INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

The Company's net provisions for income taxes charged during the fiscal years ended September 30, 2014, 2013, and 2012 are as follows:



($ Millions)	2014			2013			2012
Included in Statements of Consolidated Income:
Federal
Current	$	0.3		$	(4.2	)	$	(3.8	)
Deferred	30.6			19.9			26.3
Investment tax credits	(0.2		)	(0.2		)	(0.2		)
State and local
Current	0.6			(0.3		)	(0.4		)
Deferred	1.0			2.4			4.4
Total Income Tax Expense	$	32.3		$	17.6		$	26.3

Effective income tax rate variation from stated tax rate

The Company's effective income tax rate varied from the federal statutory income tax rate for each year due to the following:



	2014		2013		2012
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal income tax benefits	1.8		3.5		2.9
Certain expenses capitalized on books and deducted on tax return	(4.9	)	(9.7	)	(6.9	)
Taxes related to prior years	(0.7	)	(1.6	)	(0.8	)
Other items – net	(3.6	)	(2.2	)	(0.6	)
Effective income tax rate	27.6	%	25.0	%	29.6	%

Significant Items in Net Deferred Tax Liability

The Company's significant items comprising the net deferred tax liability recognized in the Consolidated Balance Sheets as of September 30 are as follows:



($ Millions)	2014			2013
Deferred tax assets:
Reserves not currently deductible	$	16.0		$	13.9
Pension and other postretirement benefits	67.3			71.4
Unamortized investment tax credits	1.6			1.8
Other*	36.9			12.5
Total deferred tax assets	$	121.8		$	99.6
Deferred tax liabilities:
Relating to property	366.9			342.0
Regulatory pension and other postretirement benefits	108.5			124.8
Deferred gas costs	20.4			7.1
Other	19.7			5.8
Total deferred tax liabilities	$	515.5		$	479.7
Net deferred tax liability	393.7			380.1
Net deferred tax liability – current*	(9.9		)	(1.0		)
Net deferred tax liability – non-current*	$	383.8		$	379.1

* The Company periodically invests in tax credits. As of September 30, 2014, $8.7 of state tax credits are included in Other and Net deferred tax liability. $6.9 of state tax credits were classified as current. $1.8 of state tax credits were classified as non-current.

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of the Company's unrecognized tax benefits at September 30 as reported in the Consolidated Balance Sheets:



($ Millions)	2014			2013
Unrecognized tax benefits, beginning of year	$	2.4		$	5.8
Increases related to prior year tax positions	—			0.1
Increases related to tax positions taken in current year	2.6			1.5
Reductions due to lapse of applicable statute of limitations	(0.4		)	(5.0		)
Unrecognized tax benefits, end of year	$	4.6		$	2.4

Laclede Gas

Income Tax Contingency [Line Items]

Net Provision For Income Tax

Laclede Gas' net provisions for income taxes charged during the fiscal years ended September 30, 2014, 2013, and 2012 are as follows:



($ Millions)	2014			2013			2012
Included in Statements of Income:
Federal
Current	$	(0.1	)	$	(6.6	)	$	(11.3	)
Deferred	34.3			20.1			27.1
Investment tax credits	(0.2		)	(0.2		)	(0.2		)
State and local
Current	—			(1.0		)	(1.8		)
Deferred	1.5			2.3			4.6
Total Income Tax Expense	$	35.5		$	14.6		$	18.4

Effective income tax rate variation from stated tax rate

Laclede Gas' effective income tax rate varied from the federal statutory income tax rate for each year due to the following:



	2014		2013		2012
Federal income tax statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal
Income tax benefits	1.8		3.3		2.6
Certain expenses capitalized on books and
Deducted on tax return	(4.5	)	(10.8	)	(8.9	)
Taxes related to prior years	(0.7	)	(1.6	)	(0.6	)
Other items – net	(3.3	)	(2.8	)	(1.1	)
Effective income tax rate	28.3	%	23.1	%	27.0	%

Significant Items in Net Deferred Tax Liability

Laclede Gas' significant items comprising the net deferred tax liability recognized in the Balance Sheets as of September 30 are as follows:



($ Millions)	2014			2013
Deferred tax assets:
Reserves not currently deductible	$	16.0		$	13.9
Pension and other postretirement benefits	67.3			71.4
Unamortized investment tax credits	1.6			1.8
Other*	20.7			10.5
Total deferred tax assets	$	105.6		$	97.6
Deferred tax liabilities:
Relating to utility property	361.2			342.0
Regulatory pension and other postretirement benefits	119.2			124.9
Deferred gas costs	20.4			7.1
Other	15.9			5.4
Total deferred tax liabilities	$	516.7		$	479.4
Net deferred tax liability	411.1			381.8
Net deferred tax liability – current*	(11.3		)	(1.7		)
Net deferred tax liability – non-current*	$	399.8		$	380.1

* Laclede Gas periodically invests in tax credits. As of September 30, 2014, $8.0 of state tax credits are included in Other and Net deferred tax liability. $6.2 of state tax credits were classified as current. $1.8 of state tax credits were classified as non-current.

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of Laclede Gas unrecognized tax benefits at September 30 as reported in the Balance Sheets:



($ Millions)	2014			2013
Unrecognized tax benefits, beginning of year	$	2.0		$	5.6
Increases related to tax positions taken in current year	2.5			1.4
Reductions due to lapse of applicable statute of limitations	(0.3		)	(5.0		)
Unrecognized tax benefits, end of year	$	4.2		$	2.0