Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Mar. 31, 2016

Guarantor and Non-Guarantor Financial Information

Schedule of Consolidated Condensed Statements of Income

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(in thousands)

	Three Months Ended March 31, 2016
	Guarantor/			Issuer			Non-Guarantor						Total
	Parent			Subsidiary			Subsidiaries			Eliminations			Consolidated

Operating revenue	$	—		$	382,747		$	55,460		$	(16	)	$	438,191
Operating costs and other	3,156			331,998			61,818			(402		)	396,570

Operating income (loss) from continuing operations	(3,156		)	50,749			(6,358		)	386			41,621

Other income (loss), net	(271		)	734			1,375			(386		)	1,452
Interest expense	(62		)	(5,272		)	(387		)	—			(5,721		)
Equity in net income (loss) of subsidiaries	23,065			(7,818		)	—			(15,247		)	—

Income (loss) from continuing operations before income taxes	19,576			38,393			(5,370		)	(15,247		)	37,352
Income tax provision	(1,629		)	15,657			(1,850		)	—			12,178

Income (loss) from continuing operations	21,205			22,736			(3,520		)	(15,247		)	25,174

Loss from discontinued operations before income taxes	—			—			(56		)	—			(56		)
Income tax provision	—			—			3,913			—			3,913

Loss from discontinued operations	—			—			(3,969		)	—			(3,969		)


Net income (loss)	$	21,205		$	22,736		$	(7,489	)	$	(15,247	)	$	21,205

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(in thousands)

	Three Months Ended March 31, 2015, as adjusted
	Guarantor/			Issuer			Non-Guarantor						Total
	Parent			Subsidiary			Subsidiaries			Eliminations			Consolidated

Operating revenue	$	—		$	774,896		$	110,798		$	(24	)	$	885,670
Operating costs and other	3,059			548,083			104,236			(1,034		)	654,344

Operating income (loss) from continuing operations	(3,059		)	226,813			6,562			1,010			231,326

Other income	2			3,738			(111		)	(1,010		)	2,619
Interest expense	(12		)	(121		)	(2,467		)	—			(2,600		)
Equity in net income of subsidiaries	155,706			3,373			—			(159,079		)	—

Income from continuing operations before income taxes	152,637			233,803			3,984			(159,079		)	231,345
Income tax provision	(906		)	78,923			(214		)	—			77,803

Income from continuing operations	153,543			154,880			4,198			(159,079		)	153,542

Loss from discontinued operations before income taxes	—			—			(76		)	—			(76		)
Income tax provision	—			—			(77		)	—			(77		)

Loss from discontinued operations	—			—			1			—			1

Net income	$	153,543		$	154,880		$	4,199		$	(159,079	)	$	153,543

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(in thousands)

	Six Months Ended March 31, 2016
	Guarantor/			Issuer			Non-Guarantor						Total
	Parent			Subsidiary			Subsidiaries			Eliminations			Consolidated

Operating revenue	$	—		$	788,284		$	137,787		$	(33	)	$	926,038
Operating costs and other	5,861			688,749			151,940			(803		)	845,747
Operating income (loss) from continuing operations	(5,861		)	99,535			(14,153		)	770			80,291

Other income	(251		)	1,390			1,555			(770		)	1,924
Interest expense	(124		)	(9,990		)	(131		)	—			(10,245		)
Equity in net income (loss) of subsidiaries	40,614			(16,015		)	—			(24,599		)	—

Income from continuing operations before income taxes	34,378			74,920			(12,729		)	(24,599		)	71,970
Income tax provision	(2,829		)	34,884			(1,157		)	—			30,898

Income (loss) from continuing operations	37,207			40,036			(11,572		)	(24,599		)	41,072

Income from discontinued operations before income taxes	—			—			48			—			48
Income tax provision	—			—			3,913			—			3,913

Loss from discontinued operations	—			—			(3,865		)	—			(3,865		)

Net income (loss)	$	37,207		$	40,036		$	(15,437	)	$	(24,599	)	$	37,207

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(in thousands)

	Six Months Ended March 31, 2015, as adjusted
	Guarantor/			Issuer			Non-Guarantor						Total
	Parent			Subsidiary			Subsidiaries			Eliminations			Consolidated

Operating revenue	$	—		$	1,727,005		$	219,492		$	(40	)	$	1,946,457
Operating costs and other	6,080			1,177,121			203,625			(2,066		)	1,384,760

Operating income (loss) from continuing operations	(6,080		)	549,884			15,867			2,026			561,697

Other income	3			4,659			592			(2,026		)	3,228
Interest expense	(19		)	(103		)	(3,068		)	—			(3,190		)
Equity in net income of subsidiaries	361,065			10,091			—			(371,156		)	—

Income from continuing operations before income taxes	354,969			564,531			13,391			(371,156		)	561,735
Income tax provision	(2,182		)	205,045			1,707			—			204,570

Income from continuing operations	357,151			359,486			11,684			(371,156		)	357,165

Loss from discontinued operations before income taxes	—			—			(91		)	—			(91		)
Income tax provision	—			—			(77		)	—			(77		)

Loss from discontinued operations	—			—			(14		)	—			(14		)

Net income	$	357,151		$	359,486		$	11,670		$	(371,156	)	$	357,151

Schedule of Consolidated Condensed Statements of Comprehensive Income

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Three Months Ended March 31, 2016
	Guarantor/		Issuer			Non-Guarantor						Total
	Parent		Subsidiary			Subsidiaries			Eliminations			Consolidated

Net income (loss)	$	21,205	$	22,736		$	(7,489	)	$	(15,247	)	$	21,205
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net	—		(1,453		)	—			—			(1,453		)
Minimum pension liability adjustments, net	106		207			—			—			313

Other comprehensive income (loss)	106		(1,246		)	—			—			(1,140		)

Comprehensive income	$	21,311	$	21,490		$	(7,489	)	$	(15,247	)	$	20,065

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Three Months Ended March 31, 2015, as adjusted
	Guarantor/		Issuer			Non-Guarantor					Total
	Parent		Subsidiary			Subsidiaries		Eliminations			Consolidated

Net income	$	153,543	$	154,880		$	4,199	$	(159,079	)	$	153,543
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net	—		(1,203		)	—		—			(1,203		)
Minimum pension liability adjustments, net	82		115			—		—			197

Other comprehensive income (loss)	82		(1,088		)	—		—			(1,006		)

Comprehensive income	$	153,625	$	153,792		$	4,199	$	(159,079	)	$	152,537

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Six Months Ended March 31, 2016
	Guarantor/		Issuer			Non-Guarantor						Total
	Parent		Subsidiary			Subsidiaries			Eliminations			Consolidated

Net income (loss)	$	37,207	$	40,036		$	(15,437	)	$	(24,599	)	$	37,207
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net	—		(12,463		)	—			—			(12,463		)
Minimum pension liability adjustments, net	213		413			—			—			626

Other comprehensive income (loss)	213		(12,050		)	—			—			(11,837		)

Comprehensive income (loss)	$	37,420	$	27,986		$	(15,437	)	$	(24,599	)	$	25,370

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Six Months Ended March 31, 2015, as adjusted
	Guarantor/		Issuer			Non-Guarantor					Total
	Parent		Subsidiary			Subsidiaries		Eliminations			Consolidated

Net income (loss)	$	357,151	$	359,486		$	11,670	$	(371,156	)	$	357,151
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net	—		(43,447		)	—		—			(43,447		)
Minimum pension liability adjustments, net	164		229			—		—			393

Other comprehensive income (loss)	164		(43,218		)	—		—			(43,054		)

Comprehensive income	$	357,315	$	316,268		$	11,670	$	(371,156	)	$	314,097

Schedule of Consolidated Condensed Balance Sheets

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	March 31, 2016
	Guarantor/			Issuer			Non-Guarantor					Total
	Parent			Subsidiary			Subsidiaries		Eliminations			Consolidated

ASSETS
Current assets:
Cash and cash equivalents	$	(1,900	)	$	885,570		$	14,343	$	—		$	898,013
Short-term investments	—			45,526			—		—			45,526
Accounts receivable, net of reserve	(13		)	270,387			60,352		—			330,726
Inventories	—			88,799			40,850		—			129,649
Prepaid expenses and other	25,867			3,142			43,353		(16,129		)	56,233
Current assets of discontinued operations	—			—			230		—			230

Total current assets	23,954			1,293,424			159,128		(16,129		)	1,460,377

Investments	12,205			71,158			—		—			83,363
Property, plant and equipment, net	64,190			4,962,375			419,787		—			5,446,352
Intercompany	15,144			1,310,646			262,269		(1,588,059		)	—
Other assets	10,992			478			34,301		(10,758		)	35,013
Investment in subsidiaries	5,653,326			211,418			—		(5,864,744		)	—


Total assets	$	5,779,811		$	7,849,499		$	875,485	$	(7,479,690	)	$	7,025,105


LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Long-term debt due within one year	$	—		$	39,144		$	—	$	—		$	39,144
Accounts payable	78,165			10,529			2,743		—			91,437
Accrued liabilities	11,388			193,249			52,157		(16,129		)	240,665
Current liabilities of discontinued operations	—			—			82		—			82

Total current liabilities	89,553			242,922			54,982		(16,129		)	371,328

Noncurrent liabilities:
Long-term debt	—			492,919			—		—			492,919
Deferred income taxes	—			1,267,164			22,258		(10,758		)	1,278,664
Intercompany	890,370			183,734			513,855		(1,587,959		)	—
Other	17,788			27,204			50,992		—			95,984
Noncurrent liabilities of discontinued operations	—			—			4,110		—			4,110

Total noncurrent liabilities	908,158			1,971,021			591,215		(1,598,717		)	1,871,677

Shareholders’ equity:
Common stock	11,136			100			—		(100		)	11,136
Additional paid-in capital	436,117			46,832			393		(47,225		)	436,117
Retained earnings	4,536,047			5,596,819			228,895		(5,825,714		)	4,536,047
Accumulated other comprehensive loss	(13,214		)	(8,195		)	—		8,195			(13,214		)
Treasury stock, at cost	(187,986		)	—			—		—			(187,986		)

Total shareholders’ equity	4,782,100			5,635,556			229,288		(5,864,844		)	4,782,100

Total liabilities and shareholders’ equity	$	5,779,811		7,849,499			$	875,485	$	(7,479,690	)	$	7,025,105

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	September 30, 2015, as adjusted
	Guarantor/			Issuer		Non-Guarantor					Total
	Parent			Subsidiary		Subsidiaries		Eliminations			Consolidated

ASSETS
Current assets:
Cash and cash equivalents	$	(838	)	$	693,273	$	36,949	$	—		$	729,384
Short-term investments	—			45,543		—		—			45,543
Accounts receivable, net of reserve	152			374,383		71,418		(5		)	445,948
Inventories	—			88,010		40,531		—			128,541
Deferred income taxes	2,834			19,277		—		(4,905		)	17,206
Prepaid expenses and other	20,018			6,713		45,647		(7,903		)	64,475
Current assets of discontinued operations	—			—		8,097		—			8,097

Total current assets	22,166			1,227,199		202,642		(12,813		)	1,439,194

Investments	12,871			91,483		—		—			104,354
Property, plant and equipment, net	55,902			5,063,705		443,563		—			5,563,170
Intercompany	15,875			1,192,634		230,652		(1,439,161		)	—
Other assets	8,387			1,389		38,901		(8,153		)	40,524
Investment in subsidiaries	5,623,754			227,587		—		(5,851,341		)	—


Total assets	$	5,738,955		$	7,803,997	$	915,758	$	(7,311,468	)	$	7,147,242


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Long-term debt due within one year	$	—		$	39,094	$	—	$	—		$	39,094
Accounts payable	80,673			20,404		7,097		(5		)	108,169
Accrued liabilities	10,688			151,721		46,251		(11,103		)	197,557
Current liabilities of discontinued operations	—			—		3,377		—			3,377

Total current liabilities	91,361			211,219		56,725		(11,108		)	348,197

Noncurrent liabilities:
Long-term debt	—			492,443		—		—			492,443
Deferred income taxes	—			1,275,428		33,546		(13,058		)	1,295,916
Intercompany	733,008			186,784		516,169		(1,435,961		)	—
Other	18,740			31,560		59,820		—			110,120
Noncurrent liabilities of discontinued operations	—			—		4,720		—			4,720

Total noncurrent liabilities	751,748			1,986,215		614,255		(1,449,019		)	1,903,199

Shareholders’ equity:
Common stock	11,099			100		—		(100		)	11,099
Additional paid-in capital	420,141			45,824		349		(46,173		)	420,141
Retained earnings	4,648,346			5,556,783		244,429		(5,801,212		)	4,648,346
Accumulated other comprehensive income (loss)	(1,377		)	3,856		—		(3,856		)	(1,377		)
Treasury stock, at cost	(182,363		)	—		—		—			(182,363		)

Total shareholders’ equity	4,895,846			5,606,563		244,778		(5,851,341		)	4,895,846

Total liabilities and shareholders’ equity	$	5,738,955		$	7,803,997	$	915,758	$	(7,311,468	)	$	7,147,242

Schedule of Consolidated Condensed Statements of Cash Flows

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months Ended March 31, 2016
	Guarantor/			Issuer			Non-Guarantor					Total
	Parent			Subsidiary			Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	3,543		$	510,685		$	(21,711	)	$	—	$	492,517

INVESTING ACTIVITIES:
Capital expenditures	(12,667		)	(165,291		)	(2,523		)	—		(180,481		)
Intercompany transfers	12,667			(12,667		)	—			—		—
Purchase of short-term investments	—			(21,869		)	—			—		(21,869		)
Proceeds from sale of short-term investments	—			21,676			—			—		21,676
Proceeds from asset sales	—			8,131			1,584			—		9,715

Net cash used in investing activities	—			(170,020		)	(939		)	—		(170,959		)

FINANCING ACTIVITIES:
Dividends paid	(149,300		)	—			—			—		(149,300		)
Intercompany transfers	149,300			(149,300		)	—			—		—
Debt issuance costs	—			(32		)	—			—		(32		)
Exercise of stock options, net of tax withholding	(199		)	—			—			—		(199		)
Tax withholdings related to net share settlements of restricted stock	(3,617		)	—			—			—		(3,617		)
Excess tax benefit from stock-based compensation	(789		)	964			44			—		219

Net cash provided by (used in) financing activities	(4,605		)	(148,368		)	44			—		(152,929		)

Net increase (decrease) in cash and cash equivalents	(1,062		)	192,297			(22,606		)	—		168,629
Cash and cash equivalents, beginning of period	(838		)	693,273			36,949			—		729,384

Cash and cash equivalents, end of period	$	(1,900	)	$	885,570		$	14,343		$	—	$	898,013

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months Ended March 31, 2015, as adjusted
	Guarantor/			Issuer			Non-Guarantor					Total
	Parent			Subsidiary			Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	64,996		$	730,744		$	20,828		$	—	$	816,568

INVESTING ACTIVITIES:
Capital expenditures	(11,571		)	(713,797		)	(40,661		)	—		(766,029		)
Intercompany transfers	11,571			(11,571		)	—			—		—
Proceeds from asset sales	1			14,215			939			—		15,155

Net cash provided by (used in) investing activities	1			(711,153		)	(39,722		)	—		(750,874		)

FINANCING ACTIVITIES:
Proceeds from senior notes, net of discount	—			497,125			—			—		497,125
Debt issuance costs	—			(4,334		)	—			—		(4,334		)
Net increase in bank overdraft	—			—			12,560			—		12,560
Dividends paid	(149,347		)	—			—			—		(149,347		)
Intercompany transfers	149,347			(149,347		)	—			—		—
Repurchase of common stock	(59,654		)	—			—			—		(59,654		)
Exercise of stock options, net of tax withholding	(1,079		)	—			—			—		(1,079		)
Tax withholdings related to net share settlements of restricted stock	(4,248		)	—			—			—		(4,248		)
Excess tax benefit from stock-based compensation	85			2,653			23			—		2,761

Net cash provided by (used in) financing activities	(64,896		)	346,097			12,583			—		293,784

Net increase (decrease) in cash and cash equivalents	101			365,688			(6,311		)	—		359,478
Cash and cash equivalents, beginning of period	(2,050		)	329,655			32,702			—		360,307

Cash and cash equivalents, end of period	$	(1,949	)	$	695,343		$	26,391		$	—	$	719,785