Business Segments (Disclosure)

3 Months Ended

Apr. 30, 2012

Business Segments Disclosure [Abstract]

Segment Reporting Disclosure Text Block

14.       Business Segments

We have two reportable business segments, regulated utility and non-utility activities. Our segments are identified based on products and services, regulatory environments and our current corporate organization and business decision-making activities. The regulated utility segment is the gas distribution business, including the operations of merchandising and its related service work and home warranty programs, with activities conducted by the parent company. Operations of our non-utility activities segment are comprised of our equity method investments in joint ventures that are held by our wholly owned subsidiaries.

Operations of the regulated utility segment are reflected in “Operating Income” in the consolidated statements ofcomprehensive income. Operations of the non-utility activities segment are included in the consolidated statements ofcomprehensive incomein “Income from equity method investments” and “Non-operating income.”

We evaluate the performance of the regulated utility segment based on margin, operations and maintenance expenses and operating income. We evaluate the performance of the non-utility activities segment based on earnings from the ventures. The basis of segmentation and the basis of the measurement of segment profit or loss are the same as reported in the consolidated financial statements in our Form 10-K for the year ended October 31, 2011.

Operations by segment for the three months and six months ended April 30, 2012 and 2011 are presented below.

		Regulated				Non-utility
In thousands		Utility				Activities				Total
		2012		2011		2012		2011		2012		2011
Three Months
Revenues from external customers	$	308,432	$	392,567	$	-	$	-	$	308,432	$	392,567
Margin		171,951		172,931		-		-		171,951		172,931
Operations and maintenance expenses		60,511		58,936		21		17		60,532		58,953
Income from equity method investments		-		-		11,652		12,384		11,652		12,384
Operating income (loss) before income taxes		76,872		79,106		(26)		(24)		76,846		79,082
Income before income taxes		71,189		65,932		11,627		12,371		82,816		78,303
Six Months
Revenues from external customers	$	780,272	$	1,044,623	$	-	$	-	$	780,272	$	1,044,623
Margin		392,187		402,937		-		-		392,187		402,937
Operations and maintenance expenses		118,908		109,994		44		47		118,952		110,041
Income from equity method investments		-		-		17,944		20,140		17,944		20,140
Operating income (loss) before income taxes		203,912		221,910		(132)		(143)		203,780		221,767
Income before income taxes		190,770		197,621		17,812		20,008		208,582		217,629

Reconciliations to the consolidated statements of comprehensive income for the three months and six months ended April 30, 2012 and 2011 are presented below.

In thousands		Three Months				Six Months
		2012		2011		2012		2011
Operating Income:
Segment operating income before
income taxes	$	76,846	$	79,082	$	203,780	$	221,767
Utility income taxes		(28,090)		(26,179)		(75,311)		(78,114)
Non-utility activities before income taxes		26		24		132		143
Operating income	$	48,782	$	52,927	$	128,601	$	143,796

Net Income:
Income before income taxes for
reportable segments	$	82,816	$	78,303	$	208,582	$	217,629
Income taxes		(32,624)		(30,895)		(82,163)		(85,781)
Net income	$	50,192	$	47,408	$	126,419	$	131,848