Segment Information

We manage and review our consolidated operations through the following reportable segments:


•	The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.


•	The pipeline and storage segment is comprised primarily of the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana.

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, 2018.

Income statements and capital expenditures for the three months ended December 31, 2018 and 2017 by segment are presented in the following tables:



	Three Months Ended December 31, 2018
	Distribution			Pipeline and Storage			Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	838,181		$	39,601		$	—		$	877,782
Intersegment revenues	654			94,869			(95,523		)	—
Total operating revenues	838,835			134,470			(95,523		)	877,782
Purchased gas cost	437,732			(358		)	(95,209		)	342,165
Operation and maintenance expense	105,767			33,147			(314		)	138,600
Depreciation and amortization expense	69,709			26,356			—			96,065
Taxes, other than income	56,190			8,298			—			64,488
Operating income	169,437			67,027			—			236,464
Other non-operating expense	(6,477		)	(1,246		)	—			(7,723		)
Interest charges	18,210			9,639			—			27,849
Income before income taxes	144,750			56,142			—			200,892
Income tax expense	30,365			12,881			—			43,246
Net income	$	114,385		$	43,261		$	—		$	157,646
Capital expenditures	$	302,545		$	113,859		$	—		$	416,404



	Three Months Ended December 31, 2017
	Distribution			Pipeline and Storage			Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	860,453		$	28,739		$	—		$	889,192
Intersegment revenues	339			97,724			(98,063		)	—
Total operating revenues	860,792			126,463			(98,063		)	889,192
Purchased gas cost	463,758			912			(97,753		)	366,917
Operation and maintenance expense	103,215			26,140			(310		)	129,045
Depreciation and amortization expense	65,434			22,940			—			88,374
Taxes, other than income	55,107			7,666			—			62,773
Operating income	173,278			68,805			—			242,083
Other non-operating expense	(1,922		)	(635		)	—			(2,557		)
Interest charges	21,368			10,141			—			31,509
Income before income taxes	149,988			58,029			—			208,017
Income tax benefit	(99,111		)	(7,004		)	—			(106,115		)
Net income	$	249,099		$	65,033		$	—		$	314,132
Capital expenditures	$	241,249		$	141,989		$	—		$	383,238

Balance sheet information at December 31, 2018 and September 30, 2018 by segment is presented in the following tables:



	December 31, 2018
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Property, plant and equipment, net	$	7,889,901	$	2,808,328	$	—		$	10,698,229
Total assets	$	11,836,888	$	3,040,831	$	(2,261,930	)	$	12,615,789



	September 30, 2018
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Property, plant and equipment, net	$	7,644,693	$	2,726,454	$	—		$	10,371,147
Total assets	$	11,109,128	$	2,963,480	$	(2,198,171	)	$	11,874,437