XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Information | 6 Months Ended
--- | ---
Mar. 31, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information We manage and review our consolidated operations through the following reportable segments:
• | The distribution segment is primarily comprised of our regulated natural gas distribution and related sales operations in eight states.
• | 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.
• | The natural gas marketing segment was 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 Annual Report on Form 10-K for the fiscal year ended September 30, 2017. We evaluate performance based on net income or loss of the respective operating units. 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. Income taxes are allocated to each segment as if each segment’s taxes were calculated on a separate return basis. Income statements and capital expenditures for the three and six months ended March 31, 2018 and 2017 by segment are presented in the following tables:
| Three Months Ended March 31, 2018
| Distribution |  | Pipeline and Storage |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 1,198,309 |  |  | $ | 21,100 |  |  | $ | — |  |  | $ | 1,219,409 |
Intersegment revenues | 982 |  |  | 99,855 |  |  | (100,837 | ) |  | — |
Total operating revenues | 1,199,291 |  |  | 120,955 |  |  | (100,837 | ) |  | 1,219,409 |
Purchased gas cost | 727,053 |  |  | 433 |  |  | (100,526 | ) |  | 626,960 |
Operation and maintenance expense | 131,991 |  |  | 29,393 |  |  | (311 | ) |  | 161,073 |
Depreciation and amortization expense | 65,649 |  |  | 23,732 |  |  | — |  |  | 89,381 |
Taxes, other than income | 64,692 |  |  | 8,315 |  |  | — |  |  | 73,007 |
Operating income | 209,906 |  |  | 59,082 |  |  | — |  |  | 268,988 |
Miscellaneous income (expense) | 393 |  |  | (646 | ) |  | — |  |  | (253 | )
Interest charges | 16,898 |  |  | 10,406 |  |  | — |  |  | 27,304 |
Income before income taxes | 193,401 |  |  | 48,030 |  |  | — |  |  | 241,431 |
Income tax expense | 48,158 |  |  | 14,281 |  |  | — |  |  | 62,439 |
Net income | $ | 145,243 |  |  | $ | 33,749 |  |  | $ | — |  |  | $ | 178,992 |
Capital expenditures | $ | 224,235 |  |  | $ | 86,505 |  |  | $ | — |  |  | $ | 310,740 |
| Three Months Ended March 31, 2017
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 962,217 |  |  | $ | 25,969 |  |  | $ | — |  |  | $ | — |  |  | $ | 988,186 |
Intersegment revenues | 324 |  |  | 86,003 |  |  | — |  |  | (86,327 | ) |  | — |
Total operating revenues | 962,541 |  |  | 111,972 |  |  | — |  |  | (86,327 | ) |  | 988,186 |
Purchased gas cost | 513,096 |  |  | 725 |  |  | — |  |  | (86,327 | ) |  | 427,494 |
Operation and maintenance expense | 103,703 |  |  | 28,536 |  |  | — |  |  | — |  |  | 132,239 |
Depreciation and amortization expense | 61,302 |  |  | 16,365 |  |  | — |  |  | — |  |  | 77,667 |
Taxes, other than income | 57,636 |  |  | 7,978 |  |  | — |  |  | — |  |  | 65,614 |
Operating income | 226,804 |  |  | 58,368 |  |  | — |  |  | — |  |  | 285,172 |
Miscellaneous income (expense) | 1,029 |  |  | (196 | ) |  | — |  |  | — |  |  | 833 |
Interest charges | 16,925 |  |  | 10,019 |  |  | — |  |  | — |  |  | 26,944 |
Income from continuing operations before income taxes | 210,908 |  |  | 48,153 |  |  | — |  |  | — |  |  | 259,061 |
Income tax expense | 79,763 |  |  | 17,286 |  |  | — |  |  | — |  |  | 97,049 |
Income from continuing operations | 131,145 |  |  | 30,867 |  |  | — |  |  | — |  |  | 162,012 |
Gain on sale of discontinued operations, net of tax | — |  |  | — |  |  | 2,716 |  |  | — |  |  | 2,716 |
Net income | $ | 131,145 |  |  | $ | 30,867 |  |  | $ | 2,716 |  |  | $ | — |  |  | $ | 164,728 |
Capital expenditures | $ | 208,185 |  |  | $ | 53,238 |  |  | $ | — |  |  | $ | — |  |  | $ | 261,423 |
| Six Months Ended March 31, 2018
| Distribution |  | Pipeline and Storage |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 2,058,762 |  |  | $ | 49,839 |  |  | $ | — |  |  | $ | 2,108,601 |
Intersegment revenues | 1,321 |  |  | 197,579 |  |  | (198,900 | ) |  | — |
Total operating revenues | 2,060,083 |  |  | 247,418 |  |  | (198,900 | ) |  | 2,108,601 |
Purchased gas cost | 1,190,811 |  |  | 1,345 |  |  | (198,279 | ) |  | 993,877 |
Operation and maintenance expense | 235,728 |  |  | 55,533 |  |  | (621 | ) |  | 290,640 |
Depreciation and amortization expense | 131,083 |  |  | 46,672 |  |  | — |  |  | 177,755 |
Taxes, other than income | 119,799 |  |  | 15,981 |  |  | — |  |  | 135,780 |
Operating income | 382,662 |  |  | 127,887 |  |  | — |  |  | 510,549 |
Miscellaneous expense | (1,007 | ) |  | (1,281 | ) |  | — |  |  | (2,288 | )
Interest charges | 38,266 |  |  | 20,547 |  |  | — |  |  | 58,813 |
Income before income taxes | 343,389 |  |  | 106,059 |  |  | — |  |  | 449,448 |
Income tax (benefit) expense | (50,953 | ) |  | 7,277 |  |  | — |  |  | (43,676 | )
Net income | $ | 394,342 |  |  | $ | 98,782 |  |  | $ | — |  |  | $ | 493,124 |
Capital expenditures | $ | 465,484 |  |  | $ | 228,494 |  |  | $ | — |  |  | $ | 693,978 |
| Six Months Ended March 31, 2017
| Distribution |  | Pipeline and Storage |  | Natural Gas Marketing |  | Eliminations |  | Consolidated
| (In thousands)
Operating revenues from external parties | $ | 1,716,483 |  |  | $ | 51,871 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,768,354 |
Intersegment revenues | 714 |  |  | 170,053 |  |  | — |  |  | (170,767 | ) |  | — |
Total operating revenues | 1,717,197 |  |  | 221,924 |  |  | — |  |  | (170,767 | ) |  | 1,768,354 |
Purchased gas cost | 908,442 |  |  | 1,080 |  |  | — |  |  | (170,723 | ) |  | 738,799 |
Operation and maintenance expense | 196,417 |  |  | 60,804 |  |  | — |  |  | (44 | ) |  | 257,177 |
Depreciation and amortization expense | 122,459 |  |  | 32,166 |  |  | — |  |  | — |  |  | 154,625 |
Taxes, other than income | 108,182 |  |  | 14,481 |  |  | — |  |  | — |  |  | 122,663 |
Operating income | 381,697 |  |  | 113,393 |  |  | — |  |  | — |  |  | 495,090 |
Miscellaneous income (expense) | 396 |  |  | (557 | ) |  | — |  |  | — |  |  | (161 | )
Interest charges | 38,043 |  |  | 19,931 |  |  | — |  |  | — |  |  | 57,974 |
Income from continuing operations before income taxes | 344,050 |  |  | 92,905 |  |  | — |  |  | — |  |  | 436,955 |
Income tax expense | 127,541 |  |  | 33,364 |  |  | — |  |  | — |  |  | 160,905 |
Income from continuing operations | 216,509 |  |  | 59,541 |  |  | — |  |  | — |  |  | 276,050 |
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 | $ | 216,509 |  |  | $ | 59,541 |  |  | $ | 13,710 |  |  | $ | — |  |  | $ | 289,760 |
Capital expenditures | $ | 430,669 |  |  | $ | 128,716 |  |  | $ | — |  |  | $ | — |  |  | $ | 559,385 |
Balance sheet information at March 31, 2018 and September 30, 2017 by segment is presented in the following tables:
| March 31, 2018
| Distribution |  | Pipeline and Storage |  | Eliminations |  | Consolidated
| (In thousands)
Property, plant and equipment, net | $ | 7,202,673 |  |  | $ | 2,558,656 |  |  | $ | — |  |  | $ | 9,761,329 |
Total assets | $ | 10,723,398 |  |  | $ | 2,779,330 |  |  | $ | (2,146,406 | ) |  | $ | 11,356,322 |
| September 30, 2017
| Distribution |  | Pipeline and Storage |  | Eliminations |  | Consolidated
| (In thousands)
Property, plant and equipment, net | $ | 6,849,517 |  |  | $ | 2,409,665 |  |  | $ | — |  |  | $ | 9,259,182 |
Total assets | $ | 10,050,164 |  |  | $ | 2,621,601 |  |  | $ | (1,922,169 | ) |  | $ | 10,749,596 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration