Atmos Energy Corp 2025 Year Quarterly Report

Washington,D.C. 20549Form10-Q (Mark One)☒QUARTERLY REPORT PURSUANT TO SECTION13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934 Atmos Energy Corporation Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405of RegulationS-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit such Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or anemerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growthcompany" in Rule12b-2 of the Exchange Act. (Check one): ATMOS ENERGY CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 1.Nature of Business Atmos Energy Corporation (“Atmos Energy” or the “Company”) and its subsidiaries are engaged in the regulated natural gasdistribution and pipeline and storage businesses. Our distribution business is subject to federal and state regulation and/or regulation by local Our distribution business delivers natural gas through sales and transportation arrangements to over3.3million residential,commercial, public authority, and industrial customers through oursixregulated distribution divisions, which at March31, 2025, covered Our pipeline and storage business, which is also subject to federal and state regulations, includes the transportation of natural gas toour Texas and Louisiana distribution systems and the management of our underground storage facilities used to support our distribution 2.Summary of Significant Accounting Policies Basis of Presentation These consolidated interim-period financial statements have been prepared in accordance with accounting principles generallyaccepted in the United States on the same basis as those used for the Company’s audited consolidated financial statements included in ourAnnual Report on Form 10-K for the fiscal year ended September30, 2024. In the opinion of management, all material adjustments(consisting of normal recurring accruals) necessary for a fair presentation have been made to the unaudited consolidated interim-periodfinancial statements. These consolidated interim-period financial statements are condensed as permitted by the instructions to Form 10-Q Significant accounting policies Our accounting policies are described in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for thefiscal year ended September30, 2024. During the second quarter of fiscal 2025, we completed our annual goodwill impairment assessment using a qualitative assessment, aspermitted under U.S. GAAP. We test for goodwill at the reporting unit level on an annual basis and between annual tests if an event occursor circumstances change that would more likely than not reduce the fair value of the reporting unit. Based on the assessment performed, we No events have occurred subsequent to the balance sheet date that would require recognition or disclosure in the condensedconsolidated financial statements. Recently issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued guidance which provides updates to qualitative andquantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increasedinterim disclosure requirements, among others. The amendment is effective for fiscal years beginning after December 15, 2023, and interim In December 2023, the FASB issued guidance which provides qualitative and quantitative updates to the rate reconciliation andincome taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categoriesand greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendmentis effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied In November 2024, the FASB issued guidance that will require more detailed information about the types of expenses in commonlypresented expense captions. The amendment is effective for fiscal years beginning after December 15, 2026, and interim periods withinfiscal years beginning after December 15, 2027. Early adoption is permitted. This amendment will be effective for our Form 10-K for fiscal 3.Regulation Accounting principles generally accepted in the United States require cost-based, rate-r