INFORMATION BY OPERATING SEGMENT

3 Months Ended

Dec. 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 is the aggregation of the regulated operations of the Utilities. 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 compression of natural gas, oil production, real estate development, risk management, and financial investments in other enterprises, among other activities. All subsidiaries are wholly owned.

Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Laclede Gas to LER, propane storage services provided by Laclede Gas to Laclede Pipeline Company, sales of natural gas from LER to Laclede Gas, and propane transportation services provided by Laclede Pipeline Company to Laclede Gas.

Management evaluates the performance of the operating segments based on the computation of net economic earnings. Net economic earnings exclude from reported net income the after-tax impacts of net unrealized gains and losses and other timing differences associated with energy-related transactions. Net economic earnings also exclude the after-tax impacts related to acquisition, divestiture, and restructuring activities.

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended December 31, 2015
Operating Revenues:
Revenues from external customers	$	398.8	$	0.2		$	0.4		$	—		$	399.4
Intersegment revenues	0.7		12.6			0.4			(13.7		)	—
Total Operating Revenues	399.5		12.8			0.8			(13.7		)	399.4
Operating Expenses:
Gas Utility
Natural and propane gas	161.9		—			—			(13.4		)	148.5
Other operation and maintenance	91.9		—			—			(0.3		)	91.6
Depreciation and amortization	33.5		—			—			—			33.5
Taxes, other than income taxes	28.2		—			—			—			28.2
Total Gas Utility Operating Expenses	315.5		—			—			(13.7		)	301.8
Gas Marketing and Other	—		9.0			1.6			—			10.6
Total Operating Expenses	315.5		9.0			1.6			(13.7		)	312.4
Operating Income (Loss)	$	84.0	$	3.8		$	(0.8	)	$	—		$	87.0
Net Economic Earnings (Loss)	$	50.0	$	(0.3	)	$	(4.6	)	$	—		$	45.1
Three Months Ended December 31, 2014
Operating Revenues:
Revenues from external customers	$	581.4	$	37.8		$	0.4		$	—		$	619.6
Intersegment revenues	1.0		24.4			0.5			(25.9		)	—
Total Operating Revenues	582.4		62.2			0.9			(25.9		)	619.6
Operating Expenses:
Gas Utility
Natural and propane gas	329.8		—			—			(25.5		)	304.3
Other operation and maintenance	97.4		—			—			(0.3		)	97.1
Depreciation and amortization	32.0		—			—			—			32.0
Taxes, other than income taxes	38.0		—			—			—			38.0
Total Gas Utility Operating Expenses	497.2		—			—			(25.8		)	471.4
Gas Marketing and Other	—		58.6			2.4			(0.1		)	60.9
Total Operating Expenses	497.2		58.6			2.4			(25.9		)	532.3
Operating Income (Loss)	$	85.2	$	3.6		$	(1.5	)	$	—		$	87.3
Net Economic Earnings (Loss)	$	49.8	$	0.4		$	(4.5	)	$	—		$	45.7

The Company's total assets by segment were as follows:

	December 31,			September 30,			December 31,
	2015			2015			2014
Total Assets:
Gas Utility	$	4,806.0		$	4,686.2		$	4,735.6
Gas Marketing	163.8			160.6			152.7
Other	1,551.1			1,560.2			1,576.1
Eliminations	(1,109.5		)	(1,116.8		)	(1,175.9		)
Total Assets	$	5,411.4		$	5,290.2		$	5,288.5

The following table reconciles the Company's net income to net economic earnings:

	Three Months Ended December 31,
	2015			2014
Net Income (GAAP)	$	46.9		$	47.1
Unrealized gain on energy-related derivative contracts	(3.0		)	(3.0		)
Lower of cost or market inventory adjustments	0.3			1.2
Acquisition, divestiture and restructuring activities	0.9			0.4
Net Economic Earnings (Non-GAAP)	$	45.1		$	45.7