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Financial Instruments (Table) | 9 Months Ended
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Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial instruments on the balance sheet |
| Balance Sheet Location |  | Assets |  | Liabilities
|  |  | (In thousands)
September 30, 2016 |  |  |  |  |
Designated As Hedges: |  |  |  |  |
Commodity contracts | Other current assets / Other current liabilities |  | $ | 6,612 |  |  | $ | (21,903 | )
Interest rate contracts | Other current assets / Other current liabilities |  | — |  |  | (68,481 | )
Commodity contracts | Deferred charges and other assets / Deferred credits and other liabilities |  | 2,178 |  |  | (3,779 | )
Interest rate contracts | Deferred charges and other assets / Deferred credits and other liabilities |  | — |  |  | (198,008 | )
Total |  |  | 8,790 |  |  | (292,171 | )
Not Designated As Hedges: |  |  |  |  |
Commodity contracts | Other current assets / Other current liabilities |  | 21,186 |  |  | (18,812 | )
Commodity contracts | Deferred charges and other assets / Deferred credits and other liabilities |  | 14,165 |  |  | (12,701 | )
Total |  |  | 35,351 |  |  | (31,513 | )
Gross Financial Instruments |  |  | 44,141 |  |  | (323,684 | )
Gross Amounts Offset on Consolidated Balance Sheet: |  |  |  |  |
Contract netting |  |  | (39,290 | ) |  | 39,290 |
Net Financial Instruments |  |  | 4,851 |  |  | (284,394 | )
Cash collateral |  |  | 6,775 |  |  | 43,575 |
Net Assets/Liabilities from Risk Management Activities |  |  | $ | 11,626 |  |  | $ | (240,819 | )
The following tables present the fair value and balance sheet classification of our financial instruments as of June 30, 2017 and September 30, 2016. The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties.
| Balance Sheet Location |  | Assets |  | Liabilities
|  |  | (In thousands)
June 30, 2017 |  |  |  |  |
Designated As Hedges: |  |  |  |  |
Interest rate contracts | Deferred credits and other liabilities |  | — |  |  | (108,860 | )
Total |  |  | — |  |  | (108,860 | )
Not Designated As Hedges: |  |  |  |  |
Commodity contracts | Other current assets / Other current liabilities |  | 2,960 |  |  | (230 | )
Commodity contracts | Deferred charges and other assets / Deferred credits and other liabilities |  | 268 |  |  | (282 | )
Total |  |  | 3,228 |  |  | (512 | )
Gross Financial Instruments |  |  | 3,228 |  |  | (109,372 | )
Gross Amounts Offset on Consolidated Balance Sheet: |  |  |  |  |
Contract netting |  |  | — |  |  | — |
Net Financial Instruments |  |  | 3,228 |  |  | (109,372 | )
Cash collateral |  |  | — |  |  | — |
Net Assets/Liabilities from Risk Management Activities |  |  | $ | 3,228 |  |  | $ | (109,372 | )
Fair value hedges table | The impact of our natural gas marketing segment commodity contracts designated as fair value hedges and the related hedged item on the results of discontinued operations on our condensed consolidated income statement for the three and nine months ended June 30, 2017 and 2016 is presented below.
| Three Months Ended June 30 |  | Nine Months Ended June 30
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands)
Commodity contracts | $ | — |  |  | $ | (22,146 | ) |  | $ | (9,567 | ) |  | $ | (11,808 | )
Fair value adjustment for natural gas inventory designated as the hedged item | — |  |  | 35,630 |  |  | 12,858 |  |  | 29,852 |
Total decrease in purchased gas cost reflected in income from discontinued operations | $ | — |  |  | $ | 13,484 |  |  | $ | 3,291 |  |  | $ | 18,044 |
The decrease in purchased gas cost reflected in income from discontinued operations is comprised of the following: |  |  |  |  |  |  |
Basis ineffectiveness | $ | — |  |  | $ | (684 | ) |  | $ | (597 | ) |  | $ | (1,490 | )
Timing ineffectiveness | — |  |  | 14,168 |  |  | 3,888 |  |  | 19,534 |
| $ | — |  |  | $ | 13,484 |  |  | $ | 3,291 |  |  | $ | 18,044 |
Cash flow hedges | The impact of our interest rate and natural gas marketing segment cash flow hedges on our condensed consolidated income statements for the three and nine months ended June 30, 2017 and 2016 is presented below.
| Three Months Ended June 30 |  | Nine Months Ended June 30
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands) |  |  |  |
Loss reclassified from AOCI for effective portion of natural gas marketing commodity contracts | $ | — |  |  | $ | (12,347 | ) |  | $ | (2,612 | ) |  | $ | (48,015 | )
Gain arising from ineffective portion of natural gas marketing commodity contracts | — |  |  | 66 |  |  | 111 |  |  | 84 |
Gain on discontinuance of cash flow hedging of natural gas marketing commodity contracts reclassified from AOCI | — |  |  | — |  |  | 10,579 |  |  | — |
Total impact on purchased gas cost reflected in income from discontinued operations | — |  |  | (12,281 | ) |  | 8,078 |  |  | (47,931 | )
Net loss on settled interest rate agreements reclassified from AOCI into interest expense | (177 | ) |  | (137 | ) |  | (450 | ) |  | (410 | )
Total Impact from Cash Flow Hedges | $ | (177 | ) |  | $ | (12,418 | ) |  | $ | 7,628 |  |  | $ | (48,341 | )
Other comprehensive income from hedging table | The following table summarizes the gains and losses arising from hedging transactions that were recognized as a component of other comprehensive income (loss), net of taxes, for the three and nine months ended June 30, 2017 and 2016. The amounts included in the table below exclude gains and losses arising from ineffectiveness because those amounts are immediately recognized in the income statement as incurred.
| Three Months Ended June 30 |  | Nine Months Ended June 30
| 2017 |  | 2016 |  | 2017 |  | 2016
| (In thousands)
Increase (decrease) in fair value: |  |  |  |  |  |  |
Interest rate agreements | $ | (18,669 | ) |  | $ | (39,337 | ) |  | $ | 76,602 |  |  | $ | (88,345 | )
Forward commodity contracts | — |  |  | 10,573 |  |  | 9,847 |  |  | (8,612 | )
Recognition of (gains) losses in earnings due to settlements: |  |  |  |  |  |  |
Interest rate agreements | 113 |  |  | 87 |  |  | 286 |  |  | 260 |
Forward commodity contracts | — |  |  | 7,532 |  |  | (4,865 | ) |  | 29,290 |
Total other comprehensive income (loss) from hedging, net of tax(1) | $ | (18,556 | ) |  | $ | (21,145 | ) |  | $ | 81,870 |  |  | $ | (67,407 | )
(1) | Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction.
Expected recognition in earnings of deferred gains/(losses) in AOCI table | The following amounts, net of deferred taxes, represent the expected recognition in earnings of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments as of June 30, 2017. However, the table below does not include the expected recognition in earnings of our outstanding interest rate agreements as those instruments have not yet settled.
| Interest Rate Agreements
| (In thousands)
Next twelve months | $ | (1,509 | )
Thereafter | (40,001 | )
Total(1) | $ | (41,510 | )
(1) | Utilizing an income tax rate of 37 percent

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