Guarantor and Non-Guarantor Financial Information (Tables)

3 Months Ended

Dec. 31, 2017

Guarantor and Non-Guarantor Financial Information

Schedule of Consolidated Condensed Statements of Operations

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended December 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	495,006	$	69,097	$	(16)	$	564,087
Operating costs and other		4,178		481,648		74,946		(205)		560,567
Operating income (loss) from continuing operations		(4,178)		13,358		(5,849)		189		3,520
Other income, net		261		1,641		541		(189)		2,254
Interest expense		(28)		(5,700)		(45)		—		(5,773)
Equity in net income of subsidiaries		507,420		21,365		—		(528,785)		—
Income (loss) from continuing operations before income taxes		503,475		30,664		(5,353)		(528,785)		1
Income tax expense (benefit)		3,369		(478,594)		(25,416)		—		(500,641)
Income from continuing operations		500,106		509,258		20,063		(528,785)		500,642
Loss from discontinued operations before income taxes		—		—		(519)		—		(519)
Income tax provision		—		—		17		—		17
Loss from discontinued operations		—		—		(536)		—		(536)
Net income	$	500,106	$	509,258	$	19,527	$	(528,785)	$	500,106

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended December 31, 2016
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	297,448	$	71,159	$	(17)	$	368,590
Operating costs and expenses		3,460		339,502		75,023		(231)		417,754
Operating loss from continuing operations		(3,460)		(42,054)		(3,864)		214		(49,164)
Other income, net		—		1,019		572		(214)		1,377
Interest expense		(86)		(4,709)		(260)		—		(5,055)
Equity in net income (loss) of subsidiaries		(32,992)		329		—		32,663		—
Loss from continuing operations before income taxes		(36,538)		(45,415)		(3,552)		32,663		(52,842)
Income tax benefit		(1,475)		(12,550)		(4,263)		—		(18,288)
Income (loss) from continuing operations		(35,063)		(32,865)		711		32,663		(34,554)
Loss from discontinued operations before income taxes		—		—		(424)		—		(424)
Income tax provision		—		—		85		—		85
Loss from discontinued operations		—		—		(509)		—		(509)
Net income (loss)	$	(35,063)	$	(32,865)	$	202	$	32,663	$	(35,063)

Schedule of Consolidated Condensed Statements of Comprehensive Income

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended December 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net income	$	500,106	$	509,258	$	19,527	$	(528,785)	$	500,106
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(601)		—		—		(601)
Minimum pension liability adjustments, net		102		238		—		—		340
Other comprehensive income (loss)		102		(363)		—		—		(261)
Comprehensive income	$	500,208	$	508,895	$	19,527	$	(528,785)	$	499,845

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Three Months Ended December 31, 2016
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(35,063)	$	(32,865)	$	202	$	32,663	$	(35,063)
Other comprehensive income (loss), net of income taxes:
Unrealized appreciation on securities, net		—		12,412		—		—		12,412
Minimum pension liability adjustments, net		106		260		—		—		366
Other comprehensive income		106		12,672		—		—		12,778
Comprehensive income (loss)	$	(34,957)	$	(20,193)	$	202	$	32,663	$	(22,285)

Schedule of Consolidated Condensed Balance Sheets

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	December 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(1,956)	$	376,084	$	9,536	$	—	$	383,664
Short-term investments		—		42,541		—		—		42,541
Accounts receivable, net of reserve		2,601		433,812		98,863		(5)		535,271
Inventories		—		104,497		34,569		—		139,066
Prepaid expenses and other		24,284		6,506		35,265		(253)		65,802
Current assets of discontinued operations		—		—		2		—		2
Total current assets		24,929		963,440		178,235		(258)		1,166,346
Investments		14,614		69,329		—		—		83,943
Property, plant and equipment, net		48,723		4,568,909		332,768		—		4,950,400
Intercompany		140,441		1,912,973		247,626		(2,301,040)		—
Goodwill		—		—		69,347		—		69,347
Intangible assets, net of amortization		—		—		78,636		—		78,636
Other assets		5,058		1,090		7,276		—		13,424
Investment in subsidiaries		5,977,108		204,805		—		(6,181,913)		—
Total assets	$	6,210,873	$	7,720,546	$	913,888	$	(8,483,211)	$	6,362,096
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	81,921	$	39,454	$	5,561	$	—	$	126,936
Accrued liabilities		27,437		155,555		45,998		(258)		228,732
Current liabilities of discontinued operations		—		—		94		—		94
Total current liabilities		109,358		195,009		51,653		(258)		355,762
Noncurrent liabilities:
Long-term debt		—		493,168		—		—		493,168
Deferred income taxes		(6,291)		794,862		41,923		—		830,494
Intercompany		1,491,283		235,150		574,507		(2,300,940)		—
Other		26,173		37,975		23,704		—		87,852
Noncurrent liabilities of discontinued operations		—		—		4,470		—		4,470
Total noncurrent liabilities		1,511,165		1,561,155		644,604		(2,300,940)		1,415,984
Shareholders’ equity:
Common stock		11,201		100		—		(100)		11,201
Additional paid-in capital		479,914		52,436		1,040		(53,476)		479,914
Retained earnings		4,278,326		5,905,471		216,591		(6,122,062)		4,278,326
Accumulated other comprehensive income		2,039		6,375		—		(6,375)		2,039
Treasury stock, at cost		(181,130)		—		—		—		(181,130)
Total shareholders’ equity		4,590,350		5,964,382		217,631		(6,182,013)		4,590,350
Total liabilities and shareholders’ equity	$	6,210,873	$	7,720,546	$	913,888	$	(8,483,211)	$	6,362,096

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	September 30, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(587)	$	508,091	$	13,871	$	—	$	521,375
Short-term investments		—		44,491		—		—		44,491
Accounts receivable, net of reserve		766		411,599		64,714		(5)		477,074
Inventories		—		102,470		34,734		—		137,204
Prepaid expenses and other		12,200		6,383		36,979		(442)		55,120
Current assets of discontinued operations		—		—		3		—		3
Total current assets		12,379		1,073,034		150,301		(447)		1,235,267
Investments		13,853		70,173		—		—		84,026
Property, plant and equipment, net		49,851		4,609,144		342,056		—		5,001,051
Intercompany		90,885		1,746,662		248,540		(2,086,087)		—
Goodwill		—		—		51,705		—		51,705
Intangible assets, net of amortization		—		—		50,785		—		50,785
Other assets		4,955		3,839		8,360		—		17,154
Investment in subsidiaries		5,470,050		183,382		—		(5,653,432)		—
Total assets	$	5,641,973	$	7,686,234	$	851,747	$	(7,739,966)	$	6,439,988
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	82,360	$	48,679	$	4,589	$	—	$	135,628
Accrued liabilities		26,698		148,491		33,941		(447)		208,683
Current liabilities of discontinued operations		—		—		74		—		74
Total current liabilities		109,058		197,170		38,604		(447)		344,385
Noncurrent liabilities:
Long-term debt		—		492,902		—		—		492,902
Deferred income taxes		(11,201)		1,286,381		57,509		—		1,332,689
Intercompany		1,354,068		210,823		521,096		(2,085,987)		—
Other		25,457		43,471		32,481		—		101,409
Noncurrent liabilities of discontinued operations		—		—		4,012		—		4,012
Total noncurrent liabilities		1,368,324		2,033,577		615,098		(2,085,987)		1,931,012
Shareholders’ equity:
Common stock		11,196		100		—		(100)		11,196
Additional paid-in capital		487,248		52,437		1,039		(53,476)		487,248
Retained earnings		3,855,686		5,396,212		197,006		(5,593,218)		3,855,686
Accumulated other comprehensive income		2,300		6,738		—		(6,738)		2,300
Treasury stock, at cost		(191,839)		—		—		—		(191,839)
Total shareholders’ equity		4,164,591		5,455,487		198,045		(5,653,532)		4,164,591
Total liabilities and shareholders’ equity	$	5,641,973	$	7,686,234	$	851,747	$	(7,739,966)	$	6,439,988

Schedule of Consolidated Condensed Statements of Cash Flows

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended December 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	3,210	$	70,962	$	(1,957)	$	—	$	72,215
INVESTING ACTIVITIES:
Capital expenditures		(2,189)		(86,404)		(3,105)		—		(91,698)
Purchase of short-term investments		—		(16,183)		—		—		(16,183)
Acquisition of business, net of cash acquired		(47,832)		—		—		—		(47,832)
Proceeds from sale of short-term investments		—		18,120		—		—		18,120
Intercompany transfers		50,021		(50,021)		—		—		—
Proceeds from asset sales		—		8,022		727		—		8,749
Net cash used in investing activities		—		(126,466)		(2,378)		—		(128,844)
FINANCING ACTIVITIES:
Intercompany transfers		76,503		(76,503)		—		—		—
Dividends paid		(76,503)		—		—		—		(76,503)
Proceeds from stock option exercises		892		—		—		—		892
Payments for employee taxes on net settlement of equity awards		(5,471)		—		—		—		(5,471)
Net cash used in financing activities		(4,579)		(76,503)		—		—		(81,082)
Net decrease in cash and cash equivalents		(1,369)		(132,007)		(4,335)		—		(137,711)
Cash and cash equivalents, beginning of period		(587)		508,091		13,871		—		521,375
Cash and cash equivalents, end of period	$	(1,956)	$	376,084	$	9,536	$	—	$	383,664

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended December 31, 2016, as adjusted
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	5,497	$	69,380	$	(506)	$	—	$	74,371
INVESTING ACTIVITIES:
Capital expenditures		(607)		(80,556)		(964)		—		(82,127)
Purchase of short-term investments		—		(15,025)		—		—		(15,025)
Proceeds from sale of short-term investments		—		13,900		—		—		13,900
Intercompany transfers		607		(607)		—		—		—
Proceeds from asset sales				1,102		107		—		1,209
Net cash used in investing activities		—		(81,186)		(857)		—		(82,043)
FINANCING ACTIVITIES:
Intercompany transfers		76,176		(76,176)		—		—		—
Dividends paid		(76,176)		—		—		—		(76,176)
Proceeds from stock option exercises		10,253		—		—		—		10,253
Payments for employee taxes on net settlement of equity awards		(6,073)		—		—		—		(6,073)
Net cash provided by (used in) financing activities		4,180		(76,176)		—		—		(71,996)
Net increase (decrease) in cash and cash equivalents		9,677		(87,982)		(1,363)		—		(79,668)
Cash and cash equivalents, beginning of period		(955)		899,028		7,488		—		905,561
Cash and cash equivalents, end of period	$	8,722	$	811,046	$	6,125	$	—	$	825,893