INFORMATION BY OPERATING SEGMENT

The Company has two reportable segments: Gas Utility and Gas Marketing. The Gas Utility segment is the aggregation of the operations of the Utilities. The Gas Marketing segment includes the results of Spire Marketing, 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;


•	Spire STL Pipeline, a subsidiary of Spire planning the construction and operation of a 65-mile FERC-regulated pipeline to deliver natural gas into eastern Missouri;


•	Spire Storage, providing physical natural gas storage services; and


•	Spire’s subsidiaries engaged in the operation of a propane pipeline, compression of natural gas, and risk management, among other activities.

Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Spire Marketing to Spire Missouri, sales of natural gas from Spire Missouri to Spire Marketing, propane transportation services provided by Spire NGL Inc. to Spire Missouri, and propane storage services provided by Spire Missouri to Spire NGL Inc.

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 fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative or GAAP standard-setting actions. In fiscal 2018, these items include the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets as a result of disallowances in our Missouri rate proceedings.



	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
2018	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	1,888.0	$	71.6	$	5.4		$	—		$	1,965.0
Intersegment revenues	0.4		—		11.1			(11.5		)	—
Total Operating Revenues	1,888.4		71.6		16.5			(11.5		)	1,965.0
Operating Expenses
Gas Utility
Natural and propane gas	842.6		—		—			(72.5		)	770.1
Other operation and maintenance	464.1		—		—			(8.5		)	455.6
Depreciation and amortization	167.0		—		—			—			167.0
Taxes, other than income taxes	152.5		—		—			—			152.5
Total Gas Utility Operating Expenses	1,626.2		—		—			(81.0		)	1,545.2
Gas Marketing and Other *	—		37.8		32.8			69.5			140.1
Total Operating Expenses	1,626.2		37.8		32.8			(11.5		)	1,685.3
Operating Income (Loss)	$	262.2	$	33.8	$	(16.3	)	$	—		$	279.7
Net Economic Earnings (Loss)	$	183.1	$	22.9	$	(22.3	)	$	—		$	183.7
Capital Expenditures	$	457.7	$	—	$	41.7		$	—		$	499.4



	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
2017	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	1,660.0	$	79.3	$	1.4		$	—		$	1,740.7
Intersegment revenues	7.9		—		6.3			(14.2		)	—
Total Operating Revenues	1,667.9		79.3		7.7			(14.2		)	1,740.7
Operating Expenses
Gas Utility
Natural and propane gas	645.9		—		—			(75.4		)	570.5
Other operation and maintenance	409.1		—		—			(4.1		)	405.0
Depreciation and amortization	153.5		—		—			—			153.5
Taxes, other than income taxes	137.8		—		—			—			137.8
Total Gas Utility Operating Expenses	1,346.3		—		—			(79.5		)	1,266.8
Gas Marketing and Other *	—		74.1		12.8			65.3			152.2
Total Operating Expenses	1,346.3		74.1		12.8			(14.2		)	1,419.0
Operating Income (Loss)	$	321.6	$	5.2	$	(5.1	)	$	—		$	321.7
Net Economic Earnings (Loss)	$	181.5	$	6.8	$	(20.7	)	$	—		$	167.6
Capital Expenditures	$	412.6	$	—	$	25.5		$	—		$	438.1



	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
2016	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	1,457.2	$	78.5	$	1.6		$	—		$	1,537.3
Intersegment revenues	2.2		—		3.2			(5.4		)	—
Total Operating Revenues	1,459.4		78.5		4.8			(5.4		)	1,537.3
Operating Expenses
Gas Utility
Natural and propane gas	539.7		—		—			(47.5		)	492.2
Other operation and maintenance	379.3		—		—			(1.8		)	377.5
Depreciation and amortization	136.9		—		—			—			136.9
Taxes, other than income taxes	125.2		—		—			—			125.2
Total Gas Utility Operating Expenses	1,181.1		—		—			(49.3		)	1,131.8
Gas Marketing and Other *	—		66.7		12.6			43.9			123.2
Total Operating Expenses	1,181.1		66.7		12.6			(5.4		)	1,255.0
Operating Income (Loss)	$	278.3	$	11.8	$	(7.8	)	$	—		$	282.3
Net Economic Earnings (Loss)	$	160.3	$	6.4	$	(17.6	)	$	—		$	149.1
Capital Expenditures	$	291.7	$	—	$	1.6		$	—		$	293.3


*	Operating Expenses for “Gas Marketing and Other” include depreciation and amortization for Gas Marketing ($0.0 for 2018, $0.1 for 2017, and $0.1 for 2016) and for Other ($1.4 for 2018, $0.5 for 2017, and $0.5 for 2016).



Total Assets at End of Year	2018			2017			2016
Gas Utility	$	5,606.7		$	5,551.2		$	5,184.7
Gas Marketing	295.3			246.2			205.0
Other	2,508.0			2,239.5			1,836.6
Eliminations	(1,566.4		)	(1,490.2		)	(1,161.9		)
Total Assets	$	6,843.6		$	6,546.7		$	6,064.4



Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings	2018			2017			2016
Net Income	$	214.2		$	161.6		$	144.2
Adjustments, pre-tax:
Missouri regulatory adjustments	30.6			—			—
Unrealized (gain) loss on energy-related derivatives	(4.0		)	6.0			(0.1		)
Lower of cost or market inventory adjustments	—			—			0.2
Realized gain on economic hedges prior to the sale of the physical commodity	(0.3		)	(0.3		)	(1.6		)
Acquisition, divestiture and restructuring activities	13.6			4.0			9.2
Income tax effect of adjustments	(10.3		)	(3.7		)	(2.8		)
Effect of the Tax Cuts and Jobs Act	(60.1		)	—			—
Net Economic Earnings	$	183.7		$	167.6		$	149.1