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Information by Operating Segment
6 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Information by Operating Segment

9. INFORMATION BY OPERATING SEGMENT

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, the compression of natural gas, 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 and 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 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 March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,053.0

 

 

$

47.4

 

 

$

4.5

 

 

$

 

 

$

1,104.9

 

Intersegment revenues

 

 

0.1

 

 

 

(14.0

)

 

 

11.1

 

 

 

2.8

 

 

 

 

Total Operating Revenues

 

 

1,053.1

 

 

 

33.4

 

 

 

15.6

 

 

 

2.8

 

 

 

1,104.9

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

619.2

 

 

 

(6.2

)

 

 

0.1

 

 

 

6.0

 

 

 

619.1

 

Operation and maintenance

 

 

104.0

 

 

 

7.1

 

 

 

11.1

 

 

 

(3.2

)

 

 

119.0

 

Depreciation and amortization

 

 

49.5

 

 

 

0.3

 

 

 

1.7

 

 

 

 

 

 

51.5

 

Taxes, other than income taxes

 

 

56.4

 

 

 

0.5

 

 

 

1.0

 

 

 

 

 

 

57.9

 

Total Operating Expenses

 

 

829.1

 

 

 

1.7

 

 

 

13.9

 

 

 

2.8

 

 

 

847.5

 

Operating Income

 

$

224.0

 

 

$

31.7

 

 

$

1.7

 

 

$

 

 

$

257.4

 

Net Economic Earnings (Loss)

 

$

159.7

 

 

$

39.8

 

 

$

(3.9

)

 

$

 

 

$

195.6

 

 

 

 

Gas Utility

 

 

Gas Marketing

 

 

Other

 

 

Eliminations

 

 

Consolidated

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

679.1

 

 

$

33.3

 

 

$

3.1

 

 

$

 

 

$

715.5

 

Intersegment revenues

 

 

(0.1

)

 

 

 

 

 

11.6

 

 

 

(11.5

)

 

 

 

Total Operating Revenues

 

 

679.0

 

 

 

33.3

 

 

 

14.7

 

 

 

(11.5

)

 

 

715.5

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

271.6

 

 

 

33.6

 

 

 

0.1

 

 

 

(8.2

)

 

 

297.1

 

Operation and maintenance

 

 

95.8

 

 

 

3.6

 

 

 

9.6

 

 

 

(3.3

)

 

 

105.7

 

Depreciation and amortization

 

 

47.0

 

 

 

0.1

 

 

 

2.1

 

 

 

 

 

 

49.2

 

Taxes, other than income taxes

 

 

51.7

 

 

 

0.4

 

 

 

0.9

 

 

 

 

 

 

53.0

 

Total Operating Expenses

 

 

466.1

 

 

 

37.7

 

 

 

12.7

 

 

 

(11.5

)

 

 

505.0

 

Operating Income

 

$

212.9

 

 

$

(4.4

)

 

$

2.0

 

 

$

 

 

$

210.5

 

Net Economic Earnings (Loss)

 

$

144.3

 

 

$

5.1

 

 

$

(5.4

)

 

$

 

 

$

144.0

 

 

 

 

 

Gas Utility

 

 

Gas Marketing

 

 

Other

 

 

Eliminations

 

 

Consolidated

 

Six Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,550.2

 

 

$

58.1

 

 

$

9.2

 

 

$

 

 

$

1,617.5

 

Intersegment revenues

 

 

1.1

 

 

 

0.1

 

 

 

23.1

 

 

 

(24.3

)

 

 

 

Total Operating Revenues

 

 

1,551.3

 

 

 

58.2

 

 

 

32.3

 

 

 

(24.3

)

 

 

1,617.5

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

823.5

 

 

 

(5.5

)

 

 

0.1

 

 

 

(17.8

)

 

 

800.3

 

Operation and maintenance

 

 

207.0

 

 

 

10.4

 

 

 

19.7

 

 

 

(6.5

)

 

 

230.6

 

Depreciation and amortization

 

 

98.1

 

 

 

0.6

 

 

 

3.6

 

 

 

 

 

 

102.3

 

Taxes, other than income taxes

 

 

91.9

 

 

 

0.7

 

 

 

1.4

 

 

 

 

 

 

94.0

 

Total Operating Expenses

 

 

1,220.5

 

 

 

6.2

 

 

 

24.8

 

 

 

(24.3

)

 

 

1,227.2

 

Operating Income

 

$

330.8

 

 

$

52.0

 

 

$

7.5

 

 

$

 

 

$

390.3

 

Net Economic Earnings (Loss)

 

$

236.1

 

 

$

43.1

 

 

$

(6.7

)

 

$

 

 

$

272.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Utility

 

 

Gas Marketing

 

 

Other

 

 

Eliminations

 

 

Consolidated

 

Six Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

1,209.7

 

 

$

65.6

 

 

$

7.1

 

 

$

 

 

$

1,282.4

 

Intersegment revenues

 

 

 

 

 

 

 

 

18.7

 

 

 

(18.7

)

 

 

 

Total Operating Revenues

 

 

1,209.7

 

 

 

65.6

 

 

 

25.8

 

 

 

(18.7

)

 

 

1,282.4

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

513.1

 

 

 

58.1

 

 

 

0.2

 

 

 

(12.4

)

 

 

559.0

 

Operation and maintenance

 

 

204.4

 

 

 

6.7

 

 

 

17.5

 

 

 

(6.3

)

 

 

222.3

 

Depreciation and amortization

 

 

93.4

 

 

 

0.1

 

 

 

3.2

 

 

 

 

 

 

96.7

 

Taxes, other than income taxes

 

 

89.6

 

 

 

0.7

 

 

 

1.3

 

 

 

 

 

 

91.6

 

Total Operating Expenses

 

 

900.5

 

 

 

65.6

 

 

 

22.2

 

 

 

(18.7

)

 

 

969.6

 

Operating Income

 

$

309.2

 

 

$

 

 

$

3.6

 

 

$

 

 

$

312.8

 

Net Economic Earnings (Loss)

 

$

213.4

 

 

$

11.2

 

 

$

(8.8

)

 

$

 

 

$

215.8

 

The following table reconciles the Company’s net economic earnings to net income. For information about the Missouri regulatory adjustment for $9.0 of pension costs in fiscal 2021 and the provision for ISRS rulings in fiscal 2020, see Note 4, Regulatory Matters.

 

 

Three Months Ended

March 31,

 

 

Six Months Ended

March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net Income

 

$

187.4

 

 

$

133.6

 

 

$

276.3

 

 

$

200.6

 

Adjustments, pre-tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Missouri regulatory adjustment

 

 

(9.0

)

 

 

 

 

 

(9.0

)

 

 

 

Provision for ISRS rulings

 

 

 

 

 

2.2

 

 

 

 

 

 

4.8

 

Fair value and timing adjustments

 

 

20.1

 

 

 

11.6

 

 

 

4.1

 

 

 

15.3

 

Income tax effect of adjustments

 

 

(2.9

)

 

 

(3.4

)

 

 

1.1

 

 

 

(4.9

)

Net Economic Earnings

 

$

195.6

 

 

$

144.0

 

 

$

272.5

 

 

$

215.8

 

 

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

 

 

March 31,

 

 

September 30,

 

 

March 31,

 

 

 

2021

 

 

2020

 

 

2020

 

Total Assets:

 

 

 

Gas Utility

 

$

7,265.0

 

 

$

6,716.2

 

 

$

6,311.6

 

Gas Marketing

 

 

341.0

 

 

 

182.7

 

 

 

159.3

 

Other

 

 

2,513.7

 

 

 

2,443.5

 

 

 

2,214.7

 

Eliminations

 

 

(1,182.9

)

 

 

(1,101.2

)

 

 

(667.6

)

Total Assets

 

$

8,936.8

 

 

$

8,241.2

 

 

$

8,018.0