current assets	733,736		13,881		500,168			(271,107		)	976,678
Intercompany receivables	835,928		—		—			(835,928		)	—
Total current assets	1,649,861		13,881		562,057			(1,107,035		)	1,118,764
Goodwill	574,816		132,502		34,711			—			742,029
Noncurrent assets from risk management activities	124		—		—			—			124
Deferred charges and other assets	316,704		19,578		5,353			—			341,635
	$	8,801,402	$	1,710,281	$	657,777		$	(2,054,367	)	$	9,115,093
CAPITALIZATION AND LIABILITIES
Shareholders’ equity	$	3,063,925	$	504,648	$	444,780		$	(949,428	)	$	3,063,925
Long-term debt	2,455,131		—		—			—			2,455,131
Total capitalization	5,519,056		504,648		444,780			(949,428		)	5,519,056
Current liabilities
Short-term debt	791,503		—		—			(240,600		)	550,903
Liabilities from risk management activities	13,701		—		—			—			13,701
Other current liabilities	675,685		23,722		185,011			(28,411		)	856,007
Intercompany payables	—		805,723		30,205			(835,928		)	—
Total current liabilities	1,480,889		829,445		215,216			(1,104,939		)	1,420,611
Deferred income taxes	887,452		376,018		(7,027		)	—			1,256,443
Noncurrent liabilities from risk management activities	82,123		—		—			—			82,123
Regulatory cost of removal obligation	443,931		—		—			—			443,931
Pension and postretirement liabilities	345,350		—		—			—			345,350
Deferred credits and other liabilities	42,601		170		4,808			—			47,579
	$	8,801,402	$	1,710,281	$	657,777		$	(2,054,367	)	$	9,115,093

	September 30, 2014
	Regulated Distribution		Regulated Pipeline		Nonregulated			Eliminations			Consolidated
	(In thousands)
ASSETS
Property, plant and equipment, net	$	5,202,761	$	1,464,572	$	58,573		$	—		$	6,725,906
Investment in subsidiaries	952,171		—		(2,096		)	(950,075		)	—
Current assets
Cash and cash equivalents	33,303		—		8,955			—			42,258
Assets from risk management activities	23,102		—		22,725			—			45,827
Other current assets	490,408		14,009		526,161			(342,823		)	687,755
Intercompany receivables	790,442		—		—			(790,442		)	—
Total current assets	1,337,255		14,009		557,841			(1,133,265		)	775,840
Goodwill	574,816		132,502		34,711			—			742,029
Noncurrent assets from risk management activities	13,038		—		—			—			13,038
Deferred charges and other assets	309,965		21,826		6,100			—			337,891
	$	8,390,006	$	1,632,909	$	655,129		$	(2,083,340	)	$	8,594,704
CAPITALIZATION AND LIABILITIES
Shareholders’ equity	$	3,086,232	$	482,612	$	469,559		$	(952,171	)	$	3,086,232
Long-term debt	2,455,986		—		—			—			2,455,986
Total capitalization	5,542,218		482,612		469,559			(952,171		)	5,542,218
Current liabilities
Short-term debt	522,695		—		—			(326,000		)	196,695
Liabilities from risk management activities	1,730		—		—			—			1,730
Other current liabilities	559,765		24,790		142,397			(14,727		)	712,225
Intercompany payables	—		763,635		26,807			(790,442		)	—
Total current liabilities	1,084,190		788,425		169,204			(1,131,169		)	910,650
Deferred income taxes	913,260		361,688		11,668			—			1,286,616
Noncurrent liabilities from risk management activities	20,126		—		—			—			20,126
Regulatory cost of removal obligation	445,387		—		—			—			445,387
Pension and postretirement liabilities	340,963		—		—			—			340,963
Deferred credits and other liabilities	43,862		184		4,698			—			48,744
	$	8,390,006	$	1,632,909	$	655,129		$	(2,083,340	)	$	8,594,704