Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 136

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 8
Chunk 136
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 as of the end of the year (1)$47,662 $45,660 $46,324 (1)    As of September 30, 2025, there is an anticipated $43.3 million regulatory offset and associated impact to tax expense to be recorded upon recognition of unrecognized tax benefits.The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties included within interest charges in our consolidated statements of comprehensive income. During the years ended September 30, 2025, 2024, and 2023, the Company recognized approximately $0.1 million, $0.1 million, and $3.4 million in interest and penalties. 

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

The Company had approximately $15.1 million for the payment of interest and penalties accrued at September 30, 2025, 2024, and 2023.We file income tax returns in the U.S. federal jurisdiction as well as in various states where we have operations. We have concluded substantially all U.S. federal income tax matters through fiscal year 2009 and concluded substantially all Texas income tax matters through fiscal year 2010. Regulatory Excess Deferred TaxesRegulatory excess net deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of the Tax Cuts and Jobs Act of 2017 (the TCJA), a Kansas legislative change enacted in fiscal 2020, and a Louisiana legislative change enacted in fiscal 2025. As of September 30, 2025 and 2024, $72.8 million and $79.7 million is recorded in other current liabilities.Currently, the regulatory excess net deferred tax liability of $140.5 million is being returned over various periods. Of this amount, $91.8 million is being returned to customers over 36 - 60 months. An additional $47.7 million is being returned to customers on a provisional basis over 15 - 69 years until our regulators establish the final refund periods. The refund of the remaining $1.0 million will be addressed in future rate proceedings.

16.    Financial Instruments

We currently use financial instruments to mitigate commodity price risk and interest rate risk. Our financial instruments do not contain any credit-risk-related or other contingent features that could cause accelerated payments when our financial instruments are in net liability positions.Com