Atmos Energy (ATO) - 2022 Q1 - Quarterly Report

Tax Rates and Deferred Tax Liabilities - The effective tax rates for the three months ended December 31, 2021 and 2020 were 5.9% and 23.1%, respectively, primarily due to the amortization of excess deferred federal income tax liabilities and other tax adjustments[61] - The regulatory excess net deferred tax liability of $619.0 million is being returned to customers, with$497.9 million over 35-60 months, $106.0 million provisionally over 15-69 years, and$15.1 million to be addressed in future rate proceedings[62] Hedging and Commodity Contracts - For the 2021-2022 heating season, the company hedged approximately 42% (23.9 Bcf) of winter flowing gas requirements using financial instruments[64] - As of December 31, 2021, the company had 12,982 MMcf of net long commodity contracts outstanding, which were not designated as hedges[66] Fair Value of Financial Instruments - The fair value of financial instruments as of December 31, 2021 was $141.552 million in assets and$21.634 million in liabilities[68] - The total fair value of assets and liabilities as of December 31, 2021 was $248.313 million and$21.634 million, respectively[79] - The total fair value of debt and equity securities as of December 31, 2021 was $106.761 million[79] Interest Rate Agreements - The net loss on settled interest rate agreements reclassified from AOCI into interest charges was$1.0 million for the three months ended December 31, 2021[70] - The increase (decrease) in fair value of interest rate agreements was $(46.622) million for the three months ended December 31, 2021[72] - The company had$61.0 million of net realized losses in AOCI associated with interest rate agreements as of December 31, 2021[72] Long-Term Debt and Fair Value - The carrying value of long-term debt as of December 31, 2021, was $7.960 billion, with a fair value of$8.654 billion[84] - The fair value of long-term debt as of September 30, 2021, was $8.086 billion, compared to a carrying value of$7.360 billion[84] Investments and Securities - Registered investment companies held $35.175 million, bond mutual funds held$34.298 million, and bonds held $35.655 million as of September 30, 2021[81] - The company's available-for-sale debt securities had an amortized cost of$35.8 million as of December 31, 2021, and $35.6 million as of September 30, 2021[81] - No allowance for credit losses was recorded for available-for-sale debt securities as of December 31, 2021[81] - The company maintained investments in bonds with contractual maturity dates ranging from January 2022 through November 2024[81] Financial Statements and Market Risk - The condensed consolidated interim financial statements for the three months ended December 31, 2021, were reviewed and found to be in conformity with U.S. generally accepted accounting principles[87] - No material changes in the company's quantitative and qualitative disclosures about market risk were reported during the three months ended December 31, 2021[144] Credit Risk - No material changes in the company's concentration of credit risk were reported during the three months ended December 31, 2021[85]