Note 14 - Information by Operating Segment

12 Months Ended

Sep. 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:

•  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;

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

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

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 and Spire Alabama, sales of natural gas from Spire Missouri to Spire Marketing, sales of natural gas from Spire Alabama 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.

	Gas		Gas
2022	Utility		Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	1,945.6	$	234.9	$	18.0		$	—		$	2,198.5
Intersegment revenues		0.5		—		51.2			(51.7	)		—
Total Operating Revenues		1,946.1		234.9		69.2			(51.7	)		2,198.5
Operating Expenses
Natural gas		788.8		171.4		—			(36.3	)		923.9
Other operation and maintenance		413.3		14.6		37.1			(15.4	)		449.6
Depreciation and amortization		227.9		1.4		8.0			—			237.3
Taxes, other than income taxes		176.2		0.6		2.7			—			179.5
Total Operating Expenses		1,606.2		188.0		47.8			(51.7	)		1,790.3
Operating Income	$	339.9	$	46.9	$	21.4		$	—		$	408.2
Net Economic Earnings (Loss)	$	202.7	$	27.0	$	(13.4	)	$	—		$	216.3
Capital Expenditures	$	528.6	$	0.9	$	22.7		$	—		$	552.2

	Gas		Gas
2021	Utility		Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	2,118.2	$	96.5	$	20.8		$	—		$	2,235.5
Intersegment revenues		1.1		—		46.9			(48.0	)		—
Total Operating Revenues		2,119.3		96.5		67.7			(48.0	)		2,235.5
Operating Expenses
Natural gas		961.7		18.8		0.1			(34.3	)		946.3
Other operation and maintenance		422.2		17.1		40.2			(13.7	)		465.8
Depreciation and amortization		204.4		1.2		7.5			—			213.1
Taxes, other than income taxes		157.0		0.9		2.2			—			160.1
Impairments		—		—		—			—			—
Total Operating Expenses		1,745.3		38.0		50.0			(48.0	)		1,785.3
Operating Income	$	374.0	$	58.5	$	17.7		$	—		$	450.2
Net Economic Earnings (Loss)	$	230.6	$	47.0	$	(11.3	)	$	—		$	266.3
Capital Expenditures	$	590.4	$	0.7	$	33.7		$	—		$	624.8

	Gas		Gas
2020	Utility		Marketing		Other			Eliminations			Consolidated
Revenues from external customers	$	1,751.8	$	87.9	$	15.7		$	—		$	1,855.4
Intersegment revenues		0.2		—		42.1			(42.3	)		—
Total Operating Revenues		1,752.0		87.9		57.8			(42.3	)		1,855.4
Operating Expenses
Natural gas		660.2		65.1		0.4			(29.6	)		696.1
Other operation and maintenance		421.3		11.8		38.2			(12.7	)		458.6
Depreciation and amortization		189.7		0.6		7.0			—			197.3
Taxes, other than income taxes		146.5		1.1		0.8			—			148.4
Impairments		—		—		148.6			—			148.6
Total Operating Expenses		1,417.7		78.6		195.0			(42.3	)		1,649.0
Operating Income (Loss)	$	334.3	$	9.3	$	(137.2	)	$	—		$	206.4
Net Economic Earnings (Loss)	$	213.4	$	9.1	$	(14.7	)	$	—		$	207.8
Capital Expenditures	$	547.8	$	3.6	$	87.0		$	—		$	638.4

Total Assets at End of Year	2022			2021			2020
Gas Utility	$	8,042.8		$	7,615.4		$	6,716.2
Gas Marketing		638.7			466.1			182.7
Other		2,895.2			2,351.7			2,443.5
Eliminations		(1,493.0	)		(1,076.8	)		(1,101.2	)
Total Assets	$	10,083.7		$	9,356.4		$	8,241.2

Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings	2022			2021			2020
Net Income	$	220.8		$	271.7		$	88.6
Adjustments, pre-tax:
Impairments		—			—			148.6
Missouri regulatory adjustments		—			(9.0	)		—
Fair value and timing adjustments		(11.4	)		3.3			2.5
Acquisition, divestiture and restructuring activities		—			(1.3	)		—
Income tax effect of adjustments		6.9			1.6			(31.9	)
Net Economic Earnings	$	216.3		$	266.3		$	207.8