6. Discontinued Operations

12 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

6. Discontinued Operations

6. Discontinued Operations

On August 1, 2012, we completed the sale of substantially all of our natural gas distribution assets located in Missouri, Illinois and Iowa to Liberty Energy (Midstates) Corp., an affiliate of Algonquin Power & Utilities Corp. for a cash price of approximately $128 million, pursuant to an asset purchase agreement executed on May 12, 2011. In connection with the sale, we recognized a pre-tax gain of approximately $9.9 million.

On August 8, 2012, we entered into a definitive agreement to sell substantially all of our natural gas distribution assets located in Georgia to Liberty Energy (Georgia) Corp., an affiliate of Algonquin Power & Utilities Corp. for a cash price of approximately $141 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 in late fiscal 2013.

As required under generally accepted accounting principles, the operating results of our Georgia, Missouri, Illinois and Iowa operations have been aggregated and reported on the consolidated statements of income as income from discontinued operations, net of income tax. Expenses related to general corporate overhead and 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.

The following table presents statement of income data related to discontinued operations in our Georgia, Missouri, Illinois and Iowa service areas.

			Year Ended
			September 30
			2012		2011		2010
			(In thousands)
Operating revenues			$	114,703	$	141,227	$	128,630
Purchased gas cost				62,902		83,537		77,825
	Gross profit			51,801		57,690		50,805
Operating expenses				24,174		27,362		25,202
Operating income				27,627		30,328		25,603
Other nonoperating income (expense)				611		57		(31)
Income from discontinued operations
	before income taxes			28,238		30,385		25,572
Income tax expense				10,066		12,372		9,584
	Income from discontinued operations			18,172		18,013		15,988
	Gain on sale of discontinued operations, net of tax			6,349		-		-
		Net income from discontinued operations	$	24,521	$	18,013	$	15,988

The following table presents balance sheet data related to assets held for sale. At September 30, 2012 assets held for sale include assets and liabilities associated with our Georgia operations. At September 30, 2011 assets held for sale include assets and liabilities associated with our Missouri, Iowa and Illinois operations. On August 1, 2012 we completed the sale of our Missouri, Iowa and Illinois operations.

		September 30,		September 30,
		2012		2011
		(In thousands)
Net plant, property & equipment		$	142,865	$	127,577
Gas stored underground			4,688		11,931
Other current assets			6,931		786
Deferred charges and other assets			87		277
	Assets held for sale	$	154,571	$	140,571
Accounts payable and accrued liabilities		$	2,114	$	1,917
Other current liabilities			3,776		4,877
Regulatory cost of removal			3,257		10,498
Deferred credits and other liabilities			2,426		1,153
	Liabilities held for sale	$	11,573	$	18,445