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Segment Information | 9 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
Segment Information | Segment Information Through November 30, 2016, our consolidated operations were managed and reviewed through three segments:
• | The regulated distribution segment, which included our regulated natural gas distribution and related sales operations.
• | The regulated pipeline segment, which included the pipeline and storage operations of our Atmos Pipeline-Texas division and,
• | The nonregulated segment, which included our nonregulated natural gas management, nonregulated natural gas transmission, storage and other services.
As a result of the announced sale of Atmos Energy Marketing, we revised the information used by the chief operating decision maker to manage the Company, effective December 1, 2016. Accordingly, we have been managing and reviewing our consolidated operations through the following three reportable segments:
• | The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states and storage assets located in Kentucky and Tennessee, which are used solely to support our natural gas distribution operations in those states. These storage assets were formerly included in our nonregulated segment.
• | 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, which were formerly included in our nonregulated segment.
• | The natural gas marketing segment is comprised of our discontinued natural gas marketing business.
Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. 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 found in our Fiscal 2016 Financial Statements. We evaluate performance based on net income or loss of the respective operating segments. 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. Prior periods' segment information has been recast as required by applicable accounting guidance. The segment realignment has not impacted our reported consolidated revenues or net income. Income statements for the three and nine months ended June 30, 2017 and 2016 by segment are presented in the following tables:
| Three Months Ended June 30, 2017
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 493,738 |  |  | $ | 32,763 |  |  | $ | — |  |  | $ | — |  |  | $ | 526,501 |
Intersegment revenues | 322 |  |  | 84,520 |  |  | — |  |  | (84,842 | ) |  | — |
Total operating revenues | 494,060 |  |  | 117,283 |  |  | — |  |  | (84,842 | ) |  | 526,501 |
Purchased gas cost | 197,767 |  |  | 1,251 |  |  | — |  |  | (84,842 | ) |  | 114,176 |
Operation and maintenance expense | 99,631 |  |  | 29,059 |  |  | — |  |  | — |  |  | 128,690 |
Depreciation and amortization expense | 62,760 |  |  | 17,263 |  |  | — |  |  | — |  |  | 80,023 |
Taxes, other than income | 56,850 |  |  | 6,098 |  |  | — |  |  | — |  |  | 62,948 |
Operating income | 77,052 |  |  | 63,612 |  |  | — |  |  | — |  |  | 140,664 |
Miscellaneous expense | (62 | ) |  | (227 | ) |  | — |  |  | — |  |  | (289 | )
Interest charges | 18,394 |  |  | 10,104 |  |  | — |  |  | — |  |  | 28,498 |
Income before income taxes | 58,596 |  |  | 53,281 |  |  | — |  |  | — |  |  | 111,877 |
Income tax expense | 22,082 |  |  | 18,987 |  |  | — |  |  | — |  |  | 41,069 |
Net income | $ | 36,514 |  |  | $ | 34,294 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,808 |
Capital expenditures | $ | 205,780 |  |  | $ | 46,983 |  |  | $ | — |  |  | $ | — |  |  | $ | 252,763 |
| Three Months Ended June 30, 2016
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 424,553 |  |  | $ | 31,659 |  |  | $ | — |  |  | $ | — |  |  | $ | 456,212 |
Intersegment revenues | 352 |  |  | 82,196 |  |  | — |  |  | (82,548 | ) |  | — |
Total operating revenues | 424,905 |  |  | 113,855 |  |  | — |  |  | (82,548 | ) |  | 456,212 |
Purchased gas cost | 147,569 |  |  | (438 | ) |  | — |  |  | (82,548 | ) |  | 64,583 |
Operation and maintenance expense | 101,819 |  |  | 29,569 |  |  | — |  |  | — |  |  | 131,388 |
Depreciation and amortization expense | 59,193 |  |  | 13,687 |  |  | — |  |  | — |  |  | 72,880 |
Taxes, other than income | 52,662 |  |  | 6,303 |  |  | — |  |  | — |  |  | 58,965 |
Operating income | 63,662 |  |  | 64,734 |  |  | — |  |  | — |  |  | 128,396 |
Miscellaneous income (expense) | 1,243 |  |  | (125 | ) |  | — |  |  | — |  |  | 1,118 |
Interest charges | 18,677 |  |  | 9,002 |  |  | — |  |  | — |  |  | 27,679 |
Income from continuing operations before income taxes | 46,228 |  |  | 55,607 |  |  | — |  |  | — |  |  | 101,835 |
Income tax expense | 15,867 |  |  | 19,825 |  |  | — |  |  | — |  |  | 35,692 |
Income from continuing operations | 30,361 |  |  | 35,782 |  |  | — |  |  | — |  |  | 66,143 |
Income from discontinued operations, net of tax | — |  |  | — |  |  | 5,050 |  |  | — |  |  | 5,050 |
Net income | $ | 30,361 |  |  | $ | 35,782 |  |  | $ | 5,050 |  |  | $ | — |  |  | $ | 71,193 |
Capital expenditures | $ | 187,470 |  |  | $ | 66,108 |  |  | $ | 106 |  |  | $ | — |  |  | $ | 253,684 |
| Nine Months Ended June 30, 2017
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 2,210,221 |  |  | $ | 84,634 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,294,855 |
Intersegment revenues | 1,036 |  |  | 254,573 |  |  | — |  |  | (255,609 | ) |  | — |
Total operating revenues | 2,211,257 |  |  | 339,207 |  |  | — |  |  | (255,609 | ) |  | 2,294,855 |
Purchased gas cost | 1,106,209 |  |  | 2,331 |  |  | — |  |  | (255,565 | ) |  | 852,975 |
Operation and maintenance expense | 296,048 |  |  | 89,863 |  |  | — |  |  | (44 | ) |  | 385,867 |
Depreciation and amortization expense | 185,219 |  |  | 49,429 |  |  | — |  |  | — |  |  | 234,648 |
Taxes, other than income | 165,032 |  |  | 20,579 |  |  | — |  |  | — |  |  | 185,611 |
Operating income | 458,749 |  |  | 177,005 |  |  | — |  |  | — |  |  | 635,754 |
Miscellaneous income (expense) | 334 |  |  | (784 | ) |  | — |  |  | — |  |  | (450 | )
Interest charges | 56,437 |  |  | 30,035 |  |  | — |  |  | — |  |  | 86,472 |
Income from continuing operations before income taxes | 402,646 |  |  | 146,186 |  |  | — |  |  | — |  |  | 548,832 |
Income tax expense | 149,623 |  |  | 52,351 |  |  | — |  |  | — |  |  | 201,974 |
Income from continuing operations | 253,023 |  |  | 93,835 |  |  | — |  |  | — |  |  | 346,858 |
Income from discontinued operations, net of tax | — |  |  | — |  |  | 10,994 |  |  | — |  |  | 10,994 |
Gain on sale of discontinued operations, net of tax | — |  |  | — |  |  | 2,716 |  |  | — |  |  | 2,716 |
Net income | $ | 253,023 |  |  | $ | 93,835 |  |  | $ | 13,710 |  |  | $ | — |  |  | $ | 360,568 |
Capital expenditures | $ | 636,449 |  |  | $ | 175,699 |  |  | $ | — |  |  | $ | — |  |  | $ | 812,148 |
| Nine Months Ended June 30, 2016
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 1,935,421 |  |  | $ | 85,584 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,021,005 |
Intersegment revenues | 1,054 |  |  | 228,840 |  |  | — |  |  | (229,894 | ) |  | — |
Total operating revenues | 1,936,475 |  |  | 314,424 |  |  | — |  |  | (229,894 | ) |  | 2,021,005 |
Purchased gas cost | 912,231 |  |  | (72 | ) |  | — |  |  | (229,894 | ) |  | 682,265 |
Operation and maintenance expense | 294,154 |  |  | 84,919 |  |  | — |  |  | — |  |  | 379,073 |
Depreciation and amortization expense | 174,748 |  |  | 40,179 |  |  | — |  |  | — |  |  | 214,927 |
Taxes, other than income | 153,198 |  |  | 18,761 |  |  | — |  |  | — |  |  | 171,959 |
Operating income | 402,144 |  |  | 170,637 |  |  | — |  |  | — |  |  | 572,781 |
Miscellaneous income (expense) | 804 |  |  | (894 | ) |  | — |  |  | — |  |  | (90 | )
Interest charges | 57,481 |  |  | 27,294 |  |  | — |  |  | — |  |  | 84,775 |
Income from continuing operations before income taxes | 345,467 |  |  | 142,449 |  |  | — |  |  | — |  |  | 487,916 |
Income tax expense | 126,090 |  |  | 51,134 |  |  | — |  |  | — |  |  | 177,224 |
Income from continuing operations | 219,377 |  |  | 91,315 |  |  | — |  |  | — |  |  | 310,692 |
Income from discontinued operations, net of tax | — |  |  | — |  |  | 5,172 |  |  | — |  |  | 5,172 |
Net income | $ | 219,377 |  |  | $ | 91,315 |  |  | $ | 5,172 |  |  | $ | — |  |  | $ | 315,864 |
Capital expenditures | $ | 528,063 |  |  | $ | 261,446 |  |  | $ | 179 |  |  | $ | — |  |  | $ | 789,688 |
Balance sheet information at June 30, 2017 and September 30, 2016 by segment is presented in the following tables:
| June 30, 2017
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
ASSETS |  |  |  |  |  |  |  |  |
Property, plant and equipment, net | $ | 6,678,875 |  |  | $ | 2,245,506 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,924,381 |
Investment in subsidiaries | 798,994 |  |  | 13,851 |  |  | — |  |  | (812,845 | ) |  | — |
Current assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 69,777 |  |  | — |  |  | — |  |  | — |  |  | 69,777 |
Other current assets | 437,700 |  |  | 29,265 |  |  | — |  |  | (2,360 | ) |  | 464,605 |
Intercompany receivables | 983,866 |  |  | — |  |  | — |  |  | (983,866 | ) |  | — |
Total current assets | 1,491,343 |  |  | 29,265 |  |  | — |  |  | (986,226 | ) |  | 534,382 |
Goodwill | 586,661 |  |  | 143,012 |  |  | — |  |  | — |  |  | 729,673 |
Deferred charges and other assets | 280,240 |  |  | 30,099 |  |  | — |  |  | — |  |  | 310,339 |
| $ | 9,836,113 |  |  | $ | 2,461,733 |  |  | $ | — |  |  | $ | (1,799,071 | ) |  | $ | 10,498,775 |
CAPITALIZATION AND LIABILITIES |  |  |  |  |  |  |  |  |
Shareholders’ equity | $ | 3,901,710 |  |  | $ | 812,845 |  |  | $ | — |  |  | $ | (812,845 | ) |  | $ | 3,901,710 |
Long-term debt | 3,066,734 |  |  | — |  |  | — |  |  | — |  |  | 3,066,734 |
Total capitalization | 6,968,444 |  |  | 812,845 |  |  | — |  |  | (812,845 | ) |  | 6,968,444 |
Current liabilities |  |  |  |  |  |  |  |  |
Short-term debt | 258,573 |  |  | — |  |  | — |  |  | — |  |  | 258,573 |
Other current liabilities | 451,026 |  |  | 38,420 |  |  | — |  |  | (2,360 | ) |  | 487,086 |
Intercompany payables | — |  |  | 983,866 |  |  | — |  |  | (983,866 | ) |  | — |
Total current liabilities | 709,599 |  |  | 1,022,286 |  |  | — |  |  | (986,226 | ) |  | 745,659 |
Deferred income taxes | 1,251,528 |  |  | 602,036 |  |  | — |  |  | — |  |  | 1,853,564 |
Regulatory cost of removal obligation | 432,531 |  |  | 24,529 |  |  | — |  |  | — |  |  | 457,060 |
Pension and postretirement liabilities | 304,919 |  |  | — |  |  | — |  |  | — |  |  | 304,919 |
Deferred credits and other liabilities | 169,092 |  |  | 37 |  |  | — |  |  | — |  |  | 169,129 |
| $ | 9,836,113 |  |  | $ | 2,461,733 |  |  | $ | — |  |  | $ | (1,799,071 | ) |  | $ | 10,498,775 |
| September 30, 2016
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
ASSETS |  |  |  |  |  |  |  |  |
Property, plant and equipment, net | $ | 6,208,465 |  |  | $ | 2,060,141 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,268,606 |
Investment in subsidiaries | 768,415 |  |  | 13,854 |  |  | — |  |  | (782,269 | ) |  | — |
Current assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 22,117 |  |  | — |  |  | 25,417 |  |  | — |  |  | 47,534 |
Current assets of disposal group classified as held for sale | — |  |  | — |  |  | 162,508 |  |  | (11,391 | ) |  | 151,117 |
Other current assets | 489,963 |  |  | 39,078 |  |  | 5 |  |  | (46,011 | ) |  | 483,035 |
Intercompany receivables | 971,665 |  |  | — |  |  | — |  |  | (971,665 | ) |  | — |
Total current assets | 1,483,745 |  |  | 39,078 |  |  | 187,930 |  |  | (1,029,067 | ) |  | 681,686 |
Goodwill | 583,950 |  |  | 143,012 |  |  | — |  |  | — |  |  | 726,962 |
Noncurrent assets of disposal group classified as held for sale | — |  |  | — |  |  | 28,785 |  |  | (169 | ) |  | 28,616 |
Deferred charges and other assets | 277,240 |  |  | 27,779 |  |  | — |  |  | — |  |  | 305,019 |
| $ | 9,321,815 |  |  | $ | 2,283,864 |  |  | $ | 216,715 |  |  | $ | (1,811,505 | ) |  | $ | 10,010,889 |
CAPITALIZATION AND LIABILITIES |  |  |  |  |  |  |  |  |
Shareholders’ equity | $ | 3,463,059 |  |  | $ | 715,672 |  |  | $ | 66,597 |  |  | $ | (782,269 | ) |  | $ | 3,463,059 |
Long-term debt | 2,188,779 |  |  | — |  |  | — |  |  | — |  |  | 2,188,779 |
Total capitalization | 5,651,838 |  |  | 715,672 |  |  | 66,597 |  |  | (782,269 | ) |  | 5,651,838 |
Current liabilities |  |  |  |  |  |  |  |  |
Current maturities of long-term debt | 250,000 |  |  | — |  |  | — |  |  | — |  |  | 250,000 |
Short-term debt | 829,811 |  |  | — |  |  | 35,000 |  |  | (35,000 | ) |  | 829,811 |
Current liabilities of the disposal group classified as held for sale | — |  |  | — |  |  | 81,908 |  |  | (9,008 | ) |  | 72,900 |
Other current liabilities | 605,790 |  |  | 39,911 |  |  | 3,263 |  |  | (13,394 | ) |  | 635,570 |
Intercompany payables | — |  |  | 957,526 |  |  | 14,139 |  |  | (971,665 | ) |  | — |
Total current liabilities | 1,685,601 |  |  | 997,437 |  |  | 134,310 |  |  | (1,029,067 | ) |  | 1,788,281 |
Deferred income taxes | 1,055,348 |  |  | 543,390 |  |  | 4,318 |  |  | — |  |  | 1,603,056 |
Regulatory cost of removal obligation | 397,162 |  |  | 27,119 |  |  | — |  |  | — |  |  | 424,281 |
Pension and postretirement liabilities | 297,743 |  |  | — |  |  | — |  |  | — |  |  | 297,743 |
Noncurrent liabilities of disposal group classified as held for sale | — |  |  | — |  |  | 316 |  |  | — |  |  | 316 |
Deferred credits and other liabilities | 234,123 |  |  | 246 |  |  | 11,174 |  |  | (169 | ) |  | 245,374 |
| $ | 9,321,815 |  |  | $ | 2,283,864 |  |  | $ | 216,715 |  |  | $ | (1,811,505 | ) |  | $ | 10,010,889 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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