Guarantor and Non-Guarantor Financial Information (Tables)

9 Months Ended

Jun. 30, 2018

Guarantor and Non-Guarantor Financial Information

Schedule of Consolidated Condensed Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	574,252	$	74,647	$	(27)	$	648,872
Operating costs and other		4,240		557,994		80,639		(218)		642,655
Operating (loss) income from continuing operations		(4,240)		16,258		(5,992)		191		6,217
Other income, net		196		1,854		278		(191)		2,137
Interest expense		(108)		(5,117)		(768)		—		(5,993)
Equity in net loss of subsidiaries		(4,883)		(2,093)		—		6,976		—
(Loss) income from continuing operations before income taxes		(9,035)		10,902		(6,482)		6,976		2,361
Income tax (benefit) provision		(1,027)		17,384		(5,822)		—		10,535
Loss from continuing operations		(8,008)		(6,482)		(660)		6,976		(8,174)
Income from discontinued operations before income taxes		—		—		8,383		—		8,383
Income tax provision		—		—		8,217		—		8,217
Income from discontinued operations		—		—		166		—		166
Net loss	$	(8,008)	$	(6,482)	$	(494)	$	6,976	$	(8,008)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)

	Three Months Ended June 30, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	439,227	$	59,355	$	(18)	$	498,564
Operating costs and expenses		3,364		463,220		60,224		(216)		526,592
Operating loss from continuing operations		(3,364)		(23,993)		(869)		198		(28,028)
Other (expense) income, net		(4)		2,052		(1,061)		(198)		789
Interest expense		(87)		(5,294)		(983)		—		(6,364)
Equity in net loss of subsidiaries		(19,510)		(85)		—		19,595		—
Loss from continuing operations before income taxes		(22,965)		(27,320)		(2,913)		19,595		(33,603)
Income tax benefit		(1,166)		(7,360)		(1,952)		—		(10,478)
Loss from continuing operations		(21,799)		(19,960)		(961)		19,595		(23,125)
Income from discontinued operations before income taxes		—		—		3,223		—		3,223
Income tax provision		—		—		1,897		—		1,897
Income from discontinued operations		—		—		1,326		—		1,326
Net (loss)  income	$	(21,799)	$	(19,960)	$	365	$	19,595	$	(21,799)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

(in thousands)

	Nine Months Ended June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	1,584,970	$	205,537	$	(64)	$	1,790,443
Operating costs and other		12,627		1,542,815		227,186		(669)		1,781,959
Operating (loss) income from continuing operations		(12,627)		42,155		(21,649)		605		8,484
Other income, net		477		5,226		1,019		(605)		6,117
Interest expense		(274)		(15,368)		(2,152)		—		(17,794)
Equity in net income of subsidiaries		494,574		3,191		—		(497,765)		—
Income (loss) from continuing operations before income taxes		482,150		35,204		(22,782)		(497,765)		(3,193)
Income tax provision (benefit)		1,931		(459,571)		(36,388)		—		(494,028)
Income from continuing operations		480,219		494,775		13,606		(497,765)		490,835
Income from discontinued operations before income taxes		—		—		9,127		—		9,127
Income tax provision		—		—		19,743		—		19,743
Loss from discontinued operations		—		—		(10,616)		—		(10,616)
Net income	$	480,219	$	494,775	$	2,990	$	(497,765)	$	480,219

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in thousands)

	Nine Months Ended June 30, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	1,103,877	$	168,611	$	(51)	$	1,272,437
Operating costs and other		10,124		1,218,266		187,588		(677)		1,415,301
Operating loss from continuing operations		(10,124)		(114,389)		(18,977)		626		(142,864)
Other (expense) income, net		(3)		4,885		(578)		(626)		3,678
Interest expense		(260)		(15,151)		(2,092)		—		(17,503)
Equity in net loss of subsidiaries		(99,179)		(10,874)		—		110,053		—
Loss from continuing operations before income taxes		(109,566)		(135,529)		(21,647)		110,053		(156,689)
Income tax (benefit)		(3,886)		(37,320)		(9,331)		—		(50,537)
Loss from continuing operations		(105,680)		(98,209)		(12,316)		110,053		(106,152)
Income from discontinued operations before income taxes		—		—		2,705		—		2,705
Income tax provision		—		—		2,233		—		2,233
Income from discontinued operations		—		—		472		—		472
Net loss	$	(105,680)	$	(98,209)	$	(11,844)	$	110,053	$	(105,680)

Schedule of Consolidated Condensed Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net loss	$	(8,008)	$	(6,482)	$	(494)	$	6,976	$	(8,008)
Other comprehensive (loss) income, net of income taxes:
Unrealized depreciation on securities, net		—		13,826		—		—		13,826
Minimum pension liability adjustments, net		101		236		—		—		337
Other comprehensive income		101		14,062		—		—		14,163
Comprehensive (loss) income	$	(7,907)	$	7,580	$	(494)	$	6,976	$	6,155

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Three Months Ended June 30, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net (loss) income	$	(21,799)	$	(19,960)	$	365	$	19,595	$	(21,799)
Other comprehensive (loss) income, net of income taxes:
Unrealized depreciation on securities, net		—		(6,899)		—		—		(6,899)
Minimum pension liability adjustments, net		104		261		—		—		365
Other comprehensive income (loss)		104		(6,638)		—		—		(6,534)
Comprehensive (loss) income	$	(21,695)	$	(26,598)	$	365	$	19,595	$	(28,333)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Nine Months Ended June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net income	$	480,219	$	494,775	$	2,990	$	(497,765)	$	480,219
Other comprehensive income, net of income taxes:
Unrealized apreciation on securities, net		—		5,657		—		—		5,657
Minimum pension liability adjustments, net		295		690		—		—		985
Other comprehensive income		295		6,347		—		—		6,642
Comprehensive income	$	480,514	$	501,122	$	2,990	$	(497,765)	$	486,861

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

	Nine Months Ended June 30, 2017
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net loss	$	(105,680)	$	(98,209)	$	(11,844)	$	110,053	$	(105,680)
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(4,994)		—		—		(4,994)
Minimum pension liability adjustments, net		316		781		—		—		1,097
Other comprehensive income (loss)		316		(4,213)		—		—		(3,897)
Comprehensive loss	$	(105,364)	$	(102,422)	$	(11,844)	$	110,053	$	(109,577)

Schedule of Consolidated Condensed Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

(in thousands)

	June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(1,027)	$	292,439	$	15,014	$	—	$	306,426
Short-term investments		—		44,279		—		—		44,279
Accounts receivable, net of allowance		(164)		482,746		82,855		(116)		565,321
Inventories		—		119,043		33,066		—		152,109
Prepaid expenses and other		15,707		13,353		37,101		(818)		65,343
Total current assets		14,516		951,860		168,036		(934)		1,133,478
Investments		14,902		77,800		—		—		92,702
Property, plant and equipment, net		48,273		4,520,974		314,131		—		4,883,378
Intercompany		150,255		2,079,427		250,461		(2,480,143)		—
Goodwill		—		—		69,496		—		69,496
Intangible assets, net		—		—		75,564		—		75,564
Other assets		5,162		921		5,171		—		11,254
Investment in subsidiaries		5,970,971		186,724		—		(6,157,695)		—
Total assets	$	6,204,079	$	7,817,706	$	882,859	$	(8,638,772)	$	6,265,872
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	82,019	$	55,242	$	6,580	$	(109)	$	143,732
Accrued liabilities		33,009		163,373		42,379		(826)		237,935
Current liabilities - discontinued operations		—		—		1		—		1
Total current liabilities		115,028		218,615		48,960		(935)		381,668
Noncurrent liabilities:
Long-term debt		—		493,700		—		—		493,700
Deferred income taxes		(7,230)		820,472		20,496		—		833,738
Intercompany		1,627,211		277,742		575,090		(2,480,043)		—
Other		26,579		50,569		22,579		—		99,727
Noncurrent liabilities - discontinued operations		—		—		14,548		—		14,548
Total noncurrent liabilities		1,646,560		1,642,483		632,713		(2,480,043)		1,441,713
Shareholders’ equity:
Common stock		11,201		100		—		(100)		11,201
Additional paid-in capital		494,604		52,436		1,040		(53,476)		494,604
Retained earnings		4,103,418		5,890,988		200,146		(6,091,134)		4,103,418
Accumulated other comprehensive income		8,942		13,084		—		(13,084)		8,942
Treasury stock, at cost		(175,674)		—		—		—		(175,674)
Total shareholders’ equity		4,442,491		5,956,608		201,186		(6,157,794)		4,442,491
Total liabilities and shareholders’ equity	$	6,204,079	$	7,817,706	$	882,859	$	(8,638,772)	$	6,265,872

CONDENSED CONSOLIDATING 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 allowance		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 - 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		—		—		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 - 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 - 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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)

	Nine Months Ended June 30, 2018
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	378	$	350,557	$	7,486	$	—	$	358,421
INVESTING ACTIVITIES:
Capital expenditures		(8,725)		(306,278)		(7,655)		—		(322,658)
Purchase of short-term investments		—		(52,159)		—		—		(52,159)
Acquisition of business, net of cash acquired		(47,886)		—		—		—		(47,886)
Proceeds from sale of short-term investments		—		52,470		—		—		52,470
Intercompany transfers		56,611		(56,611)		—		—		—
Proceeds from asset sales		—		26,737		1,312		—		28,049
Net cash used in investing activities		—		(335,841)		(6,343)		—		(342,184)
FINANCING ACTIVITIES:
Intercompany transfers		230,368		(230,368)		—		—		—
Dividends paid		(230,368)		—		—		—		(230,368)
Proceeds from stock option exercises		5,160		—		—		—		5,160
Payments for employee taxes on net settlement of equity awards		(5,978)		—		—		—		(5,978)
Net cash used in financing activities		(818)		(230,368)		—		—		(231,186)
Net (decrease) increase in cash and cash equivalents		(440)		(215,652)		1,143		—		(214,949)
Cash and cash equivalents, beginning of period		(587)		508,091		13,871		—		521,375
Cash and cash equivalents, end of period	$	(1,027)	$	292,439	$	15,014	$	—	$	306,426

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in thousands)

	Nine Months Ended June 30, 2017, as adjusted
	Guarantor/		Issuer		Non-Guarantor				Total
	Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(4,796)	$	235,176	$	9,875	$	—	$	240,255
INVESTING ACTIVITIES:
Capital expenditures		(2,344)		(293,946)		(3,985)		—		(300,275)
Purchase of short-term investments		—		(48,958)		—		—		(48,958)
Acquisition of business, net cash received		(70,416)		—		—		—		(70,416)
Proceeds from sale of short-term investments		—		53,150		—		—		53,150
Intercompany transfers		72,760		(72,760)		—		—		—
Proceeds from asset sales		—		17,316		605		—		17,921
Net cash used in investing activities		—		(345,198)		(3,380)		—		(348,578)
FINANCING ACTIVITIES:
Intercompany transfers		229,061		(229,061)		—		—		—
Dividends paid		(229,061)		—		—		—		(229,061)
Proceeds from stock option exercises		10,884		—		—		—		10,884
Payments for employee taxes on net settlement of equity awards		(6,274)		—		—		—		(6,274)
Net cash provided by (used in) financing activities		4,610		(229,061)		—		—		(224,451)
Net (decrease) increase in cash and cash equivalents		(186)		(339,083)		6,495		—		(332,774)
Cash and cash equivalents, beginning of period		(955)		899,028		7,488		—		905,561
Cash and cash equivalents, end of period	$	(1,141)	$	559,945	$	13,983	$	—	$	572,787