Segment Information

3 Months Ended

Dec. 31, 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, 2020.

Income statements and capital expenditures for the three months ended December 31, 2020 and 2019 by segment are presented in the following tables:

	Three Months Ended December 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	875,887	$	38,593	$	—	$	914,480
Intersegment revenues	763		121,120		(121,883)		—
Total operating revenues	876,650		159,713		(121,883)		914,480
Purchased gas cost	411,072		(1,244)		(121,568)		288,260
Operation and maintenance expense	108,802		30,156		(315)		138,643
Depreciation and amortization expense	82,870		32,415		—		115,285
Taxes, other than income	64,352		9,100		—		73,452
Operating income	209,554		89,286		—		298,840
Other non-operating income	835		5,237		—		6,072
Interest charges	10,712		11,298		—		22,010
Income before income taxes	199,677		83,225		—		282,902
Income tax expense	45,985		19,239		—		65,224
Net income	$	153,692	$	63,986	$	—	$	217,678
Capital expenditures	$	306,016	$	150,793	$	—	$	456,809

	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

Balance sheet information at December 31, 2020 and September 30, 2020 by segment is presented in the following tables:

	December 31, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	10,235,658	$	3,526,485	$	—	$	13,762,143
Total assets	$	15,694,179	$	3,757,875	$	(2,976,175)	$	16,475,879

	September 30, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	9,944,978	$	3,410,369	$	—	$	13,355,347
Total assets	$	14,578,176	$	3,647,907	$	(2,867,051)	$	15,359,032