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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Mar. 31, 2021

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Unaudited Condensed Consolidated Balance Sheets to the total amounts in the Unaudited Condensed Consolidated Statements of Cash Flows as follows:


(Thousands)	March 31, 2021		September 30, 2020		March 31, 2020		September 30, 2019
Balance Sheet
Cash and cash equivalents	$	57,654	$	117,012	$	25,968	$	2,676
Restricted cash in other noncurrent assets	$	1,321	$	2,411	$	2,422	$	1,387
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	58,975	$	119,423	$	28,390	$	4,063

Summary of Natural Gas in Storage

The following table summarizes natural gas in storage, at average cost by segment as of:


	March 31, 2021				September 30, 2020
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
Natural Gas Distribution		$	40,083	9.4		$	110,037	27.2
Energy Services		34,439		13.3		57,352		34.3
Storage and Transportation		331		0.1		115		0.02
Total		$	74,853	22.8		$	167,504	61.52

Schedule of Software Costs Included in the Consolidated Financial Statements

The following table presents the software costs included in the Unaudited Condensed Consolidated Financial Statements:


(Thousands)	March 31, 2021		September 30, 2020
Balance Sheets
Utility plant, at cost	$	14,011	$	13,452

Nonutility plant and equipment, at cost	$	334	$	316

Accumulated depreciation and amortization, utility plant	$	(790)	$	(279)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(17)	$	(5)
Software costs	$	5,485	$	4,707


	Three Months Ended				Six Months Ended
	March 31,				March 31,
Statements of Operations	2021		2020		2021		2020
Operation and maintenance (1)	$	2,847	$	1,109	$	4,770	$	2,596
Depreciation and amortization	$	270	$	—	$	523	$	—

(1)During the three and six months ended March 31, 2021, $111,000 and $188,000 was amortized from software costs into O&M. There were no amounts amortized for the three and six months ended March 31, 2020.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the three months ended March 31, 2021 and 2020:


(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance at December 31, 2020	$	(10,166)	$	(33,106)		$	(43,272)
Other comprehensive income, net of tax

Amounts reclassified from accumulated other comprehensive income, net of tax of $(79), $(244), $(323), respectively	263		813		(1)	1,076

Balance at March 31, 2021	$	(9,903)	$	(32,293)		$	(42,196)

Balance at December 31, 2019	$	—	$	(31,028)		$	(31,028)
Other comprehensive income, net of tax
Other comprehensive (loss) income, before reclassifications, net of tax of $2,781, $(1,681), $1,100	(9,711)		5,378			(4,333)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(72), $(72)	—		722		(1)	722
Net current-period other comprehensive income, net of tax of $2,781, $(1,753), $1,028	(9,711)		6,100			(3,611)

Balance at March 31, 2020	$	(9,711)	$	(24,928)		$	(34,639)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

The following table presents the changes in the components of accumulated other comprehensive (loss) income, net of related tax effects during the six months ended March 31, 2021 and 2020:


(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance at September 30, 2020	$	(10,397)	$	(33,918)		$	(44,315)
Other comprehensive income, net of tax

Amounts reclassified from accumulated other comprehensive income, net of tax of $(191), $(489), $(680), respectively	494		1,625		(1)	2,119


Balance at March 31, 2021	$	(9,903)	$	(32,293)		$	(42,196)

Balance at September 30, 2019	$	—	$	(31,787)		$	(31,787)
Other comprehensive income, net of tax
Other comprehensive (loss) income, before reclassifications, net of tax of $2,781, $(1,681), $1,100	(9,711)		5,378			(4,333)
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(289) and $(289)	—		1,481		(1)	1,481
Net current-period other comprehensive income, net of tax of $2,781, $(1,970), $811	(9,711)		6,859			(2,852)

Balance at March 31, 2020	$	(9,711)	$	(24,928)		$	(34,639)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Unaudited Condensed Consolidated Statements of Operations.

Impact of Changes Resulting from Change in Accounting Principle

The impact of the change in accounting policy on the Unaudited Condensed Consolidated Statements of Operations during the three months ended March 31, 2020 is as follows:


	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Depreciation and amortization	$	30,784	(3,268)	$	27,516
Total operating expenses	$	544,399	(3,268)	$	541,131
Operating income	$	95,215	3,268	$	98,483
Income before income taxes and equity in earnings of affiliates	$	83,273	3,268	$	86,541
Income tax (benefit) expense	$	(1,643)	17,927	$	16,284
Net income	$	88,505	(14,659)	$	73,846
Earnings per common share
Basic	$	0.93	(0.15)	$	0.78
Diluted	$	0.92	(0.15)	$	0.77

The impact of the change in accounting policy on the Unaudited Condensed Consolidated Statements of Operations during the six months ended March 31, 2020 is as follows:


	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Depreciation and amortization	$	58,542	(6,389)	$	52,153
Total operating expenses	$	1,057,938	(6,389)	$	1,051,549
Operating income	$	196,712	6,389	$	203,101
Income before income taxes and equity in earnings of affiliates	$	168,986	6,389	$	175,375
Income tax (benefit) expense	$	(1,902)	34,657	$	32,755
Net income	$	177,866	(28,268)	$	149,598
Earnings per common share
Basic	$	1.90	(0.30)	$	1.60
Diluted	$	1.89	(0.30)	$	1.59

The cumulative effect of the change in accounting policy on the Unaudited Condensed Consolidated Balance Sheets as of September 30, 2020 is as follows:


	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Assets
Nonutility plant and equipment, at cost	$	1,430,723	(322,211)	$	1,108,512
Accumulated depreciation and amortization, nonutility plant and equipment	$	(202,507)	61,945	$	(140,562)
Property, plant and equipment, net	$	3,983,035	(260,266)	$	3,722,769
Other noncurrent assets	$	78,716	6,941	$	85,657
Total noncurrent assets	$	964,435	6,941	$	971,376
Total assets	$	5,569,802	(253,325)	$	5,316,477
Capitalization
Retained earnings	$	1,148,297	(200,796)	$	947,501
Common stock equity	$	1,844,692	(200,796)	$	1,643,896
Total capitalization	$	4,104,158	(200,796)	$	3,903,362
Liabilities
Deferred income taxes	$	190,610	(52,529)	$	138,081
Total noncurrent liabilities	$	931,922	(52,529)	$	879,393
Total capitalization and liabilities	$	5,569,802	(253,325)	$	5,316,477

The impact of the change in accounting policy on the Unaudited Condensed Consolidated Statements of Cash Flows as of March 31, 2020 is as follows:


	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Depreciation and amortization	$	58,542	(6,389)	$	52,153
Deferred income taxes	$	318	34,657	$	34,975

The impact of the change in accounting policy on the Unaudited Condensed Consolidated Statements of Common Stock Equity as of March 31, 2020 is as follows:


	As Previously		Effect of	As
(Thousands)	Reported		Change	Adjusted
Retained Earnings
Balance at September 30, 2019	$	1,075,960	(206,102)	$	869,858
Net income	$	89,361	(13,609)	$	75,752
Balance at December 31, 2019	$	1,135,475	(219,711)	$	915,764
Net income	$	88,505	(14,659)	$	73,846
Balance at March 31, 2020	$	1,194,092	(234,370)	$	959,722
Total
Balance at September 30, 2019	$	1,551,717	(206,102)	$	1,345,615
Net income	$	89,361	(13,609)	$	75,752
Balance at December 31, 2019	$	1,827,803	(219,711)	$	1,608,092
Net income	$	88,505	(14,659)	$	73,846
Balance at March 31, 2020	$	1,889,107	(234,370)	$	1,654,737