17. Segment Information

12 Months Ended

Sep. 30, 2012

Segment Reporting Disclosure [Abstract]

17. Segment Information

17.       Segment Information

Atmos Energy Corporation and its subsidiaries are engaged primarily in the regulated natural gas distribution, transmission and storage business as well as other nonregulated businesses. We distribute natural gas through sales and transportation arrangements to over three million residential, commercial, public authority and industrial customers through our six regulated natural gas distribution divisions, which cover service areas located in nine states. In addition, we transport natural gas for others through our distribution system.

Through our nonregulated businesses, we primarily provide natural gas management and marketing services to municipalities, other local distribution companies and industrial customers primarily in the Midwest and Southeast. Additionally, we provide natural gas transportation and storage services to certain of our natural gas distribution operations and to third parties.

We operate the Company through the following three segments:

• The natural gas distributionsegment, includes our regulated natural gas distribution and related sales operations.
• The regulated transmission and storage segment, includes the regulated pipeline and storage operations of our Atmos Pipeline – Texas Division.
• The nonregulated segment, is comprised of our nonregulated natural gas management, nonregulated natural gas transmission, storage and other services.

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 natural gas distribution segment operations are geographically dispersed, they are reported as a single segment as each natural gas distribution division has similar economic characteristics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on net income or loss of the respective operating units. Interest expense is allocated pro rata to each segment based upon our net investment in each segment. Income taxes are allocated to each segment as if each segment's taxes were calculated on a separate return basis.

Summarized income statements and capital expenditures by segment are shown in the following tables.

		Year Ended September 30, 2012
		Natural Gas Distribution		Regulated Transmission and Storage		Nonregulated		Eliminations		Consolidated
		(In thousands)
Operating revenues from
	external parties	$	2,144,376	$	92,604	$	1,201,503	$	-	$	3,438,483
Intersegment revenues			954		154,747		149,800		(305,501)		-
			2,145,330		247,351		1,351,303		(305,501)		3,438,483
Purchased gas cost			1,122,587		-		1,296,179		(304,022)		2,114,744
	Gross profit		1,022,743		247,351		55,124		(1,479)		1,323,739
Operating expenses
	Operation and maintenance		353,879		71,521		29,697		(1,484)		453,613
	Depreciation and amortization		202,026		31,438		4,061		-		237,525
	Taxes, other than income		162,377		15,568		3,128		-		181,073
	Asset impairments		-		-		5,288		-		5,288
Total operating expenses			718,282		118,527		42,174		(1,484)		877,499
Operating income			304,461		128,824		12,950		5		446,240
Miscellaneous income (expense)			(12,657)		(1,051)		1,035		(1,971)		(14,644)
Interest charges			110,642		29,414		3,084		(1,966)		141,174
Income from continuing
	operations before income taxes		181,162		98,359		10,901		-		290,422
Income tax expense			57,314		35,300		5,612		-		98,226
Income from continuing
	operations		123,848		63,059		5,289		-		192,196
Income from discontinued
	operations, net of tax		18,172		-		-		-		18,172
Gain on sale of discontinued
	operations, net of tax		6,349		-		-		-		6,349
	Net income	$	148,369	$	63,059	$	5,289	$	-	$	216,717
Capital expenditures		$	546,818	$	175,768	$	10,272	$	-	$	732,858

		Year Ended September 30, 2011
		Natural Gas Distribution		Regulated Transmission and Storage		Nonregulated		Eliminations		Consolidated
		(In thousands)
Operating revenues from
	external parties	$	2,469,781	$	87,141	$	1,729,513	$	-	$	4,286,435
Intersegment revenues			883		132,232		295,380		(428,495)		-
			2,470,664		219,373		2,024,893		(428,495)		4,286,435
Purchased gas cost			1,452,721		-		1,959,893		(426,999)		2,985,615
	Gross profit		1,017,943		219,373		65,000		(1,496)		1,300,820
Operating expenses
	Operation and maintenance		341,758		70,401		32,308		(1,502)		442,965
	Depreciation and amortization		193,642		25,997		4,193		-		223,832
	Taxes, other than income		160,455		14,700		2,612		-		177,767
	Asset impairments		-		-		30,270		-		30,270
Total operating expenses			695,855		111,098		69,383		(1,502)		874,834
Operating income (loss)			322,088		108,275		(4,383)		6		425,986
Miscellaneous income			16,242		4,715		657		(430)		21,184
Interest charges			115,740		31,432		4,015		(424)		150,763
Income (loss) from continuing operations
	before income taxes		222,590		81,558		(7,741)		-		296,407
Income tax expense (benefit)			77,885		29,143		(209)		-		106,819
Income (loss) from continuing
	operations		144,705		52,415		(7,532)		-		189,588
Income from discontinued
	operations, net of tax		18,013		-		-		-		18,013
	Net income (loss)	$	162,718	$	52,415	$	(7,532)	$	-	$	207,601
Capital expenditures		$	496,899	$	118,452	$	7,614	$	-	$	622,965

		Year Ended September 30, 2010
		Natural Gas Distribution		Regulated Transmission and Storage		Nonregulated		Eliminations		Consolidated
		(In thousands)
Operating revenues from
	external parties	$	2,782,993	$	97,023	$	1,781,044	$	-	$	4,661,060
Intersegment revenues			870		105,990		365,614		(472,474)		-
			2,783,863		203,013		2,146,658		(472,474)		4,661,060
Purchased gas cost			1,785,221		-		2,032,567		(470,864)		3,346,924
	Gross profit		998,642		203,013		114,091		(1,610)		1,314,136
Operating expenses
	Operation and maintenance		349,465		72,249		34,517		(1,610)		454,621
	Depreciation and amortization		182,097		21,368		5,074		-		208,539
	Taxes, other than income		170,229		12,358		4,556		-		187,143
Total operating expenses			701,791		105,975		44,147		(1,610)		850,303
Operating income			296,851		97,038		69,944		-		463,833
Miscellaneous income (expense)			1,132		135		3,859		(5,717)		(591)
Interest charges			118,147		31,174		10,584		(5,717)		154,188
Income from continuing operations
	before income taxes		179,836		65,999		63,219		-		309,054
Income tax expense			69,875		24,513		24,815		-		119,203
Income from continuing
	operations		109,961		41,486		38,404		-		189,851
Income from discontinued
	operations, net of tax		15,988		-		-		-		15,988
	Net income	$	125,949	$	41,486	$	38,404	$	-	$	205,839
Capital expenditures		$	437,815	$	95,835	$	8,986	$	-	$	542,636

The following table summarizes our revenues by products and services for the fiscal year ended September 30.

					2012		2011		2010
				(In thousands)
Natural gas distribution revenues:
	Gas sales revenues:
		Residential		$	1,351,479	$	1,535,887	$	1,751,186
		Commercial			587,651		685,380		775,714
		Industrial			71,960		96,636		101,814
		Public authority and other			54,334		68,676		69,944
			Total gas sales revenues		2,065,424		2,386,579		2,698,658
	Transportation revenues				53,924		57,331		56,539
	Other gas revenues				25,028		25,871		27,796
		Total natural gas distribution revenues			2,144,376		2,469,781		2,782,993
Regulated transmission and storage revenues					92,604		87,141		97,023
Nonregulated revenues					1,201,503		1,729,513		1,781,044
		Total operating revenues		$	3,438,483	$	4,286,435	$	4,661,060

Balance sheet information at September 30, 2012 and 2011 by segment is presented in the following tables.

			September 30, 2012
			Natural		Regulated
			Gas		Transmission
			Distribution		and Storage		Nonregulated		Eliminations		Consolidated
			(In thousands)
ASSETS
Property, plant and
	equipment, net		$	4,432,017	$	979,443	$	64,144	$	-	$	5,475,604
Investment in subsidiaries				747,496		-		(2,096)		(745,400)		-
Current assets
	Cash and cash equivalents			12,787		-		51,452		-		64,239
	Assets from risk
		management activities		6,934		-		17,773		-		24,707
	Other current assets			546,187		11,788		404,097		(223,056)		739,016
	Intercompany receivables			636,557		-		-		(636,557)		-
		Total current assets		1,202,465		11,788		473,322		(859,613)		827,962
Intangible assets				-		-		164		-		164
Goodwill				573,550		132,422		34,711		-		740,683
Noncurrent assets from risk
	management activities			2,283		-		-		-		2,283
Deferred charges and other
	assets			417,893		24,353		6,733		-		448,979
			$	7,375,704	$	1,148,006	$	576,978	$	(1,605,013)	$	7,495,675
CAPITALIZATION AND LIABILITIES
Shareholders' equity			$	2,359,243	$	328,161	$	419,335	$	(747,496)	$	2,359,243
Long-term debt				1,956,305		-		-		-		1,956,305
		Total capitalization		4,315,548		328,161		419,335		(747,496)		4,315,548
Current liabilities
	Current maturities of
		long-term debt		-		-		131		-		131
	Short-term debt			782,719		-		-		(211,790)		570,929
	Liabilities from risk
		management activities		85,366		-		15		-		85,381
	Other current liabilities			526,089		12,478		90,116		(9,170)		619,513
	Intercompany payables			-		584,578		51,979		(636,557)		-
		Total current liabilities		1,394,174		597,056		142,241		(857,517)		1,275,954
Deferred income taxes				789,288		220,647		5,148		-		1,015,083
Noncurrent liabilities from risk
	management activities			-		-		9,206		-		9,206
Regulatory cost of removal
	obligation			381,164		-		-		-		381,164
Deferred credits and other
	liabilities			495,530		2,142		1,048		-		498,720
			$	7,375,704	$	1,148,006	$	576,978	$	(1,605,013)	$	7,495,675

			September 30, 2011
			Natural		Regulated
			Gas		Transmission
			Distribution		and Storage		Nonregulated		Eliminations		Consolidated
			(In thousands)
ASSETS
Property, plant and
	equipment, net		$	4,248,198	$	838,302	$	61,418	$	-	$	5,147,918
Investment in subsidiaries				670,993		-		(2,096)		(668,897)		-
Current assets
	Cash and cash equivalents			24,646		-		106,773		-		131,419
	Assets from risk
		management activities		843		-		17,501		-		18,344
	Other current assets			655,716		15,413		386,215		(196,154)		861,190
	Intercompany receivables			569,898		-		-		(569,898)		-
		Total current assets		1,251,103		15,413		510,489		(766,052)		1,010,953
Intangible assets				-		-		207		-		207
Goodwill				572,908		132,381		34,711		-		740,000
Noncurrent assets from risk
	management activities			998		-		-		-		998
Deferred charges and other
	assets			353,960		18,028		10,807		-		382,795
			$	7,098,160	$	1,004,124	$	615,536	$	(1,434,949)	$	7,282,871
CAPITALIZATION AND LIABILITIES
Shareholders' equity			$	2,255,421	$	265,102	$	405,891	$	(670,993)	$	2,255,421
Long-term debt				2,205,986		-		131		-		2,206,117
		Total capitalization		4,461,407		265,102		406,022		(670,993)		4,461,538
Current liabilities
	Current maturities of
		long-term debt		2,303		-		131		-		2,434
	Short-term debt			387,691		-		-		(181,295)		206,396
	Liabilities from risk
		management activities		11,916		-		3,537		-		15,453
	Other current liabilities			474,783		10,369		170,926		(12,763)		643,315
	Intercompany payables			-		543,084		26,814		(569,898)		-
		Total current liabilities		876,693		553,453		201,408		(763,956)		867,598
Deferred income taxes				789,649		173,351		(2,907)		-		960,093
Noncurrent liabilities from risk
	management activities			67,862		-		10,227		-		78,089
Regulatory cost of removal
	obligation			428,947		-		-		-		428,947
Deferred credits and other
	liabilities			473,602		12,218		786		-		486,606
			$	7,098,160	$	1,004,124	$	615,536	$	(1,434,949)	$	7,282,871