Note 14 - Information by Operating Segment

12 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. INFORMATION BY OPERATING SEGMENT

The Company has three reportable segments: Gas Utility, Gas Marketing, and Midstream. 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. The Midstream segment includes Spire STL Pipeline, a subsidiary of Spire providing interstate natural gas pipeline transportation services, and Spire Storage, a subsidiary of Spire providing interstate natural gas storage services. Other components of the Company’s consolidated information include 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, as applicable, 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
2023	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers	$	2,456.6	$	179.1	$	29.9	$	0.7		$	—		$	2,666.3
Intersegment revenues		0.3		—		36.2		16.0			(52.5	)		—
Total Operating Revenues		2,456.9		179.1		66.1		16.7			(52.5	)		2,666.3
Depreciation and amortization expense		244.4		1.5		8.4		0.5			—			254.8
Interest expense		139.9		—		8.6		72.1			(34.9	)		185.7
Income tax expense (benefit)		32.7		12.8		3.8		(10.5	)		—			38.8
Net economic earnings (loss)		200.5		47.6		14.1		(34.1	)		—			228.1
Capital expenditures		588.6		0.4		73.6		(0.1	)		—			662.5

	Gas		Gas
2022	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers	$	1,945.6	$	234.9	$	17.4	$	0.6		$	—		$	2,198.5
Intersegment revenues		0.5		—		35.7		15.5			(51.7	)		—
Total Operating Revenues		1,946.1		234.9		53.1		16.1			(51.7	)		2,198.5
Depreciation and amortization expense		227.9		1.4		7.5		0.5			—			237.3
Interest expense		86.4		—		4.9		37.3			(8.8	)		119.8
Income tax expense (benefit)		49.6		11.9		4.5		(7.1	)		—			58.9
Net economic earnings (loss)		202.7		27.0		11.1		(24.5	)		—			216.3
Capital expenditures		528.6		0.9		22.6		0.1			—			552.2

	Gas		Gas
2021	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers	$	2,118.2	$	96.5	$	19.9	$	0.9		$	—		$	2,235.5
Intersegment revenues		1.1		—		32.7		14.2			(48.0	)		—
Total Operating Revenues		2,119.3		96.5		52.6		15.1			(48.0	)		2,235.5
Depreciation and amortization expense		204.4		1.2		6.9		0.6			—			213.1
Interest expense		74.7		—		4.0		29.3			(1.4	)		106.6
Income tax expense (benefit)		56.9		13.4		4.4		(6.2	)		—			68.5
Net economic earnings (loss)		230.6		47.0		11.1		(22.4	)		—			266.3
Capital expenditures		590.4		0.7		33.0		0.7			—			624.8

Total Assets at End of Year	2023			2022			2021
Gas Utility	$	8,486.7		$	8,042.8		$	7,615.4
Gas Marketing		332.0			638.7			466.1
Midstream		574.3			446.0			413.8
Other		2,533.3			2,705.5			2,193.3
Eliminations		(1,612.7	)		(1,749.3	)		(1,332.2	)
Total Assets	$	10,313.6		$	10,083.7		$	9,356.4

Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings	2023			2022			2021
Net Income	$	217.5		$	220.8		$	271.7
Adjustments, pre-tax:
Missouri regulatory adjustments		—			—			(9.0	)
Fair value and timing adjustments		11.4			(11.4	)		3.3
Acquisition and divestiture activities		2.5			—			(1.3	)
Income tax adjustments		(3.3	)		6.9			1.6
Net Economic Earnings	$	228.1		$	216.3		$	266.3