Business Segments (Disclosure)

6 Months Ended

Apr. 30, 2014

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. Although the operations of our regulated utility segment are located in three states under the jurisdiction of individual state regulatory commissions, the operations are managed as one unit having similar economic and risk characteristics within one 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 Condensed Consolidated Statements ofComprehensive Income. Operations of the non-utility activities segment are included in theCondensed Consolidated Statements of Comprehensive Incomein “Other Income (Expense)” in “Income from equity method investments” and “Non-operating income.”

Our chief operating decision maker is the executive management team. We produce consolidated financial information internally that is supplemented with separate non-utility activity reporting that is used regularly to make operating decisions and assess performance of the two business segments.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 and our cash flows in 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, 2013.

Operations by segment for the threemonths and six months ended April 30, 2014 and 2013 are presented below.

		Regulated				Non-utility
In thousands		Utility				Activities				Total
		2014		2013		2014		2013		2014		2013
Three Months
Revenues from external customers	$	462,247	$	399,411	$	-	$	-	$	462,247	$	399,411
Margin		211,523		183,856		-		-		211,523		183,856
Operations and maintenance expenses		70,193		65,037		21		66		70,214		65,103
Income from equity method investments		-		-		14,360		12,437		14,360		12,437
Operating income (loss) before income taxes		103,489		82,884		(25)		(70)		103,464		82,814
Income before income taxes		88,999		79,678		14,335		12,367		103,334		92,045
Six Months
Revenues from external customers	$	1,119,980	$	915,286	$	-	$	-	$	1,119,980	$	915,286
Margin		473,035		415,480		-		-		473,035		415,480
Operations and maintenance expenses		130,832		120,919		46		120		130,878		121,039
Income from equity method investments		-		-		24,302		19,592		24,302		19,592
Operating income (loss) before income taxes		265,610		222,396		(133)		(205)		265,477		222,191
Income before income taxes		240,268		214,555		24,168		19,386		264,436		233,941

Reconciliations to the Condensed Consolidated Statements of Comprehensive Income for the three months and sixmonths ended April 30, 2014and 2013 are presented below.

In thousands		Three Months				Six Months
		2014		2013		2014		2013
Operating Income:
Segment operating income before
income taxes	$	103,464	$	82,814	$	265,477	$	222,191
Utility income taxes		(36,190)		(31,380)		(95,992)		(84,679)
Non-utility activities before income taxes		25		70		133		205
Operating income	$	67,299	$	51,504	$	169,618	$	137,717

Net Income:
Income before income taxes for
reportable segments	$	103,334	$	92,045	$	264,436	$	233,941
Income taxes		(40,794)		(36,255)		(104,324)		(92,228)
Net income	$	62,540	$	55,790	$	160,112	$	141,713