Note 9 - Information by Operating Segment

9 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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 components of the Company’s consolidated information include:

• unallocated corporate items, including certain debt and associated interest costs;

• Spire STL Pipeline, a subsidiary of Spire providing interstate natural gas pipeline transportation services;

• Spire Storage, a subsidiary of Spire providing interstate natural gas storage services; and

• Spire’s subsidiaries engaged in the operation of a propane pipeline 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, Spire Alabama and Spire Storage, sales of natural gas from Spire Missouri to Spire Marketing, propane transportation services provided by Spire NGL Inc. to Spire Missouri, and natural gas transportation services provided by Spire STL Pipeline to Spire Missouri.

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 impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions.

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended June 30, 2022
Operating Revenues:
Revenues from external customers	$	377.4	$	64.1		$	6.5		$	—		$	448.0
Intersegment revenues		—		—			12.2			(12.2	)		—
Total Operating Revenues		377.4		64.1			18.7			(12.2	)		448.0
Operating Expenses:
Natural gas		144.5		67.1			—			(8.3	)		203.3
Operation and maintenance		95.0		3.2			8.0			(3.9	)		102.3
Depreciation and amortization		58.1		0.3			2.0			—			60.4
Taxes, other than income taxes		43.0		0.4			0.7			—			44.1
Total Operating Expenses		340.6		71.0			10.7			(12.2	)		410.1
Operating Income (Loss)	$	36.8	$	(6.9	)	$	8.0		$	—		$	37.9
Net Economic Earnings (Loss)	$	4.2	$	0.4		$	(0.5	)	$	—		$	4.1

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended June 30, 2021
Operating Revenues:
Revenues from external customers	$	306.7	$	15.2		$	5.9		$	—		$	327.8
Intersegment revenues		—		(0.1	)		11.9			(11.8	)		—
Total Operating Revenues		306.7		15.1			17.8			(11.8	)		327.8
Operating Expenses:
Natural gas		84.9		20.2			—			(8.2	)		96.9
Operation and maintenance		103.2		3.2			9.2			(3.6	)		112.0
Depreciation and amortization		50.9		0.3			1.9			—			53.1
Taxes, other than income taxes		32.1		0.2			0.3			—			32.6
Total Operating Expenses		271.1		23.9			11.4			(11.8	)		294.6
Operating Income (Loss)	$	35.6	$	(8.8	)	$	6.4		$	—		$	33.2
Net Economic Earnings (Loss)	$	12.3	$	(5.2	)	$	(0.2	)	$	—		$	6.9

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Nine Months Ended June 30, 2022
Operating Revenues:
Revenues from external customers	$	1,698.3	$	171.4		$	14.6		$	—		$	1,884.3
Intersegment revenues		—		—			38.8			(38.8	)		—
Total Operating Revenues		1,698.3		171.4			53.4			(38.8	)		1,884.3
Operating Expenses:
Natural gas		710.7		160.9			—			(27.1	)		844.5
Operation and maintenance		306.5		9.1			28.0			(11.7	)		331.9
Depreciation and amortization		169.2		1.0			6.0			—			176.2
Taxes, other than income taxes		150.3		0.8			2.2			—			153.3
Total Operating Expenses		1,336.7		171.8			36.2			(38.8	)		1,505.9
Operating Income (Loss)	$	361.6	$	(0.4	)	$	17.2		$	—		$	378.4
Net Economic Earnings (Loss)	$	240.6	$	15.3		$	(8.2	)	$	—		$	247.7

	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Nine Months Ended June 30, 2021
Operating Revenues:
Revenues from external customers	$	1,856.9	$	73.3	$	15.1		$	—		$	1,945.3
Intersegment revenues		1.1		0.0		35.0			(36.1	)		—
Total Operating Revenues		1,858.0		73.3		50.1			(36.1	)		1,945.3
Operating Expenses:
Natural gas		908.4		14.7		0.1			(26.0	)		897.2
Operation and maintenance		310.2		13.6		28.9			(10.1	)		342.6
Depreciation and amortization		149.0		0.9		5.5			—			155.4
Taxes, other than income taxes		124.0		0.9		1.7			—			126.6
Total Operating Expenses		1,491.6		30.1		36.2			(36.1	)		1,521.8
Operating Income	$	366.4	$	43.2	$	13.9		$	—		$	423.5
Net Economic Earnings (Loss)	$	248.4	$	37.9	$	(6.9	)	$	—		$	279.4

The following table reconciles the Company’s net economic earnings to net income.

	Three Months Ended June 30,						Nine Months Ended June 30,
	2022			2021			2022			2021
Net Income	$	(1.4	)	$	5.3		$	227.9		$	281.6
Adjustments, pre-tax:
Missouri regulatory adjustment		—			—			—			(9.0	)
Fair value and timing adjustments		7.3			2.1			20.9			6.2
Income tax adjustments		(1.8	)		(0.5	)		(1.1	)		0.6
Net Economic Earnings	$	4.1		$	6.9		$	247.7		$	279.4

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

	June 30,			September 30,			June 30,
	2022			2021			2021
Total Assets:
Gas Utility	$	7,854.7		$	7,615.4		$	7,302.4
Gas Marketing		595.5			466.1			349.2
Other		2,652.9			2,351.7			2,256.3
Eliminations		(1,319.2	)		(1,076.8	)		(1,014.6	)
Total Assets	$	9,783.9		$	9,356.4		$	8,893.3