INFORMATION BY OPERATING SEGMENT |
INFORMATION BY OPERATING SEGMENT The Company has two key operating segments: Gas Utility and Gas Marketing. The Gas Utility segment comprises the regulated operations of the Utilities, consisting of Laclede Gas and Alagasco. Laclede Gas and Alagasco are public utilities engaged in the retail distribution and sale of natural gas serving an area in eastern Missouri through its legacy Laclede Gas assets, an area in western Missouri through its MGE assets, and central and northern Alabama through its Alagasco assets. The Gas Marketing segment includes the results of LER, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, and LER Storage Services, Inc., which utilizes natural gas storage contracts for providing natural gas sales. Other includes: | | • | unallocated corporate items, including certain debt and associated interest costs, |
| | • | Laclede Pipeline Company, a subsidiary of Laclede Group which operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction, and |
| | • | Laclede Group’s subsidiaries that are engaged in, among other activities, oil production, real estate development, compression of natural gas, and financial investments in other enterprises. All subsidiaries are wholly owned. |
Accounting policies and intersegment transactions are described in Note 1, Summary of Significant Accounting Policies. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ Millions) | Gas Utility | | Gas Marketing | | Other | | Eliminations | | Consolidated | Three Months Ended March 31, 2015 | |
| | |
| | |
| | |
| | |
| Operating Revenues: | | | | | | | | | | Revenues from external customers | $ | 847.0 |
| | $ | 30.0 |
| | $ | 0.4 |
| | $ | — |
| | $ | 877.4 |
| Intersegment revenues | 2.0 |
| | 14.1 |
| | 0.5 |
| | (16.6 | ) | | — |
| Total Operating Revenues | 849.0 |
| | 44.1 |
| | 0.9 |
| | (16.6 | ) | | 877.4 |
| Operating Expenses: | | | | | | | | | | Gas Utility | | | | | | | | |
|
| Natural and propane gas | 499.1 |
| | — |
| | — |
| | (16.3 | ) | | 482.8 |
| Other operation and maintenance | 104.0 |
| | — |
| | — |
| | (0.2 | ) | | 103.8 |
| Depreciation and amortization | 32.2 |
| | — |
| | — |
| | — |
| | 32.2 |
| Taxes, other than income taxes | 55.7 |
| | — |
| | — |
| | — |
| | 55.7 |
| Total Gas Utility Operating Expenses | 691.0 |
| | — |
| | — |
| | (16.5 | ) | | 674.5 |
| Gas Marketing | — |
| | 43.5 |
| | — |
| | — |
| | 43.5 |
| Other | — |
| | — |
| | 1.8 |
| | (0.1 | ) | | 1.7 |
| Total Operating Expenses | 691.0 |
| | 43.5 |
| | 1.8 |
| | (16.6 | ) | | 719.7 |
| Operating Income (Loss) | $ | 158.0 |
| | $ | 0.6 |
| | $ | (0.9 | ) | | $ | — |
| | $ | 157.7 |
| Net Economic Earnings (Loss) | $ | 96.5 |
| | $ | 2.1 |
| | $ | (1.0 | ) | | $ | — |
| | $ | 97.6 |
| | | | | | | | | | | Three Months Ended March 31, 2014 | |
| | |
| | |
| | |
| | |
| Operating Revenues: | | | | | | | | | | Revenues from external customers | $ | 634.4 |
| | $ | 59.9 |
| | $ | 0.2 |
| | $ | — |
| | $ | 694.5 |
| Intersegment revenues | 4.2 |
| | 20.6 |
| | 0.6 |
| | (25.4 | ) | | — |
| Total Operating Revenues | 638.6 |
| | 80.5 |
| | 0.8 |
| | (25.4 | ) | | 694.5 |
| Operating Expenses: | | | | | | | | | | Gas Utility | | | | | | | | | | Natural and propane gas | 430.5 |
| | — |
| | — |
| | (25.2 | ) | | 405.3 |
| Other operation and maintenance | 72.2 |
| | — |
| | — |
| | (0.2 | ) | | 72.0 |
| Depreciation and amortization | 20.1 |
| | — |
| | — |
| | — |
| | 20.1 |
| Taxes, other than income taxes | 41.8 |
| | — |
| | — |
| | — |
| | 41.8 |
| Total Gas Utility Operating Expenses | 564.6 |
| | — |
| | — |
| | (25.4 | ) | | 539.2 |
| Gas Marketing | — |
| | 65.0 |
| | — |
| | — |
| | 65.0 |
| Other | — |
| | — |
| | 3.1 |
| | — |
| | 3.1 |
| Total Operating Expenses | 564.6 |
| | 65.0 |
| | 3.1 |
| | (25.4 | ) | | 607.3 |
| Operating Income (Loss) | $ | 74.0 |
| | $ | 15.5 |
| | $ | (2.3 | ) | | $ | — |
| | $ | 87.2 |
| Net Economic Earnings (Loss) | $ | 44.7 |
| | $ | 7.1 |
| | $ | (0.1 | ) | | $ | — |
| | $ | 51.7 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ Millions) | Gas Utility | | Gas Marketing | | Other | | Eliminations | | Consolidated | Six Months Ended March 31, 2015 | |
| | |
| | |
| | |
| | |
| Operating Revenues: | | | | | | | | | | Revenues from external customers | $ | 1,428.4 |
| | $ | 67.8 |
| | $ | 0.8 |
| | $ | — |
| | $ | 1,497.0 |
| Intersegment revenues | 3.0 |
| | 38.5 |
| | 1.0 |
| | (42.5 | ) | | — |
| Total Operating Revenues | 1,431.4 |
| | 106.3 |
| | 1.8 |
| | (42.5 | ) | | 1,497.0 |
| Operating Expenses: | | | | | | | | | | Gas Utility | | | | | | | | | | Natural and propane gas | 828.9 |
| | — |
| | — |
| | (41.8 | ) | | 787.1 |
| Other operation and maintenance | 201.4 |
| | — |
| | — |
| | (0.5 | ) | | 200.9 |
| Depreciation and amortization | 64.2 |
| | — |
| | — |
| | — |
| | 64.2 |
| Taxes, other than income taxes | 93.7 |
| | — |
| | — |
| | — |
| | 93.7 |
| Total Gas Utility Operating Expenses | 1,188.2 |
| | — |
| | — |
| | (42.3 | ) | | 1,145.9 |
| Gas Marketing | — |
| | 102.1 |
| | — |
| | — |
| | 102.1 |
| Other | — |
| | — |
| | 4.2 |
| | (0.2 | ) | | 4.0 |
| Total Operating Expenses | 1,188.2 |
| | 102.1 |
| | 4.2 |
| | (42.5 | ) | | 1,252.0 |
| Operating Income (Loss) | $ | 243.2 |
| | $ | 4.2 |
| | $ | (2.4 | ) | | $ | — |
| | $ | 245.0 |
| Net Economic Earnings (Loss) | $ | 146.3 |
| | $ | 2.5 |
| | $ | (5.5 | ) | | $ | — |
| | $ | 143.3 |
| | | | | | | | | | | Six Months Ended March 31, 2014 | |
| | |
| | |
| | |
| | |
| Operating Revenues: | | | | | | | | | | Revenues from external customers | $ | 1,069.6 |
| | $ | 93.1 |
| | $ | 0.4 |
| | $ | — |
| | $ | 1,163.1 |
| Intersegment revenues | 4.3 |
| | 40.1 |
| | 1.0 |
| | (45.4 | ) | | — |
| Total Operating Revenues | 1,073.9 |
| | 133.2 |
| | 1.4 |
| | (45.4 | ) | | 1,163.1 |
| Operating Expenses: | | | | | | | | | | Gas Utility | | | | | | | | | | Natural and propane gas | 692.1 |
| | — |
| | — |
| | (45.0 | ) | | 647.1 |
| Other operation and maintenance | 134.7 |
| | — |
| | — |
| | (0.4 | ) | | 134.3 |
| Depreciation and amortization | 40.1 |
| | — |
| | — |
| | — |
| | 40.1 |
| Taxes, other than income taxes | 70.4 |
| | — |
| | — |
| | — |
| | 70.4 |
| Total Gas Utility Operating Expenses | 937.3 |
| | — |
| | — |
| | (45.4 | ) | | 891.9 |
| Gas Marketing | — |
| | 116.8 |
| | — |
| | — |
| | 116.8 |
| Other | — |
| | — |
| | 4.3 |
| | — |
| | 4.3 |
| Total Operating Expenses | 937.3 |
| | 116.8 |
| | 4.3 |
| | (45.4 | ) | | 1,013.0 |
| Operating Income (Loss) | $ | 136.6 |
| | $ | 16.4 |
| | $ | (2.9 | ) | | $ | — |
| | $ | 150.1 |
| Net Economic Earnings (Loss) | $ | 80.5 |
| | $ | 7.9 |
| | $ | (0.4 | ) | | $ | — |
| | $ | 88.0 |
|
The Company's total assets by segment were as follows: | | | | | | | | | | March 31, | | September 30, | ($ Millions) | 2015 | | 2014 | Total Assets: | Gas Utility | $ | 4,615.6 |
| | $ | 4,520.0 |
| Gas Marketing | 131.7 |
| | 156.7 |
| Other | 1,590.8 |
| | 1,575.7 |
| Eliminations | (1,157.4 | ) | | (1,178.4 | ) | Total Assets | $ | 5,180.7 |
| | $ | 5,074.0 |
|
The following table reconciles the Company's Net Income (GAAP) to Net Economic Earnings (Non-GAAP): | | | | | | | | | | | | | | | | | | Three Months Ended March 31, | | Six Months Ended March 31, | ($ Millions) | 2015 | | 2014 | | 2015 | | 2014 | Net income (GAAP) | $ | 94.4 |
| | $ | 52.2 |
| | $ | 141.5 |
| | $ | 87.8 |
| Unrealized loss (gain) on energy-related derivative contracts | 2.6 |
| | (1.7 | ) | | (0.4 | ) | | (1.3 | ) | Lower of cost or market inventory adjustments | (1.0 | ) | | (0.5 | ) | | 0.2 |
| | (0.6 | ) | Realized loss (gain) on economic hedges prior to sale of the physical commodity | 0.1 |
| | (0.1 | ) | | 0.1 |
| | (0.1 | ) | Acquisition, divestiture and restructuring activities | 1.5 |
| | 1.8 |
| | 1.9 |
| | 2.2 |
| Net Economic Earnings (Non-GAAP) | $ | 97.6 |
| | $ | 51.7 |
| | $ | 143.3 |
| | $ | 88.0 |
|
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