Atmos Energy 1998 Annual Report Download - page 45

lar to the previously reported fully diluted earnings per share.
Earnings per share amounts for all historical periods presented
have been restated to conform to the Statement 128 requirements.
Adoption of Statement 128 did not change the fully diluted earn-
ings per share amounts for the years ended September 30,1997
and 1996. Reconciliations of the numerators and denominators of
the basic and diluted per-share computations for net income for
1998 are as follows:
Income Shares Per-Share
(Numerator) (Denominator) Amount
(In thousands, except per share amounts)
Basic EPS:
Income available to
common stockholders $55,265 29,822 $ 1.85
Effect of dilutive securities:
Restricted stock – 199
Stock options – 10
Diluted EPS:
Income available to
common stockholders and
assumed conversions $55,265 30,031 $ 1.84
13 RELATED PARTY TRANSACTIONS
Included in purchased gas cost were purchases from WMLLC of
$124.7million, $103.0million and $46.9million in 1998,1997, and
1996, respectively. Volumes purchased were 53.4billion cubic feet
(“Bcf”), 38.6Bcf and 21.7Bcf in 1998,1997 and 1996, respectively.
These purchases were made in a competitive open bidding process
and reflect market prices. Average prices per thousand cubic feet
(“Mcf”) for gas purchased from WMLLC were $2.33,$2.67 and
$2.17 in 1998,1997 and 1996, respectively.
Assumed health care cost trend rates have a significant effect
on the amounts reported for the plans. A one-percentage point
change in assumed health care cost trend rates would have the
following effects on the latest actuarial calculations:
1 – Percentage 1 – Percentage
Point Increase Point Decrease
(In thousands)
Effect on total of service and
interest cost components $ 504 $ (495)
Effect on postretirement
benefit obligation $6,890 $(5,828)
The Company is currently recovering other postretirement
benefits (“OPEB”) costs through its regulated rates under SFAS
No. 106 accrual accounting in Colorado, Kansas, the majority of its
Texas service area and in Kentucky (effective November 1,1995).
It receives rate treatment as a cost of service item for OPEB costs
on the pay-as-you-go basis in Louisiana. OPEB costs have been
specifically addressed in rate orders in each jurisdiction served by
the United Cities Division or have been included in a rate case
and not disallowed. However, the Company was required to
recover the portion of the UCGC transition obligation applicable
to Virginia operations over 40 years, rather than 20 years, as in
other states. Management believes that accrual accounting in
accordance with SFAS No. 106 is appropriate and will continue to
seek rate recovery of accrual-based expenses in its ratemaking
jurisdictions that have not yet approved the recovery of these
expenses.
12 EARNINGS PER SHARE
In 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, Earnings
per Share. Statement 128 replaced the previously reported pri-
mary and fully diluted earnings per share with basic and diluted
earnings per share. Unlike primary earnings per share, basic earn-
ings per share excludes any dilutive effects of options, warrants
and convertible securities. Diluted earnings per share is very simi-
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ATMOS ENERGY CORPORATION