Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 103

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 8
Chunk 103
---
 expected impact on our customers’ ability to pay. Our allowance for uncollectible accounts also reflects the fact that we have the ability to recover the gas cost portion of uncollectible accounts through our gas cost recovery mechanisms in six states, which covers approximately 89 percent of our residential and commercial customers.In December 2023, the Mississippi Public Service Commission approved the recovery of uncollectible accounts through our purchased gas cost mechanism over a two-year period rather than through our annual filing mechanism over a one-year period. As a result of this decision, we recorded a $13.9 million reduction to bad debt expense during the first quarter of fiscal 

56

Table of ContentsATMOS ENERGY CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2024. Of this amount, $9.7 million represents future recovery of customer receivables previously written off since April 2022 but not yet recovered through our rates. This amount increased our deferred gas cost regulatory asset. The remaining $4.2 million reduction represents a reversal of our allowance for uncollectible accounts for customer balances that have not yet been written off. Allowance for uncollectible accounts (In thousands)Balance, September 30, 2022$49,993 Current period provisions22,353 Write-offs charged against allowance(33,595)Recoveries of amounts previously written off2,089 Balance, September 30, 202340,840 Current period provisions24,843 Write-offs charged against allowance(26,165)Recoveries of amounts previously written off1,730 Mississippi recovery of uncollectible accounts(4,192)Balance, September 30, 202437,056 Current period provisions30,778 Write-offs charged against allowance(24,631)Recoveries of amounts previously written off2,056 Balance, September 30, 2025$45,259 

7.    Leases

We utilize operating leases for office and warehouse space, tower space, vehicles, and heavy equipment used in our operations. We also have finance leases for certain build-to-suit service centers. The following table presents our weighted average remaining lease term for our leases.September 30, 2025September 30, 2024Weighted average remaining lease term (years)Finance leases15.716.7Operating leases8.89.9The following table represents our weighted average discount rate:September 30, 2025