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Leases
12 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

17. LEASES

The lease agreement covering the Company’s primary office space in St. Louis extends through February 2035, with an option to renew for an additional five years. Spire Alabama’s lease agreement for office space in Birmingham extends through January 2024. The lease agreement covering Spire Marketing and Spire Storage office space in Houston extends through December 2028, with options to terminate three years earlier or to renew for an additional five years. The renewal options in the St. Louis and Houston leases are reasonably certain to be exercised and are included in the lease term used to determine the right-of use assets and lease liabilities. The Company and its subsidiaries have other relatively minor rental arrangements for real estate and equipment with remaining terms of up to ten years.

Operating lease cost, cash flow and noncash information for the year ended September 30, 2020, are shown in the following table.

 

 

Spire

 

 

Spire Missouri

 

 

Spire Alabama

 

Operating lease cost, including amounts capitalized

 

$

8.7

 

 

$

0.5

 

 

$

3.5

 

Cash flow and noncash information about operating leases:

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows representing cash paid for amounts included in the measurement of lease liabilities

 

 

8.5

 

 

 

0.5

 

 

 

3.3

 

Right-of-use assets obtained in exchange for lease liabilities

 

 

71.1

 

 

 

2.1

 

 

 

10.0

 

The following table shows balance sheet and weighted-average information about operating leases as of September 30, 2020.

 

Balance sheet classification

 

Spire

 

 

Spire Missouri

 

 

Spire Alabama

 

Right-of-use assets

Deferred Charges and Other Assets: Other

 

$

65.1

 

 

$

1.7

 

 

$

6.7

 

Lease liabilities, current

Current Liabilities, Other

 

 

6.5

 

 

 

0.3

 

 

 

1.9

 

Lease liabilities, noncurrent

Deferred Credits and Other Liabilities: Other

 

 

58.4

 

 

 

1.4

 

 

 

4.7

 

Weighted-average remaining lease term

 

 

15.9 years

 

 

5.3 years

 

 

3.3 years

 

Weighted-average discount rate

 

 

 

4.2

%

 

 

2.5

%

 

 

2.2

%

Following is a maturity analysis by fiscal year for operating lease liabilities as of September 30, 2020.

 

 

 

Spire

 

 

Spire Missouri

 

 

Spire Alabama

 

2021

 

$

6.6

 

 

$

0.3

 

 

$

1.9

 

2022

 

 

7.2

 

 

 

0.4

 

 

 

2.1

 

2023

 

 

7.2

 

 

 

0.3

 

 

 

2.1

 

2024

 

 

5.8

 

 

 

0.3

 

 

 

0.7

 

2025

 

 

5.1

 

 

 

0.3

 

 

 

 

Thereafter

 

 

58.4

 

 

 

0.2

 

 

 

 

Total undiscounted lease payments

 

 

90.3

 

 

 

1.8

 

 

 

6.8

 

Less present value discount

 

 

(25.4

)

 

 

(0.1

)

 

 

(0.2

)

Total current and noncurrent lease liabilities

 

$

64.9

 

 

$

1.7

 

 

$

6.6

 

The aggregate rental expense for fiscal years 2018 and 2019 and the annual minimum rental commitments for all leases having an initial or remaining non-cancelable term of more than one year as of September 30, 2019, were as follows (under ASC 840).

 

 

Aggregate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Expense

 

 

Minimum Rental Commitments as of September 30, 2019

 

 

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Later

 

 

Total

 

Spire

 

$

10.0

 

 

$

10.9

 

 

$

8.2

 

 

$

7.0

 

 

$

6.8

 

 

$

6.1

 

 

$

4.8

 

 

$

36.5

 

 

$

69.4

 

Spire Missouri

 

 

3.6

 

 

 

3.7

 

 

 

0.5

 

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.7

 

Spire Alabama

 

 

4.7

 

 

 

5.2

 

 

 

2.9

 

 

 

2.1

 

 

 

2.1

 

 

 

2.1

 

 

 

0.7

 

 

 

 

 

 

9.9

 

There are no significant finance leases, short-term leases, subleases, variable lease payments, residual value guarantees, restrictions or covenants pertaining to leases.

The Company elected, for all asset classes, not to recognize right-of-use assets and lease liabilities for short-term leases. Instead, the lease payments are recognized in profit or loss on a straight-line basis over the lease term and variable lease payments are recognized in the period in which the obligation for those payments is incurred. The Company elected, for all asset classes, not to separate nonlease components from lease components and instead to account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

The discount rate used for all the leases is the applicable incremental borrowing rate, which is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. For a subsidiary lessee, the rate applicable to the subsidiary is used unless the lease terms are influenced by parent credit.