XML 25 R15.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Variable Interest Entity
 9 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entity Variable Interest Entity
Atmos Energy Kansas Securitization I, LLC (AEK), a special-purpose entity wholly owned by Atmos Energy, was formed for the purpose of issuing securitized bonds to recover extraordinary costs incurred during Winter Storm Uri. In June 2023, AEK completed a public offering of $95 million of Securitized Utility Tariff Bonds. AEK's assets cannot be used to settle Atmos Energy's obligations, and the holders of the Securitized Utility Tariff Bonds have no recourse against Atmos Energy.
AEK is considered to be a variable interest entity. As a result, AEK is included in the condensed consolidated financial statements of Atmos Energy.
The following table summarizes the impact of AEK on our condensed consolidated balance sheets, for the periods indicated:
June 30, 2024September 30, 2023
 (In thousands)
Restricted cash and cash equivalents$4,642 $3,844 
Other current assets$14 $11 
Securitized intangible asset, net$84,998 $92,202 
Accrued interest$1,534 $1,374 
Current maturities of securitized long-term debt$8,001 $9,922 
Securitized long-term debt$81,261 $85,078 
The following table summarizes the impact of AEK on our condensed consolidated statement of comprehensive income, for the period indicated:
Three Months Ended June 30, 2024Nine Months Ended June 30, 2024
 
Operating revenues$3,463 $10,265 
Operation and maintenance expense(52)(276)
Amortization expense(2,292)(6,561)
Interest expense, net(1,119)(3,428)
Income before income taxes$— $— 
There were no material impacts to the condensed consolidated statements of comprehensive income for the three and nine months ended June 30, 2023.
The securitized long-term debt is recorded at carrying value. The fair value of the securitized long-term debt is determined using third party market value quotations, which are considered Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The carrying value and fair value of the securitized long-term debt as of June 30, 2024 is $89.3 million and $89.2 million.