Segment Information

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

    As of September 30, 2022, we manage and review our consolidated operations through the following two 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.

Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers. Although our distribution segment operations are geographically dispersed, they are aggregated and reported as a single segment as each natural gas distribution division has similar economic characteristics. In addition, because the pipeline and storage operations of our Atmos Pipeline-Texas division and our natural gas transmission operations in Louisiana have similar economic characteristics, they have been aggregated and reported as a single segment.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on net income or loss of the respective operating units. We allocate interest and pension expense to the pipeline and storage segment; however, there is no debt or pension liability recorded on the pipeline and storage segment balance sheet. All material intercompany transactions have been eliminated; however, we have not eliminated intercompany profits when such amounts are probable of recovery under the affiliates’ rate regulation process. Income taxes are allocated to each segment as if each segment’s income taxes were calculated on a separate return basis.

Income statements and capital expenditures by segment are shown in the following tables.

	Year Ended September 30, 2022
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	4,031,936	$	169,726	$	—	$	4,201,662
Intersegment revenues	3,258		523,934		(527,192)		—
Total operating revenues	4,035,194		693,660		(527,192)		4,201,662
Purchased gas cost	2,210,302		(1,583)		(526,063)		1,682,656
Operation and maintenance expense	518,443		192,847		(1,129)		710,161
Depreciation and amortization expense	387,858		147,797		—		535,655
Taxes, other than income	314,046		38,162		—		352,208
Operating income	604,545		316,437		—		920,982
Other non-operating income	6,946		26,791		—		33,737
Interest charges	49,921		52,890		—		102,811
Income before income taxes	561,570		290,338		—		851,908
Income tax expense	39,593		37,917		—		77,510
Net income	$	521,977	$	252,421	$	—	$	774,398
Capital expenditures	$	1,675,798	$	768,622	$	—	$	2,444,420

	Year Ended September 30, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	3,238,753	$	168,737	$	—	$	3,407,490
Intersegment revenues	3,220		468,610		(471,830)		—
Total operating revenues	3,241,973		637,347		(471,830)		3,407,490
Purchased gas cost	1,501,695		1,582		(470,560)		1,032,717
Operation and maintenance expense	501,209		179,080		(1,270)		679,019
Depreciation and amortization expense	345,481		132,496		—		477,977
Taxes, other than income	275,074		37,705		—		312,779
Operating income	618,514		286,484		—		904,998
Other non-operating income (expense)	(20,694)		18,549		—		(2,145)
Interest charges	36,629		46,925		—		83,554
Income before income taxes	561,191		258,108		—		819,299
Income tax expense	115,329		38,407		—		153,736
Net income	$	445,862	$	219,701	$	—	$	665,563
Capital expenditures	$	1,454,195	$	515,345	$	—	$	1,969,540

	Year Ended September 30, 2020
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Operating revenues from external parties	$	2,624,251	$	196,886	$	—	$	2,821,137
Intersegment revenues	2,742		412,453		(415,195)		—
Total operating revenues	2,626,993		609,339		(415,195)		2,821,137
Purchased gas cost	1,071,227		1,548		(413,921)		658,854
Operation and maintenance expense	472,760		158,115		(1,274)		629,601
Depreciation and amortization expense	309,582		120,246		—		429,828
Taxes, other than income	245,181		33,574		—		278,755
Operating income	528,243		295,856		—		824,099
Other non-operating income (expense)	(1,265)		8,436		—		7,171
Interest charges	39,634		44,840		—		84,474
Income before income taxes	487,344		259,452		—		746,796
Income tax expense	91,680		53,673		—		145,353
Net income	$	395,664	$	205,779	$	—	$	601,443
Capital expenditures	$	1,466,631	$	469,045	$	—	$	1,935,676

The following table summarizes our revenues from external parties, excluding intersegment revenues, by products and services for the fiscal years ended September 30.

	2022		2021		2020
	(In thousands)
Distribution revenues:
Gas sales revenues:
Residential	$	2,492,116	$	2,117,272	$	1,717,070
Commercial	1,126,189		838,382		654,963
Industrial	224,632		113,171		89,641
Public authority and other	66,956		50,369		42,007
Total gas sales revenues	3,909,893		3,119,194		2,503,681
Transportation revenues	110,905		105,554		97,441
Other gas revenues	11,138		14,005		23,129
Total distribution revenues	4,031,936		3,238,753		2,624,251
Pipeline and storage revenues	169,726		168,737		196,886
Total operating revenues	$	4,201,662	$	3,407,490	$	2,821,137

Balance sheet information at September 30, 2022 and 2021 by segment is presented in the following tables.

	September 30, 2022
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	12,723,532	$	4,516,707	$	—	$	17,240,239
Total assets	$	21,424,586	$	4,797,206	$	(4,028,803)	$	22,192,989

	September 30, 2021
	Distribution		Pipeline and Storage		Eliminations		Consolidated
	(In thousands)
Property, plant and equipment, net	$	11,232,649	$	3,831,321	$	—	$	15,063,970
Total assets	$	18,847,266	$	4,076,844	$	(3,315,448)	$	19,608,662