Segment Information

3 Months Ended

Dec. 31, 2019

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, 2019.

Income statements and capital expenditures for the three months ended December 31, 2019 and 2018 by segment are presented in the following tables:



	Three Months Ended December 31, 2019
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	827,840	$	47,723	$	—		$	875,563
Intersegment revenues	664		100,453		(101,117		)	—
Total operating revenues	828,504		148,176		(101,117		)	875,563
Purchased gas cost	397,558		99		(100,789		)	296,868
Operation and maintenance expense	114,352		38,221		(328		)	152,245
Depreciation and amortization expense	76,074		28,988		—			105,062
Taxes, other than income	60,243		8,364		—			68,607
Operating income	180,277		72,504		—			252,781
Other non-operating income	1,954		2,933		—			4,887
Interest charges	16,362		10,867		—			27,229
Income before income taxes	165,869		64,570		—			230,439
Income tax expense	36,112		15,654		—			51,766
Net income	$	129,757	$	48,916	$	—		$	178,673
Capital expenditures	$	404,247	$	124,939	$	—		$	529,186



	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

Balance sheet information at December 31, 2019 and September 30, 2019 by segment is presented in the following tables:



	December 31, 2019
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Property, plant and equipment, net	$	9,083,765	$	3,166,658	$	—		$	12,250,423
Total assets	$	13,599,293	$	3,389,655	$	(2,600,823	)	$	14,388,125



	September 30, 2019
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Property, plant and equipment, net	$	8,737,590	$	3,050,079	$	—		$	11,787,669
Total assets	$	12,579,741	$	3,279,323	$	(2,491,445	)	$	13,367,619