FAIR VALUE MEASUREMENTS

Laclede Group

The following table for the Company categorizes the assets and liabilities in the Condensed Consolidated Balance Sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition:



($ Millions)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of December 31, 2014
ASSETS
Gas Utility
U. S. Stock/Bond Mutual Funds	$	16.3	$	3.9	$	—	$	—		$	20.2
Subtotal	16.3		3.9		—		—			20.2
Gas Marketing
NYMEX Natural gas contracts	5.4		1.0		—		(4.3		)	2.1
Natural gas commodity contracts	—		4.1		0.2		(0.3		)	4.0
Total	$	21.7	$	9.0	$	0.2	$	(4.6	)	$	26.3
LIABILITIES
Gas Utility
NYMEX/ICE natural gas contracts	$	19.4	$	—	$	—	$	(19.4	)	$	—
OTCBB natural gas contracts	—		19.5		—		—			$	19.5
NYMEX gasoline and heating oil contracts	1.3		—		—		(1.3		)	—
Subtotal	20.7		19.5		—		(20.7		)	19.5
Gas Marketing
NYMEX natural gas contracts	3.4		4.5		—		(7.9		)	—
Natural gas commodity contracts	—		1.1		—		(0.3		)	0.8
Total	$	24.1	$	25.1	$	—	$	(28.9	)	$	20.3



As of September 30, 2014
ASSETS
Gas Utility
U. S. Stock/Bond Mutual Funds	$	15.7	$	3.9	$	—	$	—		$	19.6
NYMEX Natural gas contracts	2.4		—		—		(2.4		)	—
OTCBB Natural gas contracts	—		0.1				(0.1		)	—
Subtotal	18.1		4.0		—		(2.5		)	19.6
Gas Marketing
NYMEX Natural gas contracts	1.0		1.2		—		(1.8		)	0.4
Natural gas commodity contracts			$	2.7	0.2		$	(0.2	)	2.7
Total	$	19.1	$	7.9	$	0.2	$	(4.5	)	$	22.7
LIABILITIES
Gas Utility
NYMEX/ICE Natural gas contracts	$	5.2	$	—	$	—	$	(5.2	)	—
OTCBB Natural gas contracts	—		4.1		—		(0.1		)	4.0
Gasoline and heating oil contracts	0.2		—		—		(0.2		)	—
Subtotal	5.4		4.1		—		(5.5		)	4.0
Gas Marketing
NYMEX Natural gas contracts	1.1		0.7		—		(1.8		)	—
Natural gas commodity contracts	—		0.7		—		(0.2		)	0.5
Total	$	6.5	$	5.5	$	—	$	(7.5	)	$	4.5

The mutual funds included in Level 1 are valued based on exchange-quoted market prices of individual securities. The mutual funds included in Level 2 are valued based on quoted market price of the identical securities.

Derivative instruments included in Level 1 are valued using quoted market prices on the New York Mercantile Exchange (NYMEX). Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using Over The Counter Bulletin Board (OTCBB), broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments in active markets. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. The Company’s and Utilities' policy is to recognize transfers between the levels of the fair value hierarchy, if any, as of the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer.

There were no material Level 3 beginning and ending net derivative balances for the Company.

The mutual funds are included in the Other investments line of the Condensed Consolidated Balance Sheets for the Company. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the Condensed Consolidated Balance Sheets for the Company, when a legally enforceable netting agreement exists between the Company and the counterparty to a derivative contract.

Laclede Gas

The following table categorizes the assets and liabilities in the Balance Sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition.



($ Millions)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of December 31, 2014
ASSETS
U. S. Stock/Bond Mutual Funds	$	16.3	$	3.9	$	—	$	—		$	20.2
Total	16.3		3.9		—		—			20.2
LIABILITIES
NYMEX natural gas contracts	19.4		—		—		(19.4		)	—
OTCBB natural gas contracts	—		19.5		—		—			19.5
Gasoline and heating oil contracts	1.3		—		—		(1.3		)	—
Total	$	20.7	$	19.5	$	—	$	(20.7	)	$	19.5

As of September 30, 2014
ASSETS
U. S. Stock/Bond Mutual Funds	$	15.7	$	3.9	$	—	$	—		$	19.6
NYMEX natural gas contracts	2.4		—		—		(2.4		)	—
OTCBB natural gas contracts	—		0.1				(0.1		)	—
Total	18.1		4.0		—		(2.5		)	19.6
LIABILITIES
NYMEX/ICE Natural gas contracts	5.2		—		—		(5.2		)	—
OTCBB Natural gas contracts	—		4.1		—		(0.1		)	4.0
NYMEX Gasoline and heating oil contracts	0.2		—		—		(0.2		)	—
Total	$	5.4	$	4.1	$	—	$	(5.5	)	$	4.0

The mutual funds included in Level 1 are valued based on exchange-quoted market prices of identical securities. Derivative instruments included in Level 1 are valued using quoted market prices on the NYMEX.

The mutual funds included in Level 2 are valued based on quoted market price of the identical securities. Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using OTCBB, broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Laclede Gas' policy is to recognize transfers between the levels of the fair value hierarchy, if any, as of the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer.

The mutual funds are included in the Other investments line of the Balance Sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the Balance Sheets when a legally enforceable netting agreement exists between Laclede Gas and the counterparty to a derivative contract.

Alagasco

Alagasco has no financial instruments accounted for at fair value at December 31, 2014 or September 30, 2014.