INFORMATION BY OPERATING SEGMENT

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

INFORMATION BY OPERATING SEGMENT

INFORMATION BY OPERATING SEGMENT

The Company has two reportable segments: Gas Utility and Gas Marketing. The Gas Utility segment is the aggregation of three operating segments: (1) the eastern Missouri service territory of Laclede Gas, (2) the western Missouri service territory of Laclede Gas (MGE), and (3) Alagasco. The Gas Marketing segment includes the results of LER, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, including utilizing 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 which operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction, and Spire STL Pipeline LLC, a subsidiary that plans to build, own, operate and maintain a pipeline interconnecting with the Rockies Express pipeline to deliver gas to the St. Louis, Missouri area under FERC jurisdiction, and

• Spire’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 LER to Laclede Gas and from Laclede Gas to LER, propane storage services provided by Laclede Gas to Laclede Pipeline Company, propane transportation services provided by Laclede Pipeline Company to Laclede Gas, and insurance services provided by Laclede Risk Insurance Services 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 June 30, 2016
Operating Revenues:
Revenues from external customers	$	253.2	$	(4.3	)	$	0.4		$	—		$	249.3
Intersegment revenues	0.1		6.6			0.5			(7.2		)	—
Total Operating Revenues	253.3		2.3			0.9			(7.2		)	249.3
Operating Expenses:
Gas Utility
Natural and propane gas	61.1		—			—			(7.0		)	54.1
Other operation and maintenance	91.9		—			—			(0.1		)	91.8
Depreciation and amortization	34.2		—			—			—			34.2
Taxes, other than income taxes	27.4		—			—			—			27.4
Total Gas Utility Operating Expenses	214.6		—			—			(7.1		)	207.5
Gas Marketing and Other	—		3.9			2.7			(0.1		)	6.5
Total Operating Expenses	214.6		3.9			2.7			(7.2		)	214.0
Operating Income (Loss)	$	38.7	$	(1.6	)	$	(1.8	)	$	—		$	35.3
Net Economic Earnings (Loss)	$	18.0	$	1.8		$	(5.2	)	$	—		$	14.6
Three Months Ended June 30, 2015
Operating Revenues:
Revenues from external customers	$	260.2	$	14.5		$	0.5		$	—		$	275.2
Intersegment revenues	1.0		14.4			0.5			(15.9		)	—
Total Operating Revenues	261.2		28.9			1.0			(15.9		)	275.2
Operating Expenses:
Gas Utility
Natural and propane gas	73.2		—			—			(15.5		)	57.7
Other operation and maintenance	90.9		—			—			(0.3		)	90.6
Depreciation and amortization	32.5		—			—			—			32.5
Taxes, other than income taxes	26.2		—			—			—			26.2
Total Gas Utility Operating Expenses	222.8		—			—			(15.8		)	207.0
Gas Marketing and Other	—		27.4			4.9			(0.1		)	32.2
Total Operating Expenses	222.8		27.4			4.9			(15.9		)	239.2
Operating Income (Loss)	$	38.4	$	1.5		$	(3.9	)	$	—		$	36.0
Net Economic Earnings (Loss)	$	16.5	$	0.5		$	(5.9	)	$	—		$	11.1

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Nine Months Ended June 30, 2016
Operating Revenues:
Revenues from external customers	$	1,263.5	$	(6.7	)	$	1.2		$	—		$	1,258.0
Intersegment revenues	2.0		29.8			1.4			(33.2		)	—
Total Operating Revenues	1,265.5		23.1			2.6			(33.2		)	1,258.0
Operating Expenses:
Gas Utility
Natural and propane gas	496.0		—			—			(32.3		)	463.7
Other operation and maintenance	278.4		—			—			(0.7		)	277.7
Depreciation and amortization	101.5		—			—			—			101.5
Taxes, other than income taxes	99.5		—			—			—			99.5
Total Gas Utility Operating Expenses	975.4		—			—			(33.0		)	942.4
Gas Marketing and Other	—		18.4			7.4			(0.2		)	25.6
Total Operating Expenses	975.4		18.4			7.4			(33.2		)	968.0
Operating Income (Loss)	$	290.1	$	4.7		$	(4.8	)	$	—		$	290.0
Net Economic Earnings (Loss)	$	170.5	$	4.5		$	(11.8	)	$	—		$	163.2
Nine Months Ended June 30, 2015
Operating Revenues:
Revenues from external customers	$	1,688.6	$	82.3		$	1.3		$	—		$	1,772.2
Intersegment revenues	4.0		52.9			1.5			(58.4		)	—
Total Operating Revenues	1,692.6		135.2			2.8			(58.4		)	1,772.2
Operating Expenses:
Gas Utility
Natural and propane gas	902.1		—			—			(57.3		)	844.8
Other operation and maintenance	292.3		—			—			(0.8		)	291.5
Depreciation and amortization	96.7		—			—			—			96.7
Taxes, other than income taxes	119.9		—			—			—			119.9
Total Gas Utility Operating Expenses	1,411.0		—			—			(58.1		)	1,352.9
Gas Marketing and Other	—		129.5			9.1			(0.3		)	138.3
Total Operating Expenses	1,411.0		129.5			9.1			(58.4		)	1,491.2
Operating Income (Loss)	$	281.6	$	5.7		$	(6.3	)	$	—		$	281.0
Net Economic Earnings (Loss)	$	162.8	$	3.0		$	(11.4	)	$	—		$	154.4

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

	June 30,			September 30,			June 30,
	2016			2015			2015
Total Assets:
Gas Utility	$	4,653.7		$	4,686.2		$	4,480.1
Gas Marketing	167.8			160.6			151.2
Other	1,597.7			1,560.2			1,560.6
Eliminations	(1,108.3		)	(1,116.8		)	(1,109.0		)
Total Assets	$	5,310.9		$	5,290.2		$	5,082.9

The following table reconciles the Company's net economic earnings to the most comparable GAAP measure, net income.

	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015
Net Income	$	10.7		$	14.1		$	158.4		$	155.6
Adjustments, pre-tax:
Unrealized loss (gain) on energy-related derivative contracts	4.9			(2.9		)	2.9			(3.5		)
Lower of cost or market inventory adjustments	(0.1		)	(0.4		)	0.6			—
Realized (gain) loss on economic hedges prior to sale of the physical commodity	(0.3		)	2.5			(0.9		)	2.6
Acquisition, divestiture and restructuring activities	1.8			3.5			5.1			6.5
Gain on sale of property	—			(7.6		)	—			(7.6		)
Income tax effect of adjustments	(2.4		)	1.9			(2.9		)	0.8
Net Economic Earnings	$	14.6		$	11.1		$	163.2		$	154.4