Fair Value of Financial Instruments

6 Months Ended

Mar. 31, 2021

6. FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts of cash and cash equivalents, notes receivable, and short-term debt approximate fair value due to the short maturity of these instruments. The fair values of long-term debt are estimated based on market prices for similar issues. Refer to Note 7, Fair Value Measurements, for information on financial instruments measured at fair value on a recurring basis.

The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis are shown in the following tables, classified according to the fair value hierarchy. There were no such instruments classified as Level 3 (significant unobservable inputs) as of March 31, 2021, September 30, 2020, and March 31, 2020.

					Classification of Estimated Fair Value
	Carrying Amount		Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)
Spire
As of March 31, 2021
Cash and cash equivalents	$	104.0	$	104.0	$	104.0	$	—
Notes payable		653.5		653.5		—		653.5
Long-term debt, including current portion		2,803.3		3,090.9		—		3,090.9
As of September 30, 2020
Cash and cash equivalents	$	4.1	$	4.1	$	4.1	$	—
Notes payable		648.0		648.0		—		648.0
Long-term debt, including current portion		2,484.1		2,908.6		—		2,908.6
As of March 31, 2020
Cash and cash equivalents	$	108.4	$	108.4	$	108.4	$	—
Notes payable		560.6		560.6		—		560.6
Long-term debt, including current portion		2,490.2		2,671.0		—		2,671.0

Spire Missouri
As of March 31, 2021
Notes payable	$	250.0	$	250.0	$	—	$	250.0
Notes payable – associated companies		369.4		369.4		—		369.4
Long-term debt		1,092.4		1,254.2		—		1,254.2
As of September 30, 2020
Notes payable – associated companies	$	301.2	$	301.2	$	—	$	301.2
Long-term debt		1,092.0		1,313.5		—		1,313.5
As of March 31, 2020
Cash and cash equivalents	$	5.1	$	5.1	$	5.1	$	—
Notes payable		185.1		185.1		—		185.1
Notes payable – associated companies		39.6		39.6		—		39.6
Long-term debt		1,098.7		1,231.2		—		1,231.2

Spire Alabama
As of March 31, 2021
Cash and cash equivalents	$	18.2	$	18.2	$	18.2	$	—
Notes receivable – associated companies		20.0		20.0		—		20.0
Long-term debt, including current portion		621.1		682.3		—		682.3
As of September 30, 2020
Notes payable – associated companies	$	121.3	$	121.3	$	—	$	121.3
Long-term debt, including current portion		471.8		576.9		—		576.9
As of March 31, 2020
Cash and cash equivalents	$	0.1	$	0.1	$	0.1	$	—
Notes payable		50.0		50.0		—		50.0
Notes payable – associated companies		33.0		33.0		—		33.0
Long-term debt		471.7		535.1		—		535.1

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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