5. Discontinued Operations

6 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

5. Discontinued Operations

5. Discontinued Operations

On May 12, 2011, we entered into a definitive agreement to sell substantially all of our natural gas distribution assets located in Missouri, Illinois and Iowa to Liberty Energy (Midstates) Corporation, an affiliate of Algonquin Power & Utilities Corp. for acash price of approximately $124 million. The agreement contains terms and conditions customary for transactions of this type, including typical adjustments to the purchase price at closing, if applicable. The closing of the transaction is subject to the satisfaction of customary conditions including the receipt of applicable regulatory approvals, which we currently anticipate will occur during fiscal 2012.

As required under generally accepted accounting principles, the operating results of our Missouri, Illinois and Iowa operations have been aggregated and reported on the condensed consolidated statements of income as income from discontinued operations, net of income tax. Expenses related to general corporate overheadand interest expense allocated to their operations are not included in discontinued operations.

The tables below set forth selected financial and operational information related to net assets and operating results related to discontinued operations. Additionally, assets and liabilities related to our Missouri, Illinois and Iowa operations are classified as “held for sale” in other current assets and liabilities in our condensed consolidated balance sheets at March 31, 2012 and September 30, 2011.Prior period revenues and expenses associated with these assets have been reclassified into discontinued operations. This reclassification had no impact on previously reported net income.

The following table presents statement of income data related to discontinued operations.
			Three Months Ended				Six Months Ended
			March 31				March 31
			2012		2011		2012		2011
			(In thousands)
Operating revenues			$	26,374	$	35,790	$	49,825	$	59,523
Purchased gas cost				17,026		24,636		31,977		39,533
	Gross profit			9,348		11,154		17,848		19,990
Operating expenses				4,275		4,431		8,449		8,447
Operating income				5,073		6,723		9,399		11,543
Other nonoperating expense				(38)		(32)		(86)		(65)
Income from discontinued operations
	before income taxes			5,035		6,691		9,313		11,478
Income tax expense				1,834		2,642		3,393		4,532
		Net income	$	3,201	$	4,049	$	5,920	$	6,946

The following table presents balance sheet data related to assets held for sale.
		March 31,		September 30,
		2012		2011
		(In thousands)
Net plant, property & equipment		$	126,587	$	127,577
Gas stored underground			6,517		11,931
Other current assets			515		786
Deferred charges and other assets			49		277
	Assets held for sale	$	133,668	$	140,571
Accounts payable and accrued liabilities		$	5,404	$	1,917
Other current liabilities			6,857		4,877
Regulatory cost of removal			7,687		10,498
Deferred credits and other liabilities			872		1,153
	Liabilities held for sale	$	20,820	$	18,445