INFORMATION BY OPERATING SEGMENT

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

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