Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Mar. 31, 2018

Guarantor and Non-Guarantor Financial Information

Schedule of Consolidated Condensed Statements of Operations

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	515,712	$	61,793	$	(21)	$	577,484
Operating costs and other		4,209		503,173		71,601		(246)		578,737
Operating income (loss) from continuing operations		(4,209)		12,539		(9,808)		225		(1,253)
Other income, net		19		1,732		200		(225)		1,726
Interest expense		(138)		(4,551)		(1,339)		—		(6,028)
Equity in net income of subsidiaries		(7,963)		(16,081)		—		24,044		—
Loss from continuing operations before income taxes		(12,291)		(6,361)		(10,947)		24,044		(5,555)
Income tax expense (benefit)		(411)		1,639		(5,150)		—		(3,922)
Loss from continuing operations		(11,880)		(8,000)		(5,797)		24,044		(1,633)
Income from discontinued operations before income taxes		—		—		1,263		—		1,263
Income tax provision		—		—		11,509		—		11,509
Loss from discontinued operations		—		—		(10,246)		—		(10,246)
Net loss	$	(11,880)	$	(8,000)	$	(16,043)	$	24,044	$	(11,879)

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended March 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	367,202	$	38,097	$	(16)	$	405,283
Operating costs and expenses		3,300		415,544		52,341		(230)		470,955
Operating loss from continuing operations		(3,300)		(48,342)		(14,244)		214		(65,672)
Other income (expense), net		1		1,814		(89)		(214)		1,512
Interest expense		(87)		(5,148)		(849)		—		(6,084)
Equity in net loss of subsidiaries		(46,677)		(11,118)		—		57,795		—
Loss from continuing operations before income taxes		(50,063)		(62,794)		(15,182)		57,795		(70,244)
Income tax benefit		(1,245)		(17,410)		(3,116)		—		(21,771)
Loss from continuing operations		(48,818)		(45,384)		(12,066)		57,795		(48,473)
Loss from discontinued operations before income taxes		—		—		(94)		—		(94)
Income tax provision		—		—		251		—		251
Loss from discontinued operations		—		—		(345)		—		(345)
Net loss	$	(48,818)	$	(45,384)	$	(12,411)	$	57,795	$	(48,818)

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(in thousands)

	Six Months Ended March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	1,010,718	$	130,890	$	(37)	$	1,141,571
Operating costs and other		8,387		984,821		146,547		(451)		1,139,304
Operating income (loss) from continuing operations		(8,387)		25,897		(15,657)		414		2,267
Other income, net		280		3,373		741		(414)		3,980
Interest expense		(166)		(10,251)		(1,384)		—		(11,801)
Equity in net income of subsidiaries		499,457		5,284		—		(504,741)		—
Income (loss) from continuing operations before income taxes		491,184		24,303		(16,300)		(504,741)		(5,554)
Income tax expense (benefit)		2,958		(476,955)		(30,566)		—		(504,563)
Income from continuing operations		488,226		501,258		14,266		(504,741)		499,009
Income from discontinued operations before income taxes		—		—		744		—		744
Income tax provision		—		—		11,526		—		11,526
Loss from discontinued operations		—		—		(10,782)		—		(10,782)
Net income	$	488,226	$	501,258	$	3,484	$	(504,741)	$	488,227

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands)

	Six Months Ended March 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	664,650	$	109,256	$	(33)	$	773,873
Operating costs and other		6,760		755,046		127,364		(461)		888,709
Operating loss from continuing operations		(6,760)		(90,396)		(18,108)		428		(114,836)
Other income, net		1		2,833		483		(428)		2,889
Interest expense		(173)		(9,857)		(1,109)		—		(11,139)
Equity in net loss of subsidiaries		(79,669)		(10,789)		—		90,458		—
Loss from continuing operations before income taxes		(86,601)		(108,209)		(18,734)		90,458		(123,086)
Income tax provision		(2,720)		(29,960)		(7,379)		—		(40,059)
Loss from continuing operations		(83,881)		(78,249)		(11,355)		90,458		(83,027)
Loss from discontinued operations before income taxes		—		—		(518)		—		(518)
Income tax provision		—		—		336		—		336
Loss from discontinued operations		—		—		(854)		—		(854)
Net loss	$	(83,881)	$	(78,249)	$	(12,209)	$	90,458	$	(83,881)

Schedule of Consolidated Condensed Statements of Comprehensive Income

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net loss	$	(11,880)	$	(8,000)	$	(16,043)	$	24,044	$	(11,879)
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(7,568)		—		—		(7,568)
Minimum pension liability adjustments, net		92		216		—		—		308
Other comprehensive income (loss)		92		(7,352)		—		—		(7,260)
Comprehensive loss	$	(11,788)	$	(15,352)	$	(16,043)	$	24,044	$	(19,139)

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended March 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net loss	$	(48,818)	$	(45,384)	$	(12,411)	$	57,795	$	(48,818)
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(10,507)		—		—		(10,507)
Minimum pension liability adjustments, net		106		260		—		—		366
Other comprehensive income (loss)		106		(10,247)		—		—		(10,141)
Comprehensive loss	$	(48,712)	$	(55,631)	$	(12,411)	$	57,795	$	(58,959)

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Six Months Ended March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net income	$	488,226	$	501,258	$	3,484	$	(504,741)	$	488,227
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(8,169)		—		—		(8,169)
Minimum pension liability adjustments, net		194		454		—		—		648
Other comprehensive income (loss)		194		(7,715)		—		—		(7,521)
Comprehensive income	$	488,420	$	493,543	$	3,484	$	(504,741)	$	480,706

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Six Months Ended March 31, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net loss	$	(83,881)	$	(78,249)	$	(12,209)	$	90,458	$	(83,881)
Other comprehensive income, net of income taxes:
Unrealized appreciation on securities, net		—		1,905		—		—		1,905
Minimum pension liability adjustments, net		212		520		—		—		732
Other comprehensive income		212		2,425		—		—		2,637
Comprehensive loss	$	(83,669)	$	(75,824)	$	(12,209)	$	90,458	$	(81,244)

Schedule of Consolidated Condensed Balance Sheets

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

	March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(787)	$	324,530	$	11,021	$	—	$	334,764
Short-term investments		—		45,270		—		—		45,270
Accounts receivable, net of reserve		794		465,049		79,581		(76)		545,348
Inventories		—		109,527		33,650		—		143,177
Prepaid expenses and other		22,718		4,484		35,285		(63)		62,424
Current assets of discontinued operations		—		—		—		—		—
Total current assets		22,725		948,860		159,537		(139)		1,130,983
Investments		14,976		58,380		—		—		73,356
Property, plant and equipment, net		47,706		4,527,404		323,415		—		4,898,525
Intercompany		147,333		2,000,285		247,981		(2,395,599)		—
Goodwill		—		—		69,496		—		69,496
Intangible assets, net of amortization		—		—		77,001		—		77,001
Other assets		5,166		1,055		6,210		—		12,431
Investment in subsidiaries		5,961,792		188,761		—		(6,150,553)		—
Total assets	$	6,199,698	$	7,724,745	$	883,640	$	(8,546,291)	$	6,261,792
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	80,251	$	39,878	$	2,951	$	(68)	$	123,012
Accrued liabilities		30,356		172,718		14,092		(71)		217,095
Current liabilities of discontinued operations		—		—		78		—		78
Total current liabilities		110,607		212,596		17,121		(139)		340,185
Noncurrent liabilities:
Long-term debt		—		493,433		—		—		493,433
Deferred income taxes		(7,011)		774,914		48,766		—		816,669
Intercompany		1,566,255		252,200		577,044		(2,395,499)		—
Other		26,694		42,574		24,393		—		93,661
Noncurrent liabilities of discontinued operations		—		—		14,691		—		14,691
Total noncurrent liabilities		1,585,938		1,563,121		664,894		(2,395,499)		1,418,454
Shareholders’ equity:
Common stock		11,201		100		—		(100)		11,201
Additional paid-in capital		487,135		52,436		1,040		(53,476)		487,135
Retained earnings		4,189,497		5,897,470		200,585		(6,098,055)		4,189,497
Accumulated other comprehensive income		(5,221)		(978)		—		978		(5,221)
Treasury stock, at cost		(179,459)		—		—		—		(179,459)
Total shareholders’ equity		4,503,153		5,949,028		201,625		(6,150,653)		4,503,153
Total liabilities and shareholders’ equity	$	6,199,698	$	7,724,745	$	883,640	$	(8,546,291)	$	6,261,792

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)

	Six Months Ended March 31, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	3,946	$	192,093	$	955	$	—	$	196,994
INVESTING ACTIVITIES:
Capital expenditures		(4,661)		(181,218)		(5,323)		—		(191,202)
Purchase of short-term investments		—		(36,784)		—		—		(36,784)
Acquisition of business, net of cash acquired		(47,886)		—		—		—		(47,886)
Proceeds from sale of short-term investments		—		32,020		—		—		32,020
Intercompany transfers		52,547		(52,547)		—		—		—
Proceeds from asset sales		—		16,308		1,518		—		17,826
Net cash used in investing activities		—		(222,221)		(3,805)		—		(226,026)
FINANCING ACTIVITIES:
Intercompany transfers		153,433		(153,433)		—		—		—
Dividends paid		(153,433)		—		—		—		(153,433)
Proceeds from stock option exercises		1,645		—		—		—		1,645
Payments for employee taxes on net settlement of equity awards		(5,791)		—		—		—		(5,791)
Net cash used in financing activities		(4,146)		(153,433)		—		—		(157,579)
Net decrease in cash and cash equivalents		(200)		(183,561)		(2,850)		—		(186,611)
Cash and cash equivalents, beginning of period		(587)		508,091		13,871		—		521,375
Cash and cash equivalents, end of period	$	(787)	$	324,530	$	11,021	$	—	$	334,764

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months Ended March 31, 2017, as adjusted
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(5,993)	$	148,481	$	7,790	$	—	$	150,278
INVESTING ACTIVITIES:
Capital expenditures		(1,343)		(172,338)		(1,622)		—		(175,303)
Purchase of short-term investments		—		(37,899)		—		—		(37,899)
Proceeds from sale of short-term investments		—		34,000		—		—		34,000
Intercompany transfers		1,343		(1,343)		—		—		—
Proceeds from asset sales		—		12,908		551		—		13,459
Net cash used in investing activities		—		(164,672)		(1,071)		—		(165,743)
FINANCING ACTIVITIES:
Intercompany transfers		152,617		(152,617)		—		—		—
Dividends paid		(152,617)		—		—		—		(152,617)
Proceeds from stock option exercises		10,372		—		—		—		10,372
Payments for employee taxes on net settlement of equity awards		(6,105)		—		—		—		(6,105)
Net cash provided by (used in) financing activities		4,267		(152,617)		—		—		(148,350)
Net increase (decrease) in cash and cash equivalents		(1,726)		(168,808)		6,719		—		(163,815)
Cash and cash equivalents, beginning of period		(955)		899,028		7,488		—		905,561
Cash and cash equivalents, end of period	$	(2,681)	$	730,220	$	14,207	$	—	$	741,746