XML 57 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments (Table)
 12 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of financial instrument assets and liabilities at fair value
The following table shows the fair values of our risk management assets and liabilities at September 30, 2018 and 2017.
 
September 30
 
2018
 
2017
 
(In thousands)
Assets from risk management activities, current
$
1,369

 
$
2,436

Assets from risk management activities, noncurrent
250

 
803

Liabilities from risk management activities, current
(56,734
)
 
(322
)
Liabilities from risk management activities, noncurrent
(103
)
 
(112,076
)
Net assets (liabilities)
$
(55,218
)
 
$
(109,159
)
Financial instruments on the balance sheet
The following tables present the fair value and balance sheet classification of our financial instruments as of September 30, 2018 and 2017. The gross amounts of recognized assets and liabilities are netted within our Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties.
 
 
 
 
 
Balance Sheet Location
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2018
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
Interest rate swap agreements
Other current assets /
Other current liabilities
 
$
—

 
$
(56,499
)
Total
 
 
—

 
(56,499
)
Not Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
1,369

 
(235
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
250

 
(103
)
Total
 
 
1,619

 
(338
)
Gross Financial Instruments
 
 
1,619

 
(56,837
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
Contract netting
 
 
—

 
—

Net Financial Instruments
 
 
1,619

 
(56,837
)
Cash collateral
 
 
—

 
—

Net Assets/Liabilities from Risk Management Activities
 
 
$
1,619

 
$
(56,837
)
 
 
 
 
 
Balance Sheet Location
 
Assets
 
Liabilities
 
 
 
 (In thousands)
September 30, 2017
 
 
 
 
 
Designated As Hedges:
 
 
 
 
 
Interest rate swap agreements
Deferred charges and other assets /
Deferred credits and other liabilities
 
$
—

 
$
(112,076
)
Total
 
 
—

 
(112,076
)
Not Designated As Hedges:
 
 
 
 
 
Commodity contracts
Other current assets /
Other current liabilities
 
2,436

 
(322
)
Commodity contracts
Deferred charges and other assets /
Deferred credits and other liabilities
 
803

 
—

Total
 
 
3,239

 
(322
)
Gross Financial Instruments
 
 
3,239

 
(112,398
)
Gross Amounts Offset on Consolidated Balance Sheet:
 
 
 
 
 
Contract netting
 
 
—

 
—

Net Financial Instruments
 
 
3,239

 
(112,398
)
Cash collateral
 
 
—

 
—

Net Assets/Liabilities from Risk Management Activities
 
 
$
3,239

 
$
(112,398
)
Other comprehensive income from hedging table
The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the years ended September 30, 2018 and 2017. The amounts included in the table below exclude gains and losses arising from ineffectiveness because these amounts are immediately recognized in the income statement as incurred.
 
Fiscal Year Ended
September 30
 
2018
 
2017
 
(In thousands)
Increase in fair value:
 
 
 
Interest rate agreements
$
43,184

 
$
74,560

Forward commodity contracts(1)
—

 
9,847

Recognition of (gains) losses in earnings due to settlements:
 
 
 
Interest rate agreements
1,752

 
662

Forward commodity contracts(1)
—

 
(4,865
)
Total other comprehensive income from hedging, net of tax(2)
$
44,936

 
$
80,204


 
(1)
Due to the sale of AEM, these amounts are included in income from discontinued operations
(2)
Utilizing an income tax rate of approximately 23 percent for fiscal 2018 and an income tax rate ranging from approximately 37 percent to 39 percent for fiscal 2017 based on the effective rates in each taxing jurisdiction.
Expected recognition in earnings of deferred losses in AOCI table
The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred gains (losses) recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments as of September 30, 2018. However, the table below does not include the expected recognition in earnings of our outstanding interest rate agreements as those financial instruments have not yet settled.
 
Interest Rate
Agreements
 
(In thousands)
2019
$
(1,863
)
2020
(1,893
)
2021
(1,893
)
2022
(1,893
)
2023
(1,893
)
Thereafter
(38,729
)
Total(1) 
$
(48,164
)

 
(1)
Utilizing an income tax rate of approximately 23 percent.