Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Atmos Energy Corporation | |
Entity Central Index Key | 731,802 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 111,064,659 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 |
ASSETS | ||
Property, plant and equipment | $ 11,903,715,000 | $ 11,301,304,000 |
Less accumulated depreciation and amortization | 2,142,386,000 | 2,042,122,000 |
Net property, plant and equipment | 9,761,329,000 | 9,259,182,000 |
Current assets | ||
Cash and cash equivalents | 71,074,000 | 26,409,000 |
Accounts receivable, net | 407,134,000 | 222,263,000 |
Gas stored underground | 89,265,000 | 184,653,000 |
Other current assets | 55,263,000 | 106,321,000 |
Total current assets | 622,736,000 | 539,646,000 |
Goodwill | 730,132,000 | 730,132,000 |
Deferred charges and other assets | 242,125,000 | 220,636,000 |
Total assets | 11,356,322,000 | 10,749,596,000 |
Shareholders' equity | ||
Common stock, no par value (stated at $.005 per share) | 555,000 | 531,000 |
Additional paid-in capital | 2,951,545,000 | 2,536,365,000 |
Accumulated other comprehensive income (loss) | (85,011,000) | (105,254,000) |
Retained earnings | 1,854,257,000 | 1,467,024,000 |
Shareholders' equity | 4,721,346,000 | 3,898,666,000 |
Long-term debt | 2,617,892,000 | 3,067,045,000 |
Total capitalization | 7,339,238,000 | 6,965,711,000 |
Current liabilities | ||
Accounts payable and accrued liabilities | 230,823,000 | 233,050,000 |
Other current liabilities | 538,702,000 | 332,648,000 |
Short-term debt | 129,602,000 | 447,745,000 |
Current maturities of long-term debt | 450,000,000 | 0 |
Total current liabilities | 1,349,127,000 | 1,013,443,000 |
Deferred income taxes | 1,107,036,000 | 1,878,699,000 |
Regulatory Liability, Excess Deferred Tax | 737,798,000 | 0 |
Regulatory cost of removal obligation | 484,746,000 | 485,420,000 |
Pension and postretirement liabilities | 237,448,000 | 230,588,000 |
Deferred credits and other liabilities | 100,929,000 | 175,735,000 |
Total shareholders' equity and liabilities | $ 11,356,322,000 | $ 10,749,596,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICALS) - $ / shares | Mar. 31, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, No Par Value | $ 0.005 | $ 0.005 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 111,060,328 | 106,104,634 |
Common Stock, Shares, Outstanding | 111,060,328 | 106,104,634 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating revenues [Abstract] | ||||
Operating revenues | $ 1,219,409 | $ 988,186 | $ 2,108,601 | $ 1,768,354 |
Purchase Gas Cost [Abstract] | ||||
Purchased gas cost | 626,960 | 427,494 | 993,877 | 738,799 |
Operation and maintenance expense | 161,073 | 132,239 | 290,640 | 257,177 |
Depreciation and amortization expense | 89,381 | 77,667 | 177,755 | 154,625 |
Taxes, other than income, expense | 73,007 | 65,614 | 135,780 | 122,663 |
Operating income | 268,988 | 285,172 | 510,549 | 495,090 |
Miscellaneous income (expense) | (253) | 833 | (2,288) | (161) |
Interest charges | 27,304 | 26,944 | 58,813 | 57,974 |
Income (loss) from continuing operations before income taxes | 241,431 | 259,061 | 449,448 | 436,955 |
Income tax expense (benefit) | 62,439 | 97,049 | (43,676) | 160,905 |
Income from continuing operations | 178,992 | 162,012 | 493,124 | 276,050 |
Gain on sale of discontinued operations, net of tax | 0 | 2,716 | 0 | 2,716 |
Income from discontinued operations, net of tax | 0 | 10,994 | ||
Net income (loss) | $ 178,992 | $ 164,728 | $ 493,124 | $ 289,760 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 1.60 | $ 1.52 | $ 4.47 | $ 2.61 |
Income (Loss) from Discontinued Operation, Net of Tax, Per Basic and Diluted Share | 0 | 0.03 | 0 | 0.13 |
Basic and diluted net income per share | 1.60 | 1.55 | 4.47 | 2.74 |
Cash dividends per share | $ 0.485 | $ 0.450 | $ 0.97 | $ 0.90 |
Weighted average shares outstanding: | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 111,706 | 105,935 | 110,135 | 105,610 |
Distribution Segment [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenues | $ 1,199,291 | $ 962,541 | $ 2,060,083 | $ 1,717,197 |
Purchase Gas Cost [Abstract] | ||||
Purchased gas cost | 727,053 | 513,096 | 1,190,811 | 908,442 |
Operation and maintenance expense | 131,991 | 103,703 | 235,728 | 196,417 |
Depreciation and amortization expense | 65,649 | 61,302 | 131,083 | 122,459 |
Taxes, other than income, expense | 64,692 | 57,636 | 119,799 | 108,182 |
Operating income | 209,906 | 226,804 | 382,662 | 381,697 |
Miscellaneous income (expense) | 393 | 1,029 | (1,007) | 396 |
Interest charges | 16,898 | 16,925 | 38,266 | 38,043 |
Income (loss) from continuing operations before income taxes | 193,401 | 210,908 | 343,389 | 344,050 |
Income tax expense (benefit) | 48,158 | 79,763 | (50,953) | 127,541 |
Income from continuing operations | 131,145 | 216,509 | ||
Gain on sale of discontinued operations, net of tax | 0 | 0 | ||
Income from discontinued operations, net of tax | 0 | |||
Net income (loss) | 145,243 | 131,145 | 394,342 | 216,509 |
Pipeline and Storage Segment [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenues | 120,955 | 111,972 | 247,418 | 221,924 |
Purchase Gas Cost [Abstract] | ||||
Purchased gas cost | 433 | 725 | 1,345 | 1,080 |
Operation and maintenance expense | 29,393 | 28,536 | 55,533 | 60,804 |
Depreciation and amortization expense | 23,732 | 16,365 | 46,672 | 32,166 |
Taxes, other than income, expense | 8,315 | 7,978 | 15,981 | 14,481 |
Operating income | 59,082 | 58,368 | 127,887 | 113,393 |
Miscellaneous income (expense) | (646) | (196) | (1,281) | (557) |
Interest charges | 10,406 | 10,019 | 20,547 | 19,931 |
Income (loss) from continuing operations before income taxes | 48,030 | 48,153 | 106,059 | 92,905 |
Income tax expense (benefit) | 14,281 | 17,286 | 7,277 | 33,364 |
Income from continuing operations | 30,867 | 59,541 | ||
Gain on sale of discontinued operations, net of tax | 0 | 0 | ||
Income from discontinued operations, net of tax | 0 | |||
Net income (loss) | 33,749 | 30,867 | 98,782 | 59,541 |
Intersegment Elimination [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenues | (100,837) | (86,327) | (198,900) | (170,767) |
Purchase Gas Cost [Abstract] | ||||
Purchased gas cost | (100,526) | (86,327) | (198,279) | (170,723) |
Operation and maintenance expense | (311) | 0 | (621) | (44) |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
Taxes, other than income, expense | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Miscellaneous income (expense) | 0 | 0 | 0 | 0 |
Interest charges | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income from continuing operations | 0 | 0 | ||
Gain on sale of discontinued operations, net of tax | 0 | 0 | ||
Income from discontinued operations, net of tax | 0 | |||
Net income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (PARENTHETICALS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Income [Abstract] | |||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0 | $ 6,841 | |
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ 0 | $ 0 | $ 10,215 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 178,992 | $ 164,728 | $ 493,124 | $ 289,760 | ||
Other comprehensive income (loss), net of tax | ||||||
Net unrealized holding gains (losses) on available-for-sale securities, net of tax | (939) | 1,530 | (1,046) | 702 | ||
Schedule of Other Comprehensive Income (Loss), Cash Flow Hedges [Line Items] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 22,244 | 4,230 | [1] | 21,289 | 100,426 | [1] |
Total other comprehensive income (loss) | 21,305 | 5,760 | 20,243 | 101,128 | ||
Total comprehensive income (loss) | 200,297 | 170,488 | 513,367 | 390,888 | ||
Interest Rate Contract [Member] | ||||||
Schedule of Other Comprehensive Income (Loss), Cash Flow Hedges [Line Items] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 22,244 | 4,230 | 21,289 | 95,444 | ||
Commodity Contract [Member] | ||||||
Schedule of Other Comprehensive Income (Loss), Cash Flow Hedges [Line Items] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 0 | $ 0 | $ 0 | $ 4,982 | ||
[1] | Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction for the three and six-month period ended March 31, 2017. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (PARENTHETICALS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Comprehensive Income Loss Tax Portion Attributable To Parent Abstract | ||||
Unrealized holding gains (losses) on available-for-sale securities, tax | $ (276) | $ 879 | $ (338) | $ 403 |
Interest Rate Contract [Member] | ||||
Schedule of Other Comprehensive Income (Loss), Tax, Cash Flow Hedges [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 6,575 | 2,432 | 6,026 | 54,861 |
Commodity Contract [Member] | ||||
Schedule of Other Comprehensive Income (Loss), Tax, Cash Flow Hedges [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 0 | $ 0 | $ 0 | $ 3,183 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 493,124 | $ 289,760 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Charged to depreciation and amortization | 177,755 | 154,810 |
Deferred income taxes | 116,023 | 148,657 |
One-Time Income Tax Benefit, TCJA | (165,675) | 0 |
Gain on sale of discontinued operations | 0 | (12,931) |
Discontinued cash flow hedging for natural gas marketing commodity contracts | 0 | (10,579) |
Other | 12,252 | 10,391 |
Net assets / liabilities from risk management activities | 812 | 26,757 |
Net change in operating assets and liabilities | 117,076 | (54,862) |
Net cash provided by operating activities | 751,367 | 552,003 |
Cash Flows From Investing Activities | ||
Capital expenditures | (693,978) | (559,385) |
Acquisition | 0 | (85,714) |
Proceeds from the sale of discontinued operations | 3,000 | 133,560 |
Available-for-sale securities activities, net | (1,175) | (8,918) |
Other, net | 4,009 | 3,787 |
Net cash used in investing activities | (688,144) | (516,670) |
Cash Flows From Financing Activities | ||
Net increase in short-term debt | (318,143) | (159,204) |
Net proceeds from equity offering | 395,092 | 49,400 |
Issuance of common stock through stock purchase and employee retirement plans | 11,902 | 16,984 |
Proceeds from issuance of long-term debt, net of discount | 0 | 125,000 |
Interest rate agreements cash collateral | 0 | 25,670 |
Cash dividends paid | (105,891) | (95,314) |
Repurchase of equity awards | (1,518) | 0 |
Net cash provided by (used in) financing activities | (18,558) | (37,464) |
Net increase (decrease) in cash and cash equivalents | 44,665 | (2,131) |
Cash and cash equivalents at beginning of period | 26,409 | 47,534 |
Cash and cash equivalents at end of period | $ 71,074 | $ 45,403 |
Nature of Business
Nature of Business | 6 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Atmos Energy Corporation (“Atmos Energy” or the “Company”) is engaged in the regulated natural gas distribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local authorities in each of the states in which our regulated divisions and subsidiaries operate. Our distribution business delivers natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated distribution divisions, which at March 31, 2018 , covered service areas located in eight states. Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas to our Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution business in various states. |
Unaudited Financial Information
Unaudited Financial Information | 6 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Unaudited Financial Information | Unaudited Financial Information These consolidated interim-period financial statements have been prepared in accordance with accounting principles generally accepted in the United States on the same basis as those used for the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 . In the opinion of management, all material adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-period financial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of Atmos Energy Corporation included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. Because of seasonal and other factors, the results of operations for the six -month period ended March 31, 2018 are not indicative of our results of operations for the full 2018 fiscal year, which ends September 30, 2018 . Except for the filed formula rate mechanisms as discussed in Note 9, no events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensed consolidated financial statements. Significant accounting policies Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. During the second quarter of fiscal 2018, we completed our annual goodwill impairment assessment using a qualitative assessment, as permitted under U.S. GAAP. We test goodwill for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we determined that our goodwill was not impaired. In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition standard that will supersede virtually all existing revenue recognition guidance under generally accepted accounting principles in the United States. Under the new standard, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current guidance. The new guidance will become effective for us October 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. As of March 31, 2018, we had substantially completed the evaluation of our sources of revenue and the impact that the new guidance will have on our financial position, results of operations, cash flows and business processes. Based on this evaluation, we currently do not believe the implementation of the new guidance will have a material effect on our financial position, results of operations, cash flows or business processes. We expect to apply the new guidance using the modified retrospective method on the date of adoption. We are currently still evaluating the impact on our financial statement presentation and related disclosures. In January 2016, the FASB issued guidance related to the classification and measurement of financial instruments. The amendments modify the accounting and presentation for certain financial liabilities and equity investments not consolidated or reported using the equity method. The guidance is effective for us beginning October 1, 2018; limited early adoption is permitted. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In February 2016, the FASB issued a comprehensive new leasing standard that will require lessees to recognize a lease liability and a right-of-use asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The new standard will be effective for us beginning on October 1, 2019; early adoption is permitted. The new leasing standard requires modified retrospective transition, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. Additionally, in January 2018, the FASB issued amendments to the standard that provides a practical expedient for entities to not evaluate existing or expired land easements that were not previously accounted for as leases under the current guidance. We are currently evaluating the effect of this standard and amendments on our financial position, results of operations and cash flows. In June 2016, the FASB issued new guidance which will require credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. In contrast, current U.S. GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. The new guidance also introduces a new impairment recognition model for available-for-sale securities that will require credit losses for available-for-sale debt securities to be recorded through an allowance account. The new standard will be effective for us beginning on October 1, 2021; early adoption is permitted beginning on October 1, 2019. We are currently evaluating the potential impact of this new guidance on our financial position, results of operations and cash flows. In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Under the new guidance, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The new standard will be effective for our fiscal 2021 goodwill impairment test; however, early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted the new standard, effective for our goodwill impairment test performed in our second fiscal quarter of 2018. The new standard did not have a material impact on our results of operations, consolidated balance sheets or cash flows. In March 2017, the FASB issued new guidance related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. The new guidance requires entities to disaggregate the current service cost component of the net benefit cost from the other components and present it with other current compensation costs for related employees in the statement of income. The other components of net benefit cost will be presented outside of income from operations on the statement of income. In addition, only the service cost component of net benefit cost is eligible for capitalization (e.g., as part of inventory or property, plant, and equipment). The Federal Energy Regulatory Commission (“FERC”), which regulates interstate transmission pipelines and also establishes, through its Uniform System of Accounts, accounting practices of rate-regulated entities, has issued guidance that states it will permit an election to either continue to capitalize non-service benefit costs or to cease capitalizing such costs for regulatory purposes. Accounting guidelines by the FERC are typically also upheld by state commissions. As such, we plan to continue to capitalize all components of net periodic benefit cost for ratemaking purposes and will defer the non-service cost components as a regulatory asset for U.S. GAAP reporting purposes. The new guidance will be effective for us in the fiscal year beginning on October 1, 2018 and for interim periods within that year. The standard requires retrospective application of the amendment related to the presentation of non-service cost components outside of income from operations in the statement of income and prospective application of the change in eligible costs for capitalization. We do not anticipate the new standard will have a material impact on our financial position, results of operations and cash flows. In February 2018, the FASB issued new guidance as a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA"), related to the treatment of certain tax effects from accumulated other comprehensive income. The new guidance allows entities to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects resulting from the adoption of the TCJA. The new guidance will be effective for us in the fiscal year beginning on October 1, 2019 and for interim periods within that year. Early adoption is permitted, including adoption in any interim period for public business entities for reporting periods for which financial statements have not yet been issued and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We are currently evaluating the impact of this new guidance on our financial results and disclosures. Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and a portion of our regulatory liabilities are recorded as a component of deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation is reported separately. Significant regulatory assets and liabilities as of March 31, 2018 and September 30, 2017 included the following: March 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs (1) $ 20,918 $ 26,826 Infrastructure mechanisms (2) 65,286 46,437 Deferred gas costs — 65,714 Recoverable loss on reacquired debt 9,954 11,208 Deferred pipeline record collection costs 14,646 11,692 APT annual adjustment mechanism — 2,160 Rate case costs 3,016 2,629 Other 8,064 10,132 $ 121,884 $ 176,798 Regulatory liabilities: Regulatory excess deferred taxes (3) $ 737,798 $ — Regulatory cost of service reserve (4) 29,042 — Regulatory cost of removal obligation 526,483 521,330 Deferred gas costs 167,036 15,559 Asset retirement obligation 12,827 12,827 APT annual adjustment mechanism 5,081 — Other 14,740 5,941 $ 1,493,007 $ 555,657 (1) Includes $7.8 million and $9.4 million of pension and postretirement expense deferred pursuant to regulatory authorization. (2) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (3) The TCJA resulted in the remeasurement of the net deferred tax liability included in our rate base. The excess deferred taxes will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. (4) Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% federal statutory rate for service provided on or after January 1, 2018. This liability will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. |
Segment Information
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 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. Basic and diluted earnings per share for the three and six months ended March 31, 2018 and 2017 are calculated as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands, except per share amounts) Basic and Diluted Earnings Per Share from continuing operations Income from continuing operations $ 178,992 $ 162,012 $ 493,124 $ 276,050 Less: Income from continuing operations allocated to participating securities 161 193 459 348 Income from continuing operations available to common shareholders $ 178,831 $ 161,819 $ 492,665 $ 275,702 Basic and diluted weighted average shares outstanding 111,706 105,935 110,135 105,610 Income from continuing operations per share — Basic and Diluted $ 1.60 $ 1.52 $ 4.47 $ 2.61 Basic and Diluted Earnings Per Share from discontinued operations Income from discontinued operations $ — $ 2,716 $ — $ 13,710 Less: Income from discontinued operations allocated to participating securities — 2 — 15 Income from discontinued operations available to common shareholders $ — $ 2,714 $ — $ 13,695 Basic and diluted weighted average shares outstanding 111,706 105,935 110,135 105,610 Income from discontinued operations per share — Basic and Diluted $ — $ 0.03 $ — $ 0.13 Net income per share — Basic and Diluted $ 1.60 $ 1.55 $ 4.47 $ 2.74 |
Debt
Debt | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The nature and terms of our debt instruments and credit facilities are described in detail in Note 5 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. There were no material changes in the terms of our debt instruments during the six months ended March 31, 2018 . Long-term debt at March 31, 2018 and September 30, 2017 consisted of the following: March 31, 2018 September 30, 2017 (In thousands) Unsecured 8.50% Senior Notes, due March 2019 $ 450,000 $ 450,000 Unsecured 3.00% Senior Notes, due 2027 500,000 500,000 Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Floating-rate term loan, due September 2019 (1) 125,000 125,000 Total long-term debt 3,085,000 3,085,000 Less: Original issue premium / discount on unsecured senior notes and debentures (4,412 ) (4,384 ) Debt issuance cost 21,520 22,339 Current maturities 450,000 — $ 2,617,892 $ 3,067,045 (1) Up to $200 million can be drawn under this term loan. We utilize short-term debt to provide cost-effective, short-term financing until it can be replaced with a balance of long-term debt and equity financing that achieves the Company’s desired capital structure with an equity-to-total-capitalization ratio between 50% and 60% , inclusive of long-term and short-term debt. Our short-term borrowing requirements are affected primarily by the seasonal nature of the natural gas business. Changes in the price of natural gas and the amount of natural gas we need to supply our customers’ needs could significantly affect our borrowing requirements. Our short-term borrowings typically reach their highest levels in the winter months. Currently, our short-term borrowing requirements are satisfied through a combination of a $1.5 billion commercial paper program and three committed revolving credit facilities with third-party lenders that provide approximately $1.5 billion of total working capital funding. The primary source of our funding is our commercial paper program, which is supported by a five-year unsecured $1.5 billion credit facility. On March 26, 2018, we executed one of our two one-year extension options which extended the maturity date from September 25, 2021 to September 25, 2022 . The facility bears interest at a base rate or at a LIBOR-based rate for the applicable interest period, plus a spread ranging from zero percent to 1.25 percent , based on the Company’s credit ratings. Additionally, the facility contains a $250 million accordion feature, which provides the opportunity to increase the total committed loan to $1.75 billion . At March 31, 2018 and September 30, 2017 , a total of $129.6 million and $447.7 million was outstanding under our commercial paper program. Additionally, we have a $25 million 364-day unsecured facility, which was renewed effective April 1, 2018 and expires March 31, 2019, and a $10 million 364-day unsecured revolving credit facility, which is used primarily to issue letters of credit. At March 31, 2018 , there were no borrowings outstanding under either of these facilities; however, outstanding letters of credit reduced the total amount available to us under our $10 million facility to $4.4 million . The availability of funds under these credit facilities is subject to conditions specified in the respective credit agreements, all of which we currently satisfy. These conditions include our compliance with financial covenants and the continued accuracy of representations and warranties contained in these agreements. We are required by the financial covenants in each of these facilities to maintain, at the end of each fiscal quarter, a ratio of total-debt-to-total-capitalization of no greater than 70 percent . At March 31, 2018 , our total-debt-to-total-capitalization ratio, as defined in the agreements, was 41 percent . In addition, both the interest margin and the fee that we pay on unused amounts under certain of these facilities are subject to adjustment depending upon our credit ratings. These credit facilities and our public indentures contain usual and customary covenants for our business, including covenants substantially limiting liens, substantial asset sales and mergers. Additionally, our public debt indentures relating to our senior notes and debentures, as well as certain of our revolving credit agreements, each contain a default provision that is triggered if outstanding indebtedness arising out of any other credit agreements in amounts ranging from in excess of $15 million to in excess of $100 million becomes due by acceleration or is not paid at maturity. We were in compliance with all of our debt covenants as of March 31, 2018 . If we were unable to comply with our debt covenants, we would likely be required to repay our outstanding balances on demand, provide additional collateral or take other corrective actions. |
Tax Cuts and Jobs Act of 2017 I
Tax Cuts and Jobs Act of 2017 Impacts | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Tax Cuts and Jobs Act of 2017 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "TCJA") was signed into law. The TCJA introduced several significant changes to corporate income tax laws in the United States. The most significant change that affects Atmos Energy is the reduction of the federal statutory income tax rate from 35% to 21% . As a rate-regulated entity, the accelerated capital expensing and the limitation on interest deductibility provisions included in the TCJA are not applicable to us. Under generally accepted accounting principles, we use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. At September 30, 2017, we measured our net deferred tax liability using the enacted federal statutory tax rate of 35% . The enactment of the TCJA on December 22, 2017 required us to remeasure our deferred tax assets and liabilities, including our U.S. federal income tax net operating loss carryforwards, at the newly enacted federal statutory income tax rate. As the Company’s fiscal year end is September 30, the Internal Revenue Code requires the Company to use a blended statutory federal corporate income tax rate of 24.5% for fiscal 2018. The decrease in the federal statutory income tax rate reduced our net deferred tax liability by $903.5 million . Of this amount, $737.8 million relates to regulated operations and has been recorded as a regulatory liability, which will be returned to utility customers. The period and timing of these revenue adjustments are subject to Internal Revenue Code provisions and regulatory actions in each of the eight states in which we operate. The remaining $165.7 million has been reflected as a one-time income tax benefit in our condensed consolidated statement of income for the six months ended March 31, 2018, because these taxes were not considered in our cost of service ratemaking. During the three months ended March 31, 2018, we refined the calculations performed to remeasure the Company's net deferred tax liabilities, which resulted in the recognition of a $3.8 million income tax benefit. At March 31, 2018, we had $274.7 million of remeasured federal net operating loss carryforwards. The federal net operating loss carryforwards are available to offset future taxable income and will begin to expire in 2029 . The Company also has $10.1 million of federal alternative minimum tax credit carryforwards that do not expire and are expected to be fully refunded to us between 2019 and 2022 as a result of changes introduced by the TCJA. These credit carryforwards are now reflected as taxes receivable within the deferred charges and other assets line item on our condensed consolidated balance sheet. In addition, the Company has $5.2 million in remeasured charitable contribution carryforwards to offset future taxable income. The Company’s charitable contribution carryforwards expire between 2018 and 2023 . The Company also has $21.5 million of state net operating loss carryforwards and $1.5 million of state tax credit carryforwards (net of $5.7 million and $0.4 million of remeasured federal effects). Depending on the jurisdiction in which the state net operating loss was generated, the carryforwards will begin to expire between 2018 and 2032 . Due to the changes introduced by the TCJA, we now believe it is more likely than not that the benefit from certain charitable contribution carryforwards for which a valuation allowance was previously established will be realized. As a result, we reduced our valuation allowance by $4.2 million during the first quarter. This amount is included in the $165.7 million one-time income tax benefit. The SEC issued guidance in Staff Accounting Bulletin 118 (SAB 118), which allows us to record provisional amounts during a one-year measurement period, similar to the measurement period in accounting for business combinations. The Company has determined a reasonable estimate for the measurement and accounting for certain effects of the TCJA, including the remeasurement of our net deferred tax liabilities and the establishment of a regulatory liability, which have been reflected as provisional amounts in the March 31, 2018 condensed consolidated financial statements and are described in further detail above. The amounts represent our best estimates based upon records, information and current guidance. We are still analyzing certain aspects of the TCJA, refining our calculations and expecting additional guidance relating to the TCJA from the U.S. Department of the Treasury and the Internal Revenue Service. Any additional guidance issued or future actions of our regulators could potentially affect the final determination of the accounting effects arising from the implementation of the TCJA. We are actively working with our regulators in each jurisdiction to address the impact of the TCJA on our cost of service based rates. Accounting orders have been issued for all our service areas that required us to establish, effective January 1, 2018, a separate regulatory liability for the difference in taxes included in our rates that have been calculated based on a 35% statutory income tax rate and the new 21% statutory income tax rate. The establishment of this regulatory liability relating to our cost of service rates resulted in a reduction to our revenues beginning in the second quarter of fiscal 2018. The period and timing of the return of these liabilities to utility customers will be determined by regulators in each of our jurisdictions. During the fiscal 2018 second quarter, we received approval from regulators to update our cost of service rates to reflect the decrease in the statutory income tax rate in our Colorado, Kansas, Kentucky and Texas service areas. The return to customers of regulatory liabilities recorded for differences in our cost of service rates due to the change in the federal statutory income tax rate and the excess deferred taxes created upon implementation of the TCJA will be addressed in future regulatory proceedings. We are still working with regulators in Louisiana, Mississippi, Tennessee and Virginia to reflect the effects of the TCJA in our cost of service in rates. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Shelf Registration, At-the-Market Equity Sales Program and Equity Issuance On March 28, 2016, we filed a registration statement with the Securities and Exchange Commission (SEC) that originally permitted us to issue, from time to time, up to $2.5 billion in common stock and/or debt securities, which expires March 28, 2019. At March 31, 2018 , approximately $1.2 billion of securities remained available for issuance under the shelf registration statement. On November 14, 2017, we filed a prospectus supplement under the registration statement relating to an at-the-market (ATM) equity sales program under which we may issue and sell shares of our common stock up to an aggregate offering price of $500 million , which expires March 28, 2019. During the six months ended March 31, 2018 , no shares of common stock were sold under the ATM program. On November 30, 2017, we filed a prospectus supplement under the registration statement relating to an underwriting agreement to sell 4,558,404 shares of our common stock. We received aggregate gross proceeds of $400 million and received net proceeds, after expenses, of $395.1 million from the offering. Accumulated Other Comprehensive Income (Loss) We record deferred gains (losses) in AOCI related to available-for-sale securities, interest rate cash flow hedges and prior to the sale of Atmos Energy Marketing, LLC (AEM) on January 3, 2017, commodity contract cash flow hedges. Deferred gains (losses) for our available-for-sale securities and commodity contract cash flow hedges are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate agreement cash flow hedges are recognized in earnings as they are amortized. The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss): Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2017 $ 7,048 $ (112,302 ) $ (105,254 ) Other comprehensive income (loss) before reclassifications (167 ) 20,454 20,287 Amounts reclassified from accumulated other comprehensive income (879 ) 835 (44 ) Net current-period other comprehensive income (loss) (1,046 ) 21,289 20,243 March 31, 2018 $ 6,002 $ (91,013 ) $ (85,011 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Commodity Contracts Cash Flow Hedges Total (In thousands) September 30, 2016 $ 4,484 $ (187,524 ) $ (4,982 ) $ (188,022 ) Other comprehensive income before reclassifications 634 95,271 9,847 105,752 Amounts reclassified from accumulated other comprehensive income 68 173 (4,865 ) (4,624 ) Net current-period other comprehensive income 702 95,444 4,982 101,128 March 31, 2017 $ 5,186 $ (92,080 ) $ — $ (86,894 ) The following tables detail reclassifications out of AOCI for the three and six months ended March 31, 2018 and 2017 . Amounts in parentheses below indicate decreases to net income in the statement of income: Three Months Ended March 31, 2018 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ 1,139 Operation and maintenance expense 1,139 Total before tax (260 ) Tax expense $ 879 Net of tax Cash flow hedges Interest rate agreements $ (593 ) Interest charges (593 ) Total before tax 135 Tax benefit $ (458 ) Net of tax Total reclassifications $ 421 Net of tax Three Months Ended March 31, 2017 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ (107 ) Operation and maintenance expense (107 ) Total before tax 39 Tax benefit $ (68 ) Net of tax Cash flow hedges Interest rate agreements $ (136 ) Interest charges (136 ) Total before tax 50 Tax benefit $ (86 ) Net of tax Total reclassifications $ (154 ) Net of tax Six Months Ended March 31, 2018 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ 1,139 Operation and maintenance expense 1,139 Total before tax (260 ) Tax expense $ 879 Net of tax Cash flow hedges Interest rate agreements $ (1,187 ) Interest charges (1,187 ) Total before tax 352 Tax benefit $ (835 ) Net of tax Total reclassifications $ 44 Net of tax Six Months Ended March 31, 2017 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ (107 ) Operation and maintenance expense (107 ) Total before tax 39 Tax benefit $ (68 ) Net of tax Cash flow hedges Interest rate agreements $ (273 ) Interest charges Commodity contracts 7,967 Purchased gas cost (1) 7,694 Total before tax (3,002 ) Tax expense $ 4,692 Net of tax Total reclassifications $ 4,624 Net of tax (1) Amount is presented as part of income from discontinued operations in the condensed consolidated statement of income. |
Interim Pension and Other Postr
Interim Pension and Other Postretirement Benefit Plan Information | 6 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Interim Pension and Postretirement Benefit Plans | Interim Pension and Other Postretirement Benefit Plan Information The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2018 and 2017 are presented in the following tables. Most of these costs are recoverable through our tariff rates; however, a portion of these costs is capitalized into our rate base. The remaining costs are recorded as a component of operation and maintenance expense. In the second quarter of fiscal 2018, due to the retirement of certain executives, we recognized a settlement loss of $2.4 million associated with our Supplemental Executive Retirement Plan and revalued the net periodic pension cost for the remainder of fiscal 2018. The revaluation of the net periodic pension cost for our Supplemental Executive Retirement Plan resulted in an increase in the discount rate, effective March 1, 2018, to 4.12% , which will increase our net periodic pension cost by approximately $0.1 million for the remainder of the fiscal year. Three Months Ended March 31 Pension Benefits Other Benefits 2018 2017 2018 2017 (In thousands) Components of net periodic pension cost: Service cost $ 4,575 $ 5,217 $ 3,019 $ 3,109 Interest cost 6,433 6,297 2,727 2,670 Expected return on assets (6,916 ) (6,994 ) (2,001 ) (1,797 ) Amortization of prior service cost (credit) (58 ) (58 ) 3 (411 ) Amortization of actuarial (gain) loss 3,085 4,249 (1,619 ) (707 ) Settlements 2,415 — — — Net periodic pension cost $ 9,534 $ 8,711 $ 2,129 $ 2,864 Six Months Ended March 31 Pension Benefits Other Benefits 2018 2017 2018 2017 (In thousands) Components of net periodic pension cost: Service cost $ 9,135 $ 10,433 $ 6,039 $ 6,218 Interest cost 12,863 12,594 5,454 5,340 Expected return on assets (13,833 ) (13,988 ) (4,003 ) (3,593 ) Amortization of prior service cost (credit) (116 ) (116 ) 6 (822 ) Amortization of actuarial (gain) loss 6,174 8,498 (3,237 ) (1,414 ) Settlements 2,415 — — — Net periodic pension cost $ 16,638 $ 17,421 $ 4,259 $ 5,729 The assumptions used to develop our net periodic pension cost for the three and six months ended March 31, 2018 and 2017 are as follows: Supplemental Executive Retirement Plan Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 Discount rate 4.12% 3.73% 3.89% 3.73% 3.89% 3.73% Rate of compensation increase 3.50% 3.50% 3.50% 3.50% N/A N/A Expected return on plan assets N/A N/A 6.75% 7.00% 4.29% 4.45% The discount rate used to compute the present value of a plan’s liabilities generally is based on rates of high-grade corporate bonds with maturities similar to the average period over which the benefits will be paid. Generally, our funding policy has been to contribute annually an amount in accordance with the requirements of the Employee Retirement Income Security Act of 1974. In accordance with the Pension Protection Act of 2006 (PPA), we determined the funded status of our plan as of January 1, 2017. Based on that determination, we are not required to make a minimum contribution to our defined benefit plan during fiscal 2018 ; however, we may consider whether a voluntary contribution is prudent to maintain certain funding levels. We contributed $7.5 million to our other post-retirement benefit plans during the six months ended March 31, 2018 . We expect to contribute a total of between $10 million and $20 million to these plans during fiscal 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Environmental Matters In the normal course of business, we are subject to various legal and regulatory proceedings. For such matters, we record liabilities when they are considered probable and estimable, based on currently available facts, our historical experience, and our estimates of the ultimate outcome or resolution of the liability in the future. While the outcome of these proceedings is uncertain and a loss in excess of the amount we have accrued is possible though not reasonably estimable, it is the opinion of management that any amounts exceeding the accruals will not have a material adverse impact on our financial position, results of operations, or cash flows. We maintain liability insurance for various risks associated with the operation of our natural gas pipelines and facilities, including for property damage and bodily injury. These liability insurance policies generally require us to be responsible for the first $1.0 million (self-insured retention) of each incident. The National Transportation Safety Board (NTSB) is investigating an incident that occurred at a Dallas, Texas residence on February 23, 2018 that resulted in one fatality and injuries to four other residents. Together with the Railroad Commission of Texas and the Pipeline and Hazardous Materials Safety Administration, Atmos Energy is a party to the investigation and in that capacity is working closely with the NTSB to help determine the cause of this incident. On March 29, 2018 , a civil action was filed in Dallas, Texas against Atmos Energy in response to the February 23rd incident. The plaintiffs seek over $1.0 million in damages for, among with others, wrongful death and personal injury. We are a party to various other litigation and environmental-related matters or claims that have arisen in the ordinary course of our business. While the results of such litigation and response actions to such environmental-related matters or claims cannot be predicted with certainty, we continue to believe the final outcome of such litigation and matters or claims will not have a material adverse effect on our financial condition, results of operations or cash flows. Purchase Commitments Our distribution divisions maintain supply contracts with several vendors that generally cover a period of up to one year. Commitments for estimated base gas volumes are established under these contracts on a monthly basis at contractually negotiated prices. Commitments for incremental daily purchases are made as necessary during the month in accordance with the terms of the individual contract. Our Mid-Tex Division also maintains a limited number of long-term supply contracts to ensure a reliable source of gas for our customers in its service area, which obligate it to purchase specified volumes at prices indexed to natural gas hubs. At March 31, 2018 , we were committed to purchase 55.0 Bcf within one year and 64.7 Bcf within two to three years under indexed contracts. Regulatory Matters Various regulatory agencies, including the SEC and the Commodities Futures Trading Commission, continue to adopt regulations implementing many of the provisions of the Dodd-Frank Act of 2010. We continue to enact new procedures and modify existing business practices and contractual arrangements to comply with such regulations. Additional rulemakings are pending which we believe will result in new reporting and disclosure obligations. The costs associated with hedging certain risks inherent in our business may be further increased when these expected additional regulations are adopted. As of March 31, 2018 , formula rate mechanisms were pending regulatory approval in our Louisiana and Tennessee service areas, infrastructure mechanisms were pending regulatory approval in our Mid-Tex, Mississippi and West Texas service areas as well as the Atmos Pipeline–Texas Division and rate cases were pending regulatory approval in our Colorado and Kentucky service areas. These regulatory proceedings are discussed in further detail below in Management’s Discussion and Analysis — Recent Ratemaking Developments . On April 3, 2018 , we filed formula rate mechanisms in our Mid-Tex and West Texas service areas, seeking increases in operating income. Additionally, as discussed in further detail in Note 6, all jurisdictions are addressing impacts of the TCJA. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments We currently use financial instruments to mitigate commodity price risk and interest rate risk. The objectives and strategies for using financial instruments and the related accounting for these financial instruments are fully described in Notes 2 and 13 to the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. During the six months ended March 31, 2018 , there were no material changes in our objectives, strategies and accounting for using financial instruments. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause payments to be accelerated when our financial instruments are in net liability positions. The following summarizes those objectives and strategies. Commodity Risk Management Activities Our purchased gas cost adjustment mechanisms essentially insulate our distribution segment from commodity price risk; however, our customers are exposed to the effects of volatile natural gas prices. We manage this exposure through a combination of physical storage, fixed-price forward contracts and financial instruments, primarily over-the-counter swap and option contracts, in an effort to minimize the impact of natural gas price volatility on our customers during the winter heating season. We typically seek to hedge between 25 and 50 percent of anticipated heating season gas purchases using financial instruments. For the 2017 - 2018 heating season (generally October through March), in the jurisdictions where we are permitted to utilize financial instruments, we hedged approximately 26 percent , or 15.0 Bcf of the winter flowing gas requirements. We have not designated these financial instruments as hedges for accounting purposes. Interest Rate Risk Management Activities We periodically manage interest rate risk by entering into financial instruments to effectively fix the Treasury yield component of the interest cost associated with anticipated financings. As of March 31, 2018 , we had forward starting interest rate swaps to effectively fix the Treasury yield component associated with the anticipated issuance of $450 million unsecured senior notes in fiscal 2019 at 3.78% , which we designated as a cash flow hedge at the time the swaps were executed. As of March 31, 2018 , we had $49.1 million of net realized losses in accumulated other comprehensive income (AOCI) associated with the settlement of financial instruments used to fix the Treasury yield component of the interest cost of financing various issuances of long-term debt and senior notes, which will be recognized as a component of interest expense over the life of the associated notes from the date of settlement. The remaining amortization periods for these settled amounts extend through fiscal 2045. Quantitative Disclosures Related to Financial Instruments The following tables present detailed information concerning the impact of financial instruments on our condensed consolidated balance sheet and income statements. As of March 31, 2018 , our financial instruments were comprised of both long and short commodity positions. A long position is a contract to purchase the commodity, while a short position is a contract to sell the commodity. As of March 31, 2018 , we had 6,251 MMcf of net short commodity contracts outstanding. These contracts have not been designated as hedges. Financial Instruments on the Balance Sheet The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2018 and September 30, 2017 . 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 our counterparties. Balance Sheet Location Assets Liabilities (In thousands) March 31, 2018 Designated As Hedges: Interest rate contracts Other current assets / Other current liabilities $ — $ (85,948 ) Total — (85,948 ) Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities 602 (996 ) Total 602 (996 ) Gross Financial Instruments 602 (86,944 ) Gross Amounts Offset on Consolidated Balance Sheet: Contract netting — — Net Financial Instruments 602 (86,944 ) Cash collateral — — Net Assets/Liabilities from Risk Management Activities $ 602 $ (86,944 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2017 Designated As Hedges: Interest rate contracts Deferred charges and other assets / Deferred credits and other liabilities $ — $ (112,076 ) Total — (112,076 ) Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities 2,436 (322 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 803 — Total 3,239 (322 ) Gross Financial Instruments 3,239 (112,398 ) Gross Amounts Offset on Consolidated Balance Sheet: Contract netting — — Net Financial Instruments 3,239 (112,398 ) Cash collateral — — Net Assets/Liabilities from Risk Management Activities $ 3,239 $ (112,398 ) Impact of Financial Instruments on the Income Statement Cash Flow Hedges As discussed above, our distribution segment has interest rate swap agreements, which we designated as a cash flow hedge at the time the swaps were executed. The net loss on settled interest rate agreements reclassified from AOCI into interest charges on our condensed consolidated statements of income for the three months ended March 31, 2018 and 2017 was $0.6 million and $0.1 million and for the six months ended March 31, 2018 and 2017 was $1.2 million and $0.3 million . 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 six months ended March 31, 2018 and 2017 . 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 Six Months Ended 2018 2017 (1) 2018 2017 (1) (In thousands) Increase in fair value: Interest rate agreements $ 21,786 $ 4,144 $ 20,454 $ 95,271 Forward commodity contracts (2) — — — 9,847 Recognition of (gains) losses in earnings due to settlements: Interest rate agreements 458 86 835 173 Forward commodity contracts (2) — — — (4,865 ) Total other comprehensive income from hedging, net of tax $ 22,244 $ 4,230 $ 21,289 $ 100,426 (1) Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction for the three and six-month period ended March 31, 2017. (2) Due to the sale of AEM, these amounts are included in income from discontinued operations. Deferred gains (losses) recorded in AOCI associated with our interest rate agreements are recognized in earnings as they are amortized over the terms of the underlying debt instruments. The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of March 31, 2018 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. 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 $ (1,833 ) Thereafter (47,281 ) Total $ (49,114 ) Financial Instruments Not Designated as Hedges As discussed above, financial instruments used in our distribution segment are not designated as hedges. However, there is no earnings impact on our distribution segment as a result of the use of these financial instruments because the gains and losses arising from the use of these financial instruments are recognized in the consolidated statement of income as a component of purchased gas cost when the related costs are recovered through our rates and recognized in revenue. Accordingly, the impact of these financial instruments is excluded from this presentation. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. During the six months ended March 31, 2018 , there were no changes in these methods. Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about fair value measurements of the assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 7 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. Quantitative Disclosures Financial Instruments The classification of our fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. Authoritative accounting literature establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), with the lowest priority given to unobservable inputs (Level 3). The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2018 and September 30, 2017 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral March 31, 2018 (In thousands) Assets: Financial instruments $ — $ 602 $ — $ — $ 602 Available-for-sale securities Registered investment companies 39,783 — — — 39,783 Bond mutual funds 16,308 — — — 16,308 Bonds — 31,137 — — 31,137 Money market funds — 6,437 — — 6,437 Total available-for-sale securities 56,091 37,574 — — 93,665 Total assets $ 56,091 $ 38,176 $ — $ — $ 94,267 Liabilities: Financial instruments $ — $ 86,944 $ — $ — $ 86,944 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2017 (In thousands) Assets: Financial instruments $ — $ 3,239 $ — $ — $ 3,239 Available-for-sale securities Registered investment companies 41,097 — — — 41,097 Bond mutual funds 16,371 — — — 16,371 Bonds — 29,104 — — 29,104 Money market funds — 1,837 — — 1,837 Total available-for-sale securities 57,468 30,941 — — 88,409 Total assets $ 57,468 $ 34,180 $ — $ — $ 91,648 Liabilities: Financial instruments $ — $ 112,398 $ — $ — $ 112,398 (1) Our Level 2 measurements consist of over-the-counter options and swaps which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds which are valued based on the most recent available quoted market prices and money market funds which are valued at cost. Available-for-sale securities are comprised of the following: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (In thousands) As of March 31, 2018 Domestic equity mutual funds $ 25,515 $ 8,194 $ (95 ) $ 33,614 Foreign equity mutual funds 4,138 2,031 — 6,169 Bond mutual funds 16,548 — (240 ) 16,308 Bonds 31,295 4 (162 ) 31,137 Money market funds 6,437 — — 6,437 $ 83,933 $ 10,229 $ (497 ) $ 93,665 As of September 30, 2017 Domestic equity mutual funds $ 25,361 $ 8,920 $ — $ 34,281 Foreign equity mutual funds 4,581 2,235 — 6,816 Bond mutual funds 16,391 2 (22 ) 16,371 Bonds 29,074 46 (16 ) 29,104 Money market funds 1,837 — — 1,837 $ 77,244 $ 11,203 $ (38 ) $ 88,409 At March 31, 2018 and September 30, 2017 , our available-for-sale securities included $46.2 million and $42.9 million related to assets held in separate rabbi trusts for our supplemental executive benefit plans. At March 31, 2018 , we maintained investments in bonds that have contractual maturity dates ranging from April 2018 through January 2021. These securities are reported at market value with unrealized gains and losses shown as a component of accumulated other comprehensive income (loss). We regularly evaluate the performance of these investments on a fund by fund basis for impairment, taking into consideration the fund’s purpose, volatility and current returns. If a determination is made that a decline in fair value is other than temporary, the related fund is written down to its estimated fair value and the other-than-temporary impairment is recognized in the income statement. Other Fair Value Measures Our debt is recorded at carrying value. The fair value of our debt is determined using third party market value quotations, which are considered Level 1 fair value measurements for debt instruments with a recent, observable trade or Level 2 fair value measurements for debt instruments where fair value is determined using the most recent available quoted market price. The following table presents the carrying value and fair value of our debt as of March 31, 2018 and September 30, 2017 : March 31, 2018 September 30, 2017 (In thousands) Carrying Amount $ 3,085,000 $ 3,085,000 Fair Value $ 3,291,629 $ 3,382,272 |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Information regarding our concentration of credit risk is disclosed in Note 16 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. During the six months ended March 31, 2018 , there were no material changes in our concentration of credit risk. |
Divestitures and Acquisitions
Divestitures and Acquisitions | 6 Months Ended |
Mar. 31, 2018 | |
Divestitures and Acquisitions [Abstract] | |
Divestitures and Acquisitions [Text Block] | Discontinued Operations On October 29, 2016, we entered into a Membership Interest Purchase Agreement (the Agreement) with CenterPoint Energy Services, Inc., a subsidiary of CenterPoint Energy, Inc. (CES) to sell all of the equity interests of Atmos Energy Marketing, LLC (AEM). The transaction closed on January 3, 2017, with an effective date of January 1, 2017 . CES paid a cash purchase price of $38.3 million plus working capital of $109.0 million for total cash consideration of $147.3 million . Of this amount, $7.0 million was placed into escrow and was to be paid to the Company within 24 months of the closing date, net of any indemnification claims agreed upon between the two companies. In January 2018, $3.0 million of this escrowed amount was released and received by the Company. We recognized a net gain of $0.03 per diluted share on the sale in the second quarter of fiscal 2017 and completed the working capital true–up during the third quarter of fiscal 2017. The operating results of our natural gas marketing reportable segment have been reported on the condensed consolidated statement of income as income from discontinued operations, net of income tax, for the six months ended March 31, 2017. Accordingly, expenses related to allocable general corporate overhead and interest expense are not included in these results. The tables below set forth selected financial information related to discontinued operations. Operating expenses include operation and maintenance expense, provision for doubtful accounts, depreciation and amortization expense and taxes, other than income. At March 31, 2018 and September 30, 2017 we did not have any assets or liabilities held for sale. As AEM was sold effective January 1, 2017, no operating results are reported on the condensed consolidated statement of income as discontinued operations for the three months ended March 31, 2017. During the three months ended March 31, 2017, we recorded a gain on sale from discontinued operations for $2.7 million , net of tax of $10.2 million . The following table presents statement of income data related to discontinued operations: Six Months Ended (In thousands) Operating revenues $ 303,474 Purchased gas cost 277,554 Operating expenses 7,874 Operating income 18,046 Other nonoperating expense (211 ) Income from discontinued operations before income taxes 17,835 Income tax expense 6,841 Income from discontinued operations 10,994 Gain on sale from discontinued operations, net of tax ($10,215) 2,716 Net income from discontinued operations $ 13,710 The following table presents statement of cash flow data related to discontinued operations: Six Months Ended (In thousands) Depreciation and amortization expense $ 185 Capital expenditures $ — Non-cash loss in commodity contract cash flow hedges $ (8,165 ) Natural Gas Marketing Commodity Risk Management Activities Our discontinued natural gas marketing segment was exposed to risks associated with changes in the market price of natural gas through the purchase, sale and delivery of natural gas to its customers at competitive prices. Through December 31, 2016, we managed our exposure to such risks through a combination of physical storage and financial instruments, including futures, over-the-counter and exchange-traded options and swap contracts with counterparties. Effective January 1, 2017, as a result of the sale of AEM, these activities were discontinued. Due to the sale of AEM, we determined that the cash flows associated with our natural gas marketing commodity cash flow hedges were no longer probable of occurring; therefore, we discontinued hedge accounting as of December 31, 2016. As a result, we reclassified the gain in accumulated other comprehensive income associated with the commodity contracts into earnings as a reduction of purchased gas cost and recognized a pre-tax gain of $10.6 million , which is included in income from discontinued operations on the condensed consolidated statement of income for the six months ended March 31, 2017. The Company's other risk management activities are discussed in Note 10. Impact of Financial Instruments on the Income Statement Hedge ineffectiveness for our natural gas marketing segment was recorded as a component of purchased gas cost, which is included in discontinued operations on the condensed consolidated statements of income, and primarily results from differences in the location and timing of the derivative instrument and the hedged item. For the six months ended March 31, 2017 , we recognized a gain arising from fair value and cash flow hedge ineffectiveness of $3.4 million . Additional information regarding ineffectiveness recognized in the income statement is included in the tables below. Fair Value Hedges 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 six months ended March 31, 2017 is presented below. Six Months Ended (In thousands) Commodity contracts $ (9,567 ) Fair value adjustment for natural gas inventory designated as the hedged item 12,858 Total decrease in purchased gas cost reflected in income from discontinued operations $ 3,291 The decrease in purchased gas cost reflected in income from discontinued operations is comprised of the following: Basis ineffectiveness $ (597 ) Timing ineffectiveness 3,888 $ 3,291 Basis ineffectiveness arises from natural gas market price differences between the locations of the hedged inventory and the delivery location specified in the hedge instruments. Timing ineffectiveness arises due to changes in the difference between the spot price and the futures price, as well as the difference between the timing of the settlement of the futures and the valuation of the underlying physical commodity. Cash Flow Hedges The impact of our natural gas marketing segment cash flow hedges on our condensed consolidated income statements for the six months ended March 31, 2017 is presented below: Six Months Ended (In thousands) Loss reclassified from AOCI for effective portion of natural gas marketing commodity contracts $ (2,612 ) Gain arising from ineffective portion of natural gas marketing commodity contracts 111 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 $ 8,078 Financial Instruments Not Designated as Hedges The impact of the natural gas marketing segment's financial instruments that had not been designated as hedges on our condensed consolidated income statements for the six months ended March 31, 2017 was a decrease in purchased gas cost of $6.8 million , which is included in discontinued operations on the condensed consolidated statements of income. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 6 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Regulatory assets and liabilities | Regulatory assets and liabilities Accounting principles generally accepted in the United States require cost-based, rate-regulated entities that meet certain criteria to reflect the authorized recovery of costs due to regulatory decisions in their financial statements. As a result, certain costs are permitted to be capitalized rather than expensed because they can be recovered through rates. We record certain costs as regulatory assets when future recovery through customer rates is considered probable. Regulatory liabilities are recorded when it is probable that revenues will be reduced for amounts that will be credited to customers through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of deferred charges and other assets and a portion of our regulatory liabilities are recorded as a component of deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and our regulatory excess deferred taxes and regulatory cost of removal obligation is reported separately. |
Segment Reporting | 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. |
Earnings Per Share | Earnings Per Share We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a nonforfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator. |
Fair Value Measurements | Fair Value Measurements We report certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We record cash and cash equivalents, accounts receivable and accounts payable at carrying value, which substantially approximates fair value due to the short-term nature of these assets and liabilities. For other financial assets and liabilities, we primarily use quoted market prices and other observable market pricing information to minimize the use of unobservable pricing inputs in our measurements when determining fair value. The methods used to determine fair value for our assets and liabilities are fully described in Note 2 to the financial statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. During the six months ended March 31, 2018 , there were no changes in these methods. |
Income Tax | Under generally accepted accounting principles, we use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. |
Unaudited Financial Informati23
Unaudited Financial Information (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Regulatory Assets And Liabilities Table [Abstract] | |
Schedule Of Regulatory Assets And Liabilities [Table Text Block] | Significant regulatory assets and liabilities as of March 31, 2018 and September 30, 2017 included the following: March 31, September 30, (In thousands) Regulatory assets: Pension and postretirement benefit costs (1) $ 20,918 $ 26,826 Infrastructure mechanisms (2) 65,286 46,437 Deferred gas costs — 65,714 Recoverable loss on reacquired debt 9,954 11,208 Deferred pipeline record collection costs 14,646 11,692 APT annual adjustment mechanism — 2,160 Rate case costs 3,016 2,629 Other 8,064 10,132 $ 121,884 $ 176,798 Regulatory liabilities: Regulatory excess deferred taxes (3) $ 737,798 $ — Regulatory cost of service reserve (4) 29,042 — Regulatory cost of removal obligation 526,483 521,330 Deferred gas costs 167,036 15,559 Asset retirement obligation 12,827 12,827 APT annual adjustment mechanism 5,081 — Other 14,740 5,941 $ 1,493,007 $ 555,657 (1) Includes $7.8 million and $9.4 million of pension and postretirement expense deferred pursuant to regulatory authorization. (2) Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates. (3) The TCJA resulted in the remeasurement of the net deferred tax liability included in our rate base. The excess deferred taxes will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. (4) Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% federal statutory rate for service provided on or after January 1, 2018. This liability will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. |
Segment Information (Table)
Segment Information (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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 |
Earnings Per Share (Table)
Earnings Per Share (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share table | Basic and diluted earnings per share for the three and six months ended March 31, 2018 and 2017 are calculated as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands, except per share amounts) Basic and Diluted Earnings Per Share from continuing operations Income from continuing operations $ 178,992 $ 162,012 $ 493,124 $ 276,050 Less: Income from continuing operations allocated to participating securities 161 193 459 348 Income from continuing operations available to common shareholders $ 178,831 $ 161,819 $ 492,665 $ 275,702 Basic and diluted weighted average shares outstanding 111,706 105,935 110,135 105,610 Income from continuing operations per share — Basic and Diluted $ 1.60 $ 1.52 $ 4.47 $ 2.61 Basic and Diluted Earnings Per Share from discontinued operations Income from discontinued operations $ — $ 2,716 $ — $ 13,710 Less: Income from discontinued operations allocated to participating securities — 2 — 15 Income from discontinued operations available to common shareholders $ — $ 2,714 $ — $ 13,695 Basic and diluted weighted average shares outstanding 111,706 105,935 110,135 105,610 Income from discontinued operations per share — Basic and Diluted $ — $ 0.03 $ — $ 0.13 Net income per share — Basic and Diluted $ 1.60 $ 1.55 $ 4.47 $ 2.74 |
Debt (Table)
Debt (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Debt | Long-term debt at March 31, 2018 and September 30, 2017 consisted of the following: March 31, 2018 September 30, 2017 (In thousands) Unsecured 8.50% Senior Notes, due March 2019 $ 450,000 $ 450,000 Unsecured 3.00% Senior Notes, due 2027 500,000 500,000 Unsecured 5.95% Senior Notes, due 2034 200,000 200,000 Unsecured 5.50% Senior Notes, due 2041 400,000 400,000 Unsecured 4.15% Senior Notes, due 2043 500,000 500,000 Unsecured 4.125% Senior Notes, due 2044 750,000 750,000 Medium-term note Series A, 1995-1, 6.67%, due 2025 10,000 10,000 Unsecured 6.75% Debentures, due 2028 150,000 150,000 Floating-rate term loan, due September 2019 (1) 125,000 125,000 Total long-term debt 3,085,000 3,085,000 Less: Original issue premium / discount on unsecured senior notes and debentures (4,412 ) (4,384 ) Debt issuance cost 21,520 22,339 Current maturities 450,000 — $ 2,617,892 $ 3,067,045 |
Shareholders' Equity (Table)
Shareholders' Equity (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables provide the components of our accumulated other comprehensive income (loss) balances, net of the related tax effects allocated to each component of other comprehensive income (loss): Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Total (In thousands) September 30, 2017 $ 7,048 $ (112,302 ) $ (105,254 ) Other comprehensive income (loss) before reclassifications (167 ) 20,454 20,287 Amounts reclassified from accumulated other comprehensive income (879 ) 835 (44 ) Net current-period other comprehensive income (loss) (1,046 ) 21,289 20,243 March 31, 2018 $ 6,002 $ (91,013 ) $ (85,011 ) Available- for-Sale Securities Interest Rate Agreement Cash Flow Hedges Commodity Contracts Cash Flow Hedges Total (In thousands) September 30, 2016 $ 4,484 $ (187,524 ) $ (4,982 ) $ (188,022 ) Other comprehensive income before reclassifications 634 95,271 9,847 105,752 Amounts reclassified from accumulated other comprehensive income 68 173 (4,865 ) (4,624 ) Net current-period other comprehensive income 702 95,444 4,982 101,128 March 31, 2017 $ 5,186 $ (92,080 ) $ — $ (86,894 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following tables detail reclassifications out of AOCI for the three and six months ended March 31, 2018 and 2017 . Amounts in parentheses below indicate decreases to net income in the statement of income: Three Months Ended March 31, 2018 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ 1,139 Operation and maintenance expense 1,139 Total before tax (260 ) Tax expense $ 879 Net of tax Cash flow hedges Interest rate agreements $ (593 ) Interest charges (593 ) Total before tax 135 Tax benefit $ (458 ) Net of tax Total reclassifications $ 421 Net of tax Three Months Ended March 31, 2017 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ (107 ) Operation and maintenance expense (107 ) Total before tax 39 Tax benefit $ (68 ) Net of tax Cash flow hedges Interest rate agreements $ (136 ) Interest charges (136 ) Total before tax 50 Tax benefit $ (86 ) Net of tax Total reclassifications $ (154 ) Net of tax Six Months Ended March 31, 2018 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ 1,139 Operation and maintenance expense 1,139 Total before tax (260 ) Tax expense $ 879 Net of tax Cash flow hedges Interest rate agreements $ (1,187 ) Interest charges (1,187 ) Total before tax 352 Tax benefit $ (835 ) Net of tax Total reclassifications $ 44 Net of tax Six Months Ended March 31, 2017 Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income (In thousands) Available-for-sale securities $ (107 ) Operation and maintenance expense (107 ) Total before tax 39 Tax benefit $ (68 ) Net of tax Cash flow hedges Interest rate agreements $ (273 ) Interest charges Commodity contracts 7,967 Purchased gas cost (1) 7,694 Total before tax (3,002 ) Tax expense $ 4,692 Net of tax Total reclassifications $ 4,624 Net of tax (1) Amount is presented as part of income from discontinued operations in the condensed consolidated statement of income. |
Interim Pension and Other Pos28
Interim Pension and Other Postretirement Benefits (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Components of net periodic pension cost table | The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and six months ended March 31, 2018 and 2017 are presented in the following tables. Most of these costs are recoverable through our tariff rates; however, a portion of these costs is capitalized into our rate base. The remaining costs are recorded as a component of operation and maintenance expense. In the second quarter of fiscal 2018, due to the retirement of certain executives, we recognized a settlement loss of $2.4 million associated with our Supplemental Executive Retirement Plan and revalued the net periodic pension cost for the remainder of fiscal 2018. The revaluation of the net periodic pension cost for our Supplemental Executive Retirement Plan resulted in an increase in the discount rate, effective March 1, 2018, to 4.12% , which will increase our net periodic pension cost by approximately $0.1 million for the remainder of the fiscal year. Three Months Ended March 31 Pension Benefits Other Benefits 2018 2017 2018 2017 (In thousands) Components of net periodic pension cost: Service cost $ 4,575 $ 5,217 $ 3,019 $ 3,109 Interest cost 6,433 6,297 2,727 2,670 Expected return on assets (6,916 ) (6,994 ) (2,001 ) (1,797 ) Amortization of prior service cost (credit) (58 ) (58 ) 3 (411 ) Amortization of actuarial (gain) loss 3,085 4,249 (1,619 ) (707 ) Settlements 2,415 — — — Net periodic pension cost $ 9,534 $ 8,711 $ 2,129 $ 2,864 Six Months Ended March 31 Pension Benefits Other Benefits 2018 2017 2018 2017 (In thousands) Components of net periodic pension cost: Service cost $ 9,135 $ 10,433 $ 6,039 $ 6,218 Interest cost 12,863 12,594 5,454 5,340 Expected return on assets (13,833 ) (13,988 ) (4,003 ) (3,593 ) Amortization of prior service cost (credit) (116 ) (116 ) 6 (822 ) Amortization of actuarial (gain) loss 6,174 8,498 (3,237 ) (1,414 ) Settlements 2,415 — — — Net periodic pension cost $ 16,638 $ 17,421 $ 4,259 $ 5,729 |
Schedule of assumptions used table text block | The assumptions used to develop our net periodic pension cost for the three and six months ended March 31, 2018 and 2017 are as follows: Supplemental Executive Retirement Plan Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 Discount rate 4.12% 3.73% 3.89% 3.73% 3.89% 3.73% Rate of compensation increase 3.50% 3.50% 3.50% 3.50% N/A N/A Expected return on plan assets N/A N/A 6.75% 7.00% 4.29% 4.45% |
Financial Instruments (Table)
Financial Instruments (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial instruments on the balance sheet | The following tables present the fair value and balance sheet classification of our financial instruments as of March 31, 2018 and September 30, 2017 . 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 our counterparties. Balance Sheet Location Assets Liabilities (In thousands) March 31, 2018 Designated As Hedges: Interest rate contracts Other current assets / Other current liabilities $ — $ (85,948 ) Total — (85,948 ) Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities 602 (996 ) Total 602 (996 ) Gross Financial Instruments 602 (86,944 ) Gross Amounts Offset on Consolidated Balance Sheet: Contract netting — — Net Financial Instruments 602 (86,944 ) Cash collateral — — Net Assets/Liabilities from Risk Management Activities $ 602 $ (86,944 ) Balance Sheet Location Assets Liabilities (In thousands) September 30, 2017 Designated As Hedges: Interest rate contracts Deferred charges and other assets / Deferred credits and other liabilities $ — $ (112,076 ) Total — (112,076 ) Not Designated As Hedges: Commodity contracts Other current assets / Other current liabilities 2,436 (322 ) Commodity contracts Deferred charges and other assets / Deferred credits and other liabilities 803 — Total 3,239 (322 ) Gross Financial Instruments 3,239 (112,398 ) Gross Amounts Offset on Consolidated Balance Sheet: Contract netting — — Net Financial Instruments 3,239 (112,398 ) Cash collateral — — Net Assets/Liabilities from Risk Management Activities $ 3,239 $ (112,398 ) |
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 six months ended March 31, 2018 and 2017 . 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 Six Months Ended 2018 2017 (1) 2018 2017 (1) (In thousands) Increase in fair value: Interest rate agreements $ 21,786 $ 4,144 $ 20,454 $ 95,271 Forward commodity contracts (2) — — — 9,847 Recognition of (gains) losses in earnings due to settlements: Interest rate agreements 458 86 835 173 Forward commodity contracts (2) — — — (4,865 ) Total other comprehensive income from hedging, net of tax $ 22,244 $ 4,230 $ 21,289 $ 100,426 (1) Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction for the three and six-month period ended March 31, 2017. (2) Due to the sale of AEM, these amounts are included in income from discontinued operations. |
Expected recognition in earnings of deferred gains/(losses) in AOCI table | The following amounts, net of deferred taxes, represent the expected recognition in earnings, as of March 31, 2018 , of the deferred losses recorded in AOCI associated with our financial instruments, based upon the fair values of these financial instruments at the date of settlement. 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 $ (1,833 ) Thereafter (47,281 ) Total $ (49,114 ) |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements table | The following tables summarize, by level within the fair value hierarchy, our assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2018 and September 30, 2017 . Assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral March 31, 2018 (In thousands) Assets: Financial instruments $ — $ 602 $ — $ — $ 602 Available-for-sale securities Registered investment companies 39,783 — — — 39,783 Bond mutual funds 16,308 — — — 16,308 Bonds — 31,137 — — 31,137 Money market funds — 6,437 — — 6,437 Total available-for-sale securities 56,091 37,574 — — 93,665 Total assets $ 56,091 $ 38,176 $ — $ — $ 94,267 Liabilities: Financial instruments $ — $ 86,944 $ — $ — $ 86,944 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) (1) Significant Other Unobservable Inputs (Level 3) Netting and Cash Collateral September 30, 2017 (In thousands) Assets: Financial instruments $ — $ 3,239 $ — $ — $ 3,239 Available-for-sale securities Registered investment companies 41,097 — — — 41,097 Bond mutual funds 16,371 — — — 16,371 Bonds — 29,104 — — 29,104 Money market funds — 1,837 — — 1,837 Total available-for-sale securities 57,468 30,941 — — 88,409 Total assets $ 57,468 $ 34,180 $ — $ — $ 91,648 Liabilities: Financial instruments $ — $ 112,398 $ — $ — $ 112,398 (1) Our Level 2 measurements consist of over-the-counter options and swaps which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds which are valued based on the most recent available quoted market prices and money market funds which are valued at cost. |
Schedule of Available-for-sale Securities Reconciliation Table | Available-for-sale securities are comprised of the following: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (In thousands) As of March 31, 2018 Domestic equity mutual funds $ 25,515 $ 8,194 $ (95 ) $ 33,614 Foreign equity mutual funds 4,138 2,031 — 6,169 Bond mutual funds 16,548 — (240 ) 16,308 Bonds 31,295 4 (162 ) 31,137 Money market funds 6,437 — — 6,437 $ 83,933 $ 10,229 $ (497 ) $ 93,665 As of September 30, 2017 Domestic equity mutual funds $ 25,361 $ 8,920 $ — $ 34,281 Foreign equity mutual funds 4,581 2,235 — 6,816 Bond mutual funds 16,391 2 (22 ) 16,371 Bonds 29,074 46 (16 ) 29,104 Money market funds 1,837 — — 1,837 $ 77,244 $ 11,203 $ (38 ) $ 88,409 |
Other fair value measurements table | The following table presents the carrying value and fair value of our debt as of March 31, 2018 and September 30, 2017 : March 31, 2018 September 30, 2017 (In thousands) Carrying Amount $ 3,085,000 $ 3,085,000 Fair Value $ 3,291,629 $ 3,382,272 |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Divestitures and Acquisitions [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents statement of income data related to discontinued operations: Six Months Ended (In thousands) Operating revenues $ 303,474 Purchased gas cost 277,554 Operating expenses 7,874 Operating income 18,046 Other nonoperating expense (211 ) Income from discontinued operations before income taxes 17,835 Income tax expense 6,841 Income from discontinued operations 10,994 Gain on sale from discontinued operations, net of tax ($10,215) 2,716 Net income from discontinued operations $ 13,710 The following table presents statement of cash flow data related to discontinued operations: Six Months Ended (In thousands) Depreciation and amortization expense $ 185 Capital expenditures $ — Non-cash loss in commodity contract cash flow hedges $ (8,165 ) |
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 six months ended March 31, 2017 is presented below. Six Months Ended (In thousands) Commodity contracts $ (9,567 ) Fair value adjustment for natural gas inventory designated as the hedged item 12,858 Total decrease in purchased gas cost reflected in income from discontinued operations $ 3,291 The decrease in purchased gas cost reflected in income from discontinued operations is comprised of the following: Basis ineffectiveness $ (597 ) Timing ineffectiveness 3,888 $ 3,291 |
Cash flow hedges | The impact of our natural gas marketing segment cash flow hedges on our condensed consolidated income statements for the six months ended March 31, 2017 is presented below: Six Months Ended (In thousands) Loss reclassified from AOCI for effective portion of natural gas marketing commodity contracts $ (2,612 ) Gain arising from ineffective portion of natural gas marketing commodity contracts 111 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 $ 8,078 |
Nature of Business (Details)
Nature of Business (Details) customers in Millions | Mar. 31, 2018statecustomersregulated_gas_distributions_divisions |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Customers, Regulated Distribution | customers | 3 |
Number of Divisions, Regulated Distribution | regulated_gas_distributions_divisions | 6 |
Number of States in which Entity Operates | state | 8 |
Unaudited Interim Financial Inf
Unaudited Interim Financial Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2017 | |||
Regulatory Asset [Line Items] | ||||
Regulatory assets | $ 121,884 | $ 176,798 | ||
Regulatory asset - future recoverable pension costs | 7,800 | 9,400 | ||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | $ 1,493,007 | $ 555,657 | ||
Federal Statutory Income Tax Rate, Pre TCJA, Percent | 35.00% | 35.00% | ||
Federal Statutory Income Tax Rate, Post TCJA, Percent | 21.00% | |||
Deferred Income Tax Charge [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | $ 737,798 | [1] | $ 0 | |
Regulatory Cost of Removal [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 526,483 | 521,330 | ||
Deferred Gas Costs [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 167,036 | 15,559 | ||
Asset Retirement Obligation Costs [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 12,827 | 12,827 | ||
Revenue Subject to Refund [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 5,081 | 0 | ||
Other [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 14,740 | 5,941 | ||
Regulatory Cost of Service Reserve [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | 29,042 | [2] | 0 | |
Pension And Postretirement Benefit Costs [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | [3] | 20,918 | 26,826 | |
Infrastructure Mechanisms [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | [4] | 65,286 | 46,437 | |
Deferred Gas Costs [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | 0 | 65,714 | ||
Recoverable Loss On Reacquired Debt [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | 9,954 | 11,208 | ||
Deferred Project Costs [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | 14,646 | 11,692 | ||
APT Annual Adjustment Mechanism [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | 0 | 2,160 | ||
Rate Case Costs [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | 3,016 | 2,629 | ||
Other [Member] | ||||
Regulatory Asset [Line Items] | ||||
Regulatory assets | $ 8,064 | $ 10,132 | ||
[1] | The TCJA resulted in the remeasurement of the net deferred tax liability included in our rate base. The excess deferred taxes will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. | |||
[2] | Effective January 1, 2018, regulators in each of our service areas required us to establish a regulatory liability for the difference in recoverable federal taxes included in revenues based on the former 35% federal statutory rate and the new 21% federal statutory rate for service provided on or after January 1, 2018. This liability will be returned to utility customers in accordance with regulatory requirements. See Note 6 for further information. | |||
[3] | Includes $7.8 million and $9.4 million of pension and postretirement expense deferred pursuant to regulatory authorization. | |||
[4] | Infrastructure mechanisms in Texas and Louisiana allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recoverable through base rates |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Segment Reporting Information Profit Loss [Abstract] | |||||
Total operating revenues | $ 1,219,409 | $ 988,186 | $ 2,108,601 | $ 1,768,354 | |
Purchased gas cost | 626,960 | 427,494 | 993,877 | 738,799 | |
Operation and maintenance expense | 161,073 | 132,239 | 290,640 | 257,177 | |
Depreciation and amortization expense | 89,381 | 77,667 | 177,755 | 154,625 | |
Taxes, other than income, expense | 73,007 | 65,614 | 135,780 | 122,663 | |
Operating income | 268,988 | 285,172 | 510,549 | 495,090 | |
Miscellaneous income (expense) | (253) | 833 | (2,288) | (161) | |
Interest charges | 27,304 | 26,944 | 58,813 | 57,974 | |
Income (loss) from continuing operations before income taxes | 241,431 | 259,061 | 449,448 | 436,955 | |
Income tax expense (benefit) | 62,439 | 97,049 | (43,676) | 160,905 | |
Income from continuing operations | 178,992 | 162,012 | 493,124 | 276,050 | |
Income from discontinued operations, net of tax | 0 | 10,994 | |||
Gain on sale of discontinued operations, net of tax | 0 | 2,716 | 0 | 2,716 | |
Net income (loss) | 178,992 | 164,728 | 493,124 | 289,760 | |
Capital expenditures | 310,740 | 261,423 | 693,978 | 559,385 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||||
Net property, plant and equipment | 9,761,329 | 9,761,329 | $ 9,259,182 | ||
Total assets | 11,356,322 | 11,356,322 | 10,749,596 | ||
Reportable Subsegments [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 1,219,409 | 988,186 | 2,108,601 | 1,768,354 | |
Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Distribution Segment [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Total operating revenues | 1,199,291 | 962,541 | 2,060,083 | 1,717,197 | |
Purchased gas cost | 727,053 | 513,096 | 1,190,811 | 908,442 | |
Operation and maintenance expense | 131,991 | 103,703 | 235,728 | 196,417 | |
Depreciation and amortization expense | 65,649 | 61,302 | 131,083 | 122,459 | |
Taxes, other than income, expense | 64,692 | 57,636 | 119,799 | 108,182 | |
Operating income | 209,906 | 226,804 | 382,662 | 381,697 | |
Miscellaneous income (expense) | 393 | 1,029 | (1,007) | 396 | |
Interest charges | 16,898 | 16,925 | 38,266 | 38,043 | |
Income (loss) from continuing operations before income taxes | 193,401 | 210,908 | 343,389 | 344,050 | |
Income tax expense (benefit) | 48,158 | 79,763 | (50,953) | 127,541 | |
Income from continuing operations | 131,145 | 216,509 | |||
Income from discontinued operations, net of tax | 0 | ||||
Gain on sale of discontinued operations, net of tax | 0 | 0 | |||
Net income (loss) | 145,243 | 131,145 | 394,342 | 216,509 | |
Capital expenditures | 224,235 | 208,185 | 465,484 | 430,669 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||||
Net property, plant and equipment | 7,202,673 | 7,202,673 | 6,849,517 | ||
Total assets | 10,723,398 | 10,723,398 | 10,050,164 | ||
Distribution Segment [Member] | Reportable Subsegments [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 1,198,309 | 962,217 | 2,058,762 | 1,716,483 | |
Distribution Segment [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 982 | 324 | 1,321 | 714 | |
Pipeline and Storage Segment [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Total operating revenues | 120,955 | 111,972 | 247,418 | 221,924 | |
Purchased gas cost | 433 | 725 | 1,345 | 1,080 | |
Operation and maintenance expense | 29,393 | 28,536 | 55,533 | 60,804 | |
Depreciation and amortization expense | 23,732 | 16,365 | 46,672 | 32,166 | |
Taxes, other than income, expense | 8,315 | 7,978 | 15,981 | 14,481 | |
Operating income | 59,082 | 58,368 | 127,887 | 113,393 | |
Miscellaneous income (expense) | (646) | (196) | (1,281) | (557) | |
Interest charges | 10,406 | 10,019 | 20,547 | 19,931 | |
Income (loss) from continuing operations before income taxes | 48,030 | 48,153 | 106,059 | 92,905 | |
Income tax expense (benefit) | 14,281 | 17,286 | 7,277 | 33,364 | |
Income from continuing operations | 30,867 | 59,541 | |||
Income from discontinued operations, net of tax | 0 | ||||
Gain on sale of discontinued operations, net of tax | 0 | 0 | |||
Net income (loss) | 33,749 | 30,867 | 98,782 | 59,541 | |
Capital expenditures | 86,505 | 53,238 | 228,494 | 128,716 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||||
Net property, plant and equipment | 2,558,656 | 2,558,656 | 2,409,665 | ||
Total assets | 2,779,330 | 2,779,330 | 2,621,601 | ||
Pipeline and Storage Segment [Member] | Reportable Subsegments [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 21,100 | 25,969 | 49,839 | 51,871 | |
Pipeline and Storage Segment [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 99,855 | 86,003 | 197,579 | 170,053 | |
Natural Gas Marketing Segment [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Total operating revenues | 0 | 0 | |||
Purchased gas cost | 0 | 0 | |||
Operation and maintenance expense | 0 | 0 | |||
Depreciation and amortization expense | 0 | 0 | |||
Taxes, other than income, expense | 0 | 0 | |||
Operating income | 0 | 0 | |||
Miscellaneous income (expense) | 0 | 0 | |||
Interest charges | 0 | 0 | |||
Income (loss) from continuing operations before income taxes | 0 | 0 | |||
Income tax expense (benefit) | 0 | 0 | |||
Income from continuing operations | 0 | 0 | |||
Income from discontinued operations, net of tax | 10,994 | ||||
Gain on sale of discontinued operations, net of tax | 2,716 | 2,716 | |||
Net income (loss) | 2,716 | 13,710 | |||
Capital expenditures | 0 | 0 | |||
Natural Gas Marketing Segment [Member] | Reportable Subsegments [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 0 | 0 | |||
Natural Gas Marketing Segment [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 0 | 0 | |||
Intersegment Elimination [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Total operating revenues | (100,837) | (86,327) | (198,900) | (170,767) | |
Purchased gas cost | (100,526) | (86,327) | (198,279) | (170,723) | |
Operation and maintenance expense | (311) | 0 | (621) | (44) | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Taxes, other than income, expense | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Miscellaneous income (expense) | 0 | 0 | 0 | 0 | |
Interest charges | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Income from continuing operations | 0 | 0 | |||
Income from discontinued operations, net of tax | 0 | ||||
Gain on sale of discontinued operations, net of tax | 0 | 0 | |||
Net income (loss) | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Segment Reporting Information, Balance Sheet [Abstract] | |||||
Net property, plant and equipment | 0 | 0 | 0 | ||
Total assets | (2,146,406) | (2,146,406) | $ (1,922,169) | ||
Intersegment Elimination [Member] | Reportable Subsegments [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Elimination [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information Profit Loss [Abstract] | |||||
Revenues | $ (100,837) | $ (86,327) | $ (198,900) | $ (170,767) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 178,992 | $ 162,012 | $ 493,124 | $ 276,050 |
Income allocated to participating securities | 161 | 193 | 459 | 348 |
Income from continuing operations available to common shareholders | $ 178,831 | $ 161,819 | $ 492,665 | $ 275,702 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 1.60 | $ 1.52 | $ 4.47 | $ 2.61 |
Income from discontinued operations, net of tax | $ 0 | $ 2,716 | $ 0 | $ 13,710 |
Undistributed Earnings From Discontinued Operations Allocated To Participating Securities | 0 | 2 | 0 | 15 |
Income from discontinued operations available to common shareholders | $ 0 | $ 2,714 | $ 0 | $ 13,695 |
Income (Loss) from Discontinued Operation, Net of Tax, Per Basic and Diluted Share | $ 0 | $ 0.03 | $ 0 | $ 0.13 |
Basic and diluted net income per share | $ 1.60 | $ 1.55 | $ 4.47 | $ 2.74 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 111,706 | 105,935 | 110,135 | 105,610 |
Debt (Details)
Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2017 | ||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 3,085,000,000 | $ 3,085,000,000 | |
Debt Instrument, Unamortized Discount (Premium), Net | (4,412,000) | (4,384,000) | |
Debt Issuance Costs, Net | 21,520,000 | 22,339,000 | |
Current maturities of long-term debt | 450,000,000 | 0 | |
Long-term debt | 2,617,892,000 | 3,067,045,000 | |
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | ||
Long Term Debt Other Disclosures [Abstract] | |||
Term Loan Agreement, Maximum Borrowing Capacity | 200,000,000 | 200,000,000 | |
Commercial Paper | $ 129,600,000 | 447,700,000 | |
Required by Covenant [Member] | |||
Line Of Credit Facility [Line Items] | |||
Ratio of Total Debt to Total Capital | 70.00% | ||
Actual [Member] | |||
Line Of Credit Facility [Line Items] | |||
Ratio of Total Debt to Total Capital | 41.00% | ||
Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Equity to Capitalization Ratio | 50.00% | ||
Minimum [Member] | Required by Covenant [Member] | |||
Line Of Credit Facility [Line Items] | |||
Excess of Debt | $ 15,000,000 | ||
Maximum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Equity to Capitalization Ratio | 60.00% | ||
Maximum [Member] | Required by Covenant [Member] | |||
Line Of Credit Facility [Line Items] | |||
Excess of Debt | $ 100,000,000 | ||
Five Year Unsecured Revolving Credit Agreement [Member] | Commercial Paper [Member] | Regulated Operation [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | ||
Line of Credit Facility, Accordion Feature | 250,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity with Accordion Feature | $ 1,750,000,000 | ||
Five Year Unsecured Revolving Credit Agreement [Member] | Commercial Paper [Member] | Minimum [Member] | Regulated Operation [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||
Five Year Unsecured Revolving Credit Agreement [Member] | Commercial Paper [Member] | Maximum [Member] | Regulated Operation [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
$25 Million Bank Loan Agreement [Member] | Unsecured Loan Agreement [Member] | Regulated Operation [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
$10 Million Revolving Credit Note [Member] | Unsecured Revolving Credit Note [Member] | Regulated Operation [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 4,400,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||
Unsecured Senior Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 450,000,000 | $ 450,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | 8.50% | |
Debt Instrument, Maturity Date | Mar. 15, 2019 | Mar. 15, 2019 | |
Unsecured Senior Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 500,000,000 | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | |
Debt Instrument, Maturity Date | Jun. 15, 2027 | Jun. 15, 2027 | |
Unsecured Senior Notes Due 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 200,000,000 | $ 200,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.95% | 5.95% | |
Debt Instrument, Maturity Date | Oct. 15, 2034 | Oct. 15, 2034 | |
Unsecured Senior Notes Due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 400,000,000 | $ 400,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |
Debt Instrument, Maturity Date | Jun. 15, 2041 | Jun. 15, 2041 | |
Unsecured Senior Notes Due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 500,000,000 | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | |
Debt Instrument, Maturity Date | Jan. 15, 2043 | Jan. 15, 2043 | |
Unsecured Senior Notes Due 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 750,000,000 | $ 750,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | |
Debt Instrument, Maturity Date | Oct. 15, 2044 | Oct. 15, 2044 | |
Medium Term Notes Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 10,000,000 | $ 10,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.67% | 6.67% | |
Debt Instrument, Maturity Date | Dec. 15, 2025 | Dec. 15, 2025 | |
Unsecured Debentures Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 150,000,000 | $ 150,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | 6.75% | |
Debt Instrument, Maturity Date | Jul. 15, 2028 | Jul. 15, 2028 | |
Multi-Draw Term Loan Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | [1] | $ 125,000,000 | $ 125,000,000 |
Debt Instrument, Maturity Date | Sep. 22, 2019 | Sep. 22, 2019 | |
[1] | Up to $200 million can be drawn under this term loan. |
Tax Cuts and Jobs Act of 201737
Tax Cuts and Jobs Act of 2017 Impacts (Details) - USD ($) $ in Thousands | Apr. 03, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | |||||
Federal Statutory Income Tax Rate, Pre TCJA, Percent | 35.00% | 35.00% | |||
Federal Statutory Income Tax Rate, Post TCJA, Percent | 21.00% | ||||
Blended Federal Statutory Income Tax Rate, Percent | 24.50% | ||||
Deferred Tax Liabilities, TCJA Deduction | $ 903,500 | ||||
Regulatory Liability, Excess Deferred Tax | $ 737,798 | 737,798 | $ 0 | ||
One-Time Income Tax Benefit, TCJA | 3,800 | 165,675 | $ 0 | ||
Deferred Tax Assets, Charitable Contribution Carryforwards [Abstract] | |||||
Deferred Tax Assets, Charitable Contribution Carryforwards | 5,200 | $ 5,200 | |||
Charitable Contribution Carryforwards, Expiration Date, Minimum | Dec. 31, 2018 | ||||
Charitable Contribution Carryforwards, Expiration Date, Maximum | Dec. 31, 2023 | ||||
Valuation Allowance, Tax Credit Carryforward [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Deductions | $ 4,200 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Subsequent Event, Description | On April 3, 2018 , we filed formula rate mechanisms in our Mid-Tex and West Texas service areas, seeking increases in operating income | ||||
Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | 274,700 | 274,700 | |||
Tax Credit Carryforward, Amount | 10,100 | $ 10,100 | |||
Domestic Tax Authority [Member] | Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | ||||
Tax Credit Carryforward, Expected Refund Date | Dec. 31, 2019 | ||||
Domestic Tax Authority [Member] | Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax Credit Carryforward, Expected Refund Date | Dec. 31, 2022 | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | 21,500 | $ 21,500 | |||
Operating Loss Carryforwards, Federal Tax Effects | 5,700 | 5,700 | |||
Tax Credit Carryforward, Amount | 1,500 | 1,500 | |||
Tax Credit Carryforward, Federal Tax Effects | $ 400 | $ 400 | |||
State and Local Jurisdiction [Member] | Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2018 | ||||
State and Local Jurisdiction [Member] | Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2032 |
Shareholders' Equity Components
Shareholders' Equity Components (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shareholders' equity, beginning balance | $ 3,898,666,000 | |
Shareholders' equity, ending balance | 4,721,346,000 | |
Shareholders' Equity Other Disclosures [Abstract] | ||
Debt and Equity Securities Authorized for Issuance | 2,500,000,000 | |
Debt And Equity Securities Available For Issuance | 1,200,000,000 | |
ATM Equity Distribution Offering Price, Maximum Amount | $ 500,000,000 | |
ATM Equity Distribution, Shares Issued | 0 | |
Block Trade, shares authorized for issuance | 4,558,404 | |
Block Trade, Gross Proceeds | $ 400,000,000 | |
Block Trade, Net Proceeds | 395,100,000 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shareholders' equity, beginning balance | 7,048,000 | $ 4,484,000 |
Other comprehensive income (loss) before reclassifications | (167,000) | 634,000 |
Amounts reclassified from accumulated other comprehensive income | (879,000) | 68,000 |
Net current-period other comprehensive income (loss) | (1,046,000) | 702,000 |
Shareholders' equity, ending balance | 6,002,000 | 5,186,000 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Contract [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shareholders' equity, beginning balance | (112,302,000) | (187,524,000) |
Other comprehensive income (loss) before reclassifications | 20,454,000 | 95,271,000 |
Amounts reclassified from accumulated other comprehensive income | 835,000 | 173,000 |
Net current-period other comprehensive income (loss) | 21,289,000 | 95,444,000 |
Shareholders' equity, ending balance | (91,013,000) | (92,080,000) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shareholders' equity, beginning balance | (4,982,000) | |
Other comprehensive income (loss) before reclassifications | 9,847,000 | |
Amounts reclassified from accumulated other comprehensive income | (4,865,000) | |
Net current-period other comprehensive income (loss) | 4,982,000 | |
Shareholders' equity, ending balance | 0 | |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shareholders' equity, beginning balance | (105,254,000) | (188,022,000) |
Other comprehensive income (loss) before reclassifications | 20,287,000 | 105,752,000 |
Amounts reclassified from accumulated other comprehensive income | (44,000) | (4,624,000) |
Net current-period other comprehensive income (loss) | 20,243,000 | 101,128,000 |
Shareholders' equity, ending balance | $ (85,011,000) | $ (86,894,000) |
Shareholders' Equity AOCI Affec
Shareholders' Equity AOCI Affected Line Item in the Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Operation and maintenance expense | $ (161,073) | $ (132,239) | $ (290,640) | $ (257,177) | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 241,431 | 259,061 | 449,448 | 436,955 | |
Income Tax Expense | (62,439) | (97,049) | 43,676 | (160,905) | |
Interest charges | (27,304) | (26,944) | (58,813) | (57,974) | |
Purchased gas cost | 626,960 | 427,494 | 993,877 | 738,799 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (loss) from continuing operations | 421 | (154) | 44 | 4,624 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Operation and maintenance expense | 1,139 | (107) | 1,139 | (107) | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 1,139 | (107) | 1,139 | (107) | |
Income Tax Expense | (260) | 39 | (260) | 39 | |
Income (loss) from continuing operations | 879 | (68) | 879 | (68) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (593) | (136) | (1,187) | 7,694 | |
Income Tax Expense | 135 | 50 | 352 | (3,002) | |
Income (loss) from continuing operations | (458) | (86) | (835) | 4,692 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Purchased gas cost | [1] | 7,967 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Interest Rate Contract [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest charges | $ (593) | $ (136) | $ (1,187) | $ (273) | |
[1] | Amount is presented as part of income from discontinued operations in the condensed consolidated statement of income. |
Interim Pension and Other Pos40
Interim Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | Mar. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Pension Benefits [Member] | |||||
Components of net periodic pension cost [Abstract] | |||||
Service Cost | $ 4,575 | $ 5,217 | $ 9,135 | $ 10,433 | |
Interest Cost | 6,433 | 6,297 | 12,863 | 12,594 | |
Expected return on assets | (6,916) | (6,994) | (13,833) | (13,988) | |
Amortization of prior service (credit)/cost | (58) | (58) | (116) | (116) | |
Amortization of actuarial (gain) loss | 3,085 | 4,249 | 6,174 | 8,498 | |
Settlements | 2,415 | 0 | 2,415 | 0 | |
Net periodic pension cost | $ 9,534 | $ 8,711 | $ 16,638 | $ 17,421 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost Abstract | |||||
Discount Rate | 3.89% | 3.73% | 3.89% | 3.73% | |
Rate of compensation increase | 3.50% | 3.50% | 3.50% | 3.50% | |
Expected return on plan assets | 6.75% | 7.00% | 6.75% | 7.00% | |
Supplemental Employee Retirement Plan [Member] | |||||
Components of net periodic pension cost [Abstract] | |||||
Settlements | $ (2,400) | ||||
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost Abstract | |||||
Discount Rate | 4.12% | 4.12% | 3.73% | 4.12% | 3.73% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% | 3.50% | |
Current Year Benefit Plan Contributions [Abstract] | |||||
Change in Net Periodic Cost, Remainder of Year | $ 100 | ||||
Other Benefits [Member] | |||||
Components of net periodic pension cost [Abstract] | |||||
Service Cost | 3,019 | $ 3,109 | $ 6,039 | $ 6,218 | |
Interest Cost | 2,727 | 2,670 | 5,454 | 5,340 | |
Expected return on assets | (2,001) | (1,797) | (4,003) | (3,593) | |
Amortization of prior service (credit)/cost | 3 | (411) | 6 | (822) | |
Amortization of actuarial (gain) loss | (1,619) | (707) | (3,237) | (1,414) | |
Settlements | 0 | 0 | 0 | 0 | |
Net periodic pension cost | $ 2,129 | $ 2,864 | $ 4,259 | $ 5,729 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost Abstract | |||||
Discount Rate | 3.89% | 3.73% | 3.89% | 3.73% | |
Expected return on plan assets | 4.29% | 4.45% | 4.29% | 4.45% | |
Current Year Benefit Plan Contributions [Abstract] | |||||
Contributions Actual | $ 7,500 | ||||
Other Benefits [Member] | Minimum [Member] | |||||
Current Year Benefit Plan Contributions [Abstract] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 10,000 | 10,000 | |||
Other Benefits [Member] | Maximum [Member] | |||||
Current Year Benefit Plan Contributions [Abstract] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 20,000 | $ 20,000 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions | Apr. 03, 2018 | Mar. 31, 2018USD ($)MMcf |
Loss Contingencies [Line Items] | ||
Self-Insured Retention Expense | $ | $ 1 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Subsequent Event, Description | On April 3, 2018 , we filed formula rate mechanisms in our Mid-Tex and West Texas service areas, seeking increases in operating income | |
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ | $ 1 | |
Loss Contingency, Lawsuit Filing Date | March 29, 2018 | |
Inventories Under Indexed Contracts [Member] | Distribution Segment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Long Term Purchase Commitment Minimum Quantity Required Within One Year | MMcf | 55,000 | |
Long Term Purchase Commitment Minimum Quantity Required One To Three Years | MMcf | 64,700 |
Financial Instruments Descripti
Financial Instruments Descriptions (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($)MMcf | |
General Discussion Of Derivative Instruments And Hedging Activities [Abstract] | |
Minimum Hedge Percentage Of Anticipated Heating Season Gas | 25.00% |
Maximum Hedge Percentage Of Anticipated Heating Season Gas | 50.00% |
Hedge Percentage Of Anticipated Heating Season Gas | 26.00% |
Hedge Volume Of Anticipated Heating Season Gas | MMcf | 15,000 |
Accumulated Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Interest Rate Agreements, Realized Gain (Loss), Net of Tax | $ (49.1) |
Interest Rate Hedges, Senior Notes 2019 Issuance [Member] | |
Derivative [Line Items] | |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 450 |
Anticipated Debt Issuance, Amount | $ 450 |
Derivative, Average Forward Interest Rate | 3.78% |
Financial Instruments Commodity
Financial Instruments Commodity Contract Volume (Details) | Mar. 31, 2018MMcf |
Nondesignated [Member] | |
Commodity Contract Outstanding Volumes [Line Items] | |
Investment Contract Volume | 6,251 |
Financial Instruments Balance S
Financial Instruments Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 602 | $ 3,239 |
Derivative Asset, Contract Netting | 0 | 0 |
Derivative Asset, Net of Contract Netting | 602 | 3,239 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Asset | 602 | 3,239 |
Derivative Liability, Fair Value, Gross Liability | (86,944) | (112,398) |
Derivative Liability, Contract Netting | 0 | 0 |
Derivative Liability, Net of Contract Netting | (86,944) | (112,398) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability | (86,944) | (112,398) |
Designated As Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | (85,948) | (112,076) |
Designated As Hedging Instrument [Member] | Other Current Assets [Member] | Interest Rate Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Designated As Hedging Instrument [Member] | Deferred Charges and Other Assets [Member] | Interest Rate Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Designated As Hedging Instrument [Member] | Other Current Liabilities [Member] | Interest Rate Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (85,948) | |
Designated As Hedging Instrument [Member] | Deferred Credits and Other Liabilities [Member] | Interest Rate Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (112,076) | |
Nondesignated [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 602 | 3,239 |
Derivative Liability, Fair Value, Gross Liability | (996) | (322) |
Nondesignated [Member] | Other Current Assets [Member] | Commodity Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 602 | 2,436 |
Nondesignated [Member] | Deferred Charges and Other Assets [Member] | Commodity Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 803 | |
Nondesignated [Member] | Other Current Liabilities [Member] | Commodity Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ (996) | (322) |
Nondesignated [Member] | Deferred Credits and Other Liabilities [Member] | Commodity Contract [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 0 |
Financial Instruments Cash Flow
Financial Instruments Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Effect of Cash Flow Hedges on Results of Operations [Abstract] | ||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (0.6) | $ (0.1) |
Financial Instruments Other Com
Financial Instruments Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | Mar. 31, 2018 | Mar. 31, 2017 | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||
Interest rate agreements fair value | $ 21,786 | $ 4,144 | $ 20,454 | $ 95,271 | [1] | ||
Forward commodity contracts fair value | [2] | 0 | 0 | 0 | 9,847 | [1] | |
Interest rate agreements | 458 | 86 | 835 | 173 | [1] | ||
Forward commodity contracts | [2] | 0 | 0 | 0 | (4,865) | [1] | |
Total other comprehensive income (loss) from hedging, net of tax | 22,244 | $ 4,230 | 21,289 | $ 100,426 | [1] | ||
Regulated Segments Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 37.00% | ||||||
Nonregulated Segment Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 39.00% | ||||||
Expected Earnings [Line Items] | |||||||
Expected Recognition in Earnings of Deferred Gain (Losses), Interest Rate Agreements | (49,114) | (49,114) | |||||
Next Twelve Months [Member] | |||||||
Expected Earnings [Line Items] | |||||||
Expected Recognition in Earnings of Deferred Gain (Losses), Interest Rate Agreements | (1,833) | (1,833) | |||||
Thereafter [Member] | |||||||
Expected Earnings [Line Items] | |||||||
Expected Recognition in Earnings of Deferred Gain (Losses), Interest Rate Agreements | $ (47,281) | $ (47,281) | |||||
[1] | Utilizing an income tax rate ranging from 37 percent to 39 percent based on the effective rates in each taxing jurisdiction for the three and six-month period ended March 31, 2017. | ||||||
[2] | Due to the sale of AEM, these amounts are included in income from discontinued operations |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2018 | Sep. 30, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | $ 0 | $ 0 | |
Derivative Asset | 602,000 | 3,239,000 | |
Available-for-sale Securities | 93,665,000 | 88,409,000 | |
Total assets | 94,267,000 | 91,648,000 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability | 86,944,000 | 112,398,000 | |
Cash Held In Margin Accounts Classified Current Risk Management Asset | 0 | 0 | |
Cash Held In Margin Accounts Offset Current Risk Management Liabilities | 0 | 0 | |
Additional Fair Value Elements [Abstract] | |||
Debt Instrument Carrying Amount | 3,085,000,000 | 3,085,000,000 | |
Debt Instrument Fair Value | 3,291,629,000 | 3,382,272,000 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 39,783,000 | 41,097,000 | |
Fixed Income Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 16,308,000 | 16,371,000 | |
Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 31,137,000 | 29,104,000 | |
Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 6,437,000 | 1,837,000 | |
Fair Value Inputs Level 1 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Available-for-sale Securities | 56,091,000 | 57,468,000 | |
Total assets | 56,091,000 | 57,468,000 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 39,783,000 | 41,097,000 | |
Fair Value Inputs Level 1 [Member] | Fixed Income Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 16,308,000 | 16,371,000 | |
Fair Value Inputs Level 1 [Member] | Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Fair Value Inputs Level 2 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | [1] | 602,000 | 3,239,000 |
Available-for-sale Securities | [1] | 37,574,000 | 30,941,000 |
Total assets | [1] | 38,176,000 | 34,180,000 |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | [1] | 86,944,000 | 112,398,000 |
Fair Value Inputs Level 2 [Member] | Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Fixed Income Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | 0 |
Fair Value Inputs Level 2 [Member] | Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 31,137,000 | 29,104,000 |
Fair Value Inputs Level 2 [Member] | Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 6,437,000 | 1,837,000 |
Fair Value Inputs Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Available-for-sale Securities | 0 | 0 | |
Total assets | 0 | 0 | |
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Fixed Income Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0 | 0 | |
Fair Value Inputs Level 3 [Member] | Money Market Funds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | $ 0 | $ 0 | |
[1] | Our Level 2 measurements consist of over-the-counter options and swaps which are valued using a market-based approach in which observable market prices are adjusted for criteria specific to each instrument, such as the strike price, notional amount or basis differences, municipal and corporate bonds which are valued based on the most recent available quoted market prices and money market funds which are valued at cost. |
Fair Value Measurements Availab
Fair Value Measurements Available-For-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 30, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | $ 83,933 | $ 77,244 |
Gross Unrealized Gain | 10,229 | 11,203 |
Gross Unrealized Loss | (497) | (38) |
Fair value | 93,665 | 88,409 |
Available-for-sale Securities, Other Disclosure Items [Abstract] | ||
Available-for-sale Securities, Supplemental Executive Benefit Plans | 46,200 | 42,900 |
Equity Funds Domestic [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | 25,515 | 25,361 |
Gross Unrealized Gain | 8,194 | 8,920 |
Gross Unrealized Loss | (95) | 0 |
Fair value | 33,614 | 34,281 |
Equity Funds Foreign [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | 4,138 | 4,581 |
Gross Unrealized Gain | 2,031 | 2,235 |
Gross Unrealized Loss | 0 | 0 |
Fair value | 6,169 | 6,816 |
Fixed Income Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | 16,548 | 16,391 |
Gross Unrealized Gain | 0 | 2 |
Gross Unrealized Loss | (240) | (22) |
Fair value | 16,308 | 16,371 |
Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | 31,295 | 29,074 |
Gross Unrealized Gain | 4 | 46 |
Gross Unrealized Loss | (162) | (16) |
Fair value | 31,137 | 29,104 |
Money Market Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For Sale Securities Amortized Cost | 6,437 | 1,837 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair value | $ 6,437 | $ 1,837 |
Divestitures and Acquisitions49
Divestitures and Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 03, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | Jan. 01, 2017 |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |||||||
Disposal Group, Including Discontinued Operation, Cash Purchase Price | $ 38,300 | ||||||
Disposal Group, Including Discontinued Operation, Working Capital Adjustment | 109,000 | ||||||
Disposal Group, Including Discontinued Operation, Consideration | 147,300 | ||||||
Disposal Group, Including Discontinued Operation, Consideration Placed in Escrow | $ 7,000 | ||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Diluted Share | $ 0.03 | ||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income tax expense | $ 0 | $ 6,841 | |||||
Income from discontinued operations, net of tax | 0 | 10,994 | |||||
Gain on sale of discontinued operations, net of tax | $ 0 | $ 2,716 | 0 | 2,716 | |||
Net income from discontinued operations | 0 | 2,716 | 0 | 13,710 | |||
Summary of Cash Flow Hedge Activity [Abstract] | |||||||
Gain (Loss) on Discontinuation of Cash Flow Hedge | 0 | 10,579 | |||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 0 | $ 0 | 10,215 | ||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Subsequent Event, Description | On April 3, 2018 , we filed formula rate mechanisms in our Mid-Tex and West Texas service areas, seeking increases in operating income | ||||||
Natural Gas Marketing Segment [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Operating revenues | 303,474 | ||||||
Purchased gas cost | 277,554 | ||||||
Operating expenses | 7,874 | ||||||
Operating income | 18,046 | ||||||
Other nonoperating expense | (211) | ||||||
Income from discontinued operations before income taxes | 17,835 | ||||||
Income tax expense | 6,841 | ||||||
Income from discontinued operations, net of tax | 10,994 | ||||||
Gain on sale of discontinued operations, net of tax | 2,716 | 2,716 | |||||
Net income from discontinued operations | 13,710 | ||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Depreciation and Amortization, Discontinued Operations | 185 | ||||||
Capital Expenditure, Discontinued Operations | 0 | ||||||
Noncash Change in Commodity Contract Cash Flow Hedges | (8,165) | ||||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||
Gain on Discontinuation of Cash Flow Hedge | 10,600 | ||||||
Gain (Loss) On Hedge Ineffectiveness | 3,400 | ||||||
Disposal Group, Including Discontinued Operation, Consideration Placed in Escrow Released | $ 3,000 | ||||||
Effect of Fair Value Hedges on Results of Operations [Abstract] | |||||||
Commodity contracts | (9,567) | ||||||
Fair value adjustment for natural gas inventory designated as the hedged item | 12,858 | ||||||
Total (increase) decrease to purchased gas cost | 3,291 | ||||||
Basis ineffectiveness | (597) | ||||||
Timing ineffectiveness | 3,888 | ||||||
Summary of Cash Flow Hedge Activity [Abstract] | |||||||
Gain (loss) reclassified from AOCI into purchased gas cost for effective portion of commodity contracts | (2,612) | ||||||
Gain (loss) arising from ineffective portion of commodity contracts | 111 | ||||||
Gain (Loss) on Discontinuation of Cash Flow Hedge | 10,579 | ||||||
Total impact on purchased gas cost | 8,078 | ||||||
Gain (Loss) On Derivative Instruments Not Designated Hedges Net Pretax | $ 6,800 | ||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ 10,215 |