Business Segments (Disclosure)

3 Months Ended

Apr. 30, 2013

Business Segments Details [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, where we include 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 theConsolidated Statements of Comprehensive 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, 2012.

Operations by segment for the threemonths and six months ended April 30, 2013 and 2012 are presented below.

		Regulated				Non-utility
In thousands		Utility				Activities				Total
		2013		2012		2013		2012		2013		2012
Three Months
Revenues from external customers	$	399,411	$	308,432	$	-	$	-	$	399,411	$	308,432
Margin		183,856		171,951		-		-		183,856		171,951
Operations and maintenance expenses		65,037		60,511		66		21		65,103		60,532
Income from equity method investments		-		-		12,437		11,652		12,437		11,652
Operating income (loss) before income taxes		82,884		76,872		(70)		(26)		82,814		76,846
Income before income taxes		79,678		71,189		12,367		11,627		92,045		82,816
Six Months
Revenues from external customers	$	915,286	$	780,272	$	-	$	-	$	915,286	$	780,272
Margin		415,480		392,187		-		-		415,480		392,187
Operations and maintenance expenses		120,919		118,908		120		44		121,039		118,952
Income from equity method investments		-		-		19,592		17,944		19,592		17,944
Operating income (loss) before income taxes		222,396		203,912		(205)		(132)		222,191		203,780
Income before income taxes		214,555		190,770		19,386		17,812		233,941		208,582

Reconciliations to the Consolidated Statements of Comprehensive Income for the three months and sixmonths ended April 30, 2013and 2012 are presented below.

In thousands		Three Months				Six Months
		2013		2012		2013		2012
Operating Income:
Segment operating income before
income taxes	$	82,814	$	76,846	$	222,191	$	203,780
Utility income taxes		(31,380)		(28,090)		(84,679)		(75,311)
Non-utility activities before income taxes		70		26		205		132
Operating income	$	51,504	$	48,782	$	137,717	$	128,601

Net Income:
Income before income taxes for
reportable segments	$	92,045	$	82,816	$	233,941	$	208,582
Income taxes		(36,255)		(32,624)		(92,228)		(82,163)
Net income	$	55,790	$	50,192	$	141,713	$	126,419