Segment Information

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

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, 2019.

Income statements and capital expenditures for the three and nine months ended June 30, 2020 and 2019 by segment are presented in the following tables:

	Three Months Ended June 30, 2020
	Distribution		Pipeline and Storage			Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	434,650	$	58,345		$	—		$	492,995
Intersegment revenues	658		99,663			(100,321		)	—
Total operating revenues	435,308		158,008			(100,321		)	492,995
Purchased gas cost	126,093		(11		)	(100,010		)	26,072
Operation and maintenance expense	107,537		42,234			(311		)	149,460
Depreciation and amortization expense	77,187		29,917			—			107,104
Taxes, other than income	61,980		9,344			—			71,324
Operating income	62,511		76,524			—			139,035
Other non-operating income	5,167		2,068			—			7,235
Interest charges	7,969		11,611			—			19,580
Income before income taxes	59,709		66,981			—			126,690
Income tax expense	810		8,089			—			8,899
Net income	$	58,899	$	58,892		$	—		$	117,791
Capital expenditures	$	342,385	$	68,551		$	—		$	410,936

	Three Months Ended June 30, 2019
	Distribution		Pipeline and Storage			Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	444,287	$	41,451		$	—		$	485,738
Intersegment revenues	657		107,747			(108,404		)	—
Total operating revenues	444,944		149,198			(108,404		)	485,738
Purchased gas cost	139,518		(96		)	(108,096		)	31,326
Operation and maintenance expense	123,998		40,855			(308		)	164,545
Depreciation and amortization expense	70,611		27,089			—			97,700
Taxes, other than income	62,134		7,831			—			69,965
Operating income	48,683		73,519			—			122,202
Other non-operating income (expense)	3,005		(1,360		)	—			1,645
Interest charges	10,597		8,995			—			19,592
Income before income taxes	41,091		63,164			—			104,255
Income tax expense	8,693		15,096			—			23,789
Net income	$	32,398	$	48,068		$	—		$	80,466
Capital expenditures	$	316,825	$	104,788		$	—		$	421,613

	Nine Months Ended June 30, 2020
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	2,194,786	$	151,437	$	—		$	2,346,223
Intersegment revenues	2,031		300,984		(303,015		)	—
Total operating revenues	2,196,817		452,421		(303,015		)	2,346,223
Purchased gas cost	942,586		290		(302,053		)	640,823
Operation and maintenance expense	337,740		112,751		(962		)	449,529
Depreciation and amortization expense	229,526		88,556		—			318,082
Taxes, other than income	190,636		23,899		—			214,535
Operating income	496,329		226,925		—			723,254
Other non-operating income	1,930		7,203		—			9,133
Interest charges	35,128		33,852		—			68,980
Income before income taxes	463,131		200,276		—			663,407
Income tax expense	87,411		39,886		—			127,297
Net income	$	375,720	$	160,390	$	—		$	536,110
Capital expenditures	$	1,119,945	$	285,728	$	—		$	1,405,673

	Nine Months Ended June 30, 2019
	Distribution		Pipeline and Storage			Eliminations			Consolidated
	(In thousands)
Operating revenues from external parties	$	2,339,660	$	118,505		$	—		$	2,458,165
Intersegment revenues	2,008		300,813			(302,821		)	—
Total operating revenues	2,341,668		419,318			(302,821		)	2,458,165
Purchased gas cost	1,147,598		(544		)	(301,887		)	845,167
Operation and maintenance expense	347,386		106,120			(934		)	452,572
Depreciation and amortization expense	210,224		80,313			—			290,537
Taxes, other than income	189,377		24,169			—			213,546
Operating income	447,083		209,260			—			656,343
Other non-operating income (expense)	1,791		(3,637		)	—			(1,846		)
Interest charges	44,703		29,687			—			74,390
Income before income taxes	404,171		175,936			—			580,107
Income tax expense	85,195		41,912			—			127,107
Net income	$	318,976	$	134,024		$	—		$	453,000
Capital expenditures	$	912,640	$	286,559		$	—		$	1,199,199

 

Balance sheet information at June 30, 2020 and September 30, 2019 by segment is presented in the following tables:

	June 30, 2020
	Distribution		Pipeline and Storage		Eliminations			Consolidated
	(In thousands)
Property, plant and equipment, net	$	9,644,503	$	3,236,347	$	—		$	12,880,850
Total assets	$	14,098,715	$	3,471,282	$	(2,699,015	)	$	14,870,982

	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