[ X ] | ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2016 |
or | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to |
Commission File Number | Registrant, Address and Telephone Number | State of Incorporation | I.R.S. Employer Identification Number | |||
1-16681 | Spire Inc. 700 Market Street St. Louis, MO 63101 Telephone Number 314-342-0500 | Missouri | 74-2976504 | |||
1-1822 | Laclede Gas Company 700 Market Street St. Louis, MO 63101 Telephone Number 314-342-0500 | Missouri | 43-0368139 | |||
2-38960 | Alabama Gas Corporation 2101 6th Avenue North Birmingham, Alabama 35203 Telephone Number 205-326-8100 | Alabama | 63-0022000 |
Title of each class | Name of each exchange on which registered | |
Spire Inc. | Common Stock $1.00 par value | New York Stock Exchange |
Laclede Gas Company | None | Not applicable |
Alabama Gas Corporation | None | Not Applicable |
Large accelerated filer | Accelerated filer | Non- accelerated filer | Smaller reporting company | ||||
Spire Inc. | X | ||||||
Laclede Gas Company | X | ||||||
Alabama Gas Corporation | X |
Spire Inc. | Common Stock, par value $1.00 per share | 45,656,218 | |||
Laclede Gas Company | Common Stock, par value $1.00 per share (all owned by Spire Inc.) | 24,577 | |||
Alabama Gas Corporation | Common Stock, par value $0.01 per share (all owned by Spire Inc.) | 1,972,052 |
TABLE OF CONTENTS | Page | |
Alabama Utilities | Alagasco and Mobile Gas | MGP | Manufactured gas plant | |
Alagasco | Alabama Gas Corporation | Missouri Utilities | Laclede Gas Company (including MGE), the utilities serving the Missouri region | |
AOCI | Accumulated other comprehensive income or loss | MMBtu | Million British thermal units | |
APSC | Alabama Public Service Commission | Mobile Gas | Mobile Gas Service Corporation | |
ASC | Accounting Standards Codification | MoPSC | Missouri Public Service Commission | |
ASU | Accounting Standards Update | MSPSC | Mississippi Public Service Commission | |
Bcf | Billion cubic feet | MRT | Enable Mississippi River Transmission LLC | |
BVCP | Brownfields/Voluntary Cleanup Program | NYSE | New York Stock Exchange | |
CCM | Cost control mechanism | NYMEX | New York Mercantile Exchange, Inc. | |
Degree days | The average of a day’s high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted | O&M | Operations and maintenance | |
EnergySouth | EnergySouth, Inc. | OCI | Other comprehensive income or loss | |
EPA | US Environmental Protection Agency | OPC | Missouri Office of the Public Counsel | |
EPS | Earnings per share | OTCBB | Over-the-counter bulletin board | |
ESR | Enhanced stability reserve | PEPL | Panhandle Eastern Pipe Line Company, LP | |
FASB | Financial Accounting Standards Board | PGA | Purchased gas adjustment | |
FERC | Federal Energy Regulatory Commission | PRP | Potential Responsible Party | |
GAAP | Accounting principles generally accepted in the United States of America | REX | Rockies Express Pipeline, LLC | |
Gas Marketing | Segment including LER, a subsidiary engaged in the non-regulated marketing of natural gas and related activities | RSA | Rate stabilization adjustment | |
Gas Utility | Segment including the regulated operations of the Utilities | RSE | Rate stabilization and equalization | |
GSA | Gas supply adjustment | SEC | US Securities and Exchange Commission | |
ICE | Intercontinental Exchange | Southern Natural Gas | Southern Natural Gas Company, LLC | |
ISRS | Infrastructure system replacement surcharge | Southern Star | Southern Star Central Gas Pipeline, Inc. | |
Laclede Gas | Laclede Gas Company, or Missouri Utilities | TGIT | Tallgrass Interstate Gas Transmission, LLC | |
LER | Laclede Energy Resources, Inc. | TSR | Total shareholder return | |
LIBOR | London Inter-Bank Offered Rate | Transco | Transcontinental Gas Pipe Line Company, LLC | |
LNG | Liquefied natural gas | US | United States | |
MDNR | Missouri Department of Natural Resources | Utilities | Laclede Gas Company, Alabama Gas Corporation and the subsidiaries of EnergySouth, Inc. | |
MGE | Missouri Gas Energy | Willmut Gas | Willmut Gas and Oil Company | |
• | Weather conditions and catastrophic events, particularly severe weather in the natural gas producing areas of the country; |
• | Volatility in gas prices, particularly sudden and sustained changes in natural gas prices, including the related impact on margin deposits associated with the use of natural gas derivative instruments; |
• | The impact of changes and volatility in natural gas prices on our competitive position in relation to suppliers of alternative heating sources, such as electricity; |
• | Changes in gas supply and pipeline availability, including decisions by natural gas producers to reduce production or shut in producing natural gas wells, expiration of existing supply and transportation arrangements that are not replaced with contracts with similar terms and pricing, as well as other changes that impact supply for and access to the markets in which our subsidiaries transact business; |
• | The recent acquisitions may not achieve their intended results, including anticipated cost savings; |
• | Legislative, regulatory and judicial mandates and decisions, some of which may be retroactive, including those affecting |
• | allowed rates of return |
• | incentive regulation |
• | industry structure |
• | purchased gas adjustment provisions |
• | rate design structure and implementation |
• | regulatory assets |
• | non-regulated and affiliate transactions |
• | franchise renewals |
• | environmental or safety matters, including the potential impact of legislative and regulatory actions related to climate change and pipeline safety |
• | taxes |
• | pension and other postretirement benefit liabilities and funding obligations |
• | accounting standards; |
• | The results of litigation; |
• | The availability of and access to, in general, funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) operating cash flow, or (iii) access to the capital or credit markets; |
• | Retention of, ability to attract, ability to collect from, and conservation efforts of, customers; |
• | Our ability to comply with all covenants in our indentures and credit facilities any violations of which, if not cured in a timely manner, could trigger a default of our obligation; |
• | Capital and energy commodity market conditions, including the ability to obtain funds with reasonable terms for necessary capital expenditures and general operations and the terms and conditions imposed for obtaining sufficient gas supply; |
• | Discovery of material weakness in internal controls; and |
• | Employee workforce issues, including but not limited to labor disputes and future wage and employee benefit costs, including changes in discount rates and returns on benefit plan assets. |
(In millions) | 2016* | 2015 | 2014** | ||||||||
Gas Utility | $ | 1,457.2 | $ | 1,891.8 | $ | 1,462.6 | |||||
Gas Marketing and other | 80.1 | 84.6 | 164.6 | ||||||||
Total Operating Revenues | $ | 1,537.3 | $ | 1,976.4 | $ | 1,627.2 |
2016 | 2015 | ||||
Common Stock Issuance | 2,185,000 | — | |||
Dividend Reinvestment and Stock Purchase Plan (DRIP) | 22,878 | 31,166 | |||
Equity Incentive Plan | 107,752 | 125,441 | |||
Total Shares Issued | 2,315,630 | 156,607 |
Union | Local | Employees Covered | Contract Start Date | Contract End Date |
Laclede Gas | ||||
United Steel, Paper and Forestry, Rubber Manufacturing, Allied-Industrial and Service Workers International Union (USW) | 884 | 60 | August 1, 2015 | July 31, 2018 |
USW | 11-6 | 924 | August 1, 2015 | July 31, 2018 |
USW | 11-194 | 96 | August 1, 2015 | July 31, 2018 |
USW | 12561 | 134 | August 16, 2016 | July 31, 2019 |
USW | 14228 | 40 | August 16, 2016 | July 31, 2019 |
USW | 11-267 | 27 | August 16, 2016 | July 31, 2019 |
Gas Workers Metal Trades locals of the United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada | 781-Kansas City | 191 | August 16, 2016 | July 31, 2019 |
Gas Workers Metal Trades locals of the United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada | 781-Monett | 46 | August 16, 2016 | July 31, 2019 |
International Brotherhood of Electrical Workers (IBEW) | 53 | 3 | April 30, 2014 | July 31, 2016 |
Total Laclede Gas Company | 1,521 | |||
Alagasco | ||||
USW | 12030 | 210 | December 14, 2014 | April 30, 2017 |
USW | 12030-A | 57 | May 1, 2014 | April 30, 2017 |
United Association of Gas Fitters | 548 | 114 | July 1, 2016 | April 30, 2019 |
Total Alabama Gas Corporation | 381 | |||
Mobile Gas | ||||
USW | 3-541 | 73 | December 1, 2013 | November 30, 2017 |
Total Spire | 1,975 |
Gas Utility Operating Revenues | ||||||||||||
(In millions) | 2016 | 2015 | 2014 | |||||||||
Residential | $ | 979.0 | $ | 1,263.1 | $ | 974.3 | ||||||
Commercial & Industrial | 331.3 | 462.3 | 357.1 | |||||||||
Interruptible | 2.0 | 2.3 | 2.1 | |||||||||
Transportation | 93.1 | 92.2 | 32.4 | |||||||||
Off-System and Other Incentive | 50.7 | 76.2 | 79.5 | |||||||||
Provisions for Refunds and Other | 3.3 | (0.3 | ) | 22.4 | ||||||||
Total Gas Utility Operating Revenues | $ | 1,459.4 | $ | 1,895.8 | $ | 1,467.8 | ||||||
Gas Utility Therms Sold and Transported | ||||||||||||
(In millions) | 2016 | 2015 | 2014 | |||||||||
Residential | 867.5 | 1,065.1 | 952.9 | |||||||||
Commercial & Industrial | 420.4 | 491.6 | 435.6 | |||||||||
Interruptible | 4.6 | 3.6 | 3.5 | |||||||||
Transportation | 1,089.8 | 989.0 | 484.6 | |||||||||
System Therms Sold and Transported | 2,382.3 | 2,549.3 | 1,876.6 | |||||||||
Off-System | 183.3 | 193.5 | 125.8 | |||||||||
Total Gas Utility Therms Sold and Transported | 2,565.6 | 2,742.8 | 2,002.4 | |||||||||
Gas Utility Customers | 2016 | 2015 | 2014 | |||||||||
Residential | 1,540,366 | 1,434,584 | 1,418,422 | |||||||||
Commercial & Industrial | 137,450 | 132,388 | 133,799 | |||||||||
Interruptible | 42 | 18 | 18 | |||||||||
Transportation | 824 | 796 | 795 | |||||||||
Total Gas Utility Customers | 1,678,682 | 1,567,786 | 1,553,034 |
• | make it more difficult for Spire or Laclede Gas to pay or refinance their debts as they become due during adverse economic and industry conditions; |
• | limit Spire’s or Laclede Gas’ flexibility to pursue other strategic opportunities or react to changes in its business and the industry in which they operate and, consequently, place them at a competitive disadvantage to competitors with less debt; |
• | require an increased portion of Spire’s or Laclede Gas’ cash flows from operations of their respective subsidiaries to be used for debt service payments, thereby reducing the availability of their cash flows to fund working capital, capital expenditures, dividend payments and other general corporate activities; |
• | result in a downgrade in the credit rating of Spire’s or the Utilities’ indebtedness, which could limit the Utilities’ ability to borrow additional funds or increase the interest rates applicable to Utilities’ indebtedness; |
• | result in higher interest expense in the event of an increase in market interest rates for both long-term floating rate debt and short-term commercial paper or bank loans; |
• | reduce the amount of credit available to support hedging activities; and |
• | require that additional terms, conditions or covenants be placed on Spire or Laclede Gas. |
Name | Age | Position with Company * | Appointed (1) | |
S. Sitherwood | 56 | Spire | ||
President and Chief Executive Officer | February 2012 | |||
President | September 2011 | |||
Laclede Gas | ||||
Chairman of the Board | January 2015 | |||
Chairman of the Board and Chief Executive Officer | October 2012 | |||
Chairman of the Board, Chief Executive Officer and President | February 2012 | |||
Alagasco | ||||
Chairman of the Board | September 2014 | |||
S. L. Lindsey (2) | 50 | Spire | ||
Executive Vice President, Chief Operating Officer, Distribution Operations | October 2012 | |||
Laclede Gas | ||||
Chief Executive Officer and President | January 2015 | |||
President | October 2012 | |||
Alagasco | ||||
Chief Executive Officer | September 2014 | |||
S. P. Rasche | 56 | Spire | ||
Executive Vice President, Chief Financial Officer | November 2013 | |||
Senior Vice President, Chief Financial Officer | October 2013 | |||
Senior Vice President, Finance and Accounting | May 2012 | |||
Laclede Gas | ||||
Chief Financial Officer | May 2012 | |||
Vice President, Finance | November 2009 | |||
Alagasco | ||||
Chief Financial Officer | September 2014 | |||
M. C. Darrell (3) | 58 | Spire | ||
Senior Vice President, General Counsel and Chief Compliance Officer | May 2012 | |||
General Counsel | May 2004 | |||
Name | Age | Position with Company * | Appointed (1) | |
L. C. Dowdy (4) | 60 | Spire | ||
Senior Vice President, External Affairs, Corporate Communications and Marketing | January 2014 | |||
M. C. Geiselhart | 57 | Spire | ||
Senior Vice President, Strategic Planning and Corporate Development | January 2015 | |||
Vice President, Strategic Planning and Corporate Development | February 2014 | |||
Vice President, Strategic Development and Planning | August 2006 | |||
K. A. Smith | 58 | Alagasco | ||
President | April 2015 | |||
Vice President, System Integrity | August 2011 | |||
Vice President, Operations | January 2008 |
* | The information provided relates to the Company and its principal subsidiaries. Many of the executive officers have served or currently serve as officers or directors for other subsidiaries of the Company. |
(1) | Officers of Spire are normally reappointed by the Board of Directors in November of each year. Officers of Laclede Gas and Alagasco are normally reappointed by the Board of Directors in January of each year. |
(2) | Mr. Lindsey served as Senior Vice President, Southern Operations of AGL Resources, Inc. and President of its Atlanta Gas Light, Chattanooga Gas and Florida City Gas subsidiaries from December 2011 to October 2012. He also served as Vice President and General Manager of Atlanta Gas Light and Chattanooga Gas from 2005 to 2011. |
(3) | Mr. Darrell served as Senior Vice President and General Counsel of Laclede Gas from October 2007 to July 2012. |
(4) | Mr. Dowdy served as Partner at the law firm McKenna Long & Aldridge LLP until December 2013. He also served as Senior Vice President of Laclede Gas from January 2014 to January 2015. |
2016 | 2015 | ||||||||||||||
High | Low | High | Low | ||||||||||||
1st Quarter | $ | 61.04 | $ | 53.86 | $ | 55.22 | $ | 46.00 | |||||||
2nd Quarter | 68.79 | 57.10 | 55.75 | 49.07 | |||||||||||
3rd Quarter | 70.87 | 61.00 | 54.32 | 50.04 | |||||||||||
4th Quarter | 71.21 | 61.96 | 56.31 | 49.66 |
2016 | 2015 | ||||||
1st Quarter | $ | 0.49 | $ | 0.46 | |||
2nd Quarter | 0.49 | 0.46 | |||||
3rd Quarter | 0.49 | 0.46 | |||||
4th Quarter | 0.49 | 0.46 |
2016 | 2015 | |||||
1st Quarter | $ | 864.30 | $ | 808.84 | ||
2nd Quarter | 866.20 | 810.93 | ||||
3rd Quarter | 909.86 | 810.71 | ||||
4th Quarter | 569.64 | 811.21 |
Date of Sale | Aggregate Purchase Price (In millions) | Number of Shares | ||||
2014 | ||||||
December 10, 2013 | $ | 0.3 | 9 | |||
February 6, 2014 | 0.4 | 9 | ||||
May 12, 2014 | 0.4 | 10 | ||||
2015, 2016 (1) | — | — |
2016 | 2015 | |||||
1st Quarter | $ | 3.80 | $ | — | ||
2nd Quarter | 4.06 | — | ||||
3rd Quarter | 4.06 | — | ||||
4th Quarter | 4.06 | — |
Fiscal Years Ended September 30 | |||||||||||||||||||
(Dollars in millions, except per share amounts) | 2016(1) | 2015 | 2014(2) | 2013(3) | 2012 | ||||||||||||||
Statements of Income data | |||||||||||||||||||
Total Operating Revenues | $ | 1,537.3 | $ | 1,976.4 | $ | 1,627.2 | $ | 1,017.0 | $ | 1,125.5 | |||||||||
Net Income | 144.2 | 136.9 | 84.6 | 52.8 | 62.6 | ||||||||||||||
Common Stock data | |||||||||||||||||||
Diluted Earnings Per Share of Common Stock | $ | 3.24 | $ | 3.16 | $ | 2.35 | $ | 2.02 | $ | 2.79 | |||||||||
Dividends Declared Per Share of Common Stock | 1.96 | 1.84 | 1.76 | 1.70 | 1.66 | ||||||||||||||
Balance Sheet data | |||||||||||||||||||
Total Assets | $ | 6,077.4 | $ | 5,290.2 | $ | 5,074.0 | $ | 3,125.4 | $ | 1,880.3 | |||||||||
Long-Term Debt (less current portion) | 1,833.7 | 1,771.5 | 1,851.0 | 912.7 | 339.4 | ||||||||||||||
Net Economic Earnings data (4) | |||||||||||||||||||
Net Income (GAAP) | $ | 144.2 | $ | 136.9 | $ | 84.6 | $ | 52.8 | $ | 62.6 | |||||||||
Unrealized (gain) loss on energy-related derivatives | (0.1 | ) | (2.8 | ) | (1.6 | ) | 1.0 | (0.5 | ) | ||||||||||
Lower of cost or market inventory adjustments | 0.2 | 0.4 | (1.1 | ) | 1.4 | — | |||||||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (1.6 | ) | 2.4 | (0.4 | ) | — | 0.3 | ||||||||||||
Acquisition, divestiture and restructuring activities | 9.2 | 9.8 | 29.5 | 17.3 | 0.2 | ||||||||||||||
Gain on sale of property | — | (7.6 | ) | — | — | — | |||||||||||||
Income tax effect of adjustments | (2.8 | ) | (0.8 | ) | (10.9 | ) | (7.6 | ) | — | ||||||||||
Net Economic Earnings (Non-GAAP) | $ | 149.1 | $ | 138.3 | $ | 100.1 | $ | 64.9 | $ | 62.6 | |||||||||
Diluted Earnings per Share of Common Stock: | |||||||||||||||||||
Net Income (GAAP) | $ | 3.24 | $ | 3.16 | $ | 2.35 | $ | 2.02 | $ | 2.79 | |||||||||
Unrealized (gain) loss on energy-related derivatives | — | (0.07 | ) | (0.04 | ) | 0.04 | (0.02 | ) | |||||||||||
Lower of cost or market inventory adjustments | 0.01 | 0.01 | (0.03 | ) | 0.05 | — | |||||||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (0.04 | ) | 0.06 | (0.01 | ) | — | 0.01 | ||||||||||||
Acquisition, divestiture and restructuring activities | 0.21 | 0.23 | 0.82 | 0.67 | 0.01 | ||||||||||||||
Gain on sale of property | — | (0.18 | ) | — | — | — | |||||||||||||
Income tax effect of adjustments | (0.06 | ) | (0.02 | ) | (0.31 | ) | (0.29 | ) | — | ||||||||||
Weighted average shares adjustment | 0.06 | — | 0.27 | 0.38 | — | ||||||||||||||
Net Economic Earnings (Non-GAAP) | $ | 3.42 | $ | 3.19 | $ | 3.05 | $ | 2.87 | $ | 2.79 |
• | the Utilities’ ability to recover the costs of purchasing and distributing natural gas from their customers; |
• | the impact of weather and other factors, such as customer conservation, on revenues and expenses; |
• | changes in the regulatory environment at the federal, state, and local levels, as well as decisions by regulators, that impact the Utilities’ ability to earn its authorized rate of return in all service territories they serve; |
• | the Utilities’ ability to access credit markets and maintain working capital sufficient to meet operating requirements; |
• | the effect of natural gas price volatility on the business; and |
• | the ability to integrate the operations of all acquisitions. |
• | the risks of competition; |
• | fluctuations in natural gas prices; |
• | new national infrastructure projects; |
• | the ability to procure firm transportation and storage services at reasonable rates; |
• | credit and/or capital market access; |
• | counterparty risks; and |
• | the effect of natural gas price volatility on the business. |
Customer Share | Company Share | |
Eastern Missouri | ||
First $2.0* of pre-tax income | 100% | —% |
Next $2.0 of pre-tax income | 80% | 20% |
Next $2.0 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $6.0 | 70% | 30% |
* Customer share reverts to 85% and company share reverts to 15% in 2017. | ||
Western Missouri | ||
First $1.2 of pre-tax income | 85% | 15% |
Next $1.2 of pre-tax income | 80% | 20% |
Next $1.2 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $3.6 | 70% | 30% |
• | unallocated corporate costs, including certain debt and associated interest costs, |
• | Laclede Pipeline Company, a subsidiary of Spire which operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction, |
• | Spire STL Pipeline, a subsidiary of Spire planning construction of a 70-mile FERC-regulated pipeline to deliver natural gas into eastern Missouri, and |
• | Spire’s subsidiaries that are engaged in compression of natural gas and risk management, among other activities. All subsidiaries are wholly owned. |
• | Net unrealized gains and losses on energy-related derivatives that are required by GAAP fair value accounting associated with current changes in the fair value of financial and physical transactions prior to their completion and settlement. These unrealized gains and losses result primarily from two sources: |
1) | changes in the fair values of physical and/or financial derivatives prior to the period of settlement; and, |
2) | ineffective portions of accounting hedges, required to be recorded in earnings prior to settlement, due to differences in commodity price changes between the locations of the forecasted physical purchase or sale transactions and the locations of the underlying hedge instruments; |
• | Lower of cost or market adjustments to the carrying value of commodity inventories resulting when the market price of the commodity falls below its original cost, to the extent that those commodities are economically hedged; and |
• | Realized gains and losses resulting from the settlement of economic hedges prior to the sale of the physical commodity. |
Gas Utility | Gas Marketing | Other | Consol-idated | Per Diluted Share | ||||||||||||||||
Year Ended September 30, 2016 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 159.0 | $ | 7.1 | $ | (21.9 | ) | $ | 144.2 | $ | 3.24 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized (gain) loss on energy-related derivatives | (0.3 | ) | 0.2 | — | (0.1 | ) | — | |||||||||||||
Lower of cost or market inventory adjustments | — | 0.2 | — | 0.2 | 0.01 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (1.6 | ) | — | (1.6 | ) | (0.04 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 2.3 | — | 6.9 | 9.2 | 0.21 | |||||||||||||||
Income tax effect of adjustments* | (0.7 | ) | 0.5 | (2.6 | ) | (2.8 | ) | (0.06 | ) | |||||||||||
Weighted average shares adjustment** | — | — | — | — | 0.06 | |||||||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 160.3 | $ | 6.4 | $ | (17.6 | ) | $ | 149.1 | $ | 3.42 | |||||||||
Year Ended September 30, 2015 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 153.3 | $ | 4.1 | $ | (20.5 | ) | $ | 136.9 | $ | 3.16 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | (0.1 | ) | (2.7 | ) | — | (2.8 | ) | (0.07 | ) | |||||||||||
Lower of cost or market inventory adjustments | — | 0.4 | — | 0.4 | 0.01 | |||||||||||||||
Realized loss on economic hedges prior to the sale of the physical commodity | — | 2.4 | — | 2.4 | 0.06 | |||||||||||||||
Acquisition, divestiture and restructuring activities | 3.1 | — | 6.7 | 9.8 | 0.23 | |||||||||||||||
Gain on sale of property | (7.6 | ) | — | — | (7.6 | ) | (0.18 | ) | ||||||||||||
Income tax effect of adjustments* | 1.7 | — | (2.5 | ) | (0.8 | ) | (0.02 | ) | ||||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 150.4 | $ | 4.2 | $ | (16.3 | ) | $ | 138.3 | $ | 3.19 | |||||||||
Year Ended September 30, 2014 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 87.1 | $ | 12.2 | $ | (14.7 | ) | $ | 84.6 | $ | 2.35 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss (gain) on energy-related derivatives | 0.2 | (1.8 | ) | — | (1.6 | ) | (0.04 | ) | ||||||||||||
Lower of cost or market inventory adjustments | — | (1.1 | ) | — | (1.1 | ) | (0.03 | ) | ||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.4 | ) | — | (0.4 | ) | (0.01 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 10.7 | — | 18.8 | 29.5 | 0.82 | |||||||||||||||
Income tax effect of adjustments* | (5.2 | ) | 1.3 | (7.0 | ) | (10.9 | ) | (0.31 | ) | |||||||||||
Weighted average shares adjustment*** | — | — | — | — | 0.27 | |||||||||||||||
Net Economic Earnings (Non-GAAP) | $ | 92.8 | $ | 10.2 | $ | (2.9 | ) | $ | 100.1 | $ | 3.05 |
* | Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
** | 2016 net economic earnings per share excludes the impact of the May 2016 equity offerings to fund the acquisition of EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for the fiscal year ended September 30, 2016 was 43.5 compared to 44.3 in the GAAP EPS calculation. |
*** | 2014 net economic earnings per share excludes the impact of the June 2014 equity offerings to fund the acquisition of Alagasco. The weighted average diluted shares used in the net economic earnings per share calculation for the fiscal year ended September 30, 2014 was 32.7 compared to 35.9 in the GAAP EPS calculation. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Year Ended September 30, 2016 | ||||||||||||||||||||
Operating Revenues | $ | 1,459.4 | $ | 78.5 | $ | 4.8 | $ | (5.4 | ) | $ | 1,537.3 | |||||||||
Natural and propane gas expense | 539.7 | 60.7 | 0.2 | (3.0 | ) | 597.6 | ||||||||||||||
Gross receipts tax expense | 75.3 | 0.1 | — | — | 75.4 | |||||||||||||||
Operating margin (non-GAAP) | 844.4 | 17.7 | 4.6 | (2.4 | ) | 864.3 | ||||||||||||||
Depreciation and amortization | 136.9 | 0.1 | 0.5 | — | 137.5 | |||||||||||||||
Other operating expenses | 429.2 | 5.8 | 11.9 | (2.4 | ) | 444.5 | ||||||||||||||
Operating income (loss) (GAAP) | $ | 278.3 | $ | 11.8 | $ | (7.8 | ) | $ | — | $ | 282.3 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Year Ended September 30, 2015 | ||||||||||||||||||||
Operating revenues | $ | 1,895.8 | $ | 153.4 | $ | 3.7 | $ | (76.5 | ) | $ | 1,976.4 | |||||||||
Natural and propane gas expense | 957.6 | 140.5 | 0.3 | (75.5 | ) | 1,022.9 | ||||||||||||||
Gross receipts tax expense | 96.1 | 0.2 | — | — | 96.3 | |||||||||||||||
Operating margin (non-GAAP) | 842.1 | 12.7 | 3.4 | (1.0 | ) | 857.2 | ||||||||||||||
Depreciation and amortization | 129.9 | 0.3 | 0.6 | — | 130.8 | |||||||||||||||
Other operating expenses | 437.6 | 5.6 | 11.7 | (1.0 | ) | 453.9 | ||||||||||||||
Operating income (loss) (GAAP) | $ | 274.6 | $ | 6.8 | $ | (8.9 | ) | $ | — | $ | 272.5 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||||||
Operating revenues | $ | 1,467.8 | $ | 246.6 | $ | 3.8 | $ | (91.0 | ) | $ | 1,627.2 | |||||||||
Natural and propane gas expense | 821.8 | 220.4 | — | (90.2 | ) | 952.0 | ||||||||||||||
Gross receipts tax expense | 75.2 | 0.2 | — | — | 75.4 | |||||||||||||||
Operating margin (non-GAAP) | 570.8 | 26.0 | 3.8 | (0.8 | ) | 599.8 | ||||||||||||||
Depreciation and amortization | 82.4 | 0.4 | 0.5 | — | 83.3 | |||||||||||||||
Other operating expenses | 325.5 | 5.4 | 20.0 | (0.8 | ) | 350.1 | ||||||||||||||
Operating income (loss) (GAAP) | $ | 162.9 | $ | 20.2 | $ | (16.7 | ) | $ | — | $ | 166.4 |
Lower wholesale gas costs passed on to customers | $ | (262.8 | ) |
Lower system sales volumes | (147.4 | ) | |
Missouri Utilities - Lower off-system sales and capacity release | (25.3 | ) | |
Lower gross receipts tax | (21.8 | ) | |
Missouri Utilities - Higher Infrastructure System Replacement Surcharge (ISRS) charges | 13.8 | ||
Alagasco - Lower Rate Stabilization and Equalization (RSE) revenue adjustments | 4.5 | ||
New customer revenue from EnergySouth acquisition | 3.3 | ||
All other | (0.7 | ) | |
Total Variation | $ | (436.4 | ) |
Lower system sales volumes | $ | (18.0 | ) |
Missouri Utilities - Higher Infrastructure System Replacement Surcharge (ISRS) charges | 13.8 | ||
Alagasco - Lower Rate Stabilization and Equalization (RSE) revenue adjustments | 4.5 | ||
Operating margin from EnergySouth acquisition | 2.2 | ||
All other | (0.2 | ) | |
Total Variation | $ | 2.3 |
Year ended September 30, | 2016 | 2015 | |||||
Operating revenues | $ | 1,087.5 | $ | 1,416.6 | |||
Natural and propane gas expense | 471.3 | 786.1 | |||||
Gross receipts tax expense | 57.4 | 73.5 | |||||
Operating margin (non-GAAP) | 558.8 | 557.0 | |||||
Depreciation and amortization | 88.6 | 82.6 | |||||
Other operating expenses | 283.3 | 289.0 | |||||
Operating income (GAAP) | $ | 186.9 | $ | 185.4 | |||
Net Income | $ | 105.9 | $ | 105.3 |
Year ended September 30, | 2016 | 2015 | |||||
Operating revenues | $ | 368.5 | $ | 479.2 | |||
Natural gas expense | 67.3 | 171.5 | |||||
Gross receipts tax expense | 17.9 | 22.6 | |||||
Operating margin (non-GAAP) | 283.3 | 285.1 | |||||
Depreciation and amortization | 47.8 | 47.3 | |||||
Other operating expenses | 144.0 | 148.6 | |||||
Operating income (GAAP) | $ | 91.5 | $ | 89.2 | |||
Net Income | $ | 53.2 | $ | 48.0 |
New customer revenue from Alagasco acquisition | $ | 459.5 | |
Variance due to Missouri Utilities: | |||
Lower system volumes and off-system pricing | (42.2 | ) | |
Base rate increases and Infrastructure System Replacement Surcharge (ISRS) charges | 10.9 | ||
Higher wholesale gas prices passed to customers | 7.1 | ||
Higher optimization of assets in the prior year | (6.2 | ) | |
Lower gross receipts tax | (1.8 | ) | |
All other variance | 0.7 | ||
Total Variation | $ | 428.0 |
Operating margin from Alagasco | $ | 270.3 | |
Variance due to Missouri Utilities: | |||
Base rate increases and ISRS charges | 10.9 | ||
Lower system volumes and off-system pricing | (8.3 | ) | |
Higher optimization of assets in the prior year | (3.1 | ) | |
All other variance | 1.5 | ||
Total Variation | $ | 271.3 |
Pension Plan Benefits: | |||||||||||
Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/ (Decrease) to Projected Benefit Obligation | Estimated Increase/ (Decrease) to Annual Net Pension Cost* | ||||||||
Discount Rate | 0.25 | % | $ | (19.5 | ) | $ | 0.4 | ||||
(0.25 | )% | 20.5 | (0.4 | ) | |||||||
Rate of Future Compensation Increase | 0.25 | % | 7.3 | 0.5 | |||||||
(0.25 | )% | (7.1 | ) | (0.5 | ) | ||||||
Expected Return on Plan Assets | 0.25 | % | — | (1.2 | ) | ||||||
(0.25 | )% | — | 1.2 |
Postretirement Benefits: | |||||||||||
Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/ (Decrease) to Projected Postretirement Benefit Obligation | Estimated Increase/ (Decrease) to Annual Net Postretirement Benefit Cost* | ||||||||
Discount Rate | 0.25 | % | $ | (5.6 | ) | $ | — | ||||
(0.25 | )% | 5.8 | — | ||||||||
Expected Return on Plan Assets | 0.25 | % | — | (0.6 | ) | ||||||
(0.25 | )% | — | 0.6 | ||||||||
Annual Medical Cost Trend | 1.00 | % | 11.0 | 1.5 | |||||||
(1.00 | )% | (10.2 | ) | (1.4 | ) |
Cash Flow Summary | 2016 | 2015 | 2014 | ||||||||
Net cash provided by operating activities | $ | 328.3 | $ | 322.4 | $ | 122.6 | |||||
Net cash used in investing activities | (612.7 | ) | (298.7 | ) | (1,437.6 | ) | |||||
Net cash provided by (used in) financing activities | 275.8 | (26.0 | ) | 1,278.1 |
Laclede Gas Commercial Paper Borrowings | Spire* Bank Line Borrowings | Alagasco Bank Line Borrowings | Total Short-Term Borrowings | |
Year Ended September 30, 2016 | ||||
Weighted average borrowings outstanding | $201.0 | $42.7 | $30.2 | $273.9 |
Weighted average interest rate | 0.7% | 1.6% | 1.4% | 0.9% |
Range of borrowings outstanding | $43.0 - $307.2 | $0.0 - $82.0 | $0.0 - $82.0 | $73.1 - $427.2 |
As of September 30, 2016 | ||||
Borrowings outstanding at end of period | $243.7 | $73.0 | $82.0 | $398.7 |
Weighted average interest rate | 0.8% | 1.8% | 1.5% | 1.1% |
Year Ended September 30, 2015 | ||||
Weighted average borrowings outstanding | $212.7 | $65.6 | $22.3 | $300.6 |
Weighted average interest rate | 0.4% | 1.4% | 1.1% | 0.7% |
Range of borrowings outstanding | $ 102.1 - $341.0 | $32.5 - $80.0 | $0.0 - $69.5 | $180.1 - $488.5 |
As of September 30, 2015 | ||||
Borrowings outstanding at end of period | $233.0 | $74.0 | $31.0 | $338.0 |
Weighted average interest rate | 0.5% | 1.5% | 1.2% | 0.8% |
Payments due by period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||
Principal Payments on Long-Term Debt | $ | 2,085.8 | $ | 250.0 | $ | 280.0 | $ | 95.0 | $ | 1,460.8 | |||||||||
Interest Payments on Long-Term Debt (a) | 1,068.3 | 79.7 | 142.7 | 125.6 | 720.3 | ||||||||||||||
Operating Leases (b) | 90.9 | 10.5 | 14.7 | 12.3 | 53.4 | ||||||||||||||
Purchase Obligations – Natural Gas (c) | 1,647.8 | 924.9 | 460.0 | 146.2 | 116.7 | ||||||||||||||
Purchase Obligations – Other (d) | 112.2 | 66.9 | 36.1 | 8.8 | 0.4 | ||||||||||||||
Asset Retirement Obligations | 206.4 | 5.2 | 8.9 | 12.5 | 179.8 | ||||||||||||||
Other Long-Term Liabilities | 6.1 | 3.9 | 2.2 | — | — | ||||||||||||||
Total (e) | $ | 5,217.5 | $ | 1,341.1 | $ | 944.6 | $ | 400.4 | $ | 2,531.4 |
(a) | Includes interest payments over the terms of the debt and payments on related stock purchase contracts. Interest is calculated using the applicable interest rate or forward interest rate curve at September 30, 2016 and outstanding principal for each instrument with the terms ending at each instrument’s stated maturity. See Note 6, Long-Term Debt, of the Notes to Financial Statements. Does not reflect Spire’s ability to defer quarterly interest and contract adjustment payments related to its equity units, as discussed in Note 5, Stockholders’ Equity. |
(b) | Lease obligations are primarily for office space, vehicles, and power operated equipment. Additional payments will be incurred if renewal options are exercised under the provisions of certain agreements. |
(c) | These purchase obligations represent the minimum payments required under existing natural gas transportation and storage contracts and natural gas supply agreements in the Gas Utility and Gas Marketing segments. These amounts reflect fixed obligations as well as obligations to purchase natural gas at future market prices, calculated using September 30, 2016 forward market prices. Each of the Utilities generally recovers costs related to its purchases, transportation, and storage of natural gas through the operation of its PGA clause or GSA rider, subject to prudence review by the appropriate regional public service commission. Variations in the timing of collections of gas costs from customers may affect short-term cash requirements. Additional contractual commitments are generally entered into prior to or during the heating season. |
(d) | These purchase obligations primarily reflect miscellaneous agreements for the purchase of materials and the procurement of services necessary for normal operations. |
(e) | Long-term liabilities associated with unrecognized tax benefits, totaling $10.0, have been excluded from the table above because the timing of future cash outflows, if any, cannot be reasonably estimated. Also, commitments related to pension and postretirement benefit plans have been excluded from the table above. The Company expects to contribute $29.0 to its qualified, trusteed pension plans and $0.6 to its non-qualified pension plans during fiscal year 2017. With regard to the postretirement benefits, the Company anticipates it will contribute $10.3 to the qualified trusts and $0.4 directly to participants from Laclede Gas funds during fiscal year 2017. For further discussion of the Company’s pension and postretirement benefit plans, refer to Note 13, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements. |
Derivative Fair Values | Cash Margin | Derivatives and Cash Margin | |||||||||
Net balance of derivative assets at September 30, 2015 | $ | 5.5 | $ | (1.6 | ) | $ | 3.9 | ||||
Changes in fair value | 1.4 | — | 1.4 | ||||||||
Settlements/purchases - net | (8.2 | ) | — | (8.2 | ) | ||||||
Changes in cash margin | — | 5.7 | 5.7 | ||||||||
Net balance of derivative assets at September 30, 2016 | $ | (1.3 | ) | $ | 4.1 | $ | 2.8 |
As of September 30, 2016 | |||||||||||||||
Maturity by Fiscal Year | Total | 2017 | 2018 | 2019 | |||||||||||
Fair values of exchange-traded/cleared natural gas derivatives - net | $ | (3.6 | ) | $ | (3.4 | ) | $ | (0.2 | ) | $ | — | ||||
Fair values of basis swaps - net | 2.3 | 1.9 | 0.3 | 0.1 | |||||||||||
Position volumes: | |||||||||||||||
MMBtu – net (short) long futures/swap/option positions | (8.4 | ) | (7.6 | ) | (0.8 | ) | — | ||||||||
MMBtu - net (short) long basis swap positions | 3.6 | 4.7 | 1.1 | (2.2 | ) |
Net balance of derivative assets at September 30, 2015 | $ | (0.5 | ) |
Changes in fair value | 12.2 | ||
Settlements | (5.4 | ) | |
Net balance of derivative assets at September 30, 2016 | $ | 6.3 |
Item 8. Financial Statements and Supplementary Data | |||
Page | |||
Financial Statements: | |||
Spire Inc. (for years ended September 30, 2016, 2015, and 2014) | |||
Laclede Gas Company (for years ended September 30, 2016, 2015, and 2014) | |||
Alabama Gas Corporation (for the years ended September 30, 2016, September 30, 2015, and the nine months ended September 30, 2014) | |||
Notes to Financial Statements | |||
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(In millions, except per share amounts) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Operating Revenues: | |||||||||||
Gas Utility | $ | 1,457.2 | $ | 1,891.8 | $ | 1,462.6 | |||||
Gas Marketing and other | 80.1 | 84.6 | 164.6 | ||||||||
Total Operating Revenues | 1,537.3 | 1,976.4 | 1,627.2 | ||||||||
Operating Expenses: | |||||||||||
Gas Utility | |||||||||||
Natural and propane gas | 492.2 | 882.4 | 731.7 | ||||||||
Other operation and maintenance expenses | 377.5 | 390.6 | 287.8 | ||||||||
Depreciation and amortization | 136.9 | 129.9 | 82.4 | ||||||||
Taxes, other than income taxes | 125.2 | 142.1 | 112.0 | ||||||||
Total Gas Utility Operating Expenses | 1,131.8 | 1,545.0 | 1,213.9 | ||||||||
Gas Marketing and other | 123.2 | 158.9 | 246.9 | ||||||||
Total Operating Expenses | 1,255.0 | 1,703.9 | 1,460.8 | ||||||||
Operating Income | 282.3 | 272.5 | 166.4 | ||||||||
Other Income and (Income Deductions) – Net | 8.6 | 1.2 | (3.3 | ) | |||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 67.6 | 66.6 | 39.3 | ||||||||
Other interest charges | 9.6 | 8.0 | 6.9 | ||||||||
Total Interest Charges | 77.2 | 74.6 | 46.2 | ||||||||
Income Before Income Taxes | 213.7 | 199.1 | 116.9 | ||||||||
Income Tax Expense | 69.5 | 62.2 | 32.3 | ||||||||
Net Income | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||
Basic | 44.1 | 43.2 | 35.8 | ||||||||
Diluted | 44.3 | 43.3 | 35.9 | ||||||||
Basic Earnings Per Share of Common Stock | $ | 3.26 | $ | 3.16 | $ | 2.36 | |||||
Diluted Earnings Per Share of Common Stock | $ | 3.24 | $ | 3.16 | $ | 2.35 |
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Net Income | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Other Comprehensive Income (Loss), Before Tax: | |||||||||||
Cash flow hedging derivative instruments: | |||||||||||
Net hedging loss arising during the period | (4.0 | ) | (5.5 | ) | (4.5 | ) | |||||
Reclassification adjustment for loss included in net income | 1.1 | 4.4 | 2.5 | ||||||||
Net unrealized loss on cash flow hedging derivative instruments | (2.9 | ) | (1.1 | ) | (2.0 | ) | |||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net actuarial gain arising during the period | — | 0.1 | — | ||||||||
Amortization of actuarial (gain) loss included in net periodic pension and postretirement benefit cost | (0.3 | ) | 0.4 | 0.5 | |||||||
Net defined benefit pension and other postretirement benefit plans | (0.3 | ) | 0.5 | 0.5 | |||||||
Other Comprehensive Loss, Before Tax | (3.2 | ) | (0.6 | ) | (1.5 | ) | |||||
Income Tax Benefit Related to Items of Other Comprehensive Loss | (1.0 | ) | (0.3 | ) | (0.6 | ) | |||||
Other Comprehensive Loss, Net of Tax | (2.2 | ) | (0.3 | ) | (0.9 | ) | |||||
Comprehensive Income | $ | 142.0 | $ | 136.6 | $ | 83.7 |
SPIRE INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30 | 2016 | 2015 | |||||
ASSETS | |||||||
Utility Plant | $ | 4,793.6 | $ | 4,234.5 | |||
Less: Accumulated depreciation and amortization | 1,506.4 | 1,307.0 | |||||
Net Utility Plant | 3,287.2 | 2,927.5 | |||||
Non-utility property (net of accumulated depreciation and amortization, $8.1 and $7.5 at September 30, 2016 and 2015, respectively) | 13.7 | 13.7 | |||||
Goodwill | 1,164.9 | 946.0 | |||||
Other investments | 62.1 | 59.9 | |||||
Other Property and Investments | 1,240.7 | 1,019.6 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 5.2 | 13.8 | |||||
Accounts receivable: | |||||||
Utility | 127.8 | 138.1 | |||||
Other | 113.4 | 86.7 | |||||
Allowance for doubtful accounts | (20.5 | ) | (14.2 | ) | |||
Delayed customer billings | 1.6 | 2.6 | |||||
Inventories: | |||||||
Natural gas | 174.0 | 188.6 | |||||
Propane gas | 12.0 | 12.0 | |||||
Materials and supplies | 16.3 | 14.8 | |||||
Natural gas receivable | 9.7 | 17.3 | |||||
Derivative instrument assets | 11.4 | 4.6 | |||||
Unamortized purchased gas adjustments | 49.7 | 12.9 | |||||
Other regulatory assets | 44.2 | 27.6 | |||||
Prepayments and other | 24.8 | 25.3 | |||||
Total Current Assets | 569.6 | 530.1 | |||||
Deferred Charges: | |||||||
Regulatory assets | 838.0 | 737.6 | |||||
Other | 141.9 | 75.4 | |||||
Total Deferred Charges | 979.9 | 813.0 | |||||
Total Assets | $ | 6,077.4 | $ | 5,290.2 |
SPIRE INC. | |||||||
CONSOLIDATED BALANCE SHEETS (Continued) | |||||||
September 30 | 2016 | 2015 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 1,768.2 | $ | 1,573.6 | |||
Long-term debt | 1,833.7 | 1,771.5 | |||||
Total Capitalization | 3,601.9 | 3,345.1 | |||||
Current Liabilities: | |||||||
Current portion of long-term debt | 250.0 | 80.0 | |||||
Notes payable | 398.7 | 338.0 | |||||
Accounts payable | 210.9 | 146.5 | |||||
Advance customer billings | 70.2 | 44.3 | |||||
Wages and compensation accrued | 39.8 | 32.7 | |||||
Dividends payable | 23.5 | 21.1 | |||||
Customer deposits | 34.9 | 32.1 | |||||
Interest accrued | 14.8 | 14.3 | |||||
Unamortized purchased gas adjustments | 1.7 | 28.2 | |||||
Taxes accrued | 55.2 | 51.7 | |||||
Other regulatory liabilities | 28.9 | 32.4 | |||||
Other | 32.7 | 32.5 | |||||
Total Current Liabilities | 1,161.3 | 853.8 | |||||
Deferred Credits and Other Liabilities: | |||||||
Deferred income taxes | 607.3 | 482.1 | |||||
Pension and postretirement benefit costs | 303.7 | 253.4 | |||||
Asset retirement obligations | 206.4 | 159.2 | |||||
Regulatory liabilities | 130.7 | 119.3 | |||||
Other | 66.1 | 77.3 | |||||
Total Deferred Credits and Other Liabilities | 1,314.2 | 1,091.3 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 6,077.4 | $ | 5,290.2 |
SPIRE INC. | |||||||
CONSOLIDATED STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2016 | 2015 | |||||
Common Stock Equity: | |||||||
Common stock, par value $1 per share: | |||||||
Authorized – 70,000,000 shares | |||||||
Outstanding – 45,650,642 shares and 43,335,012 shares, respectively | $ | 45.6 | $ | 43.3 | |||
Paid-in capital | 1,175.9 | 1,038.1 | |||||
Retained earnings | 550.9 | 494.2 | |||||
Accumulated other comprehensive loss | (4.2 | ) | (2.0 | ) | |||
Total Common Stock Equity | 1,768.2 | 1,573.6 | |||||
Long-Term Debt - Spire: | |||||||
Floating Rate Senior Notes, due August 15, 2017 | — | 250.0 | |||||
2.55% Senior Notes, due August 15, 2019 | 125.0 | 125.0 | |||||
2.52% Senior Notes, due September 1, 2021 | 35.0 | — | |||||
2.0% Series A Remarketable Subordinated Notes, due April 1, 2022 | 143.8 | 143.8 | |||||
3.31% Notes Payable, due December 15, 2022 | 25.0 | 25.0 | |||||
3.13% Senior Notes, due September 1, 2026 | 130.0 | — | |||||
4.70% Senior Notes, due August 15, 2044 | 250.0 | 250.0 | |||||
Long-Term Debt - Laclede Gas: | |||||||
First Mortgage Bonds: | |||||||
2.0% Series, due August 15, 2018 | 100.0 | 100.0 | |||||
5.5% Series, due May 1, 2019 | 50.0 | 50.0 | |||||
3.0% Series, due March 15, 2023 | 55.0 | 55.0 | |||||
3.4% Series, due August 15, 2023 | 250.0 | 250.0 | |||||
3.4% Series, due March 15, 2028 | 45.0 | 45.0 | |||||
7.0% Series, due June 1, 2029 | 25.0 | 25.0 | |||||
7.9% Series, due September 15, 2030 | 30.0 | 30.0 | |||||
6.0% Series, due May 1, 2034 | 100.0 | 100.0 | |||||
6.15% Series, due June 1, 2036 | 55.0 | 55.0 | |||||
4.625% Series, due August 15, 2043 | 100.0 | 100.0 | |||||
Long-Term Debt - Alagasco: | |||||||
5.2% Notes, due January 15, 2020 | 40.0 | 40.0 | |||||
3.86% Notes, due December 23, 2021 | 50.0 | 50.0 | |||||
3.21% Notes, due September 15, 2025 | 35.0 | 35.0 | |||||
5.9% Notes, due January 15, 2037 | 45.0 | 45.0 | |||||
4.31% Notes, due December 1, 2045 | 80.0 | — | |||||
Long-Term Debt - Other: | |||||||
3.10%, due December 30, 2018 | 5.0 | — | |||||
4.14%, due September 30, 2021 | 20.0 | — | |||||
5.00%, due September 30, 2031 | 42.0 | — | |||||
Total Principal of Long-Term Debt | 1,835.8 | 1,773.8 | |||||
Unamortized discounts on long-term debt | (2.1 | ) | (2.3 | ) | |||
Total Long-Term Debt | 1,833.7 | 1,771.5 | |||||
Total Capitalization | $ | 3,601.9 | $ | 3,345.1 |
SPIRE INC. | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions, except per share amounts) | Shares | Amount | Total | |||||||||||||||||||
Balance September 30, 2013 | 32,696,836 | $ | 32.7 | $ | 594.3 | $ | 420.1 | $ | (0.8 | ) | $ | 1,046.3 | ||||||||||
Net income | — | — | — | 84.6 | — | 84.6 | ||||||||||||||||
Common stock offering | 10,350,000 | 10.4 | 446.4 | — | — | 456.8 | ||||||||||||||||
Equity units offering | — | — | (19.7 | ) | — | — | (19.7 | ) | ||||||||||||||
Dividend reinvestment plan | 33,667 | — | 1.5 | — | — | 1.5 | ||||||||||||||||
Stock-based compensation costs | — | — | 5.8 | — | — | 5.8 | ||||||||||||||||
Equity Incentive Plan | 97,902 | 0.1 | 1.6 | — | — | 1.7 | ||||||||||||||||
Employees’ taxes paid associated with restricted shares withheld upon vesting | — | — | (1.1 | ) | — | — | (1.1 | ) | ||||||||||||||
Tax benefit – stock compensation | — | — | 0.6 | — | — | 0.6 | ||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($1.76 per share) | — | — | — | (67.2 | ) | — | (67.2 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (0.9 | ) | (0.9 | ) | ||||||||||||||
Balance September 30, 2014 | 43,178,405 | $ | 43.2 | $ | 1,029.4 | $ | 437.5 | $ | (1.7 | ) | $ | 1,508.4 | ||||||||||
Net income | — | — | — | 136.9 | — | 136.9 | ||||||||||||||||
Dividend reinvestment plan | 31,166 | — | 1.6 | — | — | 1.6 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.0 | — | — | 3.0 | ||||||||||||||||
Equity Incentive Plan | 125,441 | 0.1 | 5.0 | — | — | 5.1 | ||||||||||||||||
Employees’ taxes paid associated with restricted shares withheld upon vesting | — | — | (1.6 | ) | — | — | (1.6 | ) | ||||||||||||||
Tax benefit – stock compensation | — | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($1.84 per share) | — | — | — | (80.2 | ) | — | (80.2 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||
Balance September 30, 2015 | 43,335,012 | $ | 43.3 | $ | 1,038.1 | $ | 494.2 | $ | (2.0 | ) | $ | 1,573.6 | ||||||||||
Net income | — | — | — | 144.2 | — | 144.2 | ||||||||||||||||
Common stock offering | 2,185,000 | 2.2 | 131.0 | — | — | 133.2 | ||||||||||||||||
Dividend reinvestment plan | 22,878 | — | 1.4 | — | — | 1.4 | ||||||||||||||||
Stock-based compensation costs | — | — | 2.2 | — | — | 2.2 | ||||||||||||||||
Equity Incentive Plan | 107,752 | 0.1 | 5.0 | — | — | 5.1 | ||||||||||||||||
Employees’ taxes paid associated with restricted shares withheld upon vesting | — | — | (1.8 | ) | — | — | (1.8 | ) | ||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($1.96 per share) | — | — | — | (87.5 | ) | — | (87.5 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (2.2 | ) | (2.2 | ) | ||||||||||||||
Balance September 30, 2016 | 45,650,642 | $ | 45.6 | $ | 1,175.9 | $ | 550.9 | $ | (4.2 | ) | $ | 1,768.2 |
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | 137.5 | 130.8 | 83.3 | ||||||||
Deferred income taxes and investment tax credits | 68.8 | 65.5 | 31.4 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | (12.3 | ) | (4.8 | ) | (5.3 | ) | |||||
Unamortized purchased gas adjustments | (64.3 | ) | 46.9 | (36.4 | ) | ||||||
Deferred purchased gas costs | 11.5 | (19.8 | ) | 13.9 | |||||||
Accounts payable | 30.0 | (30.0 | ) | 8.6 | |||||||
Delayed / advance customer billings – net | 26.9 | 20.3 | (19.1 | ) | |||||||
Taxes accrued | (0.4 | ) | (17.0 | ) | (0.8 | ) | |||||
Inventories | 16.5 | 54.8 | (15.5 | ) | |||||||
Other assets and liabilities | (35.0 | ) | (67.6 | ) | (27.5 | ) | |||||
Other | 4.9 | 6.4 | 5.4 | ||||||||
Net cash provided by operating activities | 328.3 | 322.4 | 122.6 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (293.3 | ) | (289.8 | ) | (171.0 | ) | |||||
Acquisition of EnergySouth (net of $2.0 cash acquired) | (317.7 | ) | — | — | |||||||
Acquisition of Alagasco (net of $12.1 cash acquired in 2014) | — | (8.2 | ) | (1,305.2 | ) | ||||||
Acquisition of MGE | — | — | 23.9 | ||||||||
Proceeds from sale of right to acquire New England Gas Company | — | — | 11.0 | ||||||||
Other | (1.7 | ) | (0.7 | ) | 3.7 | ||||||
Net cash used in investing activities | (612.7 | ) | (298.7 | ) | (1,437.6 | ) | |||||
Financing Activities: | |||||||||||
Issuance of long-term debt | 245.0 | 35.0 | 768.8 | ||||||||
Repayment of long-term debt | (80.0 | ) | (34.8 | ) | (80.0 | ) | |||||
Issuance of short-term debt - net | 60.7 | 50.8 | 198.1 | ||||||||
Issuance of common stock | 137.1 | 3.1 | 460.0 | ||||||||
Dividends paid | (85.2 | ) | (79.0 | ) | (61.9 | ) | |||||
Other | (1.8 | ) | (1.1 | ) | (6.9 | ) | |||||
Net cash provided by (used in) financing activities | 275.8 | (26.0 | ) | 1,278.1 | |||||||
Net Decrease in Cash and Cash Equivalents | (8.6 | ) | (2.3 | ) | (36.9 | ) | |||||
Cash and Cash Equivalents at Beginning of Year | 13.8 | 16.1 | 53.0 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 5.2 | $ | 13.8 | $ | 16.1 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (72.5 | ) | $ | (65.3 | ) | $ | (40.6 | ) | ||
Income taxes | 2.9 | 1.3 | (3.4 | ) |
LACLEDE GAS COMPANY | |||||||||||
STATEMENTS OF INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Operating Revenues: | |||||||||||
Utility | $ | 1,087.5 | $ | 1,416.6 | $ | 1,448.1 | |||||
Other | — | — | 0.1 | ||||||||
Total Operating Revenues | 1,087.5 | 1,416.6 | 1,448.2 | ||||||||
Operating Expenses: | |||||||||||
Utility | |||||||||||
Natural and propane gas | 471.3 | 786.1 | 816.9 | ||||||||
Other operation and maintenance expenses | 244.4 | 253.6 | 276.4 | ||||||||
Depreciation and amortization | 88.6 | 82.6 | 78.5 | ||||||||
Taxes, other than income taxes | 96.3 | 108.9 | 110.1 | ||||||||
Total Utility Operating Expenses | 900.6 | 1,231.2 | 1,281.9 | ||||||||
Other | — | — | (0.1 | ) | |||||||
Total Operating Expenses | 900.6 | 1,231.2 | 1,281.8 | ||||||||
Operating Income | 186.9 | 185.4 | 166.4 | ||||||||
Other Income and (Income Deductions) - Net | 1.8 | (0.5 | ) | (3.4 | ) | ||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 32.9 | 33.1 | 34.4 | ||||||||
Other interest charges | 4.5 | 3.3 | 3.0 | ||||||||
Total Interest Charges | 37.4 | 36.4 | 37.4 | ||||||||
Income Before Income Taxes | 151.3 | 148.5 | 125.6 | ||||||||
Income Tax Expense | 45.4 | 43.2 | 35.5 | ||||||||
Net Income | $ | 105.9 | $ | 105.3 | $ | 90.1 |
LACLEDE GAS COMPANY | |||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Net Income | $ | 105.9 | $ | 105.3 | $ | 90.1 | |||||
Other Comprehensive Income, Before Tax: | |||||||||||
Cash flow hedging derivative instruments: | |||||||||||
Net hedging (loss) gain arising during the period | — | (1.2 | ) | 0.1 | |||||||
Reclassification adjustment for loss (gain) included in net income | 0.5 | 0.9 | (0.2 | ) | |||||||
Net unrealized gain (loss) on cash flow hedging derivative instruments | 0.5 | (0.3 | ) | (0.1 | ) | ||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net actuarial gain arising during the period | — | 0.1 | — | ||||||||
Amortization of actuarial (gain) loss included in net periodic pension and postretirement benefit cost | (0.3 | ) | 0.4 | 0.4 | |||||||
Net defined benefit pension and other postretirement benefit plans | (0.3 | ) | 0.5 | 0.4 | |||||||
Loss on available for sale securities | (0.1 | ) | — | — | |||||||
Other Comprehensive Income, Before Tax | 0.1 | 0.2 | 0.3 | ||||||||
Income Tax Expense Related to Items of Other Comprehensive Income | 0.2 | — | 0.1 | ||||||||
Other Comprehensive (Loss) Income, Net of Tax | (0.1 | ) | 0.2 | 0.2 | |||||||
Comprehensive Income | $ | 105.8 | $ | 105.5 | $ | 90.3 |
LACLEDE GAS COMPANY | |||||||
BALANCE SHEETS | |||||||
(In Millions) | |||||||
September 30 | 2016 | 2015 | |||||
ASSETS | |||||||
Utility Plant | $ | 2,718.5 | $ | 2,579.1 | |||
Less: Accumulated depreciation and amortization | 604.5 | 590.0 | |||||
Net Utility Plant | 2,114.0 | 1,989.1 | |||||
Goodwill | 210.2 | 210.2 | |||||
Other Property and Investments | 57.3 | 55.3 | |||||
Other Property and Investments | 267.5 | 265.5 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 2.1 | 1.7 | |||||
Accounts receivable: | |||||||
Utility | 87.9 | 103.4 | |||||
Other | 11.4 | 25.2 | |||||
Allowance for doubtful accounts | (16.1 | ) | (10.0 | ) | |||
Delayed customer billings | 1.6 | 2.6 | |||||
Receivables from associated companies | 2.2 | 2.5 | |||||
Inventories: | |||||||
Natural gas | 127.3 | 138.2 | |||||
Propane gas | 12.0 | 12.0 | |||||
Materials and supplies | 9.2 | 9.3 | |||||
Derivative instrument assets | 4.9 | — | |||||
Unamortized purchased gas adjustments | 43.1 | 12.9 | |||||
Other regulatory assets | 23.9 | 16.2 | |||||
Prepayments and other | 14.5 | 12.5 | |||||
Total Current Assets | 324.0 | 326.5 | |||||
Deferred Charges: | |||||||
Regulatory assets | 589.8 | 573.6 | |||||
Other | 5.3 | 12.8 | |||||
Total Deferred Charges | 595.1 | 586.4 | |||||
Total Assets | $ | 3,300.6 | $ | 3,167.5 |
LACLEDE GAS COMPANY | |||||||
BALANCE SHEETS (continued) | |||||||
September 30 | 2016 | 2015 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 1,068.5 | $ | 1,037.8 | |||
Long-term debt | 808.3 | 808.1 | |||||
Total Capitalization | 1,876.8 | 1,845.9 | |||||
Current Liabilities: | |||||||
Notes payable | 243.7 | 233.0 | |||||
Accounts payable | 67.6 | 61.5 | |||||
Accounts payable to associated companies | 5.4 | 5.5 | |||||
Advance customer billings | 49.1 | 25.2 | |||||
Wages and compensation accrued | 29.9 | 26.8 | |||||
Dividends payable | 14.0 | 19.9 | |||||
Customer deposits | 13.5 | 13.0 | |||||
Interest accrued | 7.7 | 7.6 | |||||
Taxes accrued | 29.1 | 25.4 | |||||
Regulatory liabilities | 1.3 | 0.6 | |||||
Other | 9.9 | 18.5 | |||||
Total Current Liabilities | 471.2 | 437.0 | |||||
Deferred Credits and Other Liabilities: | |||||||
Deferred income taxes | 556.9 | 485.2 | |||||
Pension and postretirement benefit costs | 211.8 | 207.8 | |||||
Asset retirement obligations | 75.2 | 72.4 | |||||
Regulatory liabilities | 67.3 | 70.6 | |||||
Other | 41.4 | 48.6 | |||||
Total Deferred Credits and Other Liabilities | 952.6 | 884.6 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 3,300.6 | $ | 3,167.5 |
LACLEDE GAS COMPANY | |||||||
STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2016 | 2015 | |||||
Common Stock Equity: | |||||||
Common stock, par value $1 per share: | |||||||
Authorized – 50,000,000 shares | |||||||
Outstanding – 24,577 shares | 0.1 | 0.1 | |||||
Paid-in capital | 751.9 | 748.2 | |||||
Retained earnings | 318.3 | 291.2 | |||||
Accumulated other comprehensive loss | (1.8 | ) | (1.7 | ) | |||
Total Common Stock Equity | 1,068.5 | 1,037.8 | |||||
Long-Term Debt: | |||||||
First Mortgage Bonds: | |||||||
2.0% Series, due August 15, 2018 | 100.0 | 100.0 | |||||
5.5% Series, due May 1, 2019 | 50.0 | 50.0 | |||||
3.0% Series, due March 15, 2023 | 55.0 | 55.0 | |||||
3.4% Series, due August 15, 2023 | 250.0 | 250.0 | |||||
3.4% Series, due March 15, 2028 | 45.0 | 45.0 | |||||
7.0% Series, due June 1, 2029 | 25.0 | 25.0 | |||||
7.9% Series, due September 15, 2030 | 30.0 | 30.0 | |||||
6.0% Series, due May 1, 2034 | 100.0 | 100.0 | |||||
6.15% Series, due June 1, 2036 | 55.0 | 55.0 | |||||
4.625% Series, due August 15, 2043 | 100.0 | 100.0 | |||||
Total Principal of Long-Term Debt | 810.0 | 810.0 | |||||
Unamortized discounts on long-term debt | (1.7 | ) | (1.9 | ) | |||
Total Long-Term Debt | 808.3 | 808.1 | |||||
Total Capitalization | $ | 1,876.8 | $ | 1,845.9 |
LACLEDE GAS COMPANY | ||||||||||||||||||||||
STATEMENTS OF COMMON SHAREHOLDER’S EQUITY | ||||||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions, except per share amounts) | Shares | Amount | Total | |||||||||||||||||||
Balance September 30, 2013 | 24,549 | $ | 0.1 | $ | 738.1 | $ | 237.8 | $ | (2.1 | ) | $ | 973.9 | ||||||||||
Net income | — | — | — | 90.1 | — | 90.1 | ||||||||||||||||
Stock-based compensation costs | — | — | 4.2 | — | — | 4.2 | ||||||||||||||||
Tax benefit – stock compensation | — | — | 0.6 | — | — | 0.6 | ||||||||||||||||
Dividends declared on common stock | — | — | — | (62.3 | ) | — | (62.3 | ) | ||||||||||||||
Issuance of common stock to Spire | 28 | — | 1.1 | — | — | 1.1 | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||
Balance September 30, 2014 | 24,577 | $ | 0.1 | $ | 744.0 | $ | 265.6 | $ | (1.9 | ) | $ | 1,007.8 | ||||||||||
Net income | — | — | — | 105.3 | — | 105.3 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.7 | — | — | 3.7 | ||||||||||||||||
Tax benefit – stock compensation | — | — | 0.5 | — | — | 0.5 | ||||||||||||||||
Dividends declared on common stock | — | — | — | (79.7 | ) | — | (79.7 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||
Balance September 30, 2015 | 24,577 | $ | 0.1 | $ | 748.2 | $ | 291.2 | $ | (1.7 | ) | $ | 1,037.8 | ||||||||||
Net income | — | — | — | 105.9 | — | 105.9 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.7 | — | — | 3.7 | ||||||||||||||||
Dividends declared on common stock | — | — | — | (78.8 | ) | — | (78.8 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||
Balance September 30, 2016 | 24,577 | $ | 0.1 | $ | 751.9 | $ | 318.3 | $ | (1.8 | ) | $ | 1,068.5 |
LACLEDE GAS COMPANY | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2016 | 2015 | 2014 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 105.9 | $ | 105.3 | $ | 90.1 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | 88.6 | 82.6 | 78.5 | ||||||||
Deferred income taxes and investment tax credits | 45.3 | 45.4 | 35.6 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | 35.7 | 9.9 | (21.5 | ) | |||||||
Unamortized purchased gas adjustments | (30.2 | ) | 41.1 | (36.4 | ) | ||||||
Deferred purchased gas costs | 11.5 | (19.8 | ) | 13.9 | |||||||
Accounts payable | 0.9 | (11.4 | ) | 6.8 | |||||||
Delayed / advance customer billings – net | 24.9 | 17.9 | (19.1 | ) | |||||||
Taxes accrued | 4.9 | (14.6 | ) | 10.0 | |||||||
Inventories | 11.0 | 51.2 | (26.4 | ) | |||||||
Other assets and liabilities | (29.6 | ) | (32.8 | ) | (3.3 | ) | |||||
Other | 2.3 | 2.8 | 2.8 | ||||||||
Net cash provided by operating activities | 271.2 | 277.6 | 131.0 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (197.8 | ) | (198.6 | ) | (163.0 | ) | |||||
Acquisition of MGE | — | — | 23.9 | ||||||||
Other | 1.1 | 2.9 | 4.1 | ||||||||
Net cash used in investing activities | (196.7 | ) | (195.7 | ) | (135.0 | ) | |||||
Financing Activities: | |||||||||||
Repayment of long-term debt | — | — | (80.0 | ) | |||||||
Issuance (repayment) of short-term debt - net | 10.7 | (5.7 | ) | 164.6 | |||||||
Borrowings from Spire | — | 18.4 | 276.1 | ||||||||
Repayment of borrowings from Spire | — | (18.4 | ) | (322.7 | ) | ||||||
Dividends paid | (84.8 | ) | (78.7 | ) | (57.2 | ) | |||||
Issuance of common stock to Spire | — | — | 1.2 | ||||||||
Other | — | 0.5 | 1.8 | ||||||||
Net cash used in financing activities | (74.1 | ) | (83.9 | ) | (16.2 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0.4 | (2.0 | ) | (20.2 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 1.7 | 3.7 | 23.9 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 2.1 | $ | 1.7 | $ | 3.7 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (35.7 | ) | $ | (31.0 | ) | $ | (36.4 | ) | ||
Income taxes | 2.1 | 0.7 | (0.2 | ) |
ALABAMA GAS CORPORATION | |||||||||||
STATEMENTS OF INCOME | |||||||||||
Year Ended September 30, | Year Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Operating Revenues: | |||||||||||
Utility | $ | 368.5 | $ | 479.2 | $ | 417.2 | |||||
Total Operating Revenues | 368.5 | 479.2 | 417.2 | ||||||||
Operating Expenses: | |||||||||||
Utility | |||||||||||
Natural and propane gas | 67.3 | 171.5 | 184.5 | ||||||||
Other operation and maintenance expenses | 133.5 | 138.0 | 107.5 | ||||||||
Depreciation and amortization | 47.8 | 47.3 | 34.4 | ||||||||
Taxes, other than income taxes | 28.4 | 33.2 | 28.6 | ||||||||
Total Operating Expenses | 277.0 | 390.0 | 355.0 | ||||||||
Operating Income | 91.5 | 89.2 | 62.2 | ||||||||
Other Income - Net | 7.9 | 2.0 | 2.2 | ||||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 11.4 | 11.6 | 10.1 | ||||||||
Other interest charges | 2.4 | 2.3 | 1.4 | ||||||||
Total Interest Charges | 13.8 | 13.9 | 11.5 | ||||||||
Income Before Income Taxes | 85.6 | 77.3 | 52.9 | ||||||||
Income Tax Expense | 32.4 | 29.3 | 19.9 | ||||||||
Net Income | $ | 53.2 | $ | 48.0 | $ | 33.0 |
ALABAMA GAS CORPORATION | |||||||
BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30 | 2016 | 2015 | |||||
ASSETS | |||||||
Utility Plant | $ | 1,729.6 | $ | 1,655.4 | |||
Less: Accumulated depreciation and amortization | 756.6 | 717.0 | |||||
Net Utility Plant | 973.0 | 938.4 | |||||
Current Assets: | |||||||
Cash and cash equivalents | — | 7.2 | |||||
Accounts receivable: | |||||||
Utility | 34.0 | 34.7 | |||||
Other | 7.2 | 5.2 | |||||
Allowance for doubtful accounts | (3.3 | ) | (4.2 | ) | |||
Inventories: | |||||||
Natural gas | 34.6 | 40.4 | |||||
Materials and supplies | 5.9 | 5.4 | |||||
Unamortized purchased gas adjustments | 5.6 | — | |||||
Other regulatory assets | 14.9 | 11.4 | |||||
Deferred income tax | — | 6.2 | |||||
Prepayments and other | 5.1 | 4.6 | |||||
Total Current Assets | 104.0 | 110.9 | |||||
Deferred Charges: | |||||||
Regulatory assets | 230.7 | 163.6 | |||||
Deferred income tax | 221.4 | 248.4 | |||||
Other | 63.2 | 57.7 | |||||
Total Deferred Charges | 515.3 | 469.7 | |||||
Total Assets | $ | 1,592.3 | $ | 1,519.0 |
ALABAMA GAS CORPORATION | |||||||
BALANCE SHEETS (continued) | |||||||
September 30 | 2016 | 2015 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 867.3 | $ | 874.6 | |||
Long-term debt | 250.0 | 170.0 | |||||
Total Capitalization | 1,117.3 | 1,044.6 | |||||
Current Liabilities: | |||||||
Current portion of long-term debt | — | 80.0 | |||||
Notes payable | 82.0 | 31.0 | |||||
Accounts payable | 34.3 | 21.8 | |||||
Accounts payable to associated companies | 0.4 | 0.2 | |||||
Advance customer billings | 21.1 | 19.1 | |||||
Wages and compensation accrued | 7.8 | 5.8 | |||||
Customer deposits | 18.2 | 19.1 | |||||
Interest accrued | 3.3 | 3.5 | |||||
Unamortized purchase gas adjustment | — | 28.2 | |||||
Taxes accrued | 21.6 | 26.0 | |||||
Other regulatory liabilities | 22.7 | 31.8 | |||||
Other | 6.3 | 5.4 | |||||
Total Current Liabilities | 217.7 | 271.9 | |||||
Deferred Credits and Other Liabilities: | |||||||
Pension and postretirement benefit costs | 74.3 | 45.6 | |||||
Asset retirement obligations | 120.1 | 86.6 | |||||
Regulatory liabilities | 41.7 | 48.7 | |||||
Other | 21.2 | 21.6 | |||||
Total Deferred Credits and Other Liabilities | 257.3 | 202.5 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 1,592.3 | $ | 1,519.0 |
ALABAMA GAS CORPORATION | |||||||
STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2016 | 2015 | |||||
Common Stock Equity: | |||||||
Common stock, par value $0.01 per share, and paid-in capital: | |||||||
Authorized – 3,000,000 shares | |||||||
Outstanding – 1,972,052 shares | $ | 451.9 | $ | 480.9 | |||
Retained earnings | 415.4 | 393.7 | |||||
Total Common Stock Equity | 867.3 | 874.6 | |||||
Long-Term Debt: | |||||||
5.2% Notes, due January 15, 2020 | 40.0 | 40.0 | |||||
3.86% Notes, due December 23, 2021 | 50.0 | 50.0 | |||||
3.21% Notes, due September 15, 2025 | 35.0 | 35.0 | |||||
5.9% Notes, due January 15, 2037 | 45.0 | 45.0 | |||||
4.31% Notes, due December 1, 2045 | 80.0 | — | |||||
Total Long-Term Debt | 250.0 | 170.0 | |||||
Total Capitalization | $ | 1,117.3 | $ | 1,044.6 |
ALABAMA GAS CORPORATION | ||||||||||||||||||
STATEMENTS OF COMMON SHAREHOLDER’S EQUITY | ||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | ||||||||||||||||
(Dollars in millions, except per share amounts) | Shares | Amount | Total | |||||||||||||||
Balance December 31, 2013 | 1,972,052 | $ | — | $ | 34.5 | $ | 350.1 | $ | 384.6 | |||||||||
Net income | — | — | — | 33.0 | 33.0 | |||||||||||||
Dividends declared on common stock | — | — | — | (37.4 | ) | (37.4 | ) | |||||||||||
Purchase accounting adjustments | — | — | 469.4 | — | 469.4 | |||||||||||||
Balance September 30, 2014 | 1,972,052 | — | 503.9 | 345.7 | 849.6 | |||||||||||||
Net income | — | — | — | 48.0 | 48.0 | |||||||||||||
Purchase accounting adjustments | — | 4.0 | — | 4.0 | ||||||||||||||
Return of capital to Spire | — | — | (27.0 | ) | — | (27.0 | ) | |||||||||||
Balance September 30, 2015 | 1,972,052 | — | 480.9 | 393.7 | 874.6 | |||||||||||||
Net income | — | — | — | 53.2 | 53.2 | |||||||||||||
Dividends declared on common stock | — | — | — | (31.5 | ) | (31.5 | ) | |||||||||||
Return of capital to Spire | — | — | (29.0 | ) | — | (29.0 | ) | |||||||||||
Balance September 30, 2016 | 1,972,052 | $ | — | $ | 451.9 | $ | 415.4 | $ | 867.3 |
ALABAMA GAS CORPORATION | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
Year Ended September 30, | Year Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2016 | 2015 | 2014 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 53.2 | $ | 48.0 | $ | 33.0 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | 47.8 | 47.3 | 34.4 | ||||||||
Deferred income taxes | 33.2 | 29.2 | 4.0 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | (11.1 | ) | (9.1 | ) | 26.4 | ||||||
Unamortized purchased gas adjustments | (33.8 | ) | 5.8 | 24.8 | |||||||
Accounts payable | 9.1 | (10.4 | ) | (11.5 | ) | ||||||
Advance customer billings – net | 2.0 | 2.4 | (0.3 | ) | |||||||
Taxes accrued | (5.2 | ) | (4.0 | ) | 1.9 | ||||||
Inventories | 5.3 | 7.2 | (11.8 | ) | |||||||
Other assets and liabilities | (3.2 | ) | (18.0 | ) | 17.1 | ||||||
Other | 0.9 | 2.0 | (3.0 | ) | |||||||
Net cash provided by operating activities | 98.2 | 100.4 | 115.0 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (93.4 | ) | (85.8 | ) | (46.2 | ) | |||||
Proceeds from the sale of assets | — | — | 0.8 | ||||||||
Other | (2.5 | ) | (1.0 | ) | — | ||||||
Net cash used in investing activities | (95.9 | ) | (86.8 | ) | (45.4 | ) | |||||
Financing Activities: | |||||||||||
Issuance of long-term debt | 80.0 | 35.0 | — | ||||||||
Repayment of long-term debt | (80.0 | ) | (34.8 | ) | — | ||||||
Issuance (repayments) of short-term debt - net | 51.0 | 15.0 | (34.0 | ) | |||||||
Return of capital to Spire | (29.0 | ) | (27.0 | ) | — | ||||||
Dividends paid | (31.5 | ) | — | (37.4 | ) | ||||||
Other | — | (0.2 | ) | 4.4 | |||||||
Net cash used in financing activities | (9.5 | ) | (12.0 | ) | (67.0 | ) | |||||
Net (Decrease) Increase in Cash and Cash Equivalents | (7.2 | ) | 1.6 | 2.6 | |||||||
Cash and Cash Equivalents at Beginning of Period | 7.2 | 5.6 | 3.0 | ||||||||
Cash and Cash Equivalents at End of Period | $ | — | $ | 7.2 | $ | 5.6 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (12.4 | ) | $ | (12.3 | ) | $ | (9.6 | ) | ||
Income taxes | 0.8 | — | (20.4 | ) |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Asset retirement obligations, beginning of year | $ | 159.2 | $ | 99.2 | $ | 72.4 | $ | 71.2 | $ | 86.6 | $ | 27.7 | |||||||||||
Liabilities incurred during the period | 4.1 | 2.3 | 1.2 | 0.6 | 2.9 | 1.7 | |||||||||||||||||
Liabilities settled during the period | (9.5 | ) | (2.0 | ) | (1.9 | ) | (1.9 | ) | (6.8 | ) | (0.1 | ) | |||||||||||
Accretion | 13.2 | 4.5 | 3.5 | 3.4 | 9.7 | 1.1 | |||||||||||||||||
Revisions in estimated cash flows | 27.5 | 55.2 | — | (0.9 | ) | 27.7 | 56.2 | ||||||||||||||||
Addition of EnergySouth asset retirement obligations | 11.9 | — | — | — | — | — | |||||||||||||||||
Asset retirement obligations, end of year | $ | 206.4 | $ | 159.2 | $ | 75.2 | $ | 72.4 | $ | 120.1 | $ | 86.6 |
• | Laclede Gas has a risk management policy that allows for the purchase of natural gas derivative instruments with the goal of managing price risk associated with purchasing natural gas on behalf of its customers. The MoPSC clarified that costs, cost reductions, and carrying costs associated with the Utility’s use of natural gas derivative instruments are gas costs recoverable through the PGA mechanism. |
• | The tariffs allow Laclede Gas flexibility to make up to three discretionary PGA changes during each year, in addition to its mandatory November PGA change, so long as such changes are separated by at least two months. |
• | Laclede Gas is authorized to apply carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments, including cash payments for margin deposits. Laclede Gas’ eastern Missouri service territory is also authorized to recover gas inventory carrying costs through its PGA rates to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. |
• | The MoPSC approved a plan applicable to Laclede Gas’ gas supply commodity costs under which it retains a portion of cost savings associated with the acquisition of natural gas below an established benchmark level. This gas supply cost management program allows Laclede Gas to retain 10% of cost savings, up to a maximum of $3.0 annually. Laclede Gas did not record any income under the plan during the three fiscal years reported. Income recorded under the plan, if any, is included in Gas Utility Operating Revenues on the Consolidated Statements of Income and under Operating Revenues on Laclede Gas’ Statements of Income. |
Customer Share | Company Share | |
Eastern Missouri | ||
First $2.0* | 100% | —% |
Next $2.0 | 80% | 20% |
Next $2.0 | 75% | 25% |
Amounts exceeding $6.0 | 70% | 30% |
* Customer share reverts to 85% and company share reverts to 15% in 2017. | ||
Western Missouri | ||
First $1.2 | 85% | 15% |
Next $1.2 | 80% | 20% |
Next $1.2 | 75% | 25% |
Amounts exceeding $3.6 | 70% | 30% |
Gas Utility | Gas Marketing | Other | Total | ||||||||||||
Balance as of September 30, 2013 | $ | 247.1 | $ | — | $ | — | $ | 247.1 | |||||||
Adjustments to finalize the 2013 acquisition of MGE | (36.9 | ) | — | — | (36.9 | ) | |||||||||
Acquisition of Alagasco | — | — | 727.6 | 727.6 | |||||||||||
Balance as of September 30, 2014 | 210.2 | — | 727.6 | 937.8 | |||||||||||
Adjustments to finalize the acquisition of Alagasco | — | — | 8.2 | 8.2 | |||||||||||
Balance as of September 30, 2015 | 210.2 | — | 735.8 | 946.0 | |||||||||||
Acquisition of EnergySouth | — | — | 218.9 | 218.9 | |||||||||||
Balance as of September 30, 2016 | $ | 210.2 | $ | — | $ | 954.7 | $ | 1,164.9 |
2016 | 2015 | 2014 | |||||||||
Spire | $ | 75.5 | $ | 97.3 | $ | 77.5 | |||||
Laclede Gas | 57.4 | 74.5 | 76.3 | ||||||||
Alagasco | 17.9 | 22.6 | 20.6 |
2016 | 2015 | 2014 | |||||||||
Purchases of natural gas from LER | $ | 46.3 | $ | 74.1 | $ | 89.1 | |||||
Sales of natural gas to LER | 1.9 | 4.0 | 5.1 | ||||||||
Services received from Laclede Insurance Risk Services, Inc. | 1.8 | 1.0 | 0.6 |
• | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – Pricing inputs other than quoted prices included within Level 1, which are either directly or indirectly observable for the asset or liability as of the reporting date. These inputs are derived principally from, or corroborated by, observable market data. |
• | Level 3 – Pricing that is based upon inputs that are generally unobservable that are based on the best information available and reflect management’s assumptions about how market participants would price the asset or liability. |
Alagasco | EnergySouth | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||
Utility plant | $ | 892.7 | $ | 199.5 | |||
Cash | 12.1 | 2.0 | |||||
Other current assets | 99.4 | 17.5 | |||||
Deferred tax assets | 282.0 | — | |||||
Other assets | 143.4 | 79.8 | |||||
Long-term debt | (249.8 | ) | (67.0 | ) | |||
Current portion of long-term debt | (15.0 | ) | — | ||||
Other current liabilities | (173.4 | ) | (42.7 | ) | |||
Deferred tax liabilities | — | (35.5 | ) | ||||
Other liabilities | (130.4 | ) | (52.8 | ) | |||
Total identifiable net assets | 861.0 | 100.8 | |||||
Goodwill | 735.8 | 218.9 | |||||
Deferred tax elimination (Spire) | (271.3 | ) | — | ||||
Consideration (cash) | $ | 1,325.5 | $ | 319.7 |
Alagasco | EnergySouth | ||||||||||||||
2016 | 2015 | 2014 | 2016 | ||||||||||||
Total Operating Revenues | $ | 368.5 | $ | 479.2 | $ | 19.7 | $ | 3.3 | |||||||
Net Income (Loss) | 53.2 | 48.0 | (2.9 | ) | (0.2 | ) | |||||||||
Earnings (Loss) Per Share | $ | 1.20 | $ | 1.11 | $ | (0.08 | ) | $ | — |
2016 | 2015 | 2014 | |||||||||
Total Operating Revenues | $ | 1,632.4 | $ | 2,081.6 | $ | 2,187.1 | |||||
Net Income | 153.9 | 143.6 | 133.5 | ||||||||
Basic Earnings Per Share | $ | 3.48 | $ | 3.32 | $ | 3.11 | |||||
Diluted Earnings Per Share | 3.46 | 3.31 | 3.10 |
Shares/ Units | Weighted Average Grant Date Fair Value Per Share | |||||
Nonvested at September 30, 2015 | 397,270 | $ | 36.28 | |||
Granted (maximum shares that can be earned) | 199,140 | $ | 45.95 | |||
Vested | (62,593 | ) | $ | 35.29 | ||
Forfeited | (23,234 | ) | $ | 30.96 | ||
Nonvested at September 30, 2016 | 510,583 | $ | 40.37 |
Shares/ Units | Weighted Average Grant Date Fair Value Per Share | |||||
Nonvested at September 30, 2015 | 129,304 | $ | 44.89 | |||
Granted | 48,730 | $ | 60.65 | |||
Vested | (44,645 | ) | $ | 47.30 | ||
Forfeited | (610 | ) | $ | 53.12 | ||
Nonvested at September 30, 2016 | 132,779 | $ | 49.83 |
Stock Options | Weighted Average Exercise Price Per Share | |||||
Outstanding at September 30, 2015 | 28,500 | $ | 33.65 | |||
Exercised | (27,750 | ) | $ | 33.66 | ||
Forfeited | (750 | ) | $ | 33.45 | ||
Outstanding at September 30, 2016 | — | $ | — |
2016 | 2015 | 2014 | |||
Risk free interest rate | 1.14% | 0.83% | 0.53% | ||
Expected dividend yield of stock | — | — | — | ||
Expected volatility of stock | 15.0% | 14.0% | 18.0% | ||
Vesting period | 2.8 years | 2.8 years | 2.8 years |
2016 | 2015 | 2014 | |||||||||
Total equity compensation cost | $ | 6.7 | $ | 6.7 | $ | 5.8 | |||||
Compensation cost capitalized | (2.2 | ) | (1.8 | ) | (1.8 | ) | |||||
Compensation cost recognized in net income | $ | 4.5 | $ | 4.9 | $ | 4.0 | |||||
Income tax benefit recognized in net income | (1.7 | ) | (1.9 | ) | (1.5 | ) | |||||
Compensation cost recognized in net income, net of income tax | $ | 2.8 | $ | 3.0 | $ | 2.5 |
2016 | 2015 | 2014 | |||||||||
Basic EPS: | |||||||||||
Net Income | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Less: Income allocated to participating securities | 0.5 | 0.5 | 0.3 | ||||||||
Net Income Available to Common Shareholders | $ | 143.7 | $ | 136.4 | $ | 84.3 | |||||
Weighted Average Shares Outstanding (millions) | 44.1 | 43.2 | 35.8 | ||||||||
Earnings Per Share of Common Stock | $ | 3.26 | $ | 3.16 | $ | 2.36 | |||||
Diluted EPS: | |||||||||||
Net Income | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Less: Income allocated to participating securities | 0.5 | 0.5 | 0.3 | ||||||||
Net Income Available to Common Shareholders | $ | 143.7 | $ | 136.4 | $ | 84.3 | |||||
Weighted Average Shares Outstanding (millions) | 44.1 | 43.2 | 35.8 | ||||||||
Dilutive Effect of Stock Options, Restricted Stock, and Restricted Stock Units (millions) | 0.2 | 0.1 | 0.1 | ||||||||
Weighted Average Diluted Shares (millions) | 44.3 | 43.3 | 35.9 | ||||||||
Earnings Per Share of Common Stock | $ | 3.24 | $ | 3.16 | $ | 2.35 | |||||
Outstanding Shares (in millions) Excluded from the Calculation of Diluted EPS Attributable to: | |||||||||||
Restricted stock and stock units subject to performance and/or market conditions | 0.3 | 0.3 | 0.3 |
If the applicable market value per share of Spire common stock is: | Number of shares to be purchased per purchase contract is: | |
Equal to or greater than $57.8125 | 0.8649 | |
Less than $57.8125, but greater than $46.25 | $50 ÷ applicable market value | |
Less than or equal to $46.25 | 1.0811 |
Issuance Date | Units Issued (Millions) | Total Net Proceeds | Total Long-term Debt | RSN Annual Interest Rate | Stock Purchase Contract Annual Rate | Stock Purchase Contract Liability | ||||||
6/11/2014 | 2.875 | $139.4 | $143.8 | 2.00% | 4.75% | $19.7 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension and Other Postretirement Benefit Plans | Net Unrealized Losses on Available for Sale Securities | Total | |||||||||||||
Spire | ||||||||||||||||
Balance at September 30, 2014 | $ | 0.2 | $ | (1.9 | ) | $ | — | $ | (1.7 | ) | ||||||
Other comprehensive (loss) income | (0.6 | ) | 0.4 | (0.1 | ) | (0.3 | ) | |||||||||
Balance at September 30, 2015 | (0.4 | ) | (1.5 | ) | (0.1 | ) | (2.0 | ) | ||||||||
Other comprehensive (loss) income | (1.9 | ) | (0.3 | ) | — | (2.2 | ) | |||||||||
Balance at September 30, 2016 | $ | (2.3 | ) | $ | (1.8 | ) | $ | (0.1 | ) | $ | (4.2 | ) | ||||
Laclede Gas | ||||||||||||||||
Balance at September 30, 2014 | $ | — | $ | (1.9 | ) | $ | — | $ | (1.9 | ) | ||||||
Other comprehensive (loss) income | (0.2 | ) | 0.4 | — | 0.2 | |||||||||||
Balance at September 30, 2015 | (0.2 | ) | (1.5 | ) | — | (1.7 | ) | |||||||||
Other comprehensive income (loss) | 0.3 | (0.3 | ) | (0.1 | ) | (0.1 | ) | |||||||||
Balance at September 30, 2016 | $ | 0.1 | $ | (1.8 | ) | $ | (0.1 | ) | $ | (1.8 | ) |
6. | LONG-TERM DEBT |
Spire | Laclede Gas | Alagasco | |||||||||
2017 | $ | 250.0 | $ | — | $ | — | |||||
2018 | 100.0 | 100.0 | — | ||||||||
2019 | 180.0 | 50.0 | — | ||||||||
2020 | 40.0 | — | 40.0 | ||||||||
2021 | 55.0 | — | — |
Laclede Gas Commercial Paper Borrowings | Spire Bank Line Borrowings* | Alagasco Bank Line Borrowings | Total Short-Term Borrowings | |
Year Ended September 30, 2016 | ||||
Weighted average borrowings outstanding | $201.0 | $42.7 | $30.2 | $273.9 |
Weighted average interest rate | 0.7% | 1.6% | 1.4% | 0.9% |
Range of borrowings outstanding | $43.0 - $307.2 | $0.0 - $82.0 | $0.0 - $82.0 | $73.1 - $427.2 |
As of September 30, 2016 | ||||
Borrowings outstanding at end of period | $243.7 | $73.0 | $82.0 | $398.7 |
Weighted average interest rate | 0.8% | 1.8% | 1.5% | 1.1% |
Year Ended September 30, 2015 | ||||
Weighted average borrowings outstanding | $212.7 | $65.6 | $22.3 | $300.6 |
Weighted average interest rate | 0.4% | 1.4% | 1.1% | 0.7% |
Range of borrowings outstanding | $ 102.1 - $341.0 | $32.5 - $80.0 | $0.0 - $69.5 | $180.1 - $488.5 |
As of September 30, 2015 | ||||
Borrowings outstanding at end of period | $233.0 | $74.0 | $31.0 | $338.0 |
Weighted average interest rate | 0.5% | 1.5% | 1.2% | 0.8% |
Commercial Paper Borrowings | Borrowings from Spire | Total Short-Term Borrowings | |
Year Ended September 30, 2016 | |||
Weighted average borrowings outstanding | $201.0 | $14.7 | $215.7 |
Weighted average interest rate | 0.7% | 0.8% | 0.7% |
Range of borrowings outstanding | $43.0 - $307.2 | $0.0 - $114.2 | $127.8 - $ 307.2 |
As of September 30, 2016 | |||
Borrowings outstanding at end of period | $243.7 | $— | $243.7 |
Weighted average interest rate | 0.8% | —% | 0.8% |
Year Ended September 30, 2015 | |||
Weighted average borrowings outstanding | $212.7 | $0.3 | $213.0 |
Weighted average interest rate | 0.4% | 0.5% | 0.4% |
Range of borrowings outstanding | $102.1 - $341.0 | $0.0 - $10.4 | $104.2 - $ 341.0 |
As of September 30, 2015 | |||
Borrowings outstanding at end of period | $233.0 | $— | $233.0 |
Weighted average interest rate | 0.5% | —% | 0.5% |
Bank Line Borrowings | Borrowings from Spire | Total Short-Term Borrowings | |
Year Ended September 30, 2016 | |||
Weighted average borrowings outstanding | $30.2 | $12.4 | $42.6 |
Weighted average interest rate | 1.4% | 1.4% | 1.4% |
Range of borrowings outstanding | $0.0 - $82 | $0.0 - $61.9 | $19.0 - $82.0 |
As of September 30, 2016 | |||
Borrowings outstanding at end of period | $82.0 | $— | $82.0 |
Weighted average interest rate | 1.5% | —% | 1.5% |
Year Ended September 30, 2015 | |||
Weighted average borrowings outstanding | $22.3 | $— | $22.3 |
Weighted average interest rate | 1.1% | —% | 1.1% |
Range of borrowings outstanding | $0.0 - $69.5 | 0 | $0.0- $69.5 |
As of September 30, 2015 | |||
Borrowings outstanding at end of period | $31.0 | $— | $31.0 |
Weighted average interest rate | 1.2% | —% | 1.2% |
8. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
Classification of Estimated Fair Value | |||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
As of September 30, 2016 | |||||||||||||||||||
Cash and cash equivalents | $ | 5.2 | $ | 5.2 | $ | 5.2 | $ | — | $ | — | |||||||||
Short-term debt | 398.7 | 398.7 | — | 398.7 | — | ||||||||||||||
Long-term debt, including current portion | 2,083.7 | 2,257.1 | — | 2,257.1 | — | ||||||||||||||
As of September 30, 2015 | |||||||||||||||||||
Cash and cash equivalents | $ | 13.8 | $ | 13.8 | $ | 13.8 | $ | — | $ | — | |||||||||
Short-term debt | 338.0 | 338.0 | — | 338.0 | — | ||||||||||||||
Long-term debt, including current portion | 1,851.5 | 1,944.2 | — | 1,944.2 | — |
Classification of Estimated Fair Value | |||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
As of September 30, 2016 | |||||||||||||||||||
Cash and cash equivalents | $ | 2.1 | $ | 2.1 | $ | 2.1 | $ | — | $ | — | |||||||||
Short-term debt | 243.7 | 243.7 | — | 243.7 | — | ||||||||||||||
Long-term debt | 808.3 | 900.4 | — | 900.4 | — | ||||||||||||||
As of September 30, 2015 | |||||||||||||||||||
Cash and cash equivalents | $ | 1.7 | $ | 1.7 | $ | 1.7 | $ | — | $ | — | |||||||||
Short-term debt | 233.0 | 233.0 | — | 233.0 | — | ||||||||||||||
Long-term debt | 808.1 | 880.2 | — | 880.2 | — |
Classification of Estimated Fair Value | |||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
As of September 30, 2016 | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Short-term debt | 82.0 | 82.0 | — | 82.0 | — | ||||||||||||||
Long-term debt | 250.0 | 275.5 | — | 275.5 | — | ||||||||||||||
As of September 30, 2015 | |||||||||||||||||||
Cash and cash equivalents | $ | 7.2 | $ | 7.2 | $ | 7.2 | $ | — | $ | — | |||||||||
Short-term debt | 31.0 | 31.0 | — | 31.0 | — | ||||||||||||||
Long-term debt, including current portion | 250.0 | 263.2 | — | 263.2 | — |
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 September 30, 2016 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
US stock/bond mutual funds | $ | 16.8 | $ | 4.1 | $ | — | $ | — | $ | 20.9 | |||||||||
NYMEX/ICE natural gas contracts | 5.3 | — | — | (0.4 | ) | 4.9 | |||||||||||||
Gasoline and heating oil contracts | 0.4 | — | — | (0.3 | ) | 0.1 | |||||||||||||
Subtotal | 22.5 | 4.1 | — | (0.7 | ) | 25.9 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 0.4 | 3.4 | — | (3.4 | ) | 0.4 | |||||||||||||
Natural gas commodity contracts | — | 8.7 | 0.2 | (0.9 | ) | 8.0 | |||||||||||||
Total | $ | 22.9 | $ | 16.2 | $ | 0.2 | $ | (5.0 | ) | $ | 34.3 | ||||||||
LIABILITIES | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 1.6 | $ | — | $ | — | $ | (1.6 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 0.2 | — | — | 0.2 | ||||||||||||||
Subtotal | 1.6 | 0.2 | — | (1.6 | ) | 0.2 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 3.5 | 1.6 | — | (5.1 | ) | — | |||||||||||||
Natural gas commodity contracts | — | 2.6 | — | (0.9 | ) | 1.7 | |||||||||||||
Other | |||||||||||||||||||
Interest rate swaps | — | 3.0 | — | — | 3.0 | ||||||||||||||
Total | $ | 5.1 | $ | 7.4 | $ | — | $ | (7.6 | ) | $ | 4.9 | ||||||||
As of September 30, 2015 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
US stock/bond mutual funds | $ | 15.5 | $ | 4.0 | $ | — | $ | — | $ | 19.5 | |||||||||
NYMEX/ICE natural gas contracts | 1.3 | — | — | (1.3 | ) | — | |||||||||||||
Subtotal | 16.8 | 4.0 | — | (1.3 | ) | 19.5 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX natural gas contracts | 6.3 | 4.3 | — | (6.6 | ) | 4.0 | |||||||||||||
Natural gas commodity contracts | — | 1.5 | 0.2 | (0.5 | ) | 1.2 | |||||||||||||
Total | $ | 23.1 | $ | 9.8 | $ | 0.2 | $ | (8.4 | ) | $ | 24.7 | ||||||||
LIABILITIES | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 16.4 | $ | — | $ | — | $ | (16.4 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 5.9 | — | — | 5.9 | ||||||||||||||
NYMEX gasoline and heating oil contracts | 0.3 | — | — | (0.3 | ) | — | |||||||||||||
Subtotal | 16.7 | 5.9 | — | (16.7 | ) | 5.9 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 1.2 | 3.9 | — | (5.1 | ) | — | |||||||||||||
Natural gas commodity contracts | — | 2.2 | — | (0.5 | ) | 1.7 | |||||||||||||
Total | $ | 17.9 | $ | 12.0 | $ | — | $ | (22.3 | ) | $ | 7.6 |
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 September 30, 2016 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
US stock/bond mutual funds | $ | 16.8 | $ | 4.1 | $ | — | $ | — | $ | 20.9 | |||||||||
NYMEX/ICE natural gas contracts | 5.3 | — | — | (0.4 | ) | 4.9 | |||||||||||||
Gasoline and heating oil contracts | 0.3 | — | — | (0.3 | ) | — | |||||||||||||
Total | $ | 22.4 | $ | 4.1 | $ | — | $ | (0.7 | ) | $ | 25.8 | ||||||||
LIABILITIES | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 1.6 | $ | — | $ | — | $ | (1.6 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 0.2 | — | — | 0.2 | ||||||||||||||
Total | $ | 1.6 | $ | 0.2 | $ | — | $ | (1.6 | ) | $ | 0.2 | ||||||||
As of September 30, 2015 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
US stock/bond mutual funds | $ | 15.5 | $ | 4.0 | $ | — | $ | — | $ | 19.5 | |||||||||
NYMEX/ICE natural gas contracts | 1.3 | — | — | (1.3 | ) | — | |||||||||||||
Total | $ | 16.8 | $ | 4.0 | $ | — | $ | (1.3 | ) | $ | 19.5 | ||||||||
LIABILITIES | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 16.4 | $ | — | $ | — | $ | (16.4 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 5.9 | — | — | 5.9 | ||||||||||||||
NYMEX gasoline and heating oil contracts | 0.3 | — | — | (0.3 | ) | — | |||||||||||||
Total | $ | 16.7 | $ | 5.9 | $ | — | $ | (16.7 | ) | $ | 5.9 |
10. | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Gas Utility | Gas Marketing | ||||||||||||
MMBtu (millions) | Avg. Price Per MMBtu | MMBtu (millions) | Avg. Price Per MMBtu | ||||||||||
NYMEX/ICE Open short futures positions | |||||||||||||
Fiscal 2017 | — | $ | — | 12.20 | $ | 2.86 | |||||||
Fiscal 2018 | — | — | 1.27 | 2.95 | |||||||||
NYMEX/ICE Open long futures/swap positions | |||||||||||||
Fiscal 2017 | 18.43 | 2.95 | 4.62 | 3.12 | |||||||||
Fiscal 2018 | 0.33 | 2.83 | 0.45 | 3.02 | |||||||||
Fiscal 2019 | — | — | 0.04 | 2.89 | |||||||||
ICE Open long basis swap positions | |||||||||||||
Fiscal 2017 | — | — | 16.62 | 0.34 | |||||||||
Fiscal 2018 | — | — | 2.01 | 0.43 | |||||||||
Fiscal 2019 | — | — | 0.08 | 0.40 | |||||||||
ICE Open short basis swap positions | |||||||||||||
Fiscal 2017 | — | — | 11.88 | 0.19 | |||||||||
Fiscal 2018 | — | — | 0.93 | 0.27 | |||||||||
Fiscal 2019 | — | — | 2.27 | 0.13 | |||||||||
OTC Open long futures/swap positions | |||||||||||||
Fiscal 2017 | 0.32 | 3.64 | — | — |
Effect of Derivative Instruments on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | ||||||||||||
Location of Gain (Loss) | ||||||||||||
Recorded in Income | 2016 | 2015 | 2014 | |||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||
Effective portion of gain (loss) recognized in OCI on derivatives: | ||||||||||||
Gas Marketing natural gas contracts | $ | (0.6 | ) | $ | (4.3 | ) | $ | (4.6 | ) | |||
Gas Utility gasoline and heating oil contracts | — | (1.2 | ) | 0.1 | ||||||||
Interest Rate Swaps | (3.4 | ) | — | — | ||||||||
Total | $ | (4.0 | ) | $ | (5.5 | ) | $ | (4.5 | ) | |||
Effective portion of gain (loss) reclassified from AOCI to income: | ||||||||||||
Natural gas contracts | Gas Marketing Operating Revenues | $ | 4.3 | $ | 1.7 | $ | 4.2 | |||||
Gas Marketing Operating Expenses | (4.9 | ) | (5.2 | ) | (1.5 | ) | ||||||
Subtotal | (0.6 | ) | (3.5 | ) | 2.7 | |||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | (0.5 | ) | (0.9 | ) | (0.2 | ) | |||||
Total | $ | (1.1 | ) | $ | (4.4 | ) | $ | 2.5 | ||||
Ineffective portion of gain (loss) on derivatives recognized in income: | ||||||||||||
Natural gas contracts | Gas Marketing Operating Revenues | $ | 0.1 | $ | — | $ | (0.1 | ) | ||||
Gas Marketing Operating Expenses | 0.1 | (0.5 | ) | 0.1 | ||||||||
Subtotal | 0.2 | (0.5 | ) | — | ||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | 0.1 | 0.1 | (0.2 | ) | |||||||
Total | $ | 0.3 | $ | (0.4 | ) | $ | (0.2 | ) | ||||
Derivatives Not Designated as Hedging Instruments* | ||||||||||||
Gain (loss) recognized in income on derivatives: | ||||||||||||
Natural gas commodity contracts | Gas Marketing Operating Revenues | $ | 12.3 | $ | (1.3 | ) | $ | (8.7 | ) | |||
NYMEX / ICE natural gas contracts | Gas Marketing Operating Revenues | (1.7 | ) | (9.6 | ) | 3.0 | ||||||
Gasoline and heating oil contracts | Other Income and (Income Deductions) - Net | — | (0.2 | ) | — | |||||||
Total | $ | 10.6 | $ | (11.1 | ) | $ | (5.7 | ) |
* | Gains and losses on Laclede Gas’ natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Missouri Utilities’ PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the statements of income. Such amounts are recognized in the statements of income as a component of Regulated Gas Distribution Natural and Propane Gas operating expenses when they are recovered through the PGA clause and reflected in customer billings. |
Fair Value of Derivative Instruments in the Consolidated Balance Sheet | |||||||||
Asset Derivatives* | Liability Derivatives* | ||||||||
September 30, 2016 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||
Derivatives designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.3 | Derivative Instrument Assets | $ | — | |||
Gas Marketing: | |||||||||
Natural gas contracts | Derivative Instrument Assets | 2.5 | Derivative Instrument Assets | 0.8 | |||||
Deferred Charges – Other | 0.4 | Deferred Charges – Other | 0.1 | ||||||
Other: Interest swaps | Derivative Instrument Assets | — | Derivative Instrument Assets | 3.0 | |||||
Subtotal | 3.2 | 3.9 | |||||||
Derivatives not designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Natural gas contracts | Accounts Receivable – Other | 5.4 | Accounts Receivable – Other | 1.6 | |||||
Derivative Instrument Assets | — | Derivative Instrument Assets | 0.2 | ||||||
Gas Marketing: | |||||||||
NYMEX / ICE natural gas contracts | Derivative Instrument Assets | 0.8 | Derivative Instrument Assets | 4.1 | |||||
Deferred Charges – Other | — | Deferred Charges – Other | 0.1 | ||||||
Natural gas commodity | Derivative Instrument Assets | 6.5 | Derivative Instrument Assets | 0.2 | |||||
Other Deferred Charges | 2.1 | Other Deferred Charges | 0.3 | ||||||
Current Liabilities – Other | 0.2 | Current Liabilities – Other | 2.0 | ||||||
Deferred Credits – Other | 0.2 | Deferred Credits – Other | 0.1 | ||||||
Subtotal | 15.2 | 8.6 | |||||||
Total derivatives | $ | 18.4 | $ | 12.5 | |||||
September 30, 2015 | |||||||||
Derivatives designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Gasoline and heating oil contracts | Accounts Receivable – Other | $ | — | Accounts Receivable – Other | $ | 0.3 | |||
Gas Marketing: | |||||||||
Natural gas contracts | Derivative Instrument Assets | 4.1 | Derivative Instrument Assets | 3.2 | |||||
Deferred Charges – Other | 1.1 | Deferred Charges – Other | 0.5 | ||||||
Subtotal | 5.2 | 4.0 | |||||||
Derivatives not designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Natural gas contracts | Accounts Receivable – Other | 1.2 | Accounts Receivable – Other | 16.4 | |||||
Derivative Instrument Assets | — | Derivative Instrument Assets | 5.7 | ||||||
Deferred Charges – Other | — | Deferred Charges – Other | 0.2 | ||||||
Gas Marketing: | |||||||||
NYMEX / ICE natural gas contracts | Derivative Instrument Assets | 4.7 | Derivative Instrument Assets | 0.6 | |||||
Deferred Charges – Other | 0.7 | Deferred Charges – Other | 0.7 | ||||||
Natural gas commodity | Derivative Instrument Assets | 1.4 | Derivative Instrument Assets | 0.1 | |||||
Current Liabilities – Other | 0.2 | Current Liabilities – Other | 1.4 | ||||||
Deferred Credits – Other | 0.1 | Deferred Credits – Other | 0.7 | ||||||
Subtotal | 8.3 | 25.8 | |||||||
Total derivatives | $ | 13.5 | $ | 29.8 |
* | The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the balance sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments. |
2016 | 2015 | ||||||
Fair value of asset derivatives presented above | $ | 18.4 | $ | 13.5 | |||
Fair value of cash margin receivables offset with derivatives | 2.5 | 13.9 | |||||
Netting of assets and liabilities with the same counterparty | (7.6 | ) | (22.2 | ) | |||
Total | $ | 13.3 | $ | 5.2 | |||
Derivative Instrument Assets, per Consolidated Balance Sheets: | |||||||
Derivative instrument assets | $ | 11.4 | $ | 4.6 | |||
Deferred Charges – Other | 1.9 | 0.6 | |||||
Total | $ | 13.3 | $ | 5.2 | |||
Fair value of liability derivatives presented above | $ | 12.5 | $ | 29.8 | |||
Netting of assets and liabilities with the same counterparty | (7.6 | ) | (22.2 | ) | |||
Total | $ | 4.9 | $ | 7.6 | |||
Derivative Instrument Liabilities, per Consolidated Balance Sheets: | |||||||
Current Liabilities – Other | $ | 4.8 | $ | 6.8 | |||
Deferred Credits – Other | 0.1 | 0.8 | |||||
Total | $ | 4.9 | $ | 7.6 |
MMBtu (millions) | Avg. Price Per MMBtu | |||||
NYMEX/ICE Open long futures/swap positions | ||||||
Fiscal 2017 | 18.43 | $ | 2.95 | |||
Fiscal 2018 | 0.33 | 2.83 | ||||
OTC Open long futures/swap positions | ||||||
Fiscal 2017 | 0.32 | $ | 3.64 |
Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income | ||||||||||||
Location of Gain (Loss) | ||||||||||||
Recorded in Income | 2016 | 2015 | 2014 | |||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||
Effective portion of gain (loss) recognized in OCI on derivatives: | ||||||||||||
Gasoline and heating oil contracts | $ | — | $ | (1.2 | ) | $ | 0.1 | |||||
Effective portion of gain (loss) reclassified from AOCI to income: | ||||||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | $ | (0.5 | ) | $ | (0.9 | ) | $ | (0.2 | ) | ||
Ineffective portion of gain (loss) on derivatives recognized in income: | ||||||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | $ | 0.1 | $ | 0.1 | $ | (0.2 | ) | ||||
Derivatives Not Designated as Hedging Instruments* | ||||||||||||
Gain (loss) recognized in income on derivatives: | ||||||||||||
Gasoline and heating oil contracts | Other Income and (Income Deductions) - Net | $ | — | $ | (0.2 | ) | $ | — |
* | Gains and losses on Laclede Gas’ natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Laclede Gas’ PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Income. Such amounts are recognized in the Statements of Income as a component of Regulated Gas Distribution Natural and Propane Gas operating expenses when they are recovered through the PGA clause and reflected in customer billings. |
Fair Value of Derivative Instruments in the Balance Sheet at September 30, 2016 | |||||||||
Asset Derivatives* | Liability Derivatives* | ||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||
Derivatives designated as hedging instruments | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.3 | Derivative Instrument Assets | $ | — | |||
Subtotal | 0.3 | — | |||||||
Derivatives not designated as hedging instruments | |||||||||
Natural gas contracts | Accounts Receivable – Other | 5.4 | Accounts Receivable – Other | 1.6 | |||||
OTCBB natural gas contracts | Derivative Instrument Assets | — | Derivative Instrument Assets | 0.2 | |||||
Subtotal | 5.4 | 1.8 | |||||||
Total derivatives | $ | 5.7 | $ | 1.8 | |||||
Fair Value of Derivative Instruments in the Balance Sheet at September 30, 2015 | |||||||||
Asset Derivatives | Liability Derivatives* | ||||||||
Balance Sheet Location | Fair Value | * | Balance Sheet Location | Fair Value | |||||
Derivatives designated as hedging instruments | |||||||||
Gasoline and heating oil contracts | Accounts Receivable – Other | $ | — | Accounts Receivable – Other | $ | 0.3 | |||
Subtotal | — | 0.3 | |||||||
Derivatives not designated as hedging instruments | |||||||||
Natural gas contracts | Accounts Receivable – Other | 1.2 | Accounts Receivable – Other | 16.4 | |||||
Derivative Instrument Assets | — | Derivative Instrument Assets | 5.7 | ||||||
Deferred Charges - Other | — | Deferred Charges - Other | 0.2 | ||||||
Subtotal | 1.2 | 22.3 | |||||||
Total derivatives | $ | 1.2 | $ | 22.6 |
* | The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the Balance Sheets. As such, the gross balances presented in the table above are not indicative of Laclede Gas’ net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments. |
2016 | 2015 | ||||||
Fair value of asset derivatives presented above | $ | 5.7 | $ | 1.2 | |||
Fair value of cash margin receivables offset with derivatives | 0.8 | 15.5 | |||||
Netting of assets and liabilities with the same counterparty | (1.6 | ) | (16.7 | ) | |||
Total | $ | 4.9 | $ | — | |||
Derivative Instrument Assets, per Balance Sheets: | |||||||
Derivative instrument assets | $ | 4.9 | $ | — | |||
Total | $ | 4.9 | $ | — | |||
Fair value of liability derivatives presented above | $ | 1.8 | $ | 22.6 | |||
Netting of assets and liabilities with the same counterparty | (1.6 | ) | (16.7 | ) | |||
Total | $ | 0.2 | $ | 5.9 | |||
Derivative Instrument Liabilities, per Balance Sheets: | |||||||
Current Liabilities – Other | $ | 0.2 | $ | 5.7 | |||
Deferred Credits – Other | — | 0.2 | |||||
Total | $ | 0.2 | $ | 5.9 |
12. | INCOME TAXES |
2016 | 2015 | 2014 | |||||||||
Federal | |||||||||||
Current | $ | 0.1 | $ | (3.3 | ) | $ | 0.3 | ||||
Deferred | 62.0 | 58.8 | 30.6 | ||||||||
Investment tax credits | (0.2 | ) | (0.2 | ) | (0.2 | ) | |||||
State and local | |||||||||||
Current | 0.6 | — | 0.6 | ||||||||
Deferred | 7.0 | 6.9 | 1.0 | ||||||||
Total income tax expense | $ | 69.5 | $ | 62.2 | $ | 32.3 |
2016 | 2015 | 2014 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 3.0 | 1.8 | |||||
Certain expenses capitalized on books and deducted on tax return | (3.4 | ) | (3.7 | ) | (4.9 | ) | ||
Taxes related to prior years | (0.2 | ) | (0.6 | ) | (0.7 | ) | ||
Other items – net * | (1.7 | ) | (2.5 | ) | (3.6 | ) | ||
Effective income tax rate | 32.5 | % | 31.2 | % | 27.6 | % |
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 21.3 | $ | 14.8 | |||
Pension and other postretirement benefits | 68.3 | 62.5 | |||||
Operating losses | 102.3 | 47.3 | |||||
Other | — | 1.5 | |||||
Deferred tax assets | 191.9 | 126.1 | |||||
Less: valuation allowance | 0.9 | — | |||||
Total deferred tax assets | 191.0 | 126.1 | |||||
Deferred tax liabilities: | |||||||
Relating to property | 623.1 | 472.1 | |||||
Regulatory pension and other postretirement benefits | 106.8 | 110.6 | |||||
Deferred gas costs | 20.0 | 8.1 | |||||
Other | 48.4 | 11.6 | |||||
Total deferred tax liabilities | 798.3 | 602.4 | |||||
Net deferred tax liability | 607.3 | 476.3 | |||||
Net deferred tax asset – current | — | 5.8 | |||||
Net deferred tax liability – noncurrent | $ | 607.3 | $ | 482.1 |
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 7.1 | $ | 4.6 | $ | 2.4 | |||||
Increases related to tax positions taken in current year | 3.4 | 2.9 | 2.6 | ||||||||
Reductions due to lapse of applicable statute of limitations | (0.5 | ) | (0.4 | ) | (0.4 | ) | |||||
Unrecognized tax benefits, end of year | $ | 10.0 | $ | 7.1 | $ | 4.6 |
2016 | 2015 | 2014 | |||||||||
Federal | |||||||||||
Current | $ | — | $ | (2.1 | ) | $ | (0.1 | ) | |||
Deferred | 37.5 | 40.9 | 34.3 | ||||||||
Investment tax credits | (0.2 | ) | (0.2 | ) | (0.2 | ) | |||||
State and local | |||||||||||
Current | 0.1 | (0.1 | ) | — | |||||||
Deferred | 8.0 | 4.7 | 1.5 | ||||||||
Total income tax expense | $ | 45.4 | $ | 43.2 | $ | 35.5 |
2016 | 2015 | 2014 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 2.8 | 1.8 | |||||
Certain expenses capitalized on books and deducted on tax return | (4.8 | ) | (4.9 | ) | (4.5 | ) | ||
Taxes related to prior years | (0.2 | ) | (0.8 | ) | (0.7 | ) | ||
Other items – net * | (2.8 | ) | (3.0 | ) | (3.3 | ) | ||
Effective income tax rate | 30.0 | % | 29.1 | % | 28.3 | % |
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 14.9 | $ | 15.4 | |||
Pension and other postretirement benefits | 56.9 | 62.5 | |||||
Operating losses | 29.9 | 3.7 | |||||
Other | — | 1.5 | |||||
Deferred tax assets | 101.7 | 83.1 | |||||
Less: valuation allowance | 0.9 | — | |||||
Total deferred tax assets | 100.8 | 83.1 | |||||
Deferred tax liabilities: | |||||||
Relating to utility property | 497.0 | 425.0 | |||||
Regulatory pension and other postretirement benefits | 106.8 | 120.2 | |||||
Deferred gas costs | 20.0 | 8.2 | |||||
Other | 33.9 | 14.5 | |||||
Total deferred tax liabilities | 657.7 | 567.9 | |||||
Net deferred tax liability | 556.9 | 484.8 | |||||
Net deferred tax asset – current | — | 0.4 | |||||
Net deferred tax liability – noncurrent | $ | 556.9 | $ | 485.2 |
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 6.9 | $ | 4.2 | $ | 2.0 | |||||
Increases related to tax positions taken in current year | 3.3 | 2.9 | 2.5 | ||||||||
Reductions due to lapse of applicable statute of limitations | (0.5 | ) | (0.2 | ) | (0.3 | ) | |||||
Unrecognized tax benefits, end of year | $ | 9.7 | $ | 6.9 | $ | 4.2 |
Year Ended September 30, | Year Ended September 30, | Nine Months Ended September 30, | |||||||||
2016 | 2015 | 2014 | |||||||||
Federal | |||||||||||
Current | $ | (0.8 | ) | $ | — | $ | 14.1 | ||||
Deferred | 29.4 | 25.9 | 3.5 | ||||||||
State and local | |||||||||||
Current | — | 0.1 | 1.8 | ||||||||
Deferred | 3.8 | 3.3 | 0.5 | ||||||||
Total income tax expense | $ | 32.4 | $ | 29.3 | $ | 19.9 |
Year Ended September 30, | Year Ended September 30, | Nine Months Ended September 30, | ||||||
2016 | 2015 | 2014 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 2.8 | 2.8 | |||||
Other items – net | 0.1 | 0.1 | (0.2 | ) | ||||
Effective income tax rate | 37.9 | % | 37.9 | % | 37.6 | % |
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 6.3 | $ | 7.0 | |||
Pension and other postretirement benefits | 11.4 | 9.6 | |||||
Goodwill | 233.4 | 251.5 | |||||
Operating losses | 60.2 | 32.4 | |||||
Other | — | 1.4 | |||||
Total deferred tax assets | 311.3 | 301.9 | |||||
Deferred tax liabilities: | |||||||
Relating to utility property | 87.6 | 45.1 | |||||
Other | 2.3 | 2.2 | |||||
Total deferred tax liabilities | 89.9 | 47.3 | |||||
Net deferred tax asset | 221.4 | 254.6 | |||||
Net deferred tax asset – current | — | 6.2 | |||||
Net deferred tax asset – noncurrent | $ | 221.4 | $ | 248.4 |
Year Ended September 30, | Year Ended September 30, | Nine Months Ended September 30, | |||||||||
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits, beginning of period | $ | — | $ | — | $ | 0.3 | |||||
Reduction for transfer of balance to Energen | — | — | (0.3 | ) | |||||||
Unrecognized tax benefits, end of period | $ | — | $ | — | $ | — |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014* | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 15.3 | $ | 17.3 | $ | 10.2 | $ | 10.0 | $ | 11.5 | $ | 9.7 | $ | 5.3 | $ | 5.8 | $ | 5.1 | |||||||||||||||||
Interest cost on projected benefit obligation | 28.0 | 29.5 | 24.5 | 21.7 | 23.3 | 24.0 | 6.3 | 6.2 | 4.1 | ||||||||||||||||||||||||||
Expected return on plan assets | (34.9 | ) | (37.4 | ) | (27.2 | ) | (26.7 | ) | (29.2 | ) | (26.5 | ) | (8.2 | ) | (8.2 | ) | (5.2 | ) | |||||||||||||||||
Amortization of other comprehensive income | — | — | 0.4 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service cost | 0.4 | 0.5 | 0.5 | 0.4 | 0.5 | 0.5 | — | — | 0.1 | ||||||||||||||||||||||||||
Amortization of actuarial loss | 8.0 | 7.5 | 7.1 | 7.9 | 7.5 | 7.1 | 0.1 | — | 2.2 | ||||||||||||||||||||||||||
Loss on lump-sum settlements | 3.3 | 19.6 | 1.5 | — | 18.0 | 1.5 | 3.3 | 1.6 | 10.1 | ||||||||||||||||||||||||||
Special termination benefits | 1.6 | — | — | 1.6 | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 21.7 | 37.0 | 17.0 | 14.9 | 31.6 | 16.3 | 6.8 | 5.4 | 16.4 | ||||||||||||||||||||||||||
Regulatory adjustment | 17.8 | (2.1 | ) | 10.4 | 11.7 | (5.2 | ) | 10.4 | 6.1 | 3.1 | 0.4 | ||||||||||||||||||||||||
Net pension cost | $ | 39.5 | $ | 34.9 | $ | 27.4 | $ | 26.6 | $ | 26.4 | $ | 26.7 | $ | 12.9 | $ | 8.5 | $ | 16.8 | |||||||||||||||||
* Nine months ended September 30 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014* | |||||||||||||||||||||||||||
Current year actuarial loss | $ | 46.8 | $ | 48.3 | $ | 15.7 | $ | 21.6 | $ | 26.0 | $ | 14.2 | $ | 25.2 | $ | 22.3 | $ | 1.5 | |||||||||||||||||
Amortization of actuarial loss | (8.0 | ) | (7.5 | ) | (7.1 | ) | (7.9 | ) | (7.5 | ) | (7.1 | ) | (0.1 | ) | — | — | |||||||||||||||||||
Acceleration of loss recognized due to settlement | (3.3 | ) | (19.6 | ) | (1.5 | ) | — | (18.0 | ) | (1.5 | ) | (3.3 | ) | (1.6 | ) | — | |||||||||||||||||||
Amortization of current year service cost | 5.0 | — | — | 5.0 | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service cost | (0.4 | ) | (0.5 | ) | (0.5 | ) | (0.4 | ) | (0.5 | ) | (0.5 | ) | — | — | — | ||||||||||||||||||||
Subtotal | 40.1 | 20.7 | 6.6 | 18.3 | — | 5.1 | 21.8 | 20.7 | 1.5 | ||||||||||||||||||||||||||
Regulatory adjustment | (39.8 | ) | (21.2 | ) | (6.1 | ) | (18.0 | ) | (0.5 | ) | (4.7 | ) | (21.8 | ) | (20.7 | ) | (1.5 | ) | |||||||||||||||||
Total recognized in OCI | $ | 0.3 | $ | (0.5 | ) | $ | 0.5 | $ | 0.3 | $ | (0.5 | ) | $ | 0.4 | $ | — | $ | — | $ | — | |||||||||||||||
* Nine months ended September 30 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Benefit obligation, beginning of year | $ | 652.3 | $ | 692.4 | $ | 497.6 | $ | 543.6 | $ | 154.7 | $ | 148.8 | |||||||||||
Service cost | 15.3 | 17.3 | 10.0 | 11.5 | 5.3 | 5.8 | |||||||||||||||||
Interest cost | 28.0 | 29.5 | 21.7 | 23.3 | 6.3 | 6.2 | |||||||||||||||||
Actuarial loss (gain) | 85.8 | (12.8 | ) | 59.2 | (20.7 | ) | 26.6 | 7.9 | |||||||||||||||
Plan amendments | 5.1 | — | 5.1 | — | — | — | |||||||||||||||||
EnergySouth acquisition | 60.4 | — | — | — | — | — | |||||||||||||||||
Settlement loss | 1.1 | 16.5 | — | 14.5 | 1.1 | 2.0 | |||||||||||||||||
Special termination benefits | 1.6 | — | 1.6 | — | — | — | |||||||||||||||||
Settlement benefits paid | (16.6 | ) | (71.1 | ) | — | (58.2 | ) | (16.6 | ) | (12.9 | ) | ||||||||||||
Regular benefits paid | (38.3 | ) | (19.5 | ) | (35.2 | ) | (16.4 | ) | (3.1 | ) | (3.1 | ) | |||||||||||
Benefit obligation, end of year | $ | 794.7 | $ | 652.3 | $ | 560.0 | $ | 497.6 | $ | 174.3 | $ | 154.7 | |||||||||||
Accumulated benefit obligation, end of year | 724.5 | $ | 591.4 | 517.7 | $ | 456.9 | 149.8 | $ | 134.5 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 448.9 | $ | 506.6 | $ | 339.9 | $ | 387.4 | $ | 109.0 | $ | 119.2 | |||||||||||
Actual return on plan assets | 75.1 | (7.2 | ) | 64.4 | (3.0 | ) | 10.7 | (4.2 | ) | ||||||||||||||
Employer contributions | 26.6 | 40.1 | 26.6 | 30.1 | — | 10.0 | |||||||||||||||||
EnergySouth acquisition | 44.8 | — | — | — | — | — | |||||||||||||||||
Settlement benefits paid | (16.6 | ) | (71.1 | ) | — | (58.2 | ) | (16.6 | ) | (12.9 | ) | ||||||||||||
Regular benefits paid | (38.3 | ) | (19.5 | ) | (35.2 | ) | (16.4 | ) | (3.1 | ) | (3.1 | ) | |||||||||||
Fair value of plan assets, end of year | $ | 540.5 | $ | 448.9 | $ | 395.7 | $ | 339.9 | $ | 100.0 | $ | 109.0 | |||||||||||
Funded status of plans, end of year | $ | (254.2 | ) | $ | (203.4 | ) | $ | (164.3 | ) | $ | (157.7 | ) | $ | (74.3 | ) | $ | (45.7 | ) |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Current liabilities | $ | (0.6 | ) | $ | (0.5 | ) | $ | (0.6 | ) | $ | (0.5 | ) | $ | — | $ | — | |||||||
Noncurrent liabilities | (253.6 | ) | (202.9 | ) | (163.7 | ) | (157.2 | ) | (74.3 | ) | (45.7 | ) | |||||||||||
Total | $ | (254.2 | ) | $ | (203.4 | ) | $ | (164.3 | ) | $ | (157.7 | ) | $ | (74.3 | ) | $ | (45.7 | ) |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net actuarial loss | $ | 179.4 | $ | 143.9 | $ | 135.5 | $ | 121.9 | $ | 43.9 | $ | 22.0 | |||||||||||
Prior service costs | 8.2 | 3.5 | 8.2 | 3.5 | — | — | |||||||||||||||||
Subtotal | 187.6 | 147.4 | 143.7 | 125.4 | 43.9 | 22.0 | |||||||||||||||||
Adjustments for amounts included in regulatory assets | (184.8 | ) | (144.9 | ) | (140.9 | ) | (122.9 | ) | (43.9 | ) | (22.0 | ) | |||||||||||
Total | $ | 2.8 | $ | 2.5 | $ | 2.8 | $ | 2.5 | $ | — | $ | — |
Spire | Laclede Gas | Alagasco | |||||||||
Amortization of net actuarial loss | $ | 13.5 | $ | 11.6 | $ | 1.9 | |||||
Amortization of prior service cost | 1.0 | 1.0 | — | ||||||||
Subtotal | 14.5 | 12.6 | 1.9 | ||||||||
Regulatory adjustment | (14.2 | ) | (12.3 | ) | (1.9 | ) | |||||
Total | $ | 0.3 | $ | 0.3 | $ | — |
2016 | 2015 | 2014 | |||
Weighted average discount rate - Laclede Gas division plans | 4.40% | 4.30% | 4.70% | ||
Weighted average discount rate - MGE division plans | 4.50% | 4.45% | 5.00% | ||
Weighted average rate of future compensation increase * | 3.00% | 3.00% | 3.00% | ||
Expected long-term rate of return on plan assets * | 7.75% | 7.75% | 7.75% |
* | Assumptions for weighted average rate of future compensation increase and expected long-term rate of return on plan assets are the same for both Laclede Gas and MGE plans. |
2016 | 2015 | 2014* | |||
Weighted average discount rate | 4.25% /4.30% | 4.15% /4.25% | 4.00% / 4.05% | ||
Weighted average rate of future compensation increase | 3.00% | 2.92% | 2.92% | ||
Expected long-term rate of return on plan assets | 7.50% | 7.00% / 7.25% | 7.00% / 7.25% |
2016 | 2015 | ||
Weighted average discount rate - Laclede Gas division | 3.50% | 4.40% | |
Weighted average discount rate - MGE division | 3.50% | 4.50% | |
Weighted average discount rate - Alagasco | 3.45%/3.50% | 4.25%/4.30% | |
Weighted average rate of future compensation increase - Laclede Gas, Alagasco and MGE | 3.00% | 3.00% |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Projected benefit obligation | $ | 794.8 | $ | 652.3 | $ | 560.0 | $ | 497.6 | $ | 174.3 | $ | 154.7 | |||||||||||
Accumulated benefit obligation | 724.5 | 591.4 | 517.7 | 456.9 | 149.8 | 134.5 | |||||||||||||||||
Fair value of plan assets | 540.5 | 448.9 | 395.7 | 339.9 | 100.0 | 109.0 |
Laclede Gas | 2016 Target | 2016 Actual | 2015 Target | 2015 Actual | |||||||
Equity markets | 56.2 | % | 56.9 | % | 52.0 | % | 48.4 | % | |||
Debt securities | 43.8 | % | 43.1 | % | 48.0 | % | 50.1 | % | |||
Other* | — | % | — | % | — | % | 1.5 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Other investments in 2016 and 2015 consisted of cash equivalents. |
Alagasco | 2016 Target | 2016 Actual | 2015 Target | 2015 Actual | |||||||
Equity markets | 60.0 | % | 59.2 | % | 60.0 | % | 52.9 | % | |||
Debt securities | 29.0 | % | 28.8 | % | 29.0 | % | 27.9 | % | |||
Other* | 11.0 | % | 12.0 | % | 11.0 | % | 19.2 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Other investments in 2016 included cash, real estate, commodities, natural resources and TIPS. In 2015, this included cash and cash equivalents, hedge funds, real estate, and all asset funds, which can invest in equities or fixed income. |
2017 | 2018 | 2019 | 2020 | 2021 | 2022- 2026 | |||||||||||||
Spire | $ | 61.3 | $ | 56.2 | $ | 57.1 | $ | 56.6 | $ | 56.8 | $ | 286.3 | ||||||
Laclede Gas | 48.2 | 43.3 | 43.5 | 42.2 | 40.4 | 196.6 | ||||||||||||
Alagasco | 10.9 | 10.6 | 11.2 | 11.9 | 13.7 | 74.5 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014* | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 10.9 | $ | 12.8 | $ | 11.3 | $ | 10.6 | $ | 12.3 | $ | 11.2 | $ | 0.3 | $ | 0.5 | $ | 0.4 | |||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 10.2 | 11.2 | 8.9 | 8.1 | 8.6 | 8.7 | 2.1 | 2.6 | 1.9 | ||||||||||||||||||||||||||
Expected return on plan assets | (13.5 | ) | (13.2 | ) | (7.3 | ) | (8.5 | ) | (8.1 | ) | (6.8 | ) | (5.0 | ) | (5.1 | ) | (3.6 | ) | |||||||||||||||||
Amortization of prior other comprehensive loss | — | — | (0.2 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Amortization of prior service cost | 0.3 | 0.8 | — | 0.3 | 0.8 | — | — | — | — | ||||||||||||||||||||||||||
Amortization of actuarial loss (gain) | 3.6 | 5.1 | 6.0 | 3.8 | 5.1 | 6.0 | (0.2 | ) | — | (1.0 | ) | ||||||||||||||||||||||||
Special termination benefits | 2.6 | — | — | 2.6 | — | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 14.1 | 16.7 | 18.7 | 16.9 | 18.7 | 19.1 | (2.8 | ) | (2.0 | ) | (2.3 | ) | |||||||||||||||||||||||
Regulatory adjustment | (6.6 | ) | (11.0 | ) | (9.6 | ) | (4.8 | ) | (9.2 | ) | (9.6 | ) | (1.8 | ) | (1.8 | ) | (0.2 | ) | |||||||||||||||||
Net postretirement benefit cost | $ | 7.5 | $ | 5.7 | $ | 9.1 | $ | 12.1 | $ | 9.5 | $ | 9.5 | $ | (4.6 | ) | $ | (3.8 | ) | $ | (2.5 | ) | ||||||||||||||
* Nine months ended September 30 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014* | |||||||||||||||||||||||||||
Current year actuarial loss (gain) | $ | 0.8 | $ | (8.5 | ) | $ | (3.1 | ) | $ | 1.4 | $ | (2.4 | ) | $ | (4.2 | ) | $ | (0.6 | ) | $ | (6.1 | ) | $ | 1.1 | |||||||||||
Amortization of actuarial (loss) gain | (3.6 | ) | (5.1 | ) | (6.0 | ) | (3.8 | ) | (5.1 | ) | (6.0 | ) | 0.2 | — | — | ||||||||||||||||||||
Amortization of prior service (cost) credit | (0.3 | ) | (0.8 | ) | 2.5 | (0.3 | ) | (0.8 | ) | 2.5 | — | — | — | ||||||||||||||||||||||
Current year prior service credit | (1.8 | ) | (4.9 | ) | — | — | (4.9 | ) | — | (1.8 | ) | — | — | ||||||||||||||||||||||
Subtotal | (4.9 | ) | (19.3 | ) | (6.6 | ) | (2.7 | ) | (13.2 | ) | (7.7 | ) | (2.2 | ) | (6.1 | ) | 1.1 | ||||||||||||||||||
Regulatory adjustment | 4.9 | 19.3 | 6.6 | 2.7 | 13.2 | 7.7 | 2.2 | 6.1 | (1.1 | ) | |||||||||||||||||||||||||
Total recognized in OCI | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
* Nine months ended September 30 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Benefit obligation, beginning of year | $ | 239.2 | $ | 258.5 | $ | 191.9 | $ | 197.9 | $ | 47.3 | $ | 60.6 | |||||||||||
Service cost | 10.9 | 12.8 | 10.6 | 12.3 | 0.3 | 0.5 | |||||||||||||||||
Interest cost | 10.2 | 11.2 | 8.1 | 8.6 | 2.1 | 2.6 | |||||||||||||||||
Actuarial loss (gain) | 7.1 | (23.7 | ) | 6.7 | (10.9 | ) | 0.4 | (12.8 | ) | ||||||||||||||
Plan amendments | (1.8 | ) | (4.9 | ) | — | (4.9 | ) | (1.8 | ) | — | |||||||||||||
EnergySouth acquisition | 5.9 | — | — | — | — | — | |||||||||||||||||
Special termination benefits | 2.6 | — | 2.6 | — | — | — | |||||||||||||||||
Retiree drug subsidy program | 0.2 | 0.4 | — | — | 0.2 | 0.4 | |||||||||||||||||
Gross benefits paid | (15.1 | ) | (15.1 | ) | (12.0 | ) | (11.1 | ) | (3.1 | ) | (4.0 | ) | |||||||||||
Benefit obligation, end of year | $ | 259.2 | $ | 239.2 | $ | 207.9 | $ | 191.9 | $ | 45.4 | $ | 47.3 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 223.3 | $ | 222.5 | $ | 143.6 | $ | 137.2 | $ | 79.7 | $ | 85.3 | |||||||||||
Actual return on plan assets | 19.9 | (2.0 | ) | 13.8 | (0.4 | ) | 6.2 | (1.6 | ) | ||||||||||||||
Employer contributions | 14.3 | 17.9 | 14.3 | 17.9 | — | — | |||||||||||||||||
EnergySouth acquisition | 4.0 | — | — | — | — | — | |||||||||||||||||
Gross benefits paid | (15.1 | ) | (15.1 | ) | (12.0 | ) | (11.1 | ) | (3.1 | ) | (4.0 | ) | |||||||||||
Fair value of plan assets, end of year | $ | 246.4 | $ | 223.3 | $ | 159.7 | $ | 143.6 | $ | 82.8 | $ | 79.7 | |||||||||||
Funded status of plans, end of year | $ | (12.8 | ) | $ | (15.9 | ) | $ | (48.2 | ) | $ | (48.3 | ) | $ | 37.4 | $ | 32.4 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Current assets | $ | 0.3 | $ | — | $ | 0.3 | $ | — | $ | — | $ | — | |||||||||||
Noncurrent assets | 37.4 | 35.5 | — | 3.1 | 37.4 | 32.4 | |||||||||||||||||
Current liabilities | (0.4 | ) | (0.3 | ) | (0.4 | ) | (0.3 | ) | — | — | |||||||||||||
Noncurrent liabilities | (50.1 | ) | (51.1 | ) | (48.1 | ) | (51.1 | ) | — | — | |||||||||||||
Total | $ | (12.8 | ) | $ | (15.9 | ) | $ | (48.2 | ) | $ | (48.3 | ) | $ | 37.4 | $ | 32.4 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net actuarial loss | $ | 38.0 | $ | 40.8 | $ | 43.4 | $ | 45.8 | $ | (5.4 | ) | $ | (5.0 | ) | |||||||||
Prior service credit | (5.2 | ) | (3.1 | ) | (3.4 | ) | (3.1 | ) | (1.8 | ) | — | ||||||||||||
Subtotal | 32.8 | 37.7 | 40.0 | 42.7 | (7.2 | ) | (5.0 | ) | |||||||||||||||
Adjustments for amounts included in regulatory assets | (32.8 | ) | (37.7 | ) | (40.0 | ) | (42.7 | ) | 7.2 | 5.0 | |||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Spire | Laclede Gas | Alagasco | |||||||||
Amortization of net actuarial loss (gain) | $ | 2.4 | $ | 2.5 | $ | (0.1 | ) | ||||
Amortization of prior service cost | 0.1 | 0.3 | (0.2 | ) | |||||||
Subtotal | 2.5 | 2.8 | (0.3 | ) | |||||||
Regulatory adjustment | (2.5 | ) | (2.8 | ) | 0.3 | ||||||
Total | $ | — | $ | — | $ | — |
2016 | 2015 | 2014 | ||||||
Weighted average discount rate Laclede Gas division plans | 4.00 | % | 4.15 | % | 4.60 | % | ||
Weighted average discount rate MGE division plans | 4.30 | % | 4.40 | % | 4.95 | % | ||
Weighted average rate of future compensation increase - Laclede Gas plans | 3.00 | % | 3.00 | % | 3.00 | % | ||
Expected long-term rate of return on plan assets - Laclede Gas division plans | 6.00% / 7.75% | 6.25% / 7.75% | 6.25% / 7.75% | |||||
Expected long-term rate of return on plan assets - MGE division plans | 4.75 | % | 5.00 | % | 3.75% / 5.75% |
2016 | 2015 | 2014 | ||||||
Weighted average discount rate | 4.50 | % | 4.40 | % | 4.25 | % | ||
Weighted average rate of future compensation increase | n/a | n/a | 2.92 | % | ||||
Expected long-term rate of return on plan assets | 4.50% / 7.25% | 4.75% / 7.50% | 4.75% / 7.25% |
2016 | 2015 | ||||
Weighted average discount rate - Laclede Gas division plans | 3.15 | % | 4.00 | % | |
Weighted average discount rate - MGE division plans | 3.45 | % | 4.30 | % | |
Weighted average rate of future compensation increase | 3.00 | % | 3.00 | % |
2016 | 2015 | ||||
Weighted average discount rate | 3.60 | % | 4.50 | % | |
Weighted average rate of future compensation increase | n/a | n/a |
2016 | 2015 | ||||
Medical cost trend assumed for next year - Laclede Gas | 7.50 | % | 7.00 | % | |
Medical cost trend assumed for next year - Alagasco | 7.50 | % | 7.00 | % | |
Rate to which the medical cost trend rate is assumed to decline (the ultimate medical cost trend rate) | 5.00 | % | 5.00 | % | |
Year the rate reaches the ultimate trend | 2023 | 2020 |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
1% Increase | 1% Decrease | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||||||||
Net periodic postretirement benefit cost | $ | 1.5 | $ | (1.4 | ) | $ | 1.5 | $ | (1.4 | ) | $ | — | $ | — | |||||||||
Accumulated postretirement benefit obligation | 11.0 | (10.2 | ) | 9.0 | (8.4 | ) | 1.3 | (1.2 | ) |
Laclede Gas | Target | 2016 Actual | 2015 Actual | |||||
Equity securities | 60.0 | % | 59.1 | % | 59.6 | % | ||
Debt securities | 40.0 | % | 39.4 | % | 39.7 | % | ||
Other (cash and cash equivalents) | — | % | 1.5 | % | 0.7 | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Alagasco | Target | 2016 Actual | 2015 Actual | |||||
Equity securities | 60.0 | % | 60.5 | % | 59.7 | % | ||
Debt securities | 40.0 | % | 39.5 | % | 40.3 | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
2017 | 2018 | 2019 | 2020 | 2021 | 2022- 2026 | |||||||||||||
Spire | $ | 15.4 | $ | 16.7 | $ | 17.9 | $ | 19.1 | $ | 20.1 | $ | 108.6 | ||||||
Laclede Gas | 12.3 | 13.7 | 14.8 | 15.8 | 16.8 | 92.5 | ||||||||||||
Alagasco | 2.9 | 2.8 | 2.8 | 2.9 | 2.9 | 14.1 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 51.2 | $ | — | $ | — | $ | 51.2 | |||||||
Stock/bond mutual fund | 99.3 | 26.7 | 0.1 | 126.1 | |||||||||||
Debt Securities | |||||||||||||||
US bond mutual funds | 23.0 | 126.0 | — | 149.0 | |||||||||||
US government | 42.1 | 3.0 | — | 45.1 | |||||||||||
US corporate | 137.4 | — | — | 137.4 | |||||||||||
US municipal | 6.3 | — | — | 6.3 | |||||||||||
International | 25.3 | — | — | 25.3 | |||||||||||
Derivatives and margin (payable) | (1.0 | ) | 1.1 | — | 0.1 | ||||||||||
Total | $ | 383.6 | $ | 156.8 | $ | 0.1 | $ | 540.5 | |||||||
As of September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 43.4 | $ | 0.2 | $ | — | $ | 43.6 | |||||||
Stock/bond mutual fund | 46.4 | 74.6 | 9.6 | 130.6 | |||||||||||
Debt Securities | |||||||||||||||
US bond mutual funds | — | 9.3 | — | 9.3 | |||||||||||
US government | 58.7 | — | — | 58.7 | |||||||||||
US corporate | 123.7 | 42.9 | — | 166.6 | |||||||||||
US municipal | — | 5.9 | — | 5.9 | |||||||||||
International | — | 31.3 | — | 31.3 | |||||||||||
Derivative instruments | — | 2.9 | — | 2.9 | |||||||||||
Total | $ | 272.2 | $ | 167.1 | $ | 9.6 | $ | 448.9 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 4.8 | $ | — | $ | — | $ | 4.8 | |||||||
US stock/bond mutual fund | 157.9 | 68.5 | — | 226.4 | |||||||||||
International fund | 0.9 | 14.3 | — | 15.2 | |||||||||||
Total | $ | 163.6 | $ | 82.8 | $ | — | $ | 246.4 | |||||||
As of September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 1.6 | $ | — | $ | — | $ | 1.6 | |||||||
US stock/bond mutual fund | 115.5 | 92.8 | — | 208.3 | |||||||||||
International fund | — | 13.4 | — | 13.4 | |||||||||||
Total | $ | 117.1 | $ | 106.2 | $ | — | $ | 223.3 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 46.5 | $ | — | $ | — | $ | 46.5 | |||||||
Stock/bond mutual fund | — | 14.8 | 0.1 | 14.9 | |||||||||||
Debt Securities | |||||||||||||||
US bond mutual funds | — | 120.2 | — | 120.2 | |||||||||||
US government | 42.1 | 3.0 | — | 45.1 | |||||||||||
US corporate | 137.4 | — | — | 137.4 | |||||||||||
US municipal | 6.3 | — | — | 6.3 | |||||||||||
International | 25.2 | — | — | 25.2 | |||||||||||
Derivatives and margin (payable) | (1.0 | ) | 1.1 | — | 0.1 | ||||||||||
Total | $ | 256.5 | $ | 139.1 | $ | 0.1 | $ | 395.7 | |||||||
As of September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 31.8 | $ | — | $ | — | $ | 31.8 | |||||||
Stock/bond mutual funds | — | 67.6 | 0.1 | 67.7 | |||||||||||
Debt Securities | |||||||||||||||
US government | 37.7 | — | — | 37.7 | |||||||||||
US corporate | 123.7 | 42.9 | — | 166.6 | |||||||||||
US municipal | — | 5.9 | — | 5.9 | |||||||||||
International | — | 27.3 | — | 27.3 | |||||||||||
Derivative instruments | — | 2.9 | — | 2.9 | |||||||||||
Total | $ | 193.2 | $ | 146.6 | $ | 0.1 | $ | 339.9 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 4.6 | $ | — | $ | — | $ | 4.6 | |||||||
US stock/bond mutual funds | 155.1 | — | — | 155.1 | |||||||||||
Total | $ | 159.7 | $ | — | $ | — | $ | 159.7 | |||||||
As of September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 1.6 | $ | — | $ | — | $ | 1.6 | |||||||
US stock/bond mutual funds | 115.5 | 26.5 | — | 142.0 | |||||||||||
Total | $ | 117.1 | $ | 26.5 | $ | — | $ | 143.6 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | — | $ | — | $ | 0.4 | |||||||
Stock/bond mutual funds | 59.0 | 11.9 | — | 70.9 | |||||||||||
Debt Securities | |||||||||||||||
US bond mutual funds | 23.0 | 5.7 | — | 28.7 | |||||||||||
Total | $ | 82.4 | $ | 17.6 | $ | — | $ | 100.0 | |||||||
As of September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 11.6 | $ | 0.2 | $ | — | $ | 11.8 | |||||||
Stock/bond mutual fund | 46.4 | 7.0 | 9.5 | 62.9 | |||||||||||
Debt Securities | |||||||||||||||
US bond mutual funds | — | 9.3 | — | 9.3 | |||||||||||
US government | — | 21.0 | — | 21.0 | |||||||||||
International | — | 4.0 | — | 4.0 | |||||||||||
Derivative instruments (b) | — | — | — | — | |||||||||||
Total | $ | 58.0 | $ | 41.5 | $ | 9.5 | $ | 109.0 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2016 | |||||||||||||||
US stock/bond mutual fund | $ | — | $ | 68.5 | $ | — | $ | 68.5 | |||||||
International fund | — | 14.3 | — | 14.3 | |||||||||||
Total | $ | — | $ | 82.8 | $ | — | $ | 82.8 | |||||||
As of September 30, 2015 | |||||||||||||||
US stock/bond mutual fund | — | 66.3 | — | 66.3 | |||||||||||
International fund | — | 13.4 | — | 13.4 | |||||||||||
Total | $ | — | $ | 79.7 | $ | — | $ | 79.7 |
• | unallocated corporate items, including certain debt and associated interest costs, |
• | Laclede Pipeline Company, a subsidiary of Spire which operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction, |
• | Spire STL Pipeline, a subsidiary of Spire planning construction of a 70-mile FERC-regulated pipeline to deliver natural gas into eastern Missouri, and |
• | Spire’s subsidiaries that are engaged in compression of natural gas and risk management, among other activities. All subsidiaries are wholly owned. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2016 | |||||||||||||||||||
Revenues from external customers | $ | 1,457.2 | $ | 78.5 | $ | 1.6 | $ | — | $ | 1,537.3 | |||||||||
Intersegment revenues | 2.2 | — | 3.2 | (5.4 | ) | — | |||||||||||||
Total Operating Revenues | 1,459.4 | 78.5 | 4.8 | (5.4 | ) | 1,537.3 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 539.7 | — | — | (47.5 | ) | 492.2 | |||||||||||||
Other operation and maintenance | 379.3 | — | — | (1.8 | ) | 377.5 | |||||||||||||
Depreciation and amortization | 136.9 | — | — | — | 136.9 | ||||||||||||||
Taxes, other than income taxes | 125.2 | — | — | — | 125.2 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,181.1 | — | — | (49.3 | ) | 1,131.8 | |||||||||||||
Gas Marketing and Other | — | 66.7 | (a) | 12.6 | (b) | 43.9 | 123.2 | ||||||||||||
Total Operating Expenses | 1,181.1 | 66.7 | 12.6 | (5.4 | ) | 1,255.0 | |||||||||||||
Operating Income (Loss) | 278.3 | 11.8 | (7.8 | ) | — | 282.3 | |||||||||||||
Net Economic Earnings (Loss) | 160.3 | 6.4 | (17.6 | ) | — | 149.1 | |||||||||||||
Capital Expenditures | 291.7 | — | 1.6 | — | 293.3 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2015 | |||||||||||||||||||
Revenues from external customers | $ | 1,891.8 | $ | 82.9 | $ | 1.7 | $ | — | $ | 1,976.4 | |||||||||
Intersegment revenues | 4.0 | 70.5 | 2.0 | (76.5 | ) | — | |||||||||||||
Total Operating Revenues | 1,895.8 | 153.4 | 3.7 | (76.5 | ) | 1,976.4 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 957.6 | — | — | (75.2 | ) | 882.4 | |||||||||||||
Other operation and maintenance | 391.6 | — | — | (1.0 | ) | 390.6 | |||||||||||||
Depreciation and amortization | 129.9 | — | — | — | 129.9 | ||||||||||||||
Taxes, other than income taxes | 142.1 | — | — | — | 142.1 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,621.2 | — | — | (76.2 | ) | 1,545.0 | |||||||||||||
Gas Marketing and Other | — | 146.6 | (a) | 12.6 | (b) | (0.3 | ) | 158.9 | |||||||||||
Total Operating Expenses | 1,621.2 | 146.6 | 12.6 | (76.5 | ) | 1,703.9 | |||||||||||||
Operating Income (Loss) | 274.6 | 6.8 | (8.9 | ) | — | 272.5 | |||||||||||||
Net Economic Earnings (Loss) | 150.4 | 4.2 | (16.3 | ) | — | 138.3 | |||||||||||||
Capital Expenditures | 284.4 | — | 5.4 | — | 289.8 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2014 | |||||||||||||||||||
Revenues from external customers | $ | 1,462.6 | $ | 162.6 | $ | 2.0 | $ | — | $ | 1,627.2 | |||||||||
Intersegment revenues | 5.2 | 84.0 | 1.8 | (91.0 | ) | — | |||||||||||||
Total Operating Revenues | 1,467.8 | 246.6 | 3.8 | (91.0 | ) | 1,627.2 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 821.8 | — | — | (90.1 | ) | 731.7 | |||||||||||||
Other operation and maintenance | 288.7 | — | — | (0.9 | ) | 287.8 | |||||||||||||
Depreciation and amortization | 82.4 | — | — | — | 82.4 | ||||||||||||||
Taxes, other than income taxes | 112.0 | — | — | — | 112.0 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,304.9 | — | — | (91.0 | ) | 1,213.9 | |||||||||||||
Gas Marketing and Other | — | 226.4 | (a) | 20.5 | (b) | — | 246.9 | ||||||||||||
Total Operating Expenses | 1,304.9 | 226.4 | 20.5 | (91.0 | ) | 1,460.8 | |||||||||||||
Operating Income (Loss) | 162.9 | 20.2 | (16.7 | ) | — | 166.4 | |||||||||||||
Net Economic Earnings (Loss) | 92.8 | 10.2 | (2.9 | ) | — | 100.1 | |||||||||||||
Capital Expenditures | 168.6 | — | 2.4 | — | 171.0 |
(a) | Depreciation and amortization for Gas Marketing are included in Gas Marketing Expenses on the Consolidated Statements of Income ($0.1 for 2016, $0.3 for 2015, and $0.4 for 2014). |
(b) | Depreciation, amortization, and accretion for Other are included in the Other Operating Expenses on the Consolidated Statements of Income ($0.5 for 2016, $0.6 for 2015, and $0.5 for 2014). |
Total Assets at End of Year | 2016 | 2015 | 2014 | ||||||||
Gas Utility | $ | 5,191.9 | $ | 4,686.2 | $ | 4,520.0 | |||||
Gas Marketing | 205.0 | 160.6 | 156.7 | ||||||||
Other | 1,842.4 | 1,560.2 | 1,575.7 | ||||||||
Eliminations | (1,161.9 | ) | (1,116.8 | ) | (1,178.4 | ) | |||||
Total Assets | $ | 6,077.4 | $ | 5,290.2 | $ | 5,074.0 |
Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings | 2016 | 2015 | 2014 | ||||||||
Net Income (GAAP) | $ | 144.2 | $ | 136.9 | $ | 84.6 | |||||
Unrealized gain on energy-related derivatives | (0.1 | ) | (2.8 | ) | (1.6 | ) | |||||
Lower of cost or market inventory adjustments | 0.2 | 0.4 | (1.1 | ) | |||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (1.6 | ) | 2.4 | (0.4 | ) | ||||||
Acquisition, divestiture and restructuring activities | 9.2 | 9.8 | 29.5 | ||||||||
Gain on sale of property | — | (7.6 | ) | — | |||||||
Income tax effect of adjustments | (2.8 | ) | (0.8 | ) | (10.9 | ) | |||||
Net Economic Earnings | $ | 149.1 | $ | 138.3 | $ | 100.1 |
15. | REGULATORY MATTERS |
Spire | Laclede Gas | Alagasco | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||
Pension and postretirement benefit costs | $ | 27.0 | $ | 22.0 | $ | 20.2 | $ | 15.5 | $ | 6.8 | $ | 6.5 | |||||||||||
Unamortized purchased gas adjustments | 49.7 | 12.9 | 43.1 | 12.9 | 5.6 | — | |||||||||||||||||
Other | 17.2 | 5.6 | 3.7 | 0.7 | 8.1 | 4.9 | |||||||||||||||||
Total Current Regulatory Assets | 93.9 | 40.5 | 67.0 | 29.1 | 20.5 | 11.4 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||
Future income taxes due from customers | 151.3 | 134.5 | 151.3 | 134.5 | — | — | |||||||||||||||||
Pension and postretirement benefit costs | 487.9 | 448.7 | 375.7 | 368.0 | 98.9 | 80.7 | |||||||||||||||||
Cost of removal | 130.6 | 78.9 | — | — | 130.6 | 78.9 | |||||||||||||||||
Purchased gas costs | 12.6 | 24.1 | 12.6 | 24.1 | — | — | |||||||||||||||||
Energy efficiency | 25.5 | 22.3 | 25.5 | 22.3 | — | — | |||||||||||||||||
Other | 30.1 | 29.1 | 24.7 | 24.7 | 1.2 | 4.0 | |||||||||||||||||
Total Noncurrent Regulatory Assets | 838.0 | 737.6 | 589.8 | 573.6 | 230.7 | 163.6 | |||||||||||||||||
Total Regulatory Assets | $ | 931.9 | $ | 778.1 | $ | 656.8 | $ | 602.7 | $ | 251.2 | $ | 175.0 | |||||||||||
Regulatory Liabilities: | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||
RSE adjustment | $ | 7.5 | $ | 12.2 | $ | — | $ | — | $ | 5.0 | $ | 12.2 | |||||||||||
Unbilled service margin | 5.9 | 6.4 | — | — | 5.9 | 6.4 | |||||||||||||||||
Refundable negative salvage | 9.3 | 10.8 | — | — | 9.3 | 10.8 | |||||||||||||||||
Unamortized purchased gas adjustments | 1.7 | 28.2 | — | — | — | 28.2 | |||||||||||||||||
Other | 6.2 | 3.0 | 1.3 | 0.6 | 2.5 | 2.4 | |||||||||||||||||
Total Current Regulatory Liabilities | 30.6 | 60.6 | 1.3 | 0.6 | 22.7 | 60.0 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||
Postretirement liabilities | 28.9 | 28.9 | — | — | 28.9 | 28.9 | |||||||||||||||||
Refundable negative salvage | 9.4 | 16.2 | — | — | 9.4 | 16.2 | |||||||||||||||||
Accrued cost of removal | 74.8 | 58.7 | 55.1 | 58.7 | — | — | |||||||||||||||||
Other | 17.6 | 15.5 | 12.2 | 11.9 | 3.4 | 3.6 | |||||||||||||||||
Total Noncurrent Regulatory Liabilities | 130.7 | 119.3 | 67.3 | 70.6 | 41.7 | 48.7 | |||||||||||||||||
Total Regulatory Liabilities | $ | 161.3 | $ | 179.9 | $ | 68.6 | $ | 71.2 | $ | 64.4 | $ | 108.7 |
Spire | Laclede Gas | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Future income taxes due from customers | $ | 151.3 | $ | 134.5 | $ | 151.3 | $ | 134.5 | |||||||
Pension and postretirement benefit costs | 240.6 | 223.7 | 240.6 | 223.7 | |||||||||||
Compensated absences | — | — | — | — | |||||||||||
Other | 12.9 | 14.2 | 12.9 | 14.2 | |||||||||||
Total Regulatory Assets Not Earning a Return | $ | 404.8 | $ | 372.4 | $ | 404.8 | $ | 372.4 |
Aggregate Rental Expense | Minimum Rental Commitments | ||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2017 | 2018 | 2019 | 2020 | 2021 | Later | Total | ||||||||||||||||||||||
Spire | $ | 11.9 | $ | 14.1 | $ | 6.7 | $ | 10.5 | $ | 7.5 | $ | 7.3 | $ | 6.2 | $ | 6.0 | $ | 53.4 | $ | 90.9 | |||||||||||
Laclede Gas | 4.3 | 7.6 | 6.3 | 2.5 | 0.9 | 0.9 | 0.3 | 0.1 | — | 4.7 | |||||||||||||||||||||
Alagasco | 3.7 | 4.0 | 2.0 | 3.9 | 2.5 | 2.5 | 2.1 | 2.1 | 4.9 | 18.0 |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 399.4 | $ | 609.3 | $ | 249.3 | $ | 279.3 | |||||||
Operating Income (Loss) | 87.0 | 167.7 | 35.3 | (7.7 | ) | ||||||||||
Net Income (Loss) | 46.9 | 100.8 | 10.7 | (14.2 | ) | ||||||||||
Basic Earnings (Loss) Per Share of Common Stock | $ | 1.08 | $ | 2.32 | $ | 0.24 | $ | (0.31 | ) | ||||||
Diluted Earnings (Loss) Per Share of Common Stock | $ | 1.08 | $ | 2.31 | $ | 0.24 | $ | (0.31 | ) | ||||||
Fiscal Year 2015 | |||||||||||||||
Total Operating Revenues | $ | 619.6 | $ | 877.4 | $ | 275.2 | $ | 204.2 | |||||||
Operating Income (Loss) | 87.3 | 157.7 | 36.0 | (8.5 | ) | ||||||||||
Net Income (Loss) | 47.1 | 94.4 | 14.1 | (18.7 | ) | ||||||||||
Basic Earnings (Loss) Per Share of Common Stock | $ | 1.09 | $ | 2.18 | $ | 0.32 | $ | (0.43 | ) | ||||||
Diluted Earnings (Loss) Per Share of Common Stock | $ | 1.09 | $ | 2.18 | $ | 0.32 | $ | (0.43 | ) |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 317.2 | $ | 446.7 | $ | 179.3 | $ | 144.3 | |||||||
Operating Income | 65.1 | 87.0 | 29.4 | 5.4 | |||||||||||
Net Income (Loss) | 39.4 | 54.3 | 13.9 | (1.7 | ) | ||||||||||
Fiscal Year 2015 | |||||||||||||||
Total Operating Revenues | $ | 462.4 | $ | 615.7 | $ | 187.5 | $ | 151.0 | |||||||
Operating Income | 64.8 | 80.6 | 34.5 | 5.5 | |||||||||||
Net Income (Loss) | 39.0 | 49.9 | 20.0 | (3.6 | ) |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 82.3 | $ | 166.0 | $ | 74.0 | $ | 46.2 | |||||||
Operating Income (Loss) | 18.9 | 80.4 | 9.3 | (17.1 | ) | ||||||||||
Net Income (Loss) | 9.9 | 48.1 | 4.0 | (8.8 | ) | ||||||||||
Fiscal Year 2015 | |||||||||||||||
Total Operating Revenues | $ | 120.0 | $ | 233.3 | $ | 73.7 | $ | 52.2 | |||||||
Operating Income (Loss) | 20.4 | 77.4 | 3.9 | (12.5 | ) | ||||||||||
Net Income (Loss) | 10.6 | 46.3 | 0.7 | (9.6 | ) |
• | our directors is incorporated by reference from the discussion under Proposal 1 of our proxy statement to be filed on or about December 15, 2016 (2016 proxy statement); |
• | our executive officers is reported in Part I of this Form 10-K; |
• | compliance with Section 16(a) of the Exchange Act is incorporated by reference from the discussion in our 2016 proxy statement under the heading “Section 16(a) Beneficial Ownership Reporting Compliance”; |
• | our Financial Code of Ethics is posted on our website, www.SpireEnergy.com, in the Corporate Governance section under Governance Documents; and |
• | our audit committee, our audit committee financial experts, and submitting nominations to the Corporate Governance Committee is incorporated by reference from the discussion in our 2016 proxy statement under the heading “Corporate Governance.” |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||
(a) | (b) | (c) | |||
Equity compensation plans approved by security holders (1) | 624,662 | $— | 721,605 | ||
Equity compensation plans not approved by security holders | — | — | — | ||
Total | 624,662 | — | 721,605 |
(1) | Reflects the Company’s 2015 and 2006 Equity Incentive Plans. |
• | our policy and procedures for related party transactions and |
• | the independence of our directors |
Item 15. Exhibits, Financial Statement Schedules | ||||||
(a) | (1) | Financial Statements | ||||
See Item 8. Financial Statements and Supplementary Data, filed herewith, for a list of financial statements. | ||||||
(2) | Financial Statement Schedules | |||||
Schedules have been omitted because they are not applicable, related significance tests were not met, or the required data has been included in the financial statements or notes to financial statements. | ||||||
(3) | Exhibits | |||||
Incorporated herein by reference to Exhibit Index, page 142. | ||||||
(b) | Incorporated herein by reference to Exhibit Index, page 142. |
SPIRE INC. | ||||
Date | November 15, 2016 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President | ||||
and Chief Financial Officer |
Date | Signature | Title | |
November 15, 2016 | /s/ Suzanne Sitherwood | Director, President, and Chief Executive Officer | |
Suzanne Sitherwood | (Principal Executive Officer) | ||
November 15, 2016 | /s/ Steven P. Rasche | Executive Vice President and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2016 | /s/ Edward L. Glotzbach | Chairman of the Board | |
Edward L. Glotzbach | |||
November 15, 2016 | /s/ Mark A. Borer | Director | |
Mark A. Borer | |||
November 15, 2016 | /s/ Maria V. Fogarty | Director | |
Maria V. Fogarty | |||
November 15, 2016 | /s/ Rob L. Jones | Director | |
Rob L. Jones | |||
November 15, 2016 | /s/ Brenda D. Newberry | Director | |
Brenda D. Newberry | |||
November 15, 2016 | /s/ John P. Stupp, Jr. | Director | |
John P. Stupp, Jr. | |||
November 15, 2016 | /s/ Mary Ann Van Lokeren | Director | |
Mary Ann Van Lokeren |
LACLEDE GAS COMPANY | ||||
Date | November 15, 2016 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
Date | Signature | Title | |
November 15, 2016 | /s/ Suzanne Sitherwood | Chairman of the Board | |
Suzanne Sitherwood | |||
November 15, 2016 | /s/ Steven P. Rasche | Director and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2016 | /s/ Steven L. Lindsey | Director, Chief Executive Officer and President | |
Steven L. Lindsey | (Principal Executive Officer) | ||
November 15, 2016 | /s/ Mark C. Darrell | Director | |
Mark C. Darrell | |||
November 15, 2016 | /s/ L. Craig Dowdy | Director | |
L. Craig Dowdy | |||
ALABAMA GAS CORPORATION | ||||
Date | November 15, 2016 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
Date | Signature | Title | |
November 15, 2016 | /s/ Suzanne Sitherwood | Chairman of the Board | |
Suzanne Sitherwood | |||
November 15, 2016 | /s/ Steven P. Rasche | Director and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2016 | /s/ Steven L. Lindsey | Director and Chief Executive Officer | |
Steven L. Lindsey | (Principal Executive Officer) | ||
November 15, 2016 | /s/ Mark C. Darrell | Director | |
Mark C. Darrell | |||
November 15, 2016 | /s/ L. Craig Dowdy | Director | |
L. Craig Dowdy | |||
Exhibit Number | ||
2.01* | Agreement and Plan of Merger and Reorganization; filed as Appendix A to proxy statement/prospectus contained in the Company’s Registration Statement on Form S-4 filed October 27, 2000, No. 333-48794. | |
3.01* | Articles of Incorporation of Spire Inc., as amended, effective as of April 28, 2016; filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed May 3, 2016. | |
3.02* | Bylaws of Spire Inc., as amended, effective as of April 28, 2016; filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed May 3, 2016. | |
3.03* | Laclede Gas’ Restated Articles of Incorporation as amended March 8, 2013; filed as Exhibit 3.1 to Laclede Gas’ Quarterly Report on Form 10-Q/A for the fiscal quarter ended March 31, 2013. | |
3.04* | Amended and Restated Bylaws of Laclede Gas, effective as of August 1, 2015; filed as Exhibit 3.2 to Laclede Gas’ Current Report on Form 8-K filed July 31, 2015. | |
3.05* | Articles of Amendment and Restatement of the Articles of Incorporation of Alagasco, dated September 27, 1995, which was filed as Exhibit 3(i) to Alagasco’s Annual Report on Form 10-K for the year ended September 30, 1995. | |
3.06* | Bylaws of Alagasco (as amended September 2, 2014); filed as Exhibit 3(b) to Alagasco’s Annual Report on Form 10-KT for the fiscal year ended September 30, 2014. | |
4.01* | Mortgage and Deed of Trust, dated as of February 1, 1945; filed as Exhibit 7-A to registration statement No. 2-5586. | |
4.02* | Fourteenth Supplemental Indenture, dated as of October 26, 1976; filed as Exhibit b-4 to registration statement No. 2-64857 filed June 26, 1979. | |
4.03* | Twenty-Fourth Supplemental Indenture dated as of June 1, 1999, between Laclede Gas and State Street Bank and Trust Company of Missouri, N.A., as trustee; filed as Exhibit 4.01 to Laclede Gas’ Current Report on Form 8-K filed June 4, 1999. | |
4.04* | Twenty-Fifth Supplemental Indenture dated as of September 15, 2000, between Laclede Gas and State Street Bank and Trust Company of Missouri, as trustee; filed as Exhibit 4.01 to Laclede Gas’ Current Report on Form 8-K filed September 27, 2000. | |
4.05* | Twenty-Seventh Supplemental Indenture dated as of April 15, 2004, between Laclede Gas and UMB Bank & Trust, N.A., as trustee; filed as Exhibit 4.01 to Laclede Gas’ Current Report on Form 8-K filed April 28, 2004. | |
4.06* | Twenty-Eighth Supplemental Indenture dated as of April 15, 2004, between Laclede Gas and UMB Bank & Trust, N.A., as trustee; filed as Exhibit 4.02 to Laclede Gas’ Current Report on Form 8-K filed April 28, 2004. | |
4.07* | Twenty-Ninth Supplemental Indenture dated as of June 1, 2006, between Laclede Gas and UMB Bank and Trust, N.A., as trustee; filed as Exhibit 4.1 to Laclede Gas’ Current Report on Form 8-K filed June 9, 2006. | |
4.08* | Thirty-First Supplemental Indenture, dated as of March 15, 2013, between Laclede Gas and UMB Bank & Trust, N.A., as trustee; filed as Exhibit 4.1 to the Company’s Form 10-Q for the fiscal quarter ended March 31, 2013. | |
4.09* | Thirty-Second Supplemental indenture, dated as of August 13, 2013, between Laclede Gas and UMB Bank & Trust, N.A., as trustee; filed as Exhibit 4.1 to Laclede Gas’ Current Report on Form 8-K filed August 13, 2013. | |
4.10* | Laclede Gas Board of Directors’ Resolution dated August 28, 1986 which generally provides that the Board may delegate its authority in the adoption of certain employee benefit plan amendments to certain designated Executive Officers; filed as Exhibit 4.12 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1991. | |
4.11* | Laclede Gas’ Board of Directors’ Resolutions dated March 27, 2003, updating authority delegated pursuant to August 28, 1986 Laclede Gas resolutions; filed as Exhibit 4.19(a) to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2003. | |
4.12* | Junior Subordinated Indenture, dated as of June 11, 2014, between the Company and U.S. Bank National Association, as trustee; filed as Exhibit 4.1 to Spire’s Current Report on Form 8-K filed June 11, 2014. | |
4.13* | First Supplemental Indenture, dated as of June 11, 2014, between the Company and U.S. Bank National Association, as trustee (including Form of Series A 2.00% Remarketable Junior Subordinated Notes due 2022); filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed June 11, 2014. |
Exhibit Number | ||
4.14* | Purchase Contract and Pledge Agreement, dated as of June 11, 2014, between the Company and US Bank National Association, as Purchase Contract Agent, Collateral Agent, Custodial Agent and Securities Intermediary (including Form of Remarketing Agreement, Form of Corporate Units and Form of Treasury Units); filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K filed June 11, 2014. | |
4.15* | Indenture, dated as of August 19, 2014, between the Company and UMB Bank & Trust, N.A., as trustee; filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed August 19, 2014. | |
4.16* | First Supplemental Indenture, dated as of August 19, 2014, between the Company and UMB Bank & Trust, N.A., as trustee (including Form of Floating Rate Senior Notes due 2017, Form of 2.55% Senior Notes due 2019 and Form of 4.70% Senior Notes due 2044); filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed August 10, 2014. | |
4.17* | Indenture dated as of November 1, 1993, between Alagasco and NationsBank of Georgia, National Association, Trustee, (“Alagasco 1993 Indenture”), which was filed as Exhibit 4(k) to Alagasco’s Registration Statement on Form S-3 (Registration No. 33-70466). | |
4.18* | Officers’ Certificate, dated January 14, 2005, pursuant to Section 301 of the Alagasco 1993 Indenture setting forth the terms of the 5.20 percent Notes due January 15, 2020, which was filed as Exhibit 4.4 to Alagasco’s Current Report on Form 8-K filed January 14, 2005. | |
4.19* | Officers’ Certificate, dated November 17, 2005, pursuant to Section 301 of the Alagasco 1993 Indenture setting forth the terms of the 5.368 percent Notes due December 1, 2015, which was filed as Exhibit 4.2 to Alagasco’s Current Report on Form 8-K filed November 17, 2005. | |
4.20* | Officers’ Certificate, dated January 16, 2007, pursuant to Section 301 of the Alagasco 1993 Indenture setting forth the terms of the 5.90 percent Notes due January 15, 2037, which was filed as Exhibit 4.2 to Alagasco’s Current Report on Form 8-K filed January 16, 2007. | |
10.01* | Lease between Laclede Gas, as Lessee, and First National Bank in St. Louis, Trustee, as Lessor; filed as Exhibit 10.23 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 2002. | |
10.02* | Automated Meter Reading Services Agreement, dated as of March 11, 2005, between Cellnet Technology, Inc. and Laclede Gas; filed as Exhibit 10.1 to Laclede Gas’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2005. Confidential portions of this exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. | |
10.03* | Restated Laclede Gas Supplemental Retirement Benefit Plan, as amended and restated as of January 1, 2005; filed as Exhibit 10.06 to Laclede Gas’ Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.04* | Laclede Gas Supplemental Retirement Benefit Plan II, effective as of January 1, 2005; filed as Exhibit 10.7 to Laclede Gas’ Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.05* | Amendment and Restatement of Retirement Plan for Non-Employee Directors of Laclede Gas as of November 1, 2002; filed as Exhibit 10.08c to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 2002. | |
10.06* | Amendment to Terms of Retirement Plan for Non-Employee Directors of Laclede Gas as of October 1, 2004; filed as Exhibit 10.2 to Laclede Gas’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2004. | |
10.07* | Salient Features of Laclede Gas’ Deferred Income Plan for Directors and Selected Executives, including amendments adopted by the Board of Directors on July 26, 1990; filed as Exhibit 10.12 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1991. | |
10.08* | Amendment to Laclede Gas’ Deferred Income Plan for Directors and Selected Executives, adopted by the Board of Directors on August 27, 1992; filed as Exhibit 10.12a to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1992. | |
10.09* | Salient Features of Laclede Gas’ Deferred Income Plan II for Directors and Selected Executives (as amended and restated effective as of January 1, 2005); filed as Exhibit 10.1 to Laclede Gas’ Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.10* | Salient Features of the Company’s Deferred Income Plan for Directors and Selected Executives (effective as of January 1, 2005); filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. |
Exhibit Number | ||
10.11* | The Company’s Deferred Income Plan for Directors and Selected Executives, as Amended and Restated as of January 1, 2015; filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 4, 2014. | |
10.12* | Form of Indemnification Agreement between Laclede Gas and its Directors and Officers; filed as Exhibit 10.13 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1990. | |
10.13* | The Company’s Management Continuity Protection Plan, effective as of January 1, 2005; filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.14* | Form of Management Continuity Protection Agreement; filed as Exhibit 10.05a to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.15* | The Company’s 2011 Management Continuity Protection Plan; filed as Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2010. | |
10.16* | Form of Agreement under the Company’s 2011 Management Continuity Protection Plan; filed as Exhibit 10.25a to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2010. | |
10.17* | Restricted Stock Plan for Non-Employee Directors as amended and effective January 29, 2009; filed as Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed December 22, 2008. | |
10.18* | Amendment to Restricted Stock Plan for Non-Employee Directors; filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011. | |
10.19* | Form of Non-Qualified Stock Option Award Agreement with Mandatory Retirement Provisions; filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 5, 2004. | |
10.20* | Form of Non-Qualified Stock Option Award Agreement without Mandatory Retirement Provisions; filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed November 5, 2004. | |
10.21* | The Laclede Group, Inc. 2002 Equity Incentive Plan; filed as Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2002. | |
10.22* | The Laclede Group 2006 Equity Incentive Plan, as amended effective February 1, 2012; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012. | |
10.23* | The Laclede Group 2015 Equity Incentive Plan; filed as the Appendix to the Company’s Definitive Proxy Statement on Form DEF 14A filed December 19, 2014. | |
10.24* | The Company’s Annual Incentive Plan; filed as Appendix 1 to the Company’s Definitive Proxy Statement on Schedule 14A filed December 17, 2010. | |
10.25* | The Company’s Form of Restricted Stock Award Agreement; filed as Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008. | |
10.26* | The Company’s Form of Performance Contingent Restricted Stock Award Agreement; filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2009. | |
10.27* | The Company’s Form of Performance Contingent Restricted Stock Unit Award Agreement; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2011. | |
10.28* | The Company’s Form of Performance Contingent Restricted Stock Unit Award Agreement; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2012. | |
10.29* | Severance Benefits Agreement, dated September 1, 2011, between the Company and Suzanne Sitherwood; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011. |
Exhibit Number | ||
10.30* | First Amendment to the Severance Benefits Agreement, dated August 1, 2014, between the Company and Suzanne Sitherwood; filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014. | |
10.31* | Performance Contingent Restricted Stock Agreement, dated September 1, 2011, between the Company and Suzanne Sitherwood; filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011. | |
10.32* | Restricted Stock Unit Award Agreement, dated September 1, 2011, between the Company and Suzanne Sitherwood; filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2011. | |
10.33* | Restricted Stock Unit Award Agreement, dated October 1, 2012, between the Company and Steve Lindsey; filed as Ex 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. | |
10.34* | Performance Contingent Restricted Stock Unit Award Agreement, dated October 1, 2012, between the Company and Steve Lindsey; filed as Ex 10.26 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. | |
10.35* | Severance Benefits Agreement, dated October 1, 2012, between the Company and Steve Lindsey; filed as Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. | |
10.36* | Note Purchase Agreement, dated August 3, 2012, by and among the Company and the Purchasers listed in Schedule A thereto; filed as Exhibit 10.28 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. | |
10.37* | Laclede Gas Cash Balance Supplemental Retirement Benefit Plan, effective as of January 1, 2009; filed as Exhibit 10.30 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 2012. | |
10.38* | Amended and Restated Firm (Rate Schedule FT) Transportation Service Agreement between Laclede Energy Resources, Inc. and CenterPoint Energy Gas Transmission Company TSA #1006667; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012. | |
10.39* | Amended and Restated Storage Service Agreement For Rate Schedule FSS, Contract #3147, dated July 30, 2013, between CenterPoint Energy-Mississippi River Transmission Corporation and Laclede Gas; filed as Exhibit 10.1 to Laclede Gas’ Current Report on Form 8-K filed August 2, 2013. | |
10.40* | Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3310, dated July 30, 2013, between CenterPoint Energy-Mississippi River Transmission Corporation and Laclede Gas; filed as Exhibit 10.2 to Laclede Gas’ Current Report on Form 8-K filed August 2, 2013. | |
10.41* | Amended and Restated Transportation Service Agreement for Rate Schedule FTS, Contract #3311, dated July 30, 2013, between CenterPoint Energy-Mississippi River Transmission Corporation and Laclede Gas; filed as Exhibit 10.3 to Laclede Gas’ Current Report on Form 8-K filed August 2, 2013. | |
10.42* | Purchase and Sale Agreement for Missouri Gas Energy, dated as of December 14, 2012, by and among Southern Union Company, Plaza Missouri Acquisition, Inc. and the Company (solely for purposes of Section 13.19 of the Agreement); filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed December 17, 2012. | |
10.43* | Purchase and Sale Agreement for New England Gas Company, dated as of December 14, 2012, among Southern Union Company, Plaza Massachusetts Acquisition, Inc. and the Company; filed as Exhibit 2.2 to the Company’s Current Report on Form 8-K filed December 17, 2012. | |
10.44* | Employee Agreement for Missouri Gas Energy, dated as of December 14, 2012, among Southern Union Company, Plaza Missouri Acquisition, Inc. and the Company; filed as Exhibit 2.3 to the Company’s Current Report on Form 8-K filed December 17, 2012. | |
10.45* | Employee Agreement for New England Gas Company, dated as of December 14, 2012, among Southern Union Company, Plaza Missouri Acquisition, Inc. and the Company; filed as Exhibit 2.4 to the Company’s Current Report on Form 8-K filed December 17, 2012. | |
10.46* | Stock Purchase Agreement, dated as of February 11, 2013, by and among the Company, Plaza Massachusetts Acquisition, Inc., and Algonquin Power & Utilities Corp.; filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed February 12, 2013. | |
10.47* | Assignment and Assumption Agreement, dated as of January 11, 2013, by and between Plaza Missouri Acquisition, Inc. and Laclede Gas; filed as Exhibit 99.1 to Laclede Gas’ Current Report on Form 8-K filed January 14, 2013. |
Exhibit Number | ||
10.48* | Consent to Assignment executed by Southern Union Company dated as of January 11, 2013; filed as Exhibit 99.2 to Laclede Gas’ Current Report on Form 8-K filed January 14, 2013. | |
10.49* | Consent Agreement, dated as of February 11, 2013, by and among the Company, Plaza Massachusetts Acquisition, Inc. Southern Union Company and Algonquin Power & Utilities Corp.; filed as Exhibit 2.2 to the Company’s Current Report on Form 8-K filed February 12, 2013. | |
10.50* | Loan agreement, dated September 3, 2013, among the Company and the several bank parties thereto, including Wells Fargo Bank, National Association, as Administrative Agent, U.S. Bank National Association and JPMorgan Chase Bank, N.A. as Co-Syndication Agents; Bank of America, N.A., Fifth Third Bank and Morgan Stanley Bank, N.A., as Co-Documentation Agents; and Wells Fargo Securities LLC, U.S. Bank National Association and J.P. Morgan Securities LLC as Joint Lead Arrangers and Joint Bookrunners; and Commerce Bank, UMB Bank, N.A., and Stifel Bank & Trust as the other participating banks; filed as Exhibit 10.20 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013. | |
10.51* | First Amendment and Waiver to Loan Agreement, dated as of April 28, 2014, among the Company and the several banks parties thereto, including Wells Fargo Bank, National Association as Administrative Agent; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2014. | |
10.52* | First Extension Agreement, dated as of September 3, 2014, to Loan Agreement, dated September 3, 2013, as amended, by and among the Company and the several banks party thereto, including Wells Fargo Bank, National Association, as administrative agent; filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed September 4, 2014. | |
10.53* | Loan agreement, dated September 3, 2013, among Laclede Gas and the several bank parties thereto, including Wells Fargo Bank, National Association, as Administrative Agent, U.S. Bank National Association and JPMorgan Chase Bank, N.A. as Co-Syndication Agents; Bank of America, N.A., Fifth Third Bank and Morgan Stanley Bank, N.A., as Co-Documentation Agents; and Wells Fargo Securities LLC, U.S. Bank National Association and J.P. Morgan Securities LLC as Joint Lead Arrangers and Joint Bookrunners; and Commerce Bank, UMB Bank, N.A., and Stifel Bank & Trust as the other participating banks; filed as Exhibit 10.12 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 2013. | |
10.54* | First Extension Agreement, dated as of September 3, 2014, to Loan Agreement, dated September 3, 2013, as amended, by and among Laclede Gas and the several banks party thereto, including Wells Fargo Bank, National Association, as administrative agent; filed as Exhibit 99.3 to Laclede Gas’ Current Report on Form 8-K filed September 4, 2014. | |
10.55* | Lease Agreement, dated January 21, 2014, between the Company, as Tenant, and Market 700, LLC, as Landlord; filed as Exhibit 10.1 to Spire Inc.’s Current Report on Form 8-K filed January 27, 2014. | |
10.56* | Stock Purchase Agreement, dated as of April 5, 2014, between the Company and Energen Corporation; filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed April 7, 2014. | |
10.57* | Commitment Letter, dated April 5, 2014, among the Company and Credit Suisse AG and Wells Fargo Bank, National Association, and their respective affiliates; filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed April 7, 2014. | |
10.58* | First Amendment to the Commitment Letter, dated June 16, 2014, among the Company and Credit Suisse AG and Wells Fargo Bank, National Association, and their respective affiliates; filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed June 17, 2014. | |
10.59* | 2nd Amendment to Commitment Letter, dated August 19, 2014, among the Company and Credit Suisse AG and Wells Fargo Bank, National Association, and their respective affiliates; filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed August 21, 2014. | |
10.60* | The Company’s Executive Severance Plan effective January 1, 2015; filed as Exhibit 10.59 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. | |
10.61* | Master Note Purchase Agreement, dated as of June 5, 2015, among Alagasco and certain institutional purchasers; filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015. | |
10.62* | Credit Agreement dated September 2, 2014, by and among Alagasco, Wells Fargo Bank, National Association., as Administrative Agent, Credit Suisse AG, Cayman Islands Branch and U.S. Bank National Association, as CO-Syndication Agents, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and U.S. Bank National Association, as Joint Lead Arrangers and Joint Book Managers, and the lenders party thereto which was filed as Exhibit 991. to Alagasco’s Current Report on Form 8-K filed September 4, 2014. |
Exhibit Number | ||
10.63* | Credit Agreement dated October 30, 2012, by and among Alagasco, Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, Wells Fargo Bank, National Association and Regions Bank, and Co-Syndication Agents and L/C Issuers, Compass Bank and U.S. Bank National Association, as Co- Documentation Agents and L/C Issuers, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities LLC, Regions Capital Markets, a division of Regions Bank, Compass Bank and U.S. Bank National Association, as Joint Lead Arrangers and Joint Book Managers, and the lenders party thereto which was filed as Exhibit 10.2 to Alagasco’s Current Report on Form 8-K filed October 31, 2012. | |
10.64* | Note Purchase Agreement, dated December 22, 2011, among Alagasco and the Purchasers thereto (the AIG purchasers) with respect to $25 million 3.86 percent Senior Notes due December 22, 2021, which was filed as Exhibit 10.1 to Alagasco’s Current Report on Form 8-K filed December 22, 2011. | |
10.65* | Note Purchase Agreement, dated December 22, 2011, among Alagasco and the Purchasers thereto (the Prudential purchasers) with respect to $25 million 3.86 percent Senior Notes due December 22, 2021, which was filed as Exhibit 10.2 to Alagasco’s Current Report on Form 8-K filed December 22, 2011. | |
10.66* | Service Agreement Under Rate Schedule CSS (No. SSNG1), between Southern Natural Gas Company and Alagasco, dated as of September 1, 2005, which was filed as Exhibit 10(a) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2005. | |
10.67* | Amended Exhibit A, effective January 15, 2014, to Service Agreement Under Rate Schedule CSS (No. SSNG1) between Southern Natural Gas Company and Alagasco dated September 1, 2005 which was filed as Exhibit 10(g) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
10.68* | Firm Transportation Service Agreement Under Rate Schedule FT and/or FT-NN (No. FSNG1), between Southern Natural Gas Company and Alagasco dated as of September 1, 2005, which was filed as Exhibit 10(b) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2005. | |
10.69* | Amended Exhibit A, effective October 1, 2013, to Firm Transportation Service Agreement (No. FSNG1) between Southern Natural Gas Company and Alagasco, which was filed as Exhibit 10(i) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
10.70* | Amended Exhibit B, effective November 1, 2013, to Firm Transportation Service Agreement (No. FSNG1) between Southern Natural Gas Company and Alagasco, which was filed as Exhibit 10(j) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
10.71* | Form of Service Agreement Under Rate Schedule IT (No. 790420), between Southern Natural Gas Company and Alagasco, which was filed as Exhibit 10(b) to Alagasco’s Annual Report on Form 10-K for the year ended September 30, 1993. | |
10.72* | Service Agreement between Transcontinental Gas Pipeline Corporation and Transco Energy Marketing Company as Agent for Alagasco, dated August 1, 1991 which was filed as Exhibit 3(e) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2003. | |
10.73* | Amendment to Service Agreement between Transcontinental Gas Pipeline Corporation and Alagasco, dated December 2, 2005, which was filed as Exhibit 10(e) to Alagasco’s Annual Report on Form 10-K for the year ended December 31, 2005. | |
10.74* | Spire Inc. Annual Incentive Plan, as Amended, filed as Appendix to the Company’s Definitive Proxy Statement on Schedule 14A filed December 18, 2015. | |
10.75* | Spire Inc. Deferred Income Plan, as Amended and Restated as of January 1, 2016, which was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 24, 2015. | |
12.1 | Computation of Ratio of Earnings to Fixed Charges of the Company. | |
12.2 | Computation of Ratio of Earnings to Fixed Charges of Laclede Gas. | |
21 | Subsidiaries of the Company. | |
23.1 | Consent of Independent Registered Public Accounting Firm of the Company. | |
23.2 | Consent of Independent Registered Public Accounting Firm of Laclede Gas. | |
31.1 | Certifications under Rule 13a-14(a) of the CEO and CFO of the Company. | |
31.2 | Certifications under Rule 13a-14(a) of the CEO and CFO of Laclede Gas. | |
31.3 | Certifications under Rule 13a-14(a) of the CEO and CFO of Alagasco. | |
32.1 | Section 1350 Certifications under Rule 13a-14(b) of the CEO and CFO of the Company. |
Exhibit Number | ||
32.2 | Section 1350 Certifications under Rule 13a-14(b) of the CEO and CFO of Laclede Gas. | |
32.3 | Section 1350 Certifications under Rule 13a-14(b) of the CEO and CFO of Alagasco. | |
101.INS | XBRL Instance Document. (1) | |
101.SCH | XBRL Taxonomy Extension Schema. (1) | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. (1) | |
101.DEF | XBRL Taxonomy Definition Linkbase. (1) | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase. (1) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. (1) |
(1) | Attached as Exhibit 101 to this Annual Report are the following documents formatted in extensible business reporting language (XBRL): (i) Document and Entity Information; (ii) Consolidated Statements of Income and Statements of Income for the years ended September 30, 2016, 2015, and 2014; (iii) Consolidated Statements of Comprehensive Income and Statements of Comprehensive Income for the years ended September 30, 2016, 2015, and 2014; (iv) Consolidated Statements of Common Shareholders’ Equity and Statements of Common Shareholder’s Equity for the years ended September 30, 2016, 2015, and 2014; (v) Consolidated Statements of Cash Flows and Statements of Cash Flows for the years ended September 30, 2016, 2015, and 2014; (vi) Consolidated Balance Sheets and Balance Sheets at September 30, 2016 and 2015; (vii) Consolidated Statements of Capitalization and Statements of Capitalization at September 30, 2016 and 2015; and (viii) Notes to Financial Statements. For Alagasco, the Statements of Income, Comprehensive Income, Common Shareholder’s Equity, and Cash Flows are for the year ended September 30, 2016 and 2015, and the nine months ended September 30, 2014. We also make available on our website the Interactive Data Files submitted as Exhibit 101 to this Annual Report. |
* | Incorporated herein by reference and made a part hereof. The Company File No. 1-16681. Laclede Gas File No. 1-1822. Alagasco file No. 2-38960. |
(Dollars in Millions) | Years Ended September 30, | ||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 213.7 | $ | 199.1 | $ | 116.9 | $ | 70.4 | $ | 88.9 | |||||||||
Add: Fixed Charges (from below) | 80.8 | 78.0 | 48.3 | 30.6 | 26.5 | ||||||||||||||
Total Earnings | $ | 294.5 | $ | 277.1 | $ | 165.2 | $ | 101.0 | $ | 115.4 | |||||||||
Fixed Charges | |||||||||||||||||||
Interest on long-term debt | $ | 67.6 | $ | 66.6 | $ | 39.3 | $ | 25.5 | $ | 23.0 | |||||||||
Other interest charges | 9.6 | 8.0 | 6.9 | 3.1 | 2.0 | ||||||||||||||
One third of applicable rentals charged to operating expense (which approximates the interest portion) | 3.4 | 3.4 | 2.1 | 2.0 | 1.5 | ||||||||||||||
Add back: Allowance for borrowed funds used during construction | 0.2 | — | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 80.8 | $ | 78.0 | $ | 48.3 | $ | 30.6 | $ | 26.5 | |||||||||
Ratio of Earnings to Fixed Charges | 3.64 | 3.55 | 3.41 | 3.30 | 4.35 |
(Dollars in Millions) | Years Ended September 30, | ||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 151.3 | $ | 148.5 | $ | 125.6 | $ | 63.4 | $ | 68.3 | |||||||||
Add: Fixed Charges (from below) | 40.1 | 39.7 | 39.5 | 28.1 | 26.7 | ||||||||||||||
Total Earnings | $ | 191.4 | $ | 188.2 | $ | 165.1 | $ | 91.5 | $ | 95.0 | |||||||||
Fixed Charges | |||||||||||||||||||
Interest on long-term debt | $ | 32.9 | $ | 33.1 | $ | 34.4 | $ | 24.9 | $ | 22.9 | |||||||||
Other interest charges | 4.5 | 3.3 | 3.0 | 1.2 | 2.2 | ||||||||||||||
One third of applicable rentals charged to operating expense (which approximates the interest portion) | 2.5 | 3.3 | 2.1 | 2.0 | 1.6 | ||||||||||||||
Add back: Allowance for borrowed funds used during construction | 0.2 | — | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 40.1 | $ | 39.7 | $ | 39.5 | $ | 28.1 | $ | 26.7 | |||||||||
Ratio of Earnings to Fixed Charges | 4.77 | 4.74 | 4.18 | 3.26 | 3.56 |
SPIRE INC. | |
SUBSIDIARIES OF THE REGISTRANT | |
Subsidiaries of Spire Inc. (Parent) | Percent of Voting Stock Owned |
Laclede Gas Company | 100% |
Alabama Gas Corporation | 100% |
EnergySouth, Inc.(1) | 100% |
Laclede Pipeline Company | 100% |
Laclede Investment LLC(2) | 100% |
Laclede Development Company(3) | 100% |
Laclede Insurance Risk Services, Inc. | 100% |
Shared Services Corporation | 100% |
Spire Resources LLC(4) | 100% |
(1) Subsidiary Companies of EnergySouth, Inc. | |
Mobile Gas Service Corporation | 100% |
Willmut Gas and Oil Company | 100% |
(2) Subsidiary Company of Laclede Investment LLC | |
Laclede Energy Resources, Inc.* | 100% |
*Subsidiary Company of Laclede Energy Resources, Inc. | |
LER Storage Services, Inc. | 100% |
(3) Subsidiary Companies of Laclede Development Company | |
Laclede Venture Corp. | 100% |
Laclede Oil Services, LLC | 100% |
(4)Subsidiary Company of Spire Resources LLC | |
Spire Pipelines LLC** | 100% |
**Subsidiary Company of Spire Pipelines LLC | |
Spire STL Pipeline LLC | 100% |
All of the above corporations have been organized under the laws of the State of Missouri except Alabama Gas Corporation and Mobile Gas Company, which are organized under the laws of the State of Alabama, Willmut Gas and Oil Company, which is organized under the laws of the State of Mississippi, EnergySouth, Inc., which is organized under the laws of the State of Delaware, and Laclede Insurance Risk Services, Inc., which is organized under the laws of the State of South Carolina. |
1. | I have reviewed this annual report on Form 10-K of Spire Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Suzanne Sitherwood | |||
Suzanne Sitherwood | ||||||
President and Chief Executive Officer | ||||||
1. | I have reviewed this annual report on Form 10-K of Spire Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |||
Steven P. Rasche | ||||||
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of Laclede Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer and President |
1. | I have reviewed this annual report on Form 10-K of Laclede Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of Alabama Gas Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Alabama Gas Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | November 15, 2016 | Signature: | /s/ Suzanne Sitherwood | |
Suzanne Sitherwood | ||||
President and Chief Executive Officer | ||||
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President and Chief Financial Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company. |
Date: | November 15, 2016 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer and President | ||||
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President and Chief Financial Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Alabama Gas Corporation. |
Date: | November 15, 2016 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer | ||||
(a) | To the best of my knowledge, the accompanying report on Form 10-K for the period ended September 30, 2016 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(b) | To the best of my knowledge, the information contained in the accompanying report on Form 10-K for the period ended September 30, 2016 fairly presents, in all material respects, the financial condition and results of operations of Alabama Gas Corporation. |
Date: | November 15, 2016 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Assets | ||
Non-utility property, accumulated depreciation and amortization | $ 8.1 | $ 7.5 |
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, common stock (in dollars per share) | $ 1.96 | $ 1.84 | $ 1.76 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2014 |
|
Statement of Cash Flows [Abstract] | ||
Cash acquired from acquisition | $ 2.0 | $ 12.1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION – These notes are an integral part of the accompanying audited financial statements of Spire Inc. (Spire or the Company), as well as Laclede Gas Company (Laclede Gas or the Missouri Utilities) and Alabama Gas Corporation (Alagasco). Laclede Gas, which includes the operations of Missouri Gas Energy (MGE), and Alagasco are wholly owned subsidiaries of the Company. Laclede Gas, Alagasco and the subsidiaries of EnergySouth, Inc. (EnergySouth) are collectively referred to as the Utilities. The subsidiaries of EnergySouth are Mobile Gas Service Corporation (Mobile Gas) and Willmut Gas and Oil Company (Willmut Gas). The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial position, results of operations, and cash flows of Spire are primarily derived from the financial position, results of operations, and cash flows of the Utilities. In compliance with GAAP, transactions between Laclede Gas and Alagasco and their affiliates, as well as intercompany balances on their balance sheets, have not been eliminated from their separate financial statements. The Company’s September 12, 2016 acquisition of EnergySouth and the August 31, 2014 acquisition of Alagasco are included in the results of operations since their acquisition dates and impact the comparability of the financial statement periods presented for the Company. For a further discussion of the acquisitions, see Note 2, Acquisitions. The Utilities are regulated natural gas distribution utilities. Due to the seasonal nature of the Utilities, the earnings of Spire, Laclede Gas and Alagasco are typically concentrated during the heating season of November through April each fiscal year. Effective September 2, 2014, Alagasco amended its bylaws to change Alagasco’s fiscal year from beginning January 1 and ending on December 31, to beginning October 1 and ending September 30. As a result, the financial statements covering the nine-month period from January 1, 2014 through September 30, 2014 (the “transition period”) were included in Alagasco’s transition report on Form 10-K/T for such period and are presented in the financial statements and notes herein. NATURE OF OPERATIONS – Spire Inc. (NYSE: SR), headquartered in St. Louis, Missouri, is a public utility holding company. The Company has two reportable segments: Gas Utility and Gas Marketing. The Gas Utility segment consists of the regulated natural gas distribution operations of the Company and is the core business segment of Spire in terms of revenue and earnings generation. The Gas Utility segment is comprised of the operations of the Missouri Utilities, serving St. Louis and eastern Missouri, Kansas City and western Missouri (through MGE), Alagasco serving central and northern Alabama, and the subsidiaries of EnergySouth, serving southern Alabama and south-central Mississippi. Spire’s primary non-utility business, Laclede Energy Resources, Inc. (LER), included in the Gas Marketing segment, provides non-regulated natural gas services. The activities of other subsidiaries are described in Note 14, Information by Operating Segment, and are reported as Other. Laclede Gas and Alagasco each have a single reportable segment. USE OF ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. SYSTEM OF ACCOUNTS – The accounts of the Utilities are maintained in accordance with the Uniform System of Accounts prescribed by the applicable state public service commissions, which systems substantially conform to that prescribed by the Federal Energy Regulatory Commission (FERC). UTILITY PLANT, DEPRECIATION AND AMORTIZATION – Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. For Laclede Gas, utility plant is depreciated on a straight-line basis at rates based on estimated service lives of the various classes of property. In fiscal years 2016, 2015 and 2014, annual depreciation and amortization expense averaged 3.0% of the original cost of depreciable and amortizable property. Laclede Gas’ capital expenditures were $197.8, $198.6 and $163.0 for fiscal years 2016, 2015, and 2014, respectively. Additionally, Laclede Gas had recorded accruals for capital expenditures totaling $14.8 at September 30, 2016, $9.6 at September 30, 2015, and $3.0 at September 30, 2014. For Alagasco, depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of utility property at rates approved by the Alabama Public Service Commission (APSC). On June 28, 2010, the APSC approved a reduction in depreciation rates, effective June 1, 2010, for Alagasco with the revised prospective composite depreciation rate approximating 3.1%. As required by the APSC, Alagasco performed another depreciation study in 2015. The composite depreciation rate from this study was also approximately 3.1%. Alagasco anticipates refunding approximately $9.3 of refundable negative salvage costs through lower tariff rates over the next twelve months. Related to the lower depreciation rates, an estimated $18.7 of refundable negative salvage costs will be refunded to eligible customers on a declining basis through lower tariff rates over a three year period through 2019. Alagasco’s capital expenditures were $93.4, $85.8 and $46.2 for fiscal years 2016, 2015, and 2014, respectively. Additionally, Alagasco recorded accruals for capital expenditures totaling $6.8 at September 30, 2016, $3.1 at September 30, 2015 and $5.0 at September 30, 2014. Accrued capital expenditures are excluded from the capital expenditures included in the statements of cash flows of the Company, Laclede Gas and Alagasco. ASSET RETIREMENT OBLIGATIONS – Spire, Laclede Gas, and Alagasco record legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company, Laclede Gas and Alagasco record asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of Laclede Gas’, Alagasco’s and Mobile Gas’ distribution systems and general plant. Asset retirement obligations recorded by Spire’s other subsidiaries are not material. As authorized by the Missouri Public Service Commission (MoPSC) and APSC, Laclede Gas, Alagasco and Mobile Gas accrue future asset removal costs associated with their property, plant and equipment even if a legal obligation does not exist. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities or assets. When those utilities retire depreciable utility plant and equipment, they charge the associated original costs to accumulated depreciation and amortization, and any related removal costs incurred are charged to regulatory liabilities or assets. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognized for financial reporting purposes is a timing difference between recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities or assets. In the rate setting process, the regulatory liability or asset is excluded from the rate base upon which those utilities have the opportunity to earn their allowed rates of return. The costs associated with asset retirement obligations of Laclede Gas, Alagasco and Mobile Gas are either currently being recovered in rates or are probable of recovery in future rates. The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, as reported in the balance sheets.
REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. In addition, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process. See additional discussion on regulated operations in Note 15, Regulatory Matters. As discussed below for Laclede Gas and Alagasco, the Purchased Gas Adjustment (PGA) clauses and Gas Supply Adjustment (GSA) riders allow the Utilities to pass through to customers the cost of purchased gas supplies. Regulatory assets and liabilities related to the PGA clauses and the GSA rider are both labeled Unamortized Purchased Gas Adjustments herein. Laclede Gas As authorized by the MoPSC, the PGA clause allows Laclede Gas to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies. To better match customer billings with market natural gas prices, Laclede Gas is allowed to file to modify, on a periodic basis, the level of gas costs in its PGA. Certain provisions of the PGA clause are included below:
Pursuant to the provisions of the PGA clause, the difference between actual costs incurred and costs recovered through the application of the PGA clause are reflected as a deferred charge or credit at the end of the fiscal year. These costs include costs and cost reductions associated with the use of derivative instruments and gas inventory carrying costs, amounts due to or from customers related to operation of the gas supply cost management program, refunds received from the Company’s suppliers in connection with gas supply, transportation, and storage services, and carrying costs on such over- or under-recoveries. At that time, the balance is classified as a current asset or current liability and recovered from, or credited to, customers over an annual period commencing in November. The balance in the current account is amortized as amounts are reflected in customer billings. The PGA clause also provides for the treatment of income from off-system sales and capacity release revenues. Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
Alagasco Alagasco’s rate schedules for natural gas distribution charges contain a GSA rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. Alagasco’s tariff provides a temperature adjustment mechanism, also included in the GSA rider, which is designed to moderate the impact of departures from normal temperatures on Alagasco’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather-related conditions that may affect customer usage are not included in the temperature adjustment. NATURAL GAS AND PROPANE GAS – For Laclede Gas’ eastern Missouri utility, inventory of natural gas in storage is priced on a last in, first out (LIFO) basis and inventory of propane gas in storage is priced on a first in, first out (FIFO) basis. For the rest of the Gas Utility segment, inventory of natural gas in storage is priced on the weighted average cost basis. The replacement cost of Laclede Gas’ natural gas for current use in eastern Missouri at September 30, 2016 and September 30, 2015 was less than the LIFO cost by $11.4 and $20.4, respectively. The carrying value of Laclede Gas’ inventory is not adjusted to the lower of cost or market prices because, pursuant to the Missouri Utilities’ PGA clauses, actual gas costs are recovered in customer rates. Natural gas and propane gas storage inventory in Spire’s other operating segments is recorded at the lower of average cost or market. BUSINESS COMBINATIONS – The EnergySouth and Alagasco acquisitions are accounted for by Spire using business combination accounting. Under this method, the purchase price paid by the acquirer is allocated to the assets acquired and liabilities assumed as of the acquisition date based on their fair value. For additional information on the acquisition of EnergySouth and Alagasco, refer to Note 2, Acquisitions. GOODWILL – Goodwill is measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. Spire and Laclede Gas evaluate goodwill for impairment as of July 1st of each year, or more frequently if events and circumstances indicate that goodwill might be impaired. At July 1, 2016, 2015 and 2014, Spire and Laclede Gas each applied a quantitative goodwill evaluation model to their reporting units and concluded goodwill was not impaired because the fair value exceeded the carrying amount. The changes in the carrying amount of goodwill by reportable segment were as follows:
IMPAIRMENT OF LONG-LIVED ASSETS – Long-lived assets classified as held and used are evaluated for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Whether impairment has occurred is determined by comparing the estimated undiscounted cash flows attributable to the assets with the carrying value of the assets. If the carrying value exceeds the undiscounted cash flows, the Company recognizes an impairment charge equal to the amount of the carrying value that exceeds the estimated fair value of the assets. In the period in which the Company determines an asset meets held-for-sale criteria, an impairment charge is recorded to the extent the book value exceeds its fair value less cost to sell. REVENUE RECOGNITION – The Utilities read meters and bill customers on monthly cycles. The Missouri Utilities record their gas utility revenues from gas sales and transportation services on an accrual basis that includes estimated amounts for gas delivered, but not yet billed. The accruals for unbilled revenues are reversed in the subsequent accounting period when meters are actually read and customers are billed. The amounts of accrued unbilled revenues for Laclede Gas at September 30, 2016 and 2015 were $26.1 and $27.6, respectively. Alagasco records natural gas distribution revenues in accordance with the tariff established by the APSC. The amount of accrued unbilled revenues, which are not recorded as revenues until billed, for Alagasco at September 30, 2016 and 2015 were $5.9 and $6.4, respectively. All related costs and margins are also deferred. The subsidiaries of EnergySouth record natural gas revenues in accordance with tariffs established by the APSC and MSPSC. Unbilled revenues are accrued and related costs and margins are also deferred. Spire’s other subsidiaries, including LER, record revenues when earned, either when the product is delivered or when services are performed. In the course of its business, LER enters into commitments associated with the purchase or sale of natural gas. Certain of its derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of ASC Topic 815, “Derivatives and Hedging.” Those contracts are accounted for as executory contracts and recorded on an accrual basis. Revenues and expenses from such contracts are recorded using a gross presentation. Contracts not designated as normal purchases or normal sales are recorded as derivatives with changes in fair value recognized in earnings in the periods prior to physical delivery. For additional information on derivative instruments, refer to Note 10, Derivative Instruments and Hedging Activities. Certain of LER’s wholesale purchase and sale transactions are classified as trading activities for financial reporting purposes. Under GAAP, revenues and expenses associated with trading activities are presented on a net basis in Gas Marketing operating revenues (or expenses, if negative) in the Consolidated Statements of Income. This net presentation has no effect on operating income or net income. INCOME TAXES – Spire and its subsidiaries account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and the respective tax basis and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income or loss for a non-regulated company, and in a regulatory asset or regulatory liability for a regulated company. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with authoritative guidance. The authoritative guidance addresses the determination of whether tax benefits claimed, or expected to be claimed, on a tax return should be recorded in the financial statements. Spire may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. Tax-related interest and penalties, if any, are classified as a liability on the balance sheets. CASH AND CASH EQUIVALENTS – All highly liquid debt instruments purchased with original maturities of three months or less are considered to be cash equivalents. Such instruments are carried at cost, which approximates market value. Outstanding checks on the Company’s and Utilities’ bank accounts in excess of funds on deposit create book overdrafts (which are funded at the time checks are presented for payment) and are classified as Other in the Current Liabilities section of the balance sheets. Changes in book overdrafts are reflected as Operating Activities in the statements of cash flows. NATURAL GAS RECEIVABLE – LER enters into natural gas transactions with natural gas pipeline companies known as park and loan arrangements. Under the terms of the arrangements, LER purchases natural gas from a third party and delivers that natural gas to the pipeline company for the right to receive the same quantity of natural gas from the pipeline company at the same location in a future period. These arrangements are accounted for as non-monetary transactions under GAAP and are recorded at the carrying amount. As such, natural gas receivables are reflected on the Consolidated Balance Sheets at cost, which includes related pipeline fees associated with the transactions. In the period that the natural gas is returned to LER, concurrent with the sale of the natural gas to a third party, the related natural gas receivable is expensed in the Consolidated Statements of Income. In conjunction with these transactions, LER usually enters into New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) natural gas futures, options, and swap contracts or fixed price sales agreements to protect against market changes in future sales prices. EARNINGS PER COMMON SHARE – GAAP requires dual presentation of basic and diluted earnings per share (EPS). EPS is computed using the two-class method, which is an earnings allocation method for computing EPS that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Certain of the Company’s stock-based compensation awards pay non-forfeitable dividends to the participants during the vesting period and, as such, are deemed participating securities. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares, pursuant to the treasury stock method. Shares attributable to equity units, non-participating stock options and time-vested restricted stock/units are excluded from the calculation of diluted earnings per share if the effect would be antidilutive. Shares attributable to non-participating performance-contingent restricted stock awards are only included in the calculation of diluted earnings per share to the extent the underlying performance and/or market conditions are satisfied (a) prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. The Company’s EPS computations are presented in Note 4, Earnings Per Common Share. GROSS RECEIPTS AND SALES TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Company, Laclede Gas, and Alagasco and billed to its customers. The revenue and expense amounts are recorded gross in the “Operating Revenues” and “Taxes, other than income taxes” lines, respectively, in the statements of income. The following table presents gross receipts taxes recorded:
Sales taxes imposed on applicable Alagasco and Laclede Gas sales are billed to customers. These amounts are not recorded in the statements of income but are recorded as tax collections payable and included in the Other line of the Current Liabilities section of the balance sheets. TRANSACTIONS WITH AFFILIATES – Transactions between affiliates of the Company have been eliminated from the consolidated financial statements of Spire. Other than borrowings from Spire reflected in Alagasco’s Balance Sheets and Statements of Cash Flows and normal intercompany shared services transactions, there were no transactions between Alagasco and affiliates. Laclede Gas had the following transactions with affiliates:
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. Spire’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses for Laclede Gas and Alagasco, as approved by the MoPSC and the APSC. FINANCE RECEIVABLES – Alagasco finances third party contractor sales of merchandise including gas furnaces and appliances. At September 30, 2016 and September 30, 2015, the Company’s finance receivable totaled approximately $11.8 and $11.2, respectively. Financing is available only to qualified customers who meet creditworthiness thresholds for customer payment history and external agency credit reports. Alagasco relies upon ongoing payments as the primary indicator of credit quality during the term of each contract. The allowance for credit losses is recognized using an estimate of write-off percentages based on historical experience applied to an aging of the finance receivable balance. Delinquent accounts are evaluated on a case-by-case basis and, absent evidence of debt repayment after 90 days, are due in full and assigned to a third party collection agency. The remaining finance receivable is written off approximately 12 months after being assigned to the third party collection agency. Alagasco had finance receivables past due 90 days or more of $0.4 at September 30, 2016 and September 30, 2015. Alagasco recorded an allowance for credit losses at September 30, 2016 and September 30, 2015 of $0.4. GROUP MEDICAL AND WORKERS’ COMPENSATION RESERVES – The Company self-insures its group medical and workers’ compensation costs and carries stop-loss coverage in relation to medical claims and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. FAIR VALUE MEASUREMENTS – Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The levels of the hierarchy are described below:
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. Additional information about fair value measurements is provided in Note 8, Fair Value of Financial Instruments, Note 9, Fair Value Measurements, and Note 13, Pension Plans and Other Postretirement Benefits. STOCK-BASED COMPENSATION – The Company measures stock-based compensation awards at fair value at the date of grant and recognizes the compensation cost of the awards over the requisite service period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if the actual forfeitures differ from those estimates. Refer to Note 3, Stock-Based Compensation, for further discussion of the accounting for the Company’s stock-based compensation plans. REVISIONS TO PRIOR FINANCIAL STATEMENTS - Certain amounts in the prior period have been adjusted to conform with the current period presentation for Spire and Laclede Gas. The adjustment was related to the presentation of categories of deferred tax assets in Note 12, Income Taxes. NEW ACCOUNTING PRONOUNCEMENTS – In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The core principle of the standard is when an entity transfers goods or services to customers it will recognize revenue in an amount that reflects the consideration the entity expects to be entitled to for those goods or services. ASU No. 2014-09 also requires disclosures that will enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which made the guidance in ASU No. 2014-09 effective for fiscal years beginning after December 15, 2017 and interim periods within those years, but companies may choose to adopt it one year earlier. In 2016, the FASB issued related ASU Nos. 2016-08, 2016-10, 2016-11 and 2016-12, which further modified the standards for accounting for revenue. The Company, Laclede Gas and Alagasco are currently assessing the available transition methods and the potential impacts of the updates, which must be adopted by the first quarter of fiscal year 2019. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. Currently, debt issuance costs are recorded as a deferred charge (asset), while debt discount and debt premium costs are recorded as a liability adjustment. This amendment will require debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-15 clarified that ASU No. 2015-03 does not address the presentation of debt issuance costs related to line-of-credit arrangements, and the Company intends to continue to report such costs as deferred charges. The new guidance is effective for the Company, Laclede Gas and Alagasco beginning in the first quarter of fiscal 2017. The application of this standard will be retrospective, wherein each balance sheet presented will be adjusted to reflect the impacts of applying the new guidance. If this ASU had been adopted as of September 30, 2016, the amounts reclassified from other deferred charges to reduce long-term debt at September 30, 2016 and 2015, respectively, would have been $13.2 and $13.0 for Spire, $4.2 and $4.8 for Laclede Gas, and $2.6 and $2.4 for Alagasco. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet classification of Deferred Taxes, to require that deferred tax liabilities and assets be classified entirely as noncurrent. This was part of the FASB’s simplification initiative intended to reduce cost and complexity in financial reporting while improving or maintaining the usefulness of the information reported to investors. The Company, Laclede Gas and Alagasco adopted this ASU in the fourth quarter of fiscal 2016. Prior periods were not retrospectively adjusted. The adoption of this accounting standard was not material to the financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which provides revised guidance concerning certain matters involving the recognition, measurement, and disclosure of financial instruments. It is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires lessees to recognize a right-of-use asset and lease liability for almost all lease contracts based on the present value of lease payments. There is an exemption for short-term leases. The ASU provides new guidelines for identifying and classifying a lease, and classification affects the pattern and income statement line item for the related expense. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2020. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2018. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The standard introduces new guidance for the accounting for credit losses on instruments within its scope, including trade receivables. It is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, but may be adopted up to two years earlier. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2021. |
ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Spire’s recent acquisitions are described below. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed at the acquisition dates. Measurement period adjustments were immaterial.
Acquisition of Alagasco Spire completed the acquisition of 100% of the common stock of Alagasco from Energen effective on August 31, 2014. Total cash consideration paid at closing, net of cash acquired and debt assumed was $1,305.2. Subsequently, the Company and Energen agreed to a final reconciliation of net assets, and $8.2 was paid by the Company to Energen on January 6, 2015, effectively increasing the total net consideration to $1,313.4. The goodwill of $735.8 arising from this acquisition, $717.6 of which is expected to be deductible for tax purposes, is attributable to Alagasco’s assembled workforce and the expected cost efficiencies and strategic benefits of the transaction. The acquisition was supportive of the strategic focus on growing the Company’s regulated footprint and created geographic and regulatory diversity. The Company determined that the Alagasco acquisition met the scope exceptions for pushdown accounting; therefore, the goodwill was recorded on the Spire parent company balance sheet rather than the Alagasco subsidiary balance sheet and included in disclosures of segment assets under Other rather than the Gas Utility segment. The Company and Energen made an election under Section 338(h)(10) of the Internal Revenue Code of 1986, as amended, to treat the Alagasco acquisition as a deemed purchase and sale of assets for tax purposes. As a result of the election, goodwill was generated for tax purposes at Alagasco. For book purposes, as noted above, goodwill was recorded on the Spire parent entity and not pushed down to Alagasco. Consequently, a deferred tax asset (DTA) was recorded at Alagasco related to the excess of tax deductible goodwill over book goodwill for the stand-alone entity. That initial goodwill DTA is eliminated (along with the investment in subsidiary and Alagasco’s equity) in the Spire consolidated balance sheet because, at that consolidated level, there is no excess of tax deductible goodwill over book goodwill. As the tax goodwill is amortized and deducted for tax purposes, the DTA at Alagasco is reduced, and for Spire, a deferred tax liability (DTL) is created. For both Alagasco and consolidated Spire, the changes to the goodwill DTA/DTL are reported as a component of deferred tax expense in the income statement. Because the deferred tax expense impact will be offset by an opposite current tax expense impact, there will be no significant impact on the effective tax rate of the Company. Acquisition of EnergySouth Effective September 12, 2016, Spire completed the acquisition of 100% of the common stock of EnergySouth, the parent company of Mobile Gas and Willmut Gas, serving natural gas utility customers in Alabama and Mississippi. This acquisition is supportive of the strategic focus on growing Spire’s gas utility business and creating geographic and regulatory diversity. Total cash consideration paid at closing, net of cash acquired and debt assumed was $317.7. The goodwill of $218.9 arising from this acquisition, which is not deductible for tax purposes, is attributable to the assembled workforce and the expected cost efficiencies and strategic benefits of the transaction. The Company did not elect pushdown accounting, so the goodwill was recorded on the Spire parent company balance sheet rather than the EnergySouth subsidiary balance sheet and is included in disclosures of segment assets under Other. Because the acquisition occurred near the end of the fiscal year and certain assessments are still in progress, the assignment of goodwill to reporting units has not yet been completed. Similarly, the recorded values of some of the assets acquired and liabilities assumed, such as those related to income taxes and contingencies, are provisional pending completion of analyses of those items. Actual and Pro Forma Results The results of operations of each of the acquisitions are included in the Spire statements of income from the date of acquisition, as shown in the following table.
The following unaudited pro forma financial information presents Spire’s combined results of operations as though the EnergySouth acquisition had occurred as of the beginning of fiscal year 2015 and the Alagasco acquisition had occurred as of the beginning of fiscal year 2013. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that would have been achieved if the acquisitions had occurred as of those earlier dates. It does not reflect the costs of any integration activities. It includes estimates and assumptions which management believes are reasonable.
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STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Spire’s 2015 incentive plan, The Laclede Group 2015 Equity Incentive Plan (the 2015 Plan), was approved at the annual meeting of shareholders of Spire on January 29, 2015. The purpose of the 2015 Plan is to encourage directors, officers, and employees of the Company and its subsidiaries to contribute to the Company’s success and align their interests with that of shareholders. To accomplish this purpose, the Compensation Committee (Committee) of the Board of Directors may grant awards under the 2015 Plan that may be earned by achieving performance objectives and/or other criteria as determined by the Committee. Under the terms of the 2015 Plan, officers and employees of the Company and its subsidiaries, as determined by the Committee, are eligible to be selected for awards. The 2015 Plan provides for restricted stock, restricted stock units, qualified and non-qualified stock options, stock appreciation rights, and performance shares payable in stock, cash, or a combination of both. The 2015 Plan generally provides a minimum vesting period of at least three years for each type of award, with pro rata vesting permitted during the minimum three-year vesting period. The maximum number of shares reserved for issuance under the 2015 Plan is 1,000,000. The 2015 Plan replaced The Laclede Group 2006 Equity Incentive Plan (the 2006 Plan), which in turn replaced The Laclede Group, Inc. 2002 Equity Incentive Plan (the 2002 Plan). Shares reserved under the 2006 Plan and the 2002 Plan, other than those needed for currently outstanding awards, were canceled upon shareholder approval of the 2015 Plan. The Company issues new shares to satisfy employee restricted stock awards and stock option exercises. Restricted Stock Awards During fiscal year 2016, the Company granted 199,140 performance-contingent restricted share units to executive officers and key employees at a weighted average grant date fair value of $45.95 per share. This number represents the maximum shares that can be earned pursuant to the terms of the awards. The share units have a performance period ending September 30, 2018. While the participants have no interim voting rights on these share units, dividends accrue during the performance period and are paid to the participants upon vesting, but are subject to forfeiture if the underlying share units do not vest. The number of share units that will ultimately vest is dependent upon the attainment of certain levels of earnings and other strategic goals, as well as the Company’s level of total shareholder return (TSR) during the performance period relative to a comparator group of companies. This TSR provision is considered a market condition under GAAP and is discussed further below. The weighted average grant date fair value of performance-contingent restricted shares and share units granted during fiscal years 2015 and 2014 was $36.69 and $37.21 per share, respectively. Fiscal year 2016 activity of restricted stock and restricted stock units subject to performance and/or market conditions is presented below:
During fiscal year 2016, the Company granted 35,210 shares of time-vested restricted stock to executive officers and key employees at a weighted average grant date fair value of $59.40 per share. These shares were awarded between December 2015 and September 2016 and vest between December 2018 and September 2019 based on terms of the agreements. In the interim, participants receive full voting rights and dividends, which are not subject to forfeiture. The weighted average grant date fair value of time-vested restricted stock and restricted stock units awarded to employees during fiscal year 2015 and 2014 was $50.90 and $45.66 per share, respectively. During fiscal year 2016, the Company granted 13,520 shares of time-vested restricted stock to non-employee directors at a weighted average grant date fair value of $63.93 per share. The weighted average grant date fair value of restricted stock awarded to non-employee directors during fiscal years 2015 and 2014 was $54.66 and $46.02 per share, respectively. Time-vested restricted stock and stock unit activity for fiscal year 2016 is presented below:
During fiscal year 2016, 107,238 shares of restricted stock and stock units (performance-contingent and time-vested), awarded on October 1, 2012, December 3, 2012, February 1, 2013, June 3, 2013, and August 1, 2013 vested. The Company withheld 30,712 of the vested shares at a weighted average price of $57.29 per share pursuant to elections by employees to satisfy tax withholding obligations. During fiscal year 2015, 128,135 shares of restricted stock and stock units (performance-contingent and time-vested), awarded on December 1, 2011, May 1, 2012, December 2, 2013 and January 1, 2014 vested. The Company withheld 31,688 of the vested shares at a weighted average price of $50.65 per share pursuant to elections by employees to satisfy tax withholding obligations. During fiscal year 2014, 88,533 shares of restricted stock and stock units (performance-contingent and time-vested), awarded on December 1, 2010, September 1, 2011, October 1, 2012, January 30, 2014 and February 21, 2014 vested. The Company withheld 23,776 of these vested shares at a weighted average price of $45.96 per share pursuant to elections by employees to satisfy tax withholding obligations. The total fair value of restricted stock (performance-contingent and time-vested) vested during fiscal years 2016, 2015, and 2014 was $6.3, $6.4, and $4.1, respectively, and the related tax benefit was $2.4, $2.4 and $1.6, respectively. None of the tax benefits have been realized. Stock Option Awards No stock options were granted during fiscal years 2016, 2015, and 2014. Stock option activity for fiscal year 2016 is presented below:
During fiscal year 2016, cash received from the exercise of stock options was $0.7 and the related intrinsic value was $0.7. During fiscal year 2015, cash received from the exercise of stock options was $1.5 and the related intrinsic value was $0.9. During fiscal year 2014, cash received from the exercise of stock options was $1.7 and the related intrinsic value was $0.9. Related tax benefits were not material in any of those years. The closing price of the Company’s common stock was $63.74 per share at September 30, 2016. Equity Compensation Costs Compensation cost for performance-contingent restricted stock and stock unit awards is based upon the probable outcome of the performance conditions. For shares or units that do not vest or that are not expected to vest due to the outcome of the performance conditions (excluding market conditions), no compensation cost is recognized and any previously recognized compensation cost is reversed. The fair value of awards of performance-contingent and time-vested restricted stock and restricted stock units, not subject to the TSR provision, are estimated using the closing price of the Company’s stock on the date of the grant. For those awards that do not pay dividends during the vesting period, the estimate of fair value is reduced by the present value of the dividends expected to be paid on the Company’s common stock during the performance period, discounted using an appropriate US Treasury yield. For shares subject to the TSR provision, the estimated impact of this market condition is reflected in the grant date fair value per share of the awards. Accordingly, compensation cost is not reversed to reflect any actual reductions in the awards that may result from the TSR provision. However, if the Company’s TSR during the performance period ranks below the level specified in the award agreements, relative to a comparator group of companies, and the Committee elects not to reduce the award (or reduce by a lesser amount), this election would be accounted for as a modification of the original award and additional compensation cost would be recognized at that time. The grant date fair value of the awards subject to the TSR provision awarded during fiscal years 2016, 2015, and 2014 was valued by a Monte Carlo simulation model that assessed the probabilities of various TSR outcomes. The significant assumptions used in the Monte Carlo simulations are as follows:
The risk free interest rate was based on the yield on US Treasury securities matching the vesting period. A zero percent dividend yield was used, which is mathematically equivalent to the assumption that dividends are reinvested as they are paid. The expected volatility is based on the historical volatility of the Company’s stock. Volatility assumptions were also made for each of the companies included in the comparator group. The vesting period is equal to the performance period set forth in the terms of the award. The amounts of compensation cost recognized for share-based compensation arrangements are presented below:
As of September 30, 2016, there was $9.2 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.8 years. |
EARNINGS PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE
Spire’s 2014 2.0% Series Equity Units issued in June 2014 are potentially dilutive securities, but were excluded from the calculation of diluted EPS for the years ended September 30, 2016, 2015 and 2014. The potential shares were not included in the outstanding shares excluded from the calculation of Diluted EPS in the table above. See Note 5 for more information. |
STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Equity Units In June 2014, Spire issued 2.875 million equity units, initially consisting of Corporate Units, for an aggregate stated amount of approximately $143.8. Each Corporate Unit has a stated amount of fifty dollars and consists of (i) a stock purchase contract obligating the holder to purchase shares of Spire’s common stock, par value $1.00 per share, and (ii) a 1/20, or 5%, undivided beneficial ownership interest in one thousand dollars principal amount of Spire’s 2014 Series A 2.00% Remarketable Junior Subordinated Notes due 2022 (RSNs). The stock purchase contracts obligate the holders to purchase shares of common stock at a future settlement date prior to the relevant RSN maturity date. The purchase price to be paid under the stock purchase contracts is fifty dollars per Corporate Unit and the number of shares to be purchased will be determined as follows:
The RSNs are pledged as collateral to secure the purchase of Spire’s common stock under the related stock purchase contracts. The Company makes quarterly interest payments on the RSNs and quarterly contract adjustment payments on the stock purchase contracts, at the rates described below. The Company may defer payments on the stock purchase contracts and the RSNs for one or more consecutive periods but generally not beyond the purchase contract settlement date. If payments are deferred, interest on the RSNs and contract adjustment payments will compound on each respective payment date in which the payment was deferred. Also, during the deferral period, the Company may not make any cash distributions related to its capital stock, including dividends, redemptions, repurchases, liquidation payments or guarantee payments. Additionally, the Company may not make any payments on or redeem or repurchase any debt securities that are equal in right of payment with, or subordinated to, the RSNs during the deferral period. The Company has recorded the present value of the stock purchase contract payments as a liability offset by a charge to additional paid-in capital in equity. Interest payments on the RSNs are recorded as interest expense and stock purchase contract payments are charged against the liability. Accretion of the stock purchase contract liability is recorded as imputed interest expense. In calculating diluted EPS, the Company applies the treasury stock method to the Corporate Units. These securities did not have an effect on diluted EPS for the years ended September 30, 2016 and 2015. Under the terms of the stock purchase contracts, assuming no anti-dilution or other adjustments, Spire will issue between approximately 2.5 million and 3.1 million shares of its common stock in April 2017. A total of approximately 4.2 million shares of common stock have been reserved for issuance in connection with the stock purchase contracts. The stock purchase contracts obligate the holders to purchase shares of common stock at a future settlement date (April 1, 2017, or if such day is not a business day, the following business day) prior to the relevant RSN maturity date. Selected information about the Company’s equity units is presented below:
Other Stock Information Spire On June 20, 2014, Spire filed a registration statement on Form S-3 for the issuance and sale of up to 168,698 shares of its common stock under its Dividend Reinvestment and Stock Purchase Program. There were 106,535 and 101,439 shares at September 30, 2016 and November 11, 2016, respectively, remaining available for issuance under this Form S-3. On May 17, 2016, Spire completed a public offering of 2,185,000 shares of its common stock, generating $133.2 of proceeds net of issuance costs. On September 23, 2016, Spire and Laclede Gas filed with the SEC a joint shelf registration statement on Form S-3 for issuance of various types of debt and equity securities, which registration statement will expire September 22, 2019. The amount, timing, and type of additional financing to be issued under this shelf registration statement will depend on cash requirements and market conditions. At September 30, 2016 and 2015, Spire had authorized 5,000,000 shares of preferred stock, but none were issued and outstanding. Laclede Gas Laclede Gas periodically sells shares of its stock to Spire at prices per share equal to book value on the last day of the quarter preceding each sale. There was no sale of shares to Spire during fiscal years 2016 or 2015. Laclede Gas sold 28 shares to Spire for $1.1 during fiscal year 2014. Exemption from registration for all of the sales was claimed under section 4(a)(2) of the Securities Act of 1933, as amended. Substantially all of Laclede Gas plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Laclede Gas’ ability to pay cash dividends on its common stock or to make loans to its parent company. These mortgage restrictions are applicable regardless of whether the stock is publicly held or held solely by Laclede Gas’ parent company. Under the most restrictive of these provisions, no cash dividend may be declared or paid if, after the dividend, the aggregate net amount spent for all dividends after September 30, 1953 would exceed a maximum amount determined by a formula set out in the mortgage. Under that formula, the maximum amount is the sum of $8.0 plus earnings applicable to common stock (adjusted for stock repurchases and issuances) for the period from September 30, 1953 to the last day of the quarter before the declaration or payment date for the dividends. As of September 30, 2016 and 2015, the amount under the mortgage’s formula that was available to pay dividends was $916.8 and $891.7, respectively. Thus, all of Laclede Gas’ retained earnings were free from such dividend restrictions as of those dates. On September 23, 2016, Spire and Laclede Gas filed with the SEC a joint shelf registration statement on Form S-3 for issuance of various types of debt and equity securities, which registration statement will expire September 22, 2019. The amount, timing, and type of additional financing to be issued under this shelf registration statement will depend on cash requirements and market conditions, as well as future MoPSC authorizations. Laclede Gas has authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in capital, and enter into capital lease agreements, all for a total of up to $300.0. Laclede Gas has issued no securities under this authorization. At September 30, 2016 and 2015, Laclede Gas had authorized 1,480,000 shares of preferred stock, but none were issued and outstanding. Alagasco At September 30, 2016 and 2015, Alagasco has authorized 120,000 shares of preferred stock, but none were issued and outstanding. Other Comprehensive Income The components of accumulated other comprehensive income (loss), net of income taxes, recognized in the balance sheets at September 30 were as follows:
Income tax expense (benefit) recorded for items of other comprehensive income (loss) reported in the statements of comprehensive income is calculated by applying statutory federal, state, and local income tax rates applicable to ordinary income. The tax rates applied to individual items of other comprehensive income are similar within each reporting period. For the periods presented, Alagasco had no accumulated other comprehensive income (loss) balances. |
LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Composition of long-term debt for Spire, Laclede Gas and Alagasco are shown in each registrant’s statements of capitalization as part of the financial statements. Maturities of long-term debt for Spire, Laclede Gas and Alagasco for the five fiscal years subsequent to September 30, 2016 are as follows:
Spire’s, Laclede Gas’ and Alagasco’s short-term credit facilities and long-term debt agreements contain customary covenants and default provisions. As of September 30, 2016, there were no events of default under these covenants. The Company’s, Laclede Gas’, and Alagasco’s access to capital markets, including the commercial paper market, and their respective financing costs, may depend on the credit rating of the entity that is accessing the capital markets. The credit ratings of the Company, Laclede Gas and Alagasco remain at investment grade, but are subject to review and change by the rating agencies. It is management’s view that the Company, Laclede Gas and Alagasco have adequate access to capital markets and will have sufficient capital resources, both internal and external, to meet anticipated capital requirements, which primarily include capital expenditures, interest payments on long-term debt, scheduled maturities of long-term debt, short-term seasonal needs, and dividends. Spire Spire entered into a master note purchase agreement on June 20, 2016, with certain institutional purchasers pursuant to which Spire issued a total of $165.0 unsecured notes in the private placement market. These notes were issued on September 9, 2016 to fund a portion of the purchase price for the EnergySouth acquisition and consisted of $35 million in aggregate principal amount of its unsecured Series 2016 Senior Notes, Tranche A, due September 1, 2021 (Tranche A Notes) and $130 million in aggregate principal amount of its unsecured Series 2016 Senior Notes, Tranche B, due September 1, 2026 (Tranche B Notes). Tranche A Notes and Tranche B Notes bear interest at a rate per annum of 2.52% and 3.13%, respectively. At September 30, 2016, including the current portion but excluding unamortized discounts and net hedging gains, Spire had long-term debt totaling $2,085.8, of which $810.0 was issued by Laclede Gas, $250.0 was issued by Alagasco, and $67.0 was issued by other subsidiaries. With the exception of $250.0 floating rate senior notes issued by Spire, all long-term debt bears fixed rates and is subject to changes in fair value as market interest rates change. However, increases and decreases in fair value would impact earnings and cash flows only if the Company were to reacquire any of these issues in the open market prior to maturity. Under GAAP applicable to the Utilities’ regulated operations, losses or gains on early redemption of long-term debt typically would be deferred as regulatory assets or liabilities and amortized over a future period. Of the Company’s $1,942.0 senior long-term debt (including the current portion) , $25.0 have no call options, $937.0 have make-whole call options, $250.0 is callable currently, and $730.0 are callable at par between one to six months prior to maturity. The remainder of the Company’s long-term debt is $143.8 of 2% Remarketable Junior Subordinated Notes due in 2022. None of the debt has put options. Spire has a shelf registration statement on Form S-3 on file with the SEC for the issuance and sale of up to 168,698 shares of common stock under its Dividend Reinvestment and Direct Stock Purchase Plan. There were 106,535 and 101,439 at September 30, 2016 and November 11, 2016, respectively, remaining available for issuance under this Form S-3. Spire also has a shelf registration statement on Form S-3 on file with the SEC for the issuance of equity and debt securities. The Company’s capitalization at September 30, 2016 consisted of 49.1% of Spire common stock equity and 50.9% long-term debt, compared to 47.0% of Spire common stock equity and 53.0% of long-term debt at September 30, 2015. The decline in the proportion of long-term debt is due primarily to the reclassification of $250.0 of Spire’s long-term debt to “current.” Laclede Gas At September 30, 2016, Laclede Gas had fixed-rate long-term debt, including the current portion, totaling $810.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. Of Laclede Gas’ $810.0 in long-term debt, $25.0 have no call options, $435.0 have make-whole call options and $350.0 are callable at par three to six months prior to maturity. None of the debt has any put options. Laclede Gas has authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in-capital, and enter into capital lease agreements, all for a total of up to $300.0 for financings placed any time before September 30, 2018. On March 31, 2016, Laclede Gas filed an appeal with Missouri’s Western District Court of Appeals challenging the level of authority. On July 20, 2016, Laclede Gas filed its initial brief in the appeal. Oral arguments are scheduled for November 17, 2016. During the year ended September 30, 2016, Laclede Gas issued no securities under this authorization, so that as of November 11, 2016, $300.0 remains available to be issued. On September 23, 2016, Laclede Gas filed a shelf registration on Form S-3 with the SEC for issuance of first mortgage bonds, unsecured debt, and preferred stock, which expires on September 22, 2019. The amount, timing, and type of additional financing to be issued under this shelf registration will depend on cash requirements and market conditions, as well as future MoPSC authorizations. This authorization is more fully described in Note 5, Stockholders’ Equity. Laclede Gas’ capitalization at September 30, 2016 consisted of 56.9% of Laclede Gas common stock equity and 43.1% long-term debt compared to 56.2% of Laclede Gas common stock equity and 43.8% of long-term debt at September 30, 2015. Substantially all of Laclede Gas’ plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Laclede Gas’ ability to pay cash dividends on its common stock, which are described more fully in Note 5, Stockholders’ Equity. Alagasco Because Alagasco has no standing authority to issue long-term debt, it must petition the APSC for each planned issuance. On November 3, 2014, Alagasco received authorization and approval from the APSC to borrow $35.0 for the purpose of redeeming, without penalty, $34.8 in existing long-term, callable debt financed at 5.7%. Pursuant to a call notice issued on December 15, 2014, Alagasco redeemed $34.8 of debt effective January 15, 2015. On February 3, 2015, Alagasco received authorization and approval from the APSC to borrow $80.0 for the purpose of refinancing the scheduled maturity on December 1, 2015 of $80.0 of existing debt. Pursuant to these authorizations, Alagasco committed to issue $115.0 unsecured notes in the private placement market: $35.0 at a rate of 3.21% for 10 years issued on September 15, 2015, and $80.0 at a rate of 4.31% for 30 years issued on December 1, 2015. The Notes are senior unsecured obligations of Alagasco and rank equal in right to payment with all other senior unsecured indebtedness. Alagasco used the proceeds from the sale of the Notes to refinance existing indebtedness and for general corporate purposes. At September 30, 2016, Alagasco had fixed-rate long-term debt totaling $250.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. All of Alagasco’s $250.0 long-term debt has make-whole call options. Alagasco’s capitalization at September 30, 2016 consisted of 77.6% of Alagasco common stock equity and 22.4% long-term debt compared to 83.7% of Alagasco common stock equity and 16.3% of long-term debt at September 30, 2015. |
NOTES PAYABLE AND CREDIT AGREEMENTS |
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Short-term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT AGREEMENTS | NOTES PAYABLE AND CREDIT AGREEMENTS Short-term cash requirements outside of the Utilities have generally been funded by Spire or met with internally generated funds. At September 30, 2016, Spire had a $150.0 syndicated line of credit from nine banks maturing on September 3, 2019, with the largest portion provided by a single bank being 15.6%. The line of credit has a covenant limiting the total debt of the consolidated Spire to no more than 70% of the Company’s total capitalization. As defined in the line of credit, this ratio was 58.5% on September 30, 2016. Spire’s line may be used to provide for the funding needs of various subsidiaries. The maturity date of the loan agreement is September 3, 2019. The Utilities’ short-term borrowing requirements typically peak during the colder months while the Company’s needs are less seasonal. These short-term cash requirements can be met through the sale of commercial paper supported by lines of credit with banks or through direct use of the lines of credit. At September 30, 2016, Laclede Gas had a syndicated line of credit of $450.0 in place from ten banks. The largest portion provided by a single bank is 15.6%. Laclede Gas’ line of credit includes a covenant limiting total debt, including short-term debt, to no more than 70% of total capitalization. As defined in the line of credit, on September 30, 2016 total debt was 49.7% of total capitalization. Laclede Gas’ commercial paper program is backed by the line of credit. The maturity date of the line of credit is September 3, 2019. On September 2, 2014, Alagasco entered into a new $150.0 syndicated line of credit with twelve banks and extinguished the line that was in place prior to its acquisition by Spire. The largest portion provided by a single bank is 10%. The line of credit, which matures on September 2, 2019, has a covenant limiting total debt to no more than 70% of Alagasco’s total capitalization. As defined in the line of credit, this ratio stood at 27.8% on September 30, 2016. Spire Information about Spire’s short-term borrowings (excluding intercompany borrowings) during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
* Spire Inc., excluding its wholly owned subsidiaries. Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Spire’s pre-tax earnings and cash flows by approximately $2.7 on an annual basis, portions of which may be offset through the application of PGA or GSA carrying costs. Laclede Gas Information about Laclede Gas’ short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Laclede Gas’ pre-tax earnings and cash flows by approximately $2.2 on an annual basis, portions of which may be offset through the application of PGA carrying costs. Alagasco Information about Alagasco’s short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
Based on average short-term borrowings for the twelve months ended September 30, 2016, an increase in the average interest rate of 100 basis points would decrease Alagasco’s pre-tax earnings and cash flows by approximately $0.4 on an annual basis, portions of which may be offset through the application of GSA carrying costs. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Spire The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for the Company are as follows:
Laclede Gas The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Laclede Gas are as follows:
Alagasco The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Alagasco are as follows:
The carrying amounts for cash and cash equivalents 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 9, Fair Value Measurements, for information on financial instruments measured at fair value on a recurring basis. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Spire The information presented below 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. 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 the closing net asset value per unit. Derivative instruments included in Level 1 are valued using quoted market prices on the NYMEX. Derivative instruments classified as 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. There were no material Level 3 balances as of September 30, 2016 or 2015. The Company’s and the 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. 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 exist between the Company or Laclede Gas and the counterparty to the derivative contract. For additional information on derivative instruments, see Note 10, Derivative Instruments and Hedging Activities.
Laclede Gas
Alagasco During the fiscal second quarter of 2016 Alagasco commenced a gasoline derivative program to stabilize the cost of fuel used in operations. As of September 30, 2016, the fair value of related gasoline contracts was not significant. |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Spire Laclede Gas has a risk management policy to utilize various derivatives, including futures contracts, exchange-traded options, swaps and over-the-counter instruments for the explicit purpose of managing price risk associated with purchasing and delivering natural gas on a regular basis to customers in accordance with its tariffs. The objective of this policy is to limit Laclede Gas’ exposure to natural gas price volatility and to manage, hedge and mitigate substantial price risk. Further discussion of this policy can be found in the Laclede Gas section. From time to time Laclede Gas and Alagasco purchase NYMEX futures and options contracts to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of their business. Further information on these derivatives can be found in the Laclede Gas and Alagasco sections, respectively. In the course of its business, Spire’s gas marketing subsidiary, LER, which includes its wholly owned subsidiary LER Storage Services, Inc., enters into commitments associated with the purchase or sale of natural gas. Certain of LER’s derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of ASC Topic 815 and are accounted for as executory contracts on an accrual basis. Any of LER’s derivative natural gas contracts that are not designated as normal purchases or normal sales are accounted for at fair value. At September 30, 2016, the fair values of 122.7 million MMBtu of non-exchange traded natural gas commodity contracts were reflected in the Consolidated Balance Sheet. Of these contracts, 110.8 million MMBtu will settle during fiscal year 2017, and 11.4 million MMBtu, 0.2 million MMBtu, and 0.3 million MMBtu will settle during 2018, 2019, and 2020, respectively. These contracts have not been designated as hedges; therefore, changes in the fair value of these contracts are reported in earnings each period. Furthermore, LER manages the price risk associated with its fixed-priced commitments by either closely matching the offsetting physical purchase or sale of natural gas at fixed prices or through the use of NYMEX or ICE futures, swap, and option contracts to lock in margins. At September 30, 2016, LER’s unmatched fixed-price positions were not material to Spire’s financial position or results of operations. LER’s NYMEX and ICE natural gas futures, swap, and option contracts used to lock in margins may be designated as cash flow hedges of forecasted transactions for financial reporting purposes. On April 14, 2014, as amended on July 8, 2014, Spire entered into certain interest rate swap agreements, with a notional amount $375.0, to effectively lock in interest rates on a portion of the long-term debt it anticipated issuing to finance its acquisition of Alagasco. These derivative instruments were designated as cash flow hedges of forecasted transactions. These forward starting swaps involved the payment of a fixed interest rate and the receipt of a floating interest rate (the London Interbank Offered Rate, also known as LIBOR) over the terms specified in the contracts. On August 6, 2014, the interest rate swap agreements were terminated and the settlement resulted in a $19.0 loss by Spire, which assigned the loss as a regulatory asset since the interest rate swaps were entered into to hedge the interest payments on the $625.0 of long-term debt issued on August 19, 2014 by Spire. During the second quarter of fiscal year 2015, Alagasco entered into certain interest rate swap transactions to protect itself against adverse movement in interest rates in anticipation of its issuance of $115.0 of long-term debt. Alagasco received prior approval from the APSC to enter into these hedges. The notional amount of interest rate swaps outstanding was $80.5 with stated maturities ranging from 2025 to 2045 and fixed interest rates ranging between 2.18% and 2.85%. In April 2015, Alagasco entered into an additional hedge with a notional amount of $24.0 and terms within the same range. These derivative instruments were designated as cash flow hedges of forecasted transactions. These forward starting swaps involved the payment of a fixed interest rate and the receipt of LIBOR over the terms specified in the contracts. On May 21, 2015, the interest rate swap agreements were terminated and the settlement resulted in a $2.7 gain which was recorded as a regulatory liability. Of the total issuance of long-term debt, $35.0 was issued on September 15, 2015 and the remaining $80.0 was issued on December 1, 2015. During the second quarter of fiscal 2016, Spire entered into five-year interest rate swap transactions with a fixed interest rate of 1.776% and a notional amount of $105.0 to protect itself against adverse movement in interest rates in anticipation of the issuance of long-term debt in 2017. During the third quarter of 2016, the Company entered into seven-year swap transactions with an average fixed interest rate of 1.501% and a notional amount of $120.0 to hedge against additional debt expected to be issued in 2017 or early 2018. As a result, a $1.0 mark-to-market gain and $3.0 mark-to-market losses were recognized for the three and twelve months ended September 30, 2016, respectively. On May 5, 2016, Spire entered into certain interest rate swap agreements, with a notional amount of $85.0, to effectively lock in interest rates on a portion of the long-term debt it anticipated issuing to finance its acquisition of EnergySouth. These derivative instruments were designated as cash flow hedges of forecasted transactions. On June 3, 2016, the interest rate swap agreements were terminated and the settlement resulted in a $0.4 payment recorded in accumulated other comprehensive loss to be amortized over the life of the related debt issuances. The Company’s and Laclede Gas’ exchange-traded/cleared derivative instruments consist primarily of NYMEX, OTCBB, and ICE positions. The NYMEX and OTCBB is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX/ICE and OTCBB natural gas futures and swap positions at September 30, 2016 were as follows:
At September 30, 2016, Laclede Gas also had 19.8 million MMBtu of other price mitigation in place through the use of NYMEX and OTCBB natural gas option-based strategies while LER had none. Derivative instruments designated as cash flow hedges of forecasted transactions are recognized on the balance sheets of the Company at fair value and the change in the fair value of the effective portion of these hedge instruments is recorded, net of tax, in other comprehensive income or loss (OCI). Accumulated other comprehensive income or loss (AOCI) is a component of Total Common Stock Equity. Amounts are reclassified from AOCI into earnings when the hedged items affect net income, using the same revenue or expense category that the hedged item impacts. Based on market prices at September 30, 2016, it is expected that an immaterial amount of unrealized gains will be reclassified into the Consolidated Statements of Income of the Company during the next twelve months. Cash flows from hedging transactions are classified in the same category as the cash flows from the items that are being hedged in the Consolidated Statements of Cash Flows.
Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:
Additionally, at September 30, 2016 and 2015, the Company had $2.9 and $5.9, respectively, in cash margin receivables not offset with derivatives, which are presented in Accounts Receivable – Other. Laclede Gas Laclede Gas has a risk management policy to utilize various derivatives, including futures contracts, exchange-traded options, swaps and over-the-counter instruments for the explicit purpose of managing price risk associated with purchasing and delivering natural gas on a regular basis to customers in accordance with its tariffs. The objective of this policy is to limit Laclede Gas’ exposure to natural gas price volatility and to manage, hedge and mitigate substantial price risk. This policy strictly prohibits speculation and permits Laclede Gas to hedge current physical natural gas purchase commitments or forecasted or anticipated future peak (maximum) physical need for natural gas delivered. Costs and cost reductions, including carrying costs, associated with Laclede Gas’ use of natural gas derivative instruments are allowed to be passed on to Laclede Gas customers through the operation of its PGA clause, through which the MoPSC allows Laclede Gas to recover gas supply costs, subject to prudence review by the MoPSC. Accordingly, Laclede Gas does not expect any adverse earnings impact as a result of the use of these derivative instruments. Laclede Gas does not designate these instruments as hedging instruments for financial reporting purposes because gains or losses associated with the use of these derivative instruments are deferred and recorded as regulatory assets or regulatory liabilities pursuant to ASC Topic 980, “Regulated Operations,” and, as a result, have no direct impact on the statements of income. The timing of the operation of the PGA clause may cause interim variations in short-term cash flows, because Laclede Gas is subject to cash margin requirements associated with changes in the values of these instruments. Nevertheless, carrying costs associated with such requirements are recovered through the PGA clause. From time to time, Laclede Gas purchases NYMEX futures and options contracts to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of its business. At September 30, 2016, Laclede Gas held 1.8 million gallons of gasoline futures contracts at an average price of $1.37 per gallon. Most of these contracts, the longest of which extends to December 2016, are designated as cash flow hedges of forecasted transactions pursuant to ASC Topic 815, “Derivatives and Hedging.” The gains or losses on these derivative instruments are not subject to Laclede Gas’ PGA clause. Derivative instruments designated as cash flow hedges of forecasted transactions are recognized on the balance sheets at fair value and the change in the fair value of the effective portion of these hedge instruments is recorded, net of tax, in OCI. AOCI is a component of Total Common Stock Equity. Amounts are reclassified from AOCI into earnings when the hedged items affect net income, using the same revenue or expense category that the hedged item impacts. Based on market prices at September 30, 2016, it is expected that an immaterial amount of pre-tax gains will be reclassified into the statements of income during fiscal year 2016. Cash flows from hedging transactions are classified in the same category as the cash flows from the items that are being hedged in the statements of cash flows. Laclede Gas’ derivative instruments consist primarily of NYMEX and OTCBB positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX and OTCBB natural gas futures positions at September 30, 2016 were as follows:
At September 30, 2016, Laclede Gas also had 19.8 million MMBtu of other price mitigation in place through the use of NYMEX and OTCBB natural gas option-based strategies.
Following is a reconciliation of the amounts in the tables above to the amounts presented in Laclede Gas’ Balance Sheets:
Additionally, at September 30, 2016 and 2015, Laclede Gas had $0.5 and $5.9, respectively, in cash margin receivables not offset with derivatives, which are presented in Accounts Receivable – Other. Alagasco In prior years, Alagasco entered into cash flow derivative commodity instruments to hedge its exposure to price fluctuations on its gas supply. Alagasco recognizes all derivatives at fair value as either assets or liabilities on the balance sheet. Any realized gains or losses are passed through to customers using the mechanisms of the GSA rider in accordance with Alagasco’s APSC approved tariff. During the second quarter of fiscal year 2015, Alagasco entered into certain interest rate swap transactions to protect itself against adverse movement in interest rates in anticipation of its issuance of $115.0 of long-term debt. Alagasco received prior approval from the APSC to enter into these hedges. The notional amount of interest rate swaps outstanding was $80.5 with stated maturities ranging from 2025 to 2045 and fixed interest rates ranging between 2.18% and 2.85%. In April 2015, Alagasco entered into an additional hedge with a notional amount of $24.0 and terms within the same range. These derivative instruments were designated as cash flow hedges of forecasted transactions. These forward starting swaps involved the payment of a fixed interest rate and the receipt of LIBOR over the terms specified in the contracts. On May 21, 2015, the interest rate swap agreements were terminated and the settlement resulted in a $2.7 gain which was recorded as a regulatory liability. Of the total issuance of long-term debt, $35.0 was issued on September 15, 2015 and the remaining $80.0 was issued on December 1, 2015. During the fiscal second quarter of 2016, Alagasco commenced a gasoline derivative program to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of its business. At September 30, 2016, Alagasco held 0.6 million gallons of gasoline futures contracts at an average price of $1.53 per gallon. Most of these contracts, the longest of which extends to December 2017, are designated as cash flow hedges of forecasted transactions pursuant to ASC Topic 815, “Derivatives and Hedging.” The gains or losses on these derivative instruments are not subject to Alagasco’s GSA clause. As of September 30, 2016, the fair value of related gasoline contracts was not significant. |
CONCENTRATIONS OF CREDIT RISK |
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Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Other than in LER (the Gas Marketing segment), Spire has no significant concentration of credit risk. A significant portion of LER’s transactions are with (or are associated with) energy producers, utility companies, and pipelines. These concentrations of transactions with these counterparties have the potential to affect the Company’s overall exposure to credit risk, either positively or negatively, in that each of these three groups may be affected similarly by changes in economic, industry, or other conditions. To manage this risk, as well as credit risk from significant counterparties in these and other industries, LER has established procedures to determine the creditworthiness of its counterparties. These procedures include obtaining credit ratings and credit reports, analyzing counterparty financial statements to assess financial condition, and considering the industry environment in which the counterparty operates. This information is monitored on an ongoing basis. In some instances, LER may require credit assurances such as prepayments, letters of credit, or parental guarantees. In addition, LER may enter into netting arrangements to mitigate credit risk with counterparties in the energy industry from which LER both sells and purchases natural gas. Sales are typically made on an unsecured credit basis with payment due the month following delivery. Accounts receivable amounts are closely monitored and provisions for uncollectible amounts are accrued when losses are probable. LER records accounts receivable, accounts payable, and prepayments for physical sales and purchases of natural gas on a gross basis. The amount included in accounts receivable attributable to energy producers and their marketing affiliates amounted to $15.8 at September 30, 2016 ($12.4 reflecting netting arrangements). LER’s accounts receivable attributable to utility companies and their marketing affiliates comprised $52.8 of total accounts receivable at September 30, 2016 ($50.5 reflecting netting arrangements). LER also has concentrations of credit risk with certain individually significant counterparties and with pipeline companies associated with its natural gas receivable amount. At September 30, 2016, the amounts included in accounts receivable from LER’s five largest counterparties (in terms of net accounts receivable exposure) totaled $31.2 ($27.2 reflecting netting arrangements). These five counterparties are either investment-grade rated or owned by investment-grade rated companies. |
INCOME TAXES |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Spire The Company’s provision for income taxes charged during the fiscal years ended September 30, 2016, 2015, and 2014 are as follows:
The Company’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. The Company’s significant items comprising the net deferred tax liability recorded in the Consolidated Balance Sheets as of September 30 are as follows:
In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not the Company will realize the benefits of these deferred tax assets. The Company has federal and state loss carryforwards of approximately $297.0 at September 30, 2016. The Company also has contribution carryforwards of approximately $12.2 at September 30, 2016. The loss carryforwards begin to expire in the fiscal year ending 2030 for certain state purposes and 2035 for federal and other states purposes. The contribution carryforwards begin to expire in fiscal year 2017. The Company has established a valuation allowance of $0.9 during the fiscal year as a portion of the charitable contribution carryforward will not be realized prior to its expiration. The Company also has various tax credit carryforwards of approximately $3.5 that begin to expire in 2017. The Company recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits, accrued interest payable, and accrued penalties payable are reported as a reduction of a deferred tax asset for an operating loss carryforward. The following table presents a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:
The amount of unrecognized tax benefits which, if recognized, would affect the Company’s effective tax rate were $3.3 and $3.1 as of September 30, 2016 and 2015, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of the Company’s unrecognized tax benefits. The Company does not expect that any such change will be significant to the Consolidated Balance Sheets. As of September 30, 2016 and 2015, interest accrued associated with the Company’s uncertain tax positions was de minimis, and no penalties were accrued as of September 30, 2016. The Company is subject to US federal income tax as well as income tax in various state and local jurisdictions. The Company is no longer subject to examination for fiscal years prior to 2013. Regarding the Company’s recent EnergySouth acquisition, tax returns for the calendar years 2013 through 2015 remain open and subject to examination by the Internal Revenue Service and state taxing jurisdictions. These returns cover periods during which EnergySouth was owned by Sempra Global. The impact of any adjustments made to these returns by the relevant taxing authorities would be addressed by the indemnification provisions of the stock purchase agreement with Sempra Global. Laclede Gas Laclede Gas’ provision for income taxes charged during the fiscal years ended September 30, 2016, 2015, and 2014 are as follows:
Laclede Gas’ effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. Laclede Gas’ significant items comprising the net deferred tax liability reported in the Balance Sheets as of September 30 are as follows:
Spire files a consolidated federal return and various state income tax returns and allocates income taxes to Laclede Gas and its other subsidiaries as if each entity were a separate taxpayer. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not that Laclede Gas will realize the benefits of these deferred tax assets. Laclede Gas has state and federal loss carryforwards of approximately $105.0, at September 30, 2016, based on a separate company basis. For federal tax purposes, these loss carryforwards may be utilized against income from another member of the consolidated group. Laclede Gas also has contribution carryforwards of approximately $12.0 at September 30, 2016. The loss carryforwards begin to expire in the fiscal year ending 2035 for federal and state purposes. The contribution carryforwards begin to expire in fiscal year ending 2017. Laclede Gas has established a valuation allowance of $0.9 during the fiscal year as a portion of the charitable contribution carryforward will not be realized prior to its expiration. Laclede Gas also has approximately $2.0 of various tax credit carryforwards with expiration dates which begin to expire in 2017. Laclede Gas recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Laclede Gas records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits, accrued interest payable, and accrued penalties payable are reported as a reduction of a deferred tax asset for an operating loss carryforward. The following table presents a reconciliation of the beginning and ending balances of Laclede Gas unrecognized tax benefits:
The amount of unrecognized tax benefits, which, if recognized, would affect Laclede Gas’ effective tax rate were $3.1 and $2.9 as of September 30, 2016 and 2015, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of Laclede Gas’ unrecognized tax benefits. Laclede Gas does not expect that any such change will be significant to Laclede Gas’ Balance Sheets. As of September 30, 2016 and 2015, interest accrued associated with Laclede Gas’ uncertain tax positions was de minimis, and no penalties were accrued. Laclede Gas is subject to US federal income tax as well as income tax in various state and local jurisdictions, and is no longer subject to examination for fiscal years prior to 2013. Alagasco Alagasco’s provision for income taxes charged during the fiscal years ended September 30, 2016 and 2015, and the nine months ended September 30, 2014, are as follows:
Alagasco’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
Alagasco’s significant items comprising the net deferred tax asset reported in the Balance Sheets as of September 30 are as follows:
Spire files a consolidated federal return and various state income tax returns and allocates income taxes to Alagasco and its other subsidiaries as if each entity were a separate taxpayer. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not that Alagasco will realize the benefits of these deferred tax assets. On a separate company basis, Alagasco has state and federal loss carryforwards of approximately $159.0, at September 30, 2016 generated since the acquisition. The loss carryforwards begin to expire in the fiscal year ending 2030 for state purposes and 2035 for federal purposes. For federal tax purposes, these loss carryforwards may be utilized against income from another member of the consolidated group. Alagasco recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Alagasco records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Alagasco has reported no unrecognized tax benefits since the acquisition by Spire in August 2014. The following table presents a reconciliation of the beginning and ending balances of Alagasco’s unrecognized tax benefits:
Alagasco is subject to US federal income tax as well as income tax in various state and local jurisdictions. Alagasco’s tax returns for the periods after 2012 remain open and subject to examination by the Internal Revenue Service and state taxing jurisdictions. The returns covering 2013 and 2014 include periods during which Alagasco was owned by Energen. The impact of any adjustments made to those returns by the relevant taxing authorities would be addressed by the indemnification provisions of the stock purchase agreement with Energen. |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
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Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS The Spire information in this note reflects all plans of the Company, including information for plans of EnergySouth since September 12, 2016 and Alagasco since August 31, 2014. The net pension and postretirement obligations were re-measured at those acquisition dates as well as at the fiscal year end. Pension Plans The pension plans of Spire consist of plans for employees at the Missouri Utilities, plans covering the employees of Alagasco, and plans covering employees for EnergySouth. The Missouri Utilities have non-contributory, defined benefit, trusteed forms of pension plans covering the majority of their employees. Plan assets consist primarily of corporate and US government obligations and a growth segment consisting of exposure to equity markets, commodities, real estate and inflation-indexed securities, achieved through derivative instruments and investments in diversified mutual funds. Alagasco has non-contributory, defined benefit, trusteed forms of pension plans covering the majority of its employees. Qualified plan assets are comprised of United States equities consisting of mutual and commingled funds with varying strategies, global equities consisting of mutual funds, alternative investments of limited partnerships and commingled and mutual funds, and fixed income investments. The net periodic pension costs include the following components:
Other changes in plan assets and pension benefit obligations recognized in other comprehensive income or loss (OCI) include the following:
Spire pension obligations are driven by separate plan and regulatory provisions governing Laclede Gas, Alagasco and EnergySouth pension plans. Pursuant to the provisions of the Missouri Utilities’ and Alagasco’s pension plans, pension obligations may be satisfied by lump-sum cash payments. Lump-sum payments are recognized as settlements (which can result in gains or losses) only if the total of such payments exceeds 100% of the sum of service and interest costs in a specific year. Special termination benefits, when offered, are also recognized as settlements which can result in gains or losses. Two Alagasco plans and one Laclede plan met the criteria for settlement recognition in the fiscal year ended September 30, 2016, requiring re-measurement of the obligation under those plans using updated census data and assumptions for discount rate and mortality. Lump-sum payments recognized as settlements during fiscal year 2016, 2015, and 2014 were $16.6 (attributable to Alagasco), $71.1, and $22.1, respectively. Pursuant to a MoPSC Order, the return on plan assets is based on the market-related value of plan assets implemented prospectively over a four-year period. Gains or losses not yet includible in pension cost are amortized only to the extent that such gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets. Such excess is amortized over the average remaining service life of active participants. The recovery in rates for Laclede Gas’ eastern Missouri qualified pension plan is based on an annual allowance of $15.5 effective January 1, 2011. The recovery in rates for MGE’s qualified pension plan is based on an annual allowance of $10 effective February 20, 2010. The difference between these amounts and pension expense as calculated pursuant to the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability. The following table shows the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic pension cost consist of:
At September 30, 2016, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic pension cost during fiscal year 2017:
The assumptions used to calculate net periodic pension costs for Laclede Gas are as follows:
The assumptions used to calculate net periodic pension costs for Alagasco are as follows:
* Nine-month transition period ended September 30 The weighted average discount rate is based on long-term, high quality bond indices at the measurement date. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each class. The assumptions used to calculate the benefit obligations are as follows:
Following are the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas and Alagasco:
Laclede Gas’ investment policies are designed to maximize, to the extent possible, the funded status of the plan over time, and minimize volatility of funding and costs. The policy seeks to maximize investment returns consistent with these objectives and Laclede Gas’ tolerance for risk. The duration of plan liabilities and the impact of potential changes in asset values on the funded status are fundamental considerations in the selection of plan assets. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with the policy. The policy seeks to avoid significant concentrations of risk by investing in a diversified portfolio of assets. Investments in corporate, US government and agencies, and, to a lesser extent, international debt securities seek to provide duration matching with plan liabilities, and typically have investment grade ratings and reflect allocations across various entities and industries. There are also exposures to additional asset types in the target portfolio: commodities, real estate and inflation-indexed securities. During 2015, the target portfolio was rebalanced to include a higher weighting for the growth (equity) component and a lower weighting to the liability-driven (debt) component. The investment policy permits the use of derivative instruments, which may be used to achieve the desired market exposure of an index, adjust portfolio duration, or rebalance the total portfolio to the target asset allocation. The Growth Strategy utilizes a combination of derivative instruments and debt securities to achieve diversified exposure to equity and other markets while generating returns from the fixed-income investments and providing further duration matching with the liabilities. Performance and compliance with the guidelines is regularly monitored. The policy calls for increased allocations to debt securities as the funded status improves. Alagasco employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets with a prudent level of risk. Risk tolerance is established through consideration of plan liabilities, plan funded status, corporate financial condition and market conditions. Alagasco has developed an investment strategy that focuses on asset allocation, diversification and quality guidelines. The investment goals are to obtain an adequate level of return to meet future obligations of the plan by providing above average risk-adjusted returns with a risk exposure in the mid-range of comparable funds. Investment managers are retained by Alagasco to manage separate pools of assets. Funds are allocated to such managers in order to achieve an appropriate, diversified, and balanced asset mix. Comparative market and peer group benchmarks are utilized to ensure that investment managers are performing satisfactorily. Alagasco seeks to maintain an appropriate level of diversification to minimize the risk of large losses in a single asset class. Accordingly, plan assets for the pension plans do not have a concentration of assets in a single entity, industry, country, commodity or class of investment fund. Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter, for Spire, Laclede Gas, and Alagasco:
The funding policy of Laclede Gas and Alagasco is to contribute an amount not less than the minimum required by government funding standards, nor more than the maximum deductible amount for federal income tax purposes. Laclede Gas contributions to the pension plans in fiscal year 2017 are anticipated to be $29.0 into the qualified trusts, and $0.6 into the non-qualified plans. Alagasco has no required contributions to the qualified pension plans during 2017. Additionally, it is not anticipated that the funded status of the qualified pension plans will fall below statutory thresholds requiring accelerated funding or constraints on benefit levels or plan administration. During fiscal 2017, Alagasco may make additional discretionary contributions to the qualified pension plans depending on the amount and timing of employee retirements and market conditions. Postretirement Benefits The Utilities provide certain life insurance benefits at retirement. Laclede Gas plans provide for medical insurance after early retirement until age 65. For retirements prior to January 1, 2015, the MGE plans provided medical insurance after retirement until death. For retirements after January 1, 2015, the MGE plans provide medical insurance after early retirement until age 65. Under the Alagasco plans, medical insurance is currently available upon retirement until death for certain retirees depending on the type of employee and the date the employee was originally hired. Net periodic postretirement benefit costs consist of the following components:
Other changes in plan assets and postretirement benefit obligations recognized in OCI include the following:
Pursuant to a MoPSC Order, the return on plan assets is based on the market-related value of plan assets implemented prospectively over a four-year period. Gains and losses not yet includible in postretirement benefit cost are amortized only to the extent that such gain or loss exceeds 10% of the greater of the accumulated postretirement benefit obligation or the market-related value of plan assets. Such excess is amortized over the average remaining service life of active participants. The recovery in rates for Laclede Gas’ postretirement benefit plans is based on an annual allowance of $9.5 effective January 1, 2011. The difference between these amounts and postretirement benefit cost based on the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability. The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic postretirement benefit cost consist of:
At September 30, 2016, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during fiscal year 2017:
The assumptions used to calculate net periodic postretirement benefit costs for Laclede Gas are as follows:
The assumptions used to calculate net periodic postretirement benefit costs for Alagasco are as follows:
The weighted average discount rate is based on long-term, high quality bond indices at the measurement date. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each class. The assumptions used to calculate the accumulated postretirement benefit obligations for Laclede Gas are as follows:
The assumptions used to calculate the accumulated postretirement benefit obligations for Alagasco are as follows:
The assumed medical cost trend rates at September 30 are as follows:
The following table presents the effects of an assumed 1% change in the assumed medical cost trend rate:
Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas and Alagasco:
Missouri state law provides for the recovery in rates of costs accrued pursuant to GAAP provided that such costs are funded through an independent, external funding mechanism. Laclede Gas established Voluntary Employees’ Beneficiary Association and Rabbi Trusts as its external funding mechanisms. Laclede Gas’ investment policy seeks to maximize investment returns consistent with Laclede Gas’ tolerance for risk. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with policy. Performance and compliance with the guidelines is regularly monitored. Laclede Gas’ current investment policy targets an asset allocation of 60% to equity securities and 40% to debt securities, excluding cash held in short-term debt securities for the purpose of making benefit payments. Laclede Gas currently invests in a mutual fund which is rebalanced on an ongoing basis to the target allocation. The mutual fund is diversified across US stock and bond markets. Alagasco established Voluntary Employees’ Beneficiary Association accounts as its external funding mechanisms for post-retirement benefit costs. Alagasco’s investment policy seeks to maximize investment returns consistent with its tolerance for risk. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with policy. Performance and compliance with the guidelines is regularly monitored. Alagasco’s current investment policy targets an asset allocation of 60% to equity securities and 40% to debt securities. Alagasco currently invests in several mutual funds which are rebalanced periodically to the target allocation. The mutual funds are diversified across US and international stock markets and the US bond market. Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Spire, Laclede Gas, and Alagasco:
Laclede Gas’ funding policy is to contribute amounts to the trusts equal to the periodic benefit cost calculated pursuant to GAAP as recovered in rates. Contributions to the postretirement plans in fiscal year 2017 are anticipated to be $10.3 to the qualified trusts and $0.4 paid directly to participants from Laclede Gas funds. Alagasco’s funding policy is to contribute amounts to the trusts equal to the periodic benefit cost calculated pursuant to GAAP as recovered in rates. In fiscal 2017, it is not anticipated that contributions will be made to the postretirement plans. Other Plans Laclede Gas and Alagasco sponsor 401(k) plans that cover substantially all employees. The plans allow employees to contribute a portion of their base pay in accordance with specific guidelines. Laclede Gas provides a match of such contributions within specific limits. The cost of the defined contribution plans of Laclede Gas amounted to $8.2, $8.0, and $6.7 for fiscal years 2016, 2015, and 2014, respectively. Alagasco also provides a match of employee contributions within specific limits. The cost of the defined contribution plans of Alagasco amounted to $2.3, $3.0, and $4.7 for fiscal years 2016 and 2015, and the nine months ended September 30, 2014, respectively. Fair Value Measurements of Pension and Other Postretirement Plan Assets Spire The table below categorizes the fair value measurements of the Spire pension plan assets:
The table below categorizes the fair value measurements of Spire’s postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. Laclede Gas The table below categorizes the fair value measurements of Laclede Gas’ pension plan assets:
The table below categorizes the fair value measurements of Laclede Gas’ postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. Alagasco The table below categorizes the fair value measurements of Alagasco’s pension plan assets:
The table below categorizes the fair value measurements of Alagasco’s postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. |
INFORMATION BY OPERATING SEGMENT |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INFORMATION BY OPERATING SEGMENT | INFORMATION BY OPERATING SEGMENT Spire The Company has two reportable segments: Gas Utility and Gas Marketing. The Gas Utility segment is the aggregation of the regulated operations of the Utilities. The Gas Marketing segment includes the results of LER, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, and LER Storage Services, Inc., which utilizes natural gas storage contracts for providing natural gas sales. Other includes:
Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from LER to Laclede Gas, sales of natural gas from Laclede Gas to LER, risk management services provided by Laclede Insurance Risk Services, Inc. to Laclede Gas, propane transportation services provided by Laclede Pipeline Company to Laclede Gas, and propane storage services provided by Laclede Gas to Laclede Pipeline Company. 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 net unrealized gains and losses and other timing differences associated with energy-related transactions. Net economic earnings also exclude the after-tax impacts related to acquisition, divestiture, and restructuring activities.
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REGULATORY MATTERS |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS The Utilities account for regulated operations in accordance with ASC Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2016 and 2015. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
Regulatory assets are expected to be recovered in rates charged to customers. A portion of the Company’s regulatory assets are not earning a return and are shown in the schedule below:
All of Alagasco’s regulatory assets currently earn a return. These regulatory assets are expected to be recovered from customers in future rates. Excluding deferred income taxes and purchased gas adjustment items, as of September 30, 2016 and 2015, approximately $404.8 and $372.4, respectively, of regulatory assets were not earning a rate of return. The Company expects these items to be recovered over a period not to exceed 15 years consistent with precedent set by the MoPSC. The portion of the regulatory asset related to pensions and other postemployment benefits that relates to unfunded differences between the projected benefit obligation and plan assets also does not earn a rate of return. Laclede Gas On November 12, 2015, the MoPSC approved an incremental Infrastructure System Replacement Surcharge (ISRS) amount of $4.4 for Laclede Gas’ eastern Missouri service territory and $1.9 for MGE, effective December 1, 2015, bringing total annualized ISRS revenue to $19.6 for Laclede Gas’ eastern Missouri service territory and $6.7 for MGE’s service territory. On January 15, 2016, the Missouri Office of the Public Counsel (OPC) filed an appeal to Missouri’s Western District Court of Appeals of the MoPSC’s decision permitting Laclede Gas to update its ISRS applications during the pendency of the case. On September 27, 2016, the Western District affirmed the report and order of the MoPSC. On May 19, 2016, the MoPSC approved an incremental ISRS amount of $5.4 for Laclede Gas’ eastern Missouri service territory and $3.6 for MGE, effective May 31, 2016, bringing total annualized ISRS revenue to $25.0 for Laclede Gas’ eastern Missouri service territory and $10.3 for MGE’s service territory. On June 30, 2016, the OPC again filed an appeal to Missouri’s Western District Court of Appeals of the MoPSC’s decision permitting Laclede Gas to update its ISRS applications during the pendency of the case. Laclede Gas believes the MoPSC’s decision was lawful and reasonable, and believes the updating process will again be upheld by the Western District and intends to vigorously oppose the appeal. On September 30, 2016 Laclede Gas filed to increase its ISRS revenues by $5.0 for Laclede Gas’ eastern Missouri service territory and $3.4 for MGE, related to ISRS investments from March 2016 through October 2016. The MoPSC suspended the tariff until January 28, 2017 and directed the MoPSC Staff (Staff) to file a recommendation no later than November 29, 2016. Laclede Gas previously had authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in capital, and enter into capital lease agreements, all for a total of up to $518.0. This authority was scheduled to expire June 30, 2015. On April 15, 2015, Laclede Gas applied to the MoPSC for a new financing authorization in the amount of $550.0, and on June 24, 2015, the MoPSC granted an extension of the current authorization until the pending application was resolved. On February 10, 2016, the MoPSC issued an order, by a 3-2 vote, authorizing Laclede financing authority for $300.0 for financings placed any time before September 30, 2018. Laclede Gas filed an application for rehearing, which was denied on March 9, 2016. On March 31, 2016, Laclede Gas filed an appeal with the Western District Court of Appeals concerning this matter. On July 20, 2016, Laclede Gas filed its initial brief before the Court. The MoPSC filed its reply brief on September 19, 2016. Laclede Gas filed its final brief on October 4, 2016. Oral arguments are scheduled for November 17, 2016. Laclede Gas issued no securities under this authorization since the decision and $300.0 remained available for issuance as of November 11, 2016. Alagasco Alagasco is subject to regulation by the APSC which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. Alagasco’s current RSE order has a term extending beyond September 30, 2018, unless the APSC enters an order to the contrary in a manner consistent with law. In the event of unforeseen circumstances, whether physical or economic, of the nature of force majeure and including a change in control, the APSC and Alagasco will consult in good faith with respect to modifications, if any. Effective January 1, 2014, Alagasco’s allowed range of return on average common equity is 10.5% to 10.95% with an adjusting point of 10.8%. Alagasco is eligible to receive a performance-based adjustment of 5 basis points to the return on equity adjusting point, based on meeting certain customer satisfaction criteria. Under RSE, the APSC conducts quarterly reviews to determine whether Alagasco’s return on average common equity at the end of the rate year will be within the allowed range of return. Reductions in rates can be made quarterly to bring the projected return within the allowed range; increases, however, are allowed only once each rate year, effective December 1, and cannot exceed 4% of prior-year revenues. There was no RSE reduction for the January 31, 2016 quarterly point of test. Related to the April 30, 2016 quarterly point of test, Alagasco recorded a $5.8 RSE reduction to operating revenues, which the APSC directed, by order dated June 20, 2016, be applied to the Gas Supply Adjustment (GSA) balance. The RSE reduction for the July 31, 2016 quarterly point of test was $4.8. As of September 30, 2016, Alagasco recorded a $2.7 RSE reduction to operating revenues to bring the expected rate of return on average common equity at the end of the year to within the allowed range of return. The quarterly point of test reductions from rate year 2016 went into effect October 1, 2016 for $4.8 and will go into effect December 1, 2016 for $2.7. On October 26, 2016, as part of their annual update for RSE, Alagasco filed a $1.3 reduction for rate year 2017, which is subject to review by APSC Staff and becomes effective December 1, 2016 unless otherwise ordered by the APSC. The inflation-based Cost Control Mechanism (CCM), established by the APSC, allows for annual increases to operations and maintenance (O&M) expense. The CCM range is Alagasco’s 2007 actual rate year O&M expense (Base Year) inflation-adjusted using the June Consumer Price Index For All Urban Consumers each rate year plus or minus 1.75% (Index Range). If rate year O&M expense falls within the Index Range, no adjustment is required. If rate year O&M expense exceeds the Index Range, three-quarters of the difference is returned to customers through future rate adjustments. To the extent that rate year O&M is less than the Index Range, Alagasco benefits by one-half of the difference through future rate adjustments. Certain items that fluctuate based on situations demonstrated to be beyond Alagasco’s control may be excluded from the CCM calculation. A CCM benefit to the company for such cost saving of $7.8 related to 2016 will be reflected in rates effective December 1, 2016. The CCM benefit was $4.7 for 2015. |
COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The Company and the Utilities have entered into contracts with various counterparties, expiring on dates through 2031, for the storage, transportation, and supply of natural gas. Minimum payments required by the Company under the contracts in place at September 30, 2016 are estimated at $1,647.8. Minimum payments required for Laclede Gas and Alagasco under the contracts are estimated at $1,227.6 and $352.7, respectively. Additional contracts are generally entered into prior to or during the heating season of November through April. The Missouri Utilities recover their costs from customers in accordance with their PGA clause and Alagasco recovers its cost through its GSA rider. Alagasco’s long-term contracts associated with the delivery and storage of natural gas include fixed charges of approximately $352.7 through August 2020. Alagasco also is committed to purchase minimum quantities of gas at market-related prices or to pay certain costs in the event the minimum quantities are not taken. These purchase commitments are approximately 93 Bcf through August 2020. Laclede Pipeline Company (Pipeline), a wholly owned subsidiary of Spire, is providing liquid propane transportation service to Laclede Gas pursuant to an approved FERC tariff and a contractual arrangement between Pipeline and Laclede Gas. In accordance with the terms of that agreement, Laclede Gas is obligated to pay Pipeline approximately $1.0 annually, at current rates. The agreement renews at the end of each contract year, unless terminated by either party upon provision of at least six months’ notice. Leases and Guarantees Aggregate rental expense and annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below:
The lease agreement covering the primary office space of Spire and its Missouri Utilities extends through February 2035. Laclede Gas has entered into various operating lease agreements for the rental of vehicles and power operated equipment. The lease agreement covering the primary office space of Alagasco extends through February 2018. Alagasco has an operating lease for additional office space that extends to January 31, 2024. Alagasco has subleased all of this office space to Energen pursuant to a sublease that expires on December 31, 2019 with an option to extend through January 31, 2024. Amounts in the table above have not been reduced for sublease rentals. For Alagasco and Spire, sublease rentals were $2.1, $2.1, and $0.2 for fiscal years 2016, 2015, and 2014, and minimum future rentals to be received in fiscal years 2017, 2018, 2019, and 2020 are $2.1, $2.1, $2.1, and $0.5, respectively. Laclede Gas, Alagasco and LER have other relatively minor rental arrangements that provide for minimum rental payments. A consolidated subsidiary is a general partner in an unconsolidated partnership that invests in real estate partnerships. The subsidiary and third parties are jointly and severally liable for the payment of mortgage loans in the aggregate outstanding amount of approximately $1.4 incurred in connection with various real estate ventures. Spire has no reason to believe that the other principal liable parties will not be able to meet their proportionate share of these obligations. Spire further believes that the asset values of the real estate properties are sufficient to support these mortgage loans. Contingencies The Company and Utilities account for environmental liabilities and other contingencies in accordance with accounting standards under the loss contingency guidance of ASC Topic 450, “Contingencies,” when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company and the Utilities own and operate natural gas distribution, transmission, and storage facilities, the operations of which are subject to various environmental laws, regulations, and interpretations. While environmental issues resulting from such operations arise in the ordinary course of business, such issues have not materially affected the Company’s or Utilities’ financial position and results of operations. As environmental laws, regulations, and their interpretations change, the Company or the Utilities may incur additional environmental liabilities that may result in additional costs. In addition to matters noted below, the Company, Laclede Gas, and Alagasco are involved in other litigation, claims, and investigations arising in the normal course of business. Management, after discussion with counsel, believes that the final outcome will not have a material effect on the consolidated statements of income, balance sheets, and statements of cash flows of the Company, Laclede Gas, or Alagasco. However, there is uncertainty in the valuation of pending claims and prediction of litigation results. In the natural gas industry, many gas distribution companies have incurred environmental liabilities associated with sites they or their predecessor companies formerly owned or operated where manufactured gas operations took place. The Utilities each have former manufactured gas plant (MGP) operations in their respective service territories. Laclede Gas Laclede Gas has identified three former MGP sites in eastern Missouri where costs have been incurred and claims have been asserted: one in Shrewsbury, Missouri and two in the City of St. Louis, Missouri. Laclede Gas has enrolled the two sites in the City of St. Louis in the Missouri Department of Natural Resources Brownfields/Voluntary Cleanup Program (BVCP). In Laclede Gas’ western service area, MGE has enrolled all of its owned former MGP sites in the BVCP. With regard to the former MGP site located in Shrewsbury, Missouri, Laclede Gas and state and federal environmental regulators agreed upon certain remedial actions to a portion of the site in a 1999 Administrative Order on Consent (AOC), which actions have been completed. On September 22, 2008, Environmental Protection Agency (EPA) Region VII issued a letter of Termination and Satisfaction terminating the AOC. However, if after this termination of the AOC, regulators require additional remedial actions, or additional claims are asserted, Laclede Gas may incur additional costs. In conjunction with redevelopment of one of the sites located in the City of St. Louis, Laclede Gas and another former owner of the site entered into an agreement (Remediation Agreement) with the City development agencies, the developer, and an environmental consultant that obligates one of the City agencies and the environmental consultant to remediate the site and obtain a No Further Action letter from the Missouri Department of Natural Resources (MDNR). The Remediation Agreement also provides for a release of Laclede Gas and the other former site owner from certain liabilities related to the past and current environmental condition of the site and requires the developer and the environmental consultant to maintain certain insurance coverage, including remediation cost containment, premises pollution liability, and professional liability. The operative provisions of the Remediation Agreement were triggered on December 20, 2010, on which date Laclede Gas and the other former site owner, as full consideration under the Remediation Agreement, paid a small percentage of the cost of remediation of the site. The amount paid by Laclede Gas did not materially impact the financial condition, results of operations, or cash flows of the Company. Laclede Gas has not owned the other site located in the City of St. Louis for many years. In a letter dated June 29, 2011, the Attorney General for the state of Missouri informed Laclede Gas that the MDNR had completed an investigation of the site. The Attorney General requested that Laclede Gas participate in the follow up investigations of the site. In a letter dated January 10, 2012, Laclede Gas stated that it would participate in future environmental response activities at the site in conjunction with other potentially responsible parties (PRPs) that are willing to contribute to such efforts in a meaningful and equitable fashion. Accordingly, Laclede Gas entered into a cost sharing agreement for remedial investigation with other PRPs. Pending MDNR approval which has not occurred as of the date of filing, the remedial investigation of the site will begin. Laclede Gas has notified its insurers that it seeks reimbursement for costs incurred in the past and future potential liabilities associated with the MGP sites. While some of the insurers have denied coverage and reserved their rights, Laclede Gas continues to discuss potential reimbursements with them. On March 10, 2015, Laclede Gas received a Section 104(e) information request from EPA Region VII regarding the former Thompson Chemical/Superior Solvents site in St. Louis, Missouri. In turn, Laclede Gas issued a Freedom of Information Act (FOIA) request to the EPA on April 3, 2015, in an effort to identify the basis of the inquiry. The FOIA response from the EPA was received on July 15, 2015 and a response was provided to the EPA on August 15, 2015. MGE has seven owned MGP sites enrolled in the BVCP, including Joplin MGP #1, St. Joseph MGP #1, Kansas City Coal Gas Station B, Kansas City Station A Railroad area, Kansas City Coal Gas Station A North, Kansas City Coal Gas Station A South, and Independence MGP #2. Source removal has been conducted at all of the owned sites since 2003 with the exception of Joplin. On September 15, 2016, a request was made with the MDNR for a restrictive covenant use limitation with respect to Joplin. Remediation efforts at the seven sites are at various stages of completion, ranging from groundwater monitoring and sampling following source removal activities to the aforementioned request in respect to Joplin. As part of its participation in the BVCP, MGE communicates regularly with the MDNR with respect to its remediation efforts and monitoring activities at these sites. On May 11, 2015, MDNR approved the next phase of investigation at the Kansas City Station A North and Railroad area. To date, costs incurred for all Missouri Utilities’ MGP sites for investigation, remediation and monitoring these sites have not been material. However, the amount of costs relative to future remedial actions at these and other sites is unknown and may be material. The actual future costs that Laclede Gas may incur could be materially higher or lower depending upon several factors, including whether remediation actions will be required, final selection and regulatory approval of any remedial actions, changing technologies and government regulations, the ultimate ability of other potential responsible parties to pay, the successful completion of remediation efforts required by the Remediation Agreement described above, and any insurance recoveries. In 2013, Laclede Gas retained an outside consultant to conduct probabilistic cost modeling of 19 former MGP sites owned or operated by Laclede Gas in eastern Missouri or MGE in western Missouri. The purpose of this analysis was to develop an estimated range of probabilistic future liability for each site. That analysis, completed in August 2014, provided a range of demonstrated possible future expenditures to investigate, monitor and remediate all 19 MGP sites. Laclede Gas has recorded its best estimate of the probable expenditures that relate to these matters. The amount is not material. Costs associated with environmental remediation activities are accrued when such costs are probable and reasonably estimable. To the extent such costs (less any amounts received from insurance proceeds or as contributions from other PRP’s), are incurred prior to a rate case, Laclede Gas would request from the MoPSC authority to defer such costs and collect them in the next rate case. Laclede Gas and the Company do not expect potential liabilities that may arise from remediating these sites to have a material impact on their future financial condition or results of operations. Alagasco Alagasco is in the chain of title of nine former MGP sites, four of which it still owns, and five former manufactured gas distribution sites, one of which it still owns. As of September 30, 2016, Alagasco does not foresee a probable or reasonably estimable loss associated with these nine sites. Alagasco and the Company do not expect potential liabilities that may arise from remediating these sites to have a material impact on their future financial conditions or results of operations. In 2012, Alagasco responded to an EPA Request for Information Pursuant to Section 104 of the Comprehensive Environment Response, Compensation, and Liability Act (CERCLA) relating to the 35th Avenue Superfund Site located in North Birmingham, Jefferson County, Alabama. Alagasco was identified as a PRP under CERCLA for the cleanup of the site or costs the EPA incurs in cleaning up the site. At this point, Alagasco has not been provided information that would allow it to determine the extent, if any, of its potential liability with respect to the 35th Avenue Superfund Site and vigorously denies its inclusion as a PRP. On December 17, 2013, an incident occurred at a Housing Authority apartment complex in Birmingham, Alabama which resulted in one fatality, personal injuries and property damage. Alagasco cooperated with the National Transportation Safety Board (NTSB) which investigated the incident. The NTSB report of findings was issued on March 30, 2016 and no safety recommendations, fines, or penalties were contained therein. Alagasco has been named as a defendant in several lawsuits arising from the incident, and additional lawsuits and claims may be filed against Alagasco. Mobile Gas Mobile Gas is in the chain of title of one former MGP site which it still owns in Mobile, Alabama. On September 15, 2010, Mobile Gas filed an application to enroll the site into the Alabama Department of Environmental Management’s (ADEM) Voluntary Cleanup Program (VCP). This application was accepted by ADEM on November 16, 2010. Investigation and testing have been completed. As of September 30, 2016, Mobile Gas has an approved remediation plan from ADEM which is currently in the process of being executed. Mobile Gas and the Company do not expect potential liabilities that may arise from remediating this site to have a material impact on their future financial conditions or results of operations. Since April 2012, a total of 14 lawsuits have been filed against Mobile Gas in Mobile County Circuit Court alleging that in the first half of 2008, Mobile Gas spilled tert-butyl mercaptan, an odorant added to natural gas for safety reasons, in Eight Mile, Alabama. Eleven of the lawsuits have been settled. The remaining three lawsuits, which include approximately 270 individual plaintiffs, allege nuisance, fraud and negligence causes of actions, and seek unspecified compensatory and punitive damages. A claim has been made against the insurance carriers for Mobile Gas requesting reimbursement for costs accrued in respect to this spill. Mobile Gas and the Company do not expect potential liabilities that may arise from these lawsuits to have a material impact on their future financial conditions or results of operations. |
INTERIM FINANCIAL INFORMATION (UNAUDITED) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTERIM FINANCIAL INFORMATION (UNAUDITED) | INTERIM FINANCIAL INFORMATION (UNAUDITED) Spire In the opinion of Spire, the quarterly information presented below for fiscal years 2016 and 2015 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in consolidated operations reported on a quarterly basis primarily reflect the seasonal nature of the business of the Utilities.
Laclede Gas In the opinion of Laclede Gas, the quarterly information presented below for fiscal years 2016 and 2015 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in operations reported on a quarterly basis primarily reflect their seasonal nature.
Alagasco In the opinion of Alagasco, the quarterly information presented below for fiscal years 2016 and 2015 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in operations reported on a quarterly basis primarily reflect their seasonal nature.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION – These notes are an integral part of the accompanying audited financial statements of Spire Inc. (Spire or the Company), as well as Laclede Gas Company (Laclede Gas or the Missouri Utilities) and Alabama Gas Corporation (Alagasco). Laclede Gas, which includes the operations of Missouri Gas Energy (MGE), and Alagasco are wholly owned subsidiaries of the Company. Laclede Gas, Alagasco and the subsidiaries of EnergySouth, Inc. (EnergySouth) are collectively referred to as the Utilities. The subsidiaries of EnergySouth are Mobile Gas Service Corporation (Mobile Gas) and Willmut Gas and Oil Company (Willmut Gas). The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial position, results of operations, and cash flows of Spire are primarily derived from the financial position, results of operations, and cash flows of the Utilities. In compliance with GAAP, transactions between Laclede Gas and Alagasco and their affiliates, as well as intercompany balances on their balance sheets, have not been eliminated from their separate financial statements. The Company’s September 12, 2016 acquisition of EnergySouth and the August 31, 2014 acquisition of Alagasco are included in the results of operations since their acquisition dates and impact the comparability of the financial statement periods presented for the Company. For a further discussion of the acquisitions, see Note 2, Acquisitions. The Utilities are regulated natural gas distribution utilities. Due to the seasonal nature of the Utilities, the earnings of Spire, Laclede Gas and Alagasco are typically concentrated during the heating season of November through April each fiscal year. Effective September 2, 2014, Alagasco amended its bylaws to change Alagasco’s fiscal year from beginning January 1 and ending on December 31, to beginning October 1 and ending September 30. As a result, the financial statements covering the nine-month period from January 1, 2014 through September 30, 2014 (the “transition period”) were included in Alagasco’s transition report on Form 10-K/T for such period and are presented in the financial statements and notes herein. |
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USE OF ESTIMATES | USE OF ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
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SYSTEM OF ACCOUNTS | SYSTEM OF ACCOUNTS – The accounts of the Utilities are maintained in accordance with the Uniform System of Accounts prescribed by the applicable state public service commissions, which systems substantially conform to that prescribed by the Federal Energy Regulatory Commission (FERC). |
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UTILITY PLANT, DEPRECIATION AND AMORTIZATION | UTILITY PLANT, DEPRECIATION AND AMORTIZATION – Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. For Laclede Gas, utility plant is depreciated on a straight-line basis at rates based on estimated service lives of the various classes of property. In fiscal years 2016, 2015 and 2014, annual depreciation and amortization expense averaged 3.0% of the original cost of depreciable and amortizable property. Laclede Gas’ capital expenditures were $197.8, $198.6 and $163.0 for fiscal years 2016, 2015, and 2014, respectively. Additionally, Laclede Gas had recorded accruals for capital expenditures totaling $14.8 at September 30, 2016, $9.6 at September 30, 2015, and $3.0 at September 30, 2014. For Alagasco, depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of utility property at rates approved by the Alabama Public Service Commission (APSC). |
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ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS – Spire, Laclede Gas, and Alagasco record legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company, Laclede Gas and Alagasco record asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of Laclede Gas’, Alagasco’s and Mobile Gas’ distribution systems and general plant. Asset retirement obligations recorded by Spire’s other subsidiaries are not material. As authorized by the Missouri Public Service Commission (MoPSC) and APSC, Laclede Gas, Alagasco and Mobile Gas accrue future asset removal costs associated with their property, plant and equipment even if a legal obligation does not exist. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities or assets. When those utilities retire depreciable utility plant and equipment, they charge the associated original costs to accumulated depreciation and amortization, and any related removal costs incurred are charged to regulatory liabilities or assets. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognized for financial reporting purposes is a timing difference between recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities or assets. In the rate setting process, the regulatory liability or asset is excluded from the rate base upon which those utilities have the opportunity to earn their allowed rates of return. The costs associated with asset retirement obligations of Laclede Gas, Alagasco and Mobile Gas are either currently being recovered in rates or are probable of recovery in future rates. |
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REGULATED OPERATIONS | REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. In addition, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process. See additional discussion on regulated operations in Note 15, Regulatory Matters. As discussed below for Laclede Gas and Alagasco, the Purchased Gas Adjustment (PGA) clauses and Gas Supply Adjustment (GSA) riders allow the Utilities to pass through to customers the cost of purchased gas supplies. Regulatory assets and liabilities related to the PGA clauses and the GSA rider are both labeled Unamortized Purchased Gas Adjustments herein. Laclede Gas As authorized by the MoPSC, the PGA clause allows Laclede Gas to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies. To better match customer billings with market natural gas prices, Laclede Gas is allowed to file to modify, on a periodic basis, the level of gas costs in its PGA. Certain provisions of the PGA clause are included below:
Pursuant to the provisions of the PGA clause, the difference between actual costs incurred and costs recovered through the application of the PGA clause are reflected as a deferred charge or credit at the end of the fiscal year. These costs include costs and cost reductions associated with the use of derivative instruments and gas inventory carrying costs, amounts due to or from customers related to operation of the gas supply cost management program, refunds received from the Company’s suppliers in connection with gas supply, transportation, and storage services, and carrying costs on such over- or under-recoveries. At that time, the balance is classified as a current asset or current liability and recovered from, or credited to, customers over an annual period commencing in November. The balance in the current account is amortized as amounts are reflected in customer billings. The PGA clause also provides for the treatment of income from off-system sales and capacity release revenues. Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
Alagasco Alagasco’s rate schedules for natural gas distribution charges contain a GSA rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. Alagasco’s tariff provides a temperature adjustment mechanism, also included in the GSA rider, which is designed to moderate the impact of departures from normal temperatures on Alagasco’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather-related conditions that may affect customer usage are not included in the temperature adjustment. |
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NATURAL GAS AND PROPANE GAS | NATURAL GAS AND PROPANE GAS – For Laclede Gas’ eastern Missouri utility, inventory of natural gas in storage is priced on a last in, first out (LIFO) basis and inventory of propane gas in storage is priced on a first in, first out (FIFO) basis. For the rest of the Gas Utility segment, inventory of natural gas in storage is priced on the weighted average cost basis. The replacement cost of Laclede Gas’ natural gas for current use in eastern Missouri at September 30, 2016 and September 30, 2015 was less than the LIFO cost by $11.4 and $20.4, respectively. The carrying value of Laclede Gas’ inventory is not adjusted to the lower of cost or market prices because, pursuant to the Missouri Utilities’ PGA clauses, actual gas costs are recovered in customer rates. Natural gas and propane gas storage inventory in Spire’s other operating segments is recorded at the lower of average cost or market. |
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BUSINESS COMBINATIONS | BUSINESS COMBINATIONS – The EnergySouth and Alagasco acquisitions are accounted for by Spire using business combination accounting. Under this method, the purchase price paid by the acquirer is allocated to the assets acquired and liabilities assumed as of the acquisition date based on their fair value. |
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GOODWILL | GOODWILL – Goodwill is measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. Spire and Laclede Gas evaluate goodwill for impairment as of July 1st of each year, or more frequently if events and circumstances indicate that goodwill might be impaired. At July 1, 2016, 2015 and 2014, Spire and Laclede Gas each applied a quantitative goodwill evaluation model to their reporting units and concluded goodwill was not impaired because the fair value exceeded the carrying amount. |
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IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS – Long-lived assets classified as held and used are evaluated for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Whether impairment has occurred is determined by comparing the estimated undiscounted cash flows attributable to the assets with the carrying value of the assets. If the carrying value exceeds the undiscounted cash flows, the Company recognizes an impairment charge equal to the amount of the carrying value that exceeds the estimated fair value of the assets. In the period in which the Company determines an asset meets held-for-sale criteria, an impairment charge is recorded to the extent the book value exceeds its fair value less cost to sell. |
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REVENUE RECOGNITION | REVENUE RECOGNITION – The Utilities read meters and bill customers on monthly cycles. The Missouri Utilities record their gas utility revenues from gas sales and transportation services on an accrual basis that includes estimated amounts for gas delivered, but not yet billed. The accruals for unbilled revenues are reversed in the subsequent accounting period when meters are actually read and customers are billed. The amounts of accrued unbilled revenues for Laclede Gas at September 30, 2016 and 2015 were $26.1 and $27.6, respectively. Alagasco records natural gas distribution revenues in accordance with the tariff established by the APSC. The amount of accrued unbilled revenues, which are not recorded as revenues until billed, for Alagasco at September 30, 2016 and 2015 were $5.9 and $6.4, respectively. All related costs and margins are also deferred. The subsidiaries of EnergySouth record natural gas revenues in accordance with tariffs established by the APSC and MSPSC. Unbilled revenues are accrued and related costs and margins are also deferred. Spire’s other subsidiaries, including LER, record revenues when earned, either when the product is delivered or when services are performed. In the course of its business, LER enters into commitments associated with the purchase or sale of natural gas. Certain of its derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of ASC Topic 815, “Derivatives and Hedging.” Those contracts are accounted for as executory contracts and recorded on an accrual basis. Revenues and expenses from such contracts are recorded using a gross presentation. Contracts not designated as normal purchases or normal sales are recorded as derivatives with changes in fair value recognized in earnings in the periods prior to physical delivery. For additional information on derivative instruments, refer to Note 10, Derivative Instruments and Hedging Activities. Certain of LER’s wholesale purchase and sale transactions are classified as trading activities for financial reporting purposes. Under GAAP, revenues and expenses associated with trading activities are presented on a net basis in Gas Marketing operating revenues (or expenses, if negative) in the Consolidated Statements of Income. This net presentation has no effect on operating income or net income. |
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INCOME TAXES | INCOME TAXES – Spire and its subsidiaries account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and the respective tax basis and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income or loss for a non-regulated company, and in a regulatory asset or regulatory liability for a regulated company. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with authoritative guidance. The authoritative guidance addresses the determination of whether tax benefits claimed, or expected to be claimed, on a tax return should be recorded in the financial statements. Spire may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. Tax-related interest and penalties, if any, are classified as a liability on the balance sheets. |
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CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS – All highly liquid debt instruments purchased with original maturities of three months or less are considered to be cash equivalents. Such instruments are carried at cost, which approximates market value. Outstanding checks on the Company’s and Utilities’ bank accounts in excess of funds on deposit create book overdrafts (which are funded at the time checks are presented for payment) and are classified as Other in the Current Liabilities section of the balance sheets. Changes in book overdrafts are reflected as Operating Activities in the statements of cash flows. |
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NATURAL GAS RECEIVABLE | ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. Spire’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses for Laclede Gas and Alagasco, as approved by the MoPSC and the APSC. NATURAL GAS RECEIVABLE – LER enters into natural gas transactions with natural gas pipeline companies known as park and loan arrangements. Under the terms of the arrangements, LER purchases natural gas from a third party and delivers that natural gas to the pipeline company for the right to receive the same quantity of natural gas from the pipeline company at the same location in a future period. These arrangements are accounted for as non-monetary transactions under GAAP and are recorded at the carrying amount. As such, natural gas receivables are reflected on the Consolidated Balance Sheets at cost, which includes related pipeline fees associated with the transactions. In the period that the natural gas is returned to LER, concurrent with the sale of the natural gas to a third party, the related natural gas receivable is expensed in the Consolidated Statements of Income. In conjunction with these transactions, LER usually enters into New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) natural gas futures, options, and swap contracts or fixed price sales agreements to protect against market changes in future sales prices. |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE – GAAP requires dual presentation of basic and diluted earnings per share (EPS). EPS is computed using the two-class method, which is an earnings allocation method for computing EPS that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Certain of the Company’s stock-based compensation awards pay non-forfeitable dividends to the participants during the vesting period and, as such, are deemed participating securities. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares, pursuant to the treasury stock method. Shares attributable to equity units, non-participating stock options and time-vested restricted stock/units are excluded from the calculation of diluted earnings per share if the effect would be antidilutive. Shares attributable to non-participating performance-contingent restricted stock awards are only included in the calculation of diluted earnings per share to the extent the underlying performance and/or market conditions are satisfied (a) prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. |
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GROSS RECEIPTS AND SALES TAXES | GROSS RECEIPTS AND SALES TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Company, Laclede Gas, and Alagasco and billed to its customers. The revenue and expense amounts are recorded gross in the “Operating Revenues” and “Taxes, other than income taxes” lines, respectively, in the statements of income. The following table presents gross receipts taxes recorded:
Sales taxes imposed on applicable Alagasco and Laclede Gas sales are billed to customers. These amounts are not recorded in the statements of income but are recorded as tax collections payable and included in the Other line of the Current Liabilities section of the balance sheets. |
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TRANSACTIONS WITH AFFILIATES | TRANSACTIONS WITH AFFILIATES – Transactions between affiliates of the Company have been eliminated from the consolidated financial statements of Spire. |
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GROUP MEDICAL AND WORKERS' COMPENSATION RESERVES | GROUP MEDICAL AND WORKERS’ COMPENSATION RESERVES – The Company self-insures its group medical and workers’ compensation costs and carries stop-loss coverage in relation to medical claims and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. |
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FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS – Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The levels of the hierarchy are described below:
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION – The Company measures stock-based compensation awards at fair value at the date of grant and recognizes the compensation cost of the awards over the requisite service period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if the actual forfeitures differ from those estimates. |
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NEW ACCOUNTING STANDARDS | NEW ACCOUNTING PRONOUNCEMENTS – In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The core principle of the standard is when an entity transfers goods or services to customers it will recognize revenue in an amount that reflects the consideration the entity expects to be entitled to for those goods or services. ASU No. 2014-09 also requires disclosures that will enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which made the guidance in ASU No. 2014-09 effective for fiscal years beginning after December 15, 2017 and interim periods within those years, but companies may choose to adopt it one year earlier. In 2016, the FASB issued related ASU Nos. 2016-08, 2016-10, 2016-11 and 2016-12, which further modified the standards for accounting for revenue. The Company, Laclede Gas and Alagasco are currently assessing the available transition methods and the potential impacts of the updates, which must be adopted by the first quarter of fiscal year 2019. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. Currently, debt issuance costs are recorded as a deferred charge (asset), while debt discount and debt premium costs are recorded as a liability adjustment. This amendment will require debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-15 clarified that ASU No. 2015-03 does not address the presentation of debt issuance costs related to line-of-credit arrangements, and the Company intends to continue to report such costs as deferred charges. The new guidance is effective for the Company, Laclede Gas and Alagasco beginning in the first quarter of fiscal 2017. The application of this standard will be retrospective, wherein each balance sheet presented will be adjusted to reflect the impacts of applying the new guidance. If this ASU had been adopted as of September 30, 2016, the amounts reclassified from other deferred charges to reduce long-term debt at September 30, 2016 and 2015, respectively, would have been $13.2 and $13.0 for Spire, $4.2 and $4.8 for Laclede Gas, and $2.6 and $2.4 for Alagasco. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet classification of Deferred Taxes, to require that deferred tax liabilities and assets be classified entirely as noncurrent. This was part of the FASB’s simplification initiative intended to reduce cost and complexity in financial reporting while improving or maintaining the usefulness of the information reported to investors. The Company, Laclede Gas and Alagasco adopted this ASU in the fourth quarter of fiscal 2016. Prior periods were not retrospectively adjusted. The adoption of this accounting standard was not material to the financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which provides revised guidance concerning certain matters involving the recognition, measurement, and disclosure of financial instruments. It is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires lessees to recognize a right-of-use asset and lease liability for almost all lease contracts based on the present value of lease payments. There is an exemption for short-term leases. The ASU provides new guidelines for identifying and classifying a lease, and classification affects the pattern and income statement line item for the related expense. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2020. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2018. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The standard introduces new guidance for the accounting for credit losses on instruments within its scope, including trade receivables. It is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, but may be adopted up to two years earlier. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset retirement obligations | The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, as reported in the balance sheets.
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Off-system sales | Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
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Changes in the carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill by reportable segment were as follows:
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Schedule of gross receipts taxes | The following table presents gross receipts taxes recorded:
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Schedule of inter-company transactions | Laclede Gas had the following transactions with affiliates:
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ACQUISITIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of consideration paid and amounts of assets acquired and liabilities assumed | The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed at the acquisition dates. Measurement period adjustments were immaterial.
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Schedule of Pro Forma Information | The results of operations of each of the acquisitions are included in the Spire statements of income from the date of acquisition, as shown in the following table.
The following unaudited pro forma financial information presents Spire’s combined results of operations as though the EnergySouth acquisition had occurred as of the beginning of fiscal year 2015 and the Alagasco acquisition had occurred as of the beginning of fiscal year 2013. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that would have been achieved if the acquisitions had occurred as of those earlier dates. It does not reflect the costs of any integration activities. It includes estimates and assumptions which management believes are reasonable.
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STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock and restricted stock unit activity | Fiscal year 2016 activity of restricted stock and restricted stock units subject to performance and/or market conditions is presented below:
Time-vested restricted stock and stock unit activity for fiscal year 2016 is presented below:
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Stock option awards activity | No stock options were granted during fiscal years 2016, 2015, and 2014. Stock option activity for fiscal year 2016 is presented below:
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Significant assumptions used in the Monte Carlo simulations | The significant assumptions used in the Monte Carlo simulations are as follows:
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Compensation cost recognized for share-based compensation arrangements | The amounts of compensation cost recognized for share-based compensation arrangements are presented below:
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EARNINGS PER COMMON SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share |
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STOCKHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock purchase obligation | The purchase price to be paid under the stock purchase contracts is fifty dollars per Corporate Unit and the number of shares to be purchased will be determined as follows:
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Schedule of Company's equity units | Selected information about the Company’s equity units is presented below:
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Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss), net of income taxes, recognized in the balance sheets at September 30 were as follows:
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LONG-TERM DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of maturities of long-term debt by fiscal year | Maturities of long-term debt for Spire, Laclede Gas and Alagasco for the five fiscal years subsequent to September 30, 2016 are as follows:
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NOTES PAYABLE AND CREDIT AGREEMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | Information about Spire’s short-term borrowings (excluding intercompany borrowings) during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
* Spire Inc., excluding its wholly owned subsidiaries. |
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Laclede Gas | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | Information about Laclede Gas’ short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
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Alagasco | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | Information about Alagasco’s short-term borrowings during the twelve months ended September 30, and as of September 30, is presented below for 2016 and 2015:
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for the Company are as follows:
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Laclede Gas are as follows:
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Alagasco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Alagasco are as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Measured on Recurring Basis | The information presented below 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. 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 the closing net asset value per unit. Derivative instruments included in Level 1 are valued using quoted market prices on the NYMEX. Derivative instruments classified as 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. There were no material Level 3 balances as of September 30, 2016 or 2015. The Company’s and the 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. 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 exist between the Company or Laclede Gas and the counterparty to the derivative contract. For additional information on derivative instruments, see Note 10, Derivative Instruments and Hedging Activities.
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Measured on Recurring Basis |
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Open NYMEX/ICE and OTCBB natural gas futures and swap positions at September 30, 2016 were as follows:
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The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income |
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Fair Value of Derivative Instruments in the Consolidated Balance Sheet |
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Derivative instrument Reconciliation | Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Laclede Gas’ derivative instruments consist primarily of NYMEX and OTCBB positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX and OTCBB natural gas futures positions at September 30, 2016 were as follows:
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The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income |
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Fair Value of Derivative Instruments in the Consolidated Balance Sheet |
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Derivative instrument Reconciliation | Following is a reconciliation of the amounts in the tables above to the amounts presented in Laclede Gas’ Balance Sheets:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | The Company’s provision for income taxes charged during the fiscal years ended September 30, 2016, 2015, and 2014 are as follows:
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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:
* Other consists primarily of property adjustments. |
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Significant Items in Net Deferred Tax Liability | The Company’s significant items comprising the net deferred tax liability recorded in the Consolidated Balance Sheets as of September 30 are as follows:
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Unrecognized Tax Benefit Reconciliation | The following table presents a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | Laclede Gas’ provision for income taxes charged during the fiscal years ended September 30, 2016, 2015, and 2014 are as follows:
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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:
* Other consists primarily of property adjustments. |
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Significant Items in Net Deferred Tax Liability | Laclede Gas’ significant items comprising the net deferred tax liability reported in the Balance Sheets as of September 30 are as follows:
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Unrecognized Tax Benefit Reconciliation | The following table presents a reconciliation of the beginning and ending balances of Laclede Gas unrecognized tax benefits:
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Alagasco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | Alagasco’s provision for income taxes charged during the fiscal years ended September 30, 2016 and 2015, and the nine months ended September 30, 2014, are as follows:
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Effective income tax rate variation from stated tax rate | Alagasco’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
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Significant Items in Net Deferred Tax Liability | Alagasco’s significant items comprising the net deferred tax asset reported in the Balance Sheets as of September 30 are as follows:
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Unrecognized Tax Benefit Reconciliation | The following table presents a reconciliation of the beginning and ending balances of Alagasco’s unrecognized tax benefits:
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements of plan assets | The table below categorizes the fair value measurements of the Spire pension plan assets:
The table below categorizes the fair value measurements of Spire’s postretirement plan assets:
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Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | The net periodic pension costs include the following components:
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Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and pension benefit obligations recognized in other comprehensive income or loss (OCI) include the following:
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Reconciliation of the beginning and ending balances of benefit obligation | The following table shows the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
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Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
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Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic pension cost consist of:
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Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2016, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic pension cost during fiscal year 2017:
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Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate the benefit obligations are as follows:
The assumptions used to calculate net periodic pension costs for Laclede Gas are as follows:
The assumptions used to calculate net periodic pension costs for Alagasco are as follows:
* Nine-month transition period ended September 30 |
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Projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have projected benefit obligation and accumulated benefit obligation in excess of plan assets | Following are the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
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Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas and Alagasco:
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Expected benefit payments for the succeeding five fiscal years | Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter, for Spire, Laclede Gas, and Alagasco:
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Postretirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | Net periodic postretirement benefit costs consist of the following components:
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Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and postretirement benefit obligations recognized in OCI include the following:
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Reconciliation of the beginning and ending balances of benefit obligation | The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
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Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
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Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic postretirement benefit cost consist of:
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Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2016, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during fiscal year 2017:
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Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate the accumulated postretirement benefit obligations for Laclede Gas are as follows:
The assumptions used to calculate the accumulated postretirement benefit obligations for Alagasco are as follows:
The assumptions used to calculate net periodic postretirement benefit costs for Laclede Gas are as follows:
The assumptions used to calculate net periodic postretirement benefit costs for Alagasco are as follows:
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Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas and Alagasco:
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Expected benefit payments for the succeeding five fiscal years | Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Spire, Laclede Gas, and Alagasco:
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Assumed medical cost trend rates and effect of an assumed 1% changed in assumed medical cost trend. | The assumed medical cost trend rates at September 30 are as follows:
The following table presents the effects of an assumed 1% change in the assumed medical cost trend rate:
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements of plan assets | The table below categorizes the fair value measurements of Laclede Gas’ pension plan assets:
The table below categorizes the fair value measurements of Laclede Gas’ postretirement plan assets:
Alagasco The table below categorizes the fair value measurements of Alagasco’s pension plan assets:
The table below categorizes the fair value measurements of Alagasco’s postretirement plan assets:
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INFORMATION BY OPERATING SEGMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating segment information |
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Schedule of the reconciliation of consolidated net economic earnings to consolidated net income |
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REGULATORY MATTERS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of regulatory assets | The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2016 and 2015. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
A portion of the Company’s regulatory assets are not earning a return and are shown in the schedule below:
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Schedule of regulatory liabilities | The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2016 and 2015. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Rental Expense and Annual Minimum Rental Commitments | Aggregate rental expense and annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below:
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INTERIM FINANCIAL INFORMATION (UNAUDITED) (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Alagasco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Goodwill [Roll Forward] | |||
Beginning balance | $ 946.0 | $ 937.8 | $ 247.1 |
Adjustments to finalize acquisition | 8.2 | (36.9) | |
Acquisition | 218.9 | 727.6 | |
Ending balance | 1,164.9 | 946.0 | 937.8 |
Operating Segments | Gas Utility | |||
Goodwill [Roll Forward] | |||
Beginning balance | 210.2 | 210.2 | 247.1 |
Adjustments to finalize acquisition | 0.0 | (36.9) | |
Acquisition | 0.0 | 0.0 | |
Ending balance | 210.2 | 210.2 | 210.2 |
Operating Segments | Gas Marketing | |||
Goodwill [Roll Forward] | |||
Beginning balance | 0.0 | 0.0 | 0.0 |
Adjustments to finalize acquisition | 0.0 | 0.0 | |
Acquisition | 0.0 | 0.0 | |
Ending balance | 0.0 | 0.0 | 0.0 |
Other | |||
Goodwill [Roll Forward] | |||
Beginning balance | 735.8 | 727.6 | 0.0 |
Adjustments to finalize acquisition | 8.2 | 0.0 | |
Acquisition | 218.9 | 727.6 | |
Ending balance | $ 954.7 | $ 735.8 | $ 727.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gross Receipts and Sales Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 75.5 | $ 97.3 | $ 77.5 |
Laclede Gas | |||
Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | 57.4 | 74.5 | 76.3 |
Alagasco | |||
Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 17.9 | $ 22.6 | $ 20.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Transactions with Affiliates (Details) - Affiliated Entity - Regulated Operation - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Laclede Gas | Laclede Energy Resources | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.9 | $ 4.0 | $ 5.1 |
Laclede Energy Resources | Laclede Gas | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 46.3 | 74.1 | 89.1 |
Laclede Risk Services | Laclede Gas | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.8 | $ 1.0 | $ 0.6 |
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 12, 2016 |
Jan. 06, 2015 |
Aug. 31, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
Sep. 30, 2013 |
|
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, net of cash acquired | $ (317.7) | $ 0.0 | $ 0.0 | ||||
Goodwill | $ 1,164.9 | $ 946.0 | $ 937.8 | $ 247.1 | |||
Alagasco | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interest acquired | 100.00% | ||||||
Payments to acquire businesses, net of cash acquired | $ (1,313.4) | $ (1,305.2) | |||||
Payments for final reconciliation of acquisition | $ (8.2) | ||||||
Goodwill | 735.8 | ||||||
Goodwill, expected to be tax deductible | $ 717.6 | ||||||
EnergySouth | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interest acquired | 100.00% | ||||||
Payments to acquire businesses, net of cash acquired | $ (317.7) | ||||||
Goodwill | $ 218.9 |
ACQUISITIONS - Pro Forma Information, Revenues and Earnings (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Alagasco and EnergySouth | |||
Business Acquisition [Line Items] | |||
Total Operating Revenues | $ 1,632.4 | $ 2,081.6 | $ 2,187.1 |
Net Income | $ 153.9 | $ 143.6 | $ 133.5 |
Basic earnings (loss) per share (in dollars per share) | $ 3.48 | $ 3.32 | $ 3.11 |
Diluted earnings (loss) per share (in dollars per share) | $ 3.46 | $ 3.31 | $ 3.10 |
Alagasco | |||
Business Acquisition [Line Items] | |||
Pro forma, Total Operating Revenues | $ 368.5 | $ 479.2 | $ 19.7 |
Pro forma, Net Income (Loss) | $ 53.2 | $ 48.0 | $ (2.9) |
Pro forma, Earnings (Loss) Per Share (in dollars per share) | $ 1.20 | $ 1.11 | $ (0.08) |
EnergySouth | |||
Business Acquisition [Line Items] | |||
Pro forma, Total Operating Revenues | $ 3.3 | ||
Pro forma, Net Income (Loss) | $ (0.2) | ||
Pro forma, Earnings (Loss) Per Share (in dollars per share) | $ 0.00 |
STOCK-BASED COMPENSATION - Stock Option Awards Activity (Details) - Stock Option Awards |
12 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Stock Options | |
Outstanding at beginning of period (in shares) | shares | 28,500 |
Exercised (in shares) | shares | (27,750) |
Forfeited (in shares) | shares | (750) |
Outstanding at end of period (in shares) | shares | 0 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 33.65 |
Exercised (in dollars per share) | $ / shares | 33.66 |
Forfeited (in dollars per share) | $ / shares | 33.45 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 0.00 |
STOCK-BASED COMPENSATION - Fair Value Measurement Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk free interest rate | 1.14% | 0.83% | 0.53% |
Expected dividend yield of stock | 0.00% | 0.00% | 0.00% |
Expected volatility of stock | 15.00% | 14.00% | 18.00% |
Vesting period | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
STOCK-BASED COMPENSATION - Compensation Costs Recognized (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total equity compensation cost | $ 6.7 | $ 6.7 | $ 5.8 |
Compensation cost capitalized | (2.2) | (1.8) | (1.8) |
Compensation cost recognized in net income | 4.5 | 4.9 | 4.0 |
Income tax benefit recognized in net income | (1.7) | (1.9) | (1.5) |
Compensation cost recognized in net income, net of income tax | $ 2.8 | $ 3.0 | $ 2.5 |
STOCKHOLDERS' EQUITY - Schedule of Company's Equity Units (Details) shares in Thousands, Equity_Security in Thousands, $ in Millions |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 11, 2014
USD ($)
Equity_Security
|
Jun. 30, 2014
shares
|
Sep. 30, 2014
USD ($)
|
|
Stockholders' Equity Note [Abstract] | |||
Number of equity units issued (in shares) | 2,875 | 2,875 | |
Total Net Proceeds | $ 139.4 | ||
Total Long-term Debt | $ 143.8 | ||
RSN Annual Interest Rate | 2.00% | ||
Stock Purchase Contract Annual Rate | 4.75% | 2.00% | |
Stock Purchase Contract Liability | $ 19.7 | $ 19.7 |
LONG-TERM DEBT - Maturities of Long-term Debt (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Maturities on long-term debt [Abstract] | |
2017 | $ 250.0 |
2018 | 100.0 |
2019 | 180.0 |
2020 | 40.0 |
2021 | 55.0 |
Laclede Gas | |
Maturities on long-term debt [Abstract] | |
2017 | 0.0 |
2018 | 100.0 |
2019 | 50.0 |
2020 | 0.0 |
2021 | 0.0 |
Alagasco | |
Maturities on long-term debt [Abstract] | |
2017 | 0.0 |
2018 | 0.0 |
2019 | 0.0 |
2020 | 40.0 |
2021 | $ 0.0 |
CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions |
Sep. 30, 2016
USD ($)
counterparty
|
---|---|
Concentration Risk [Line Items] | |
Number of large counterparties for which credit risk is disclosed | counterparty | 5 |
Energy Producers And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | $ 15.8 |
Net receivable amount | 12.4 |
Utility Companies And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | 52.8 |
Net receivable amount | 50.5 |
Largest Counterparties | |
Concentration Risk [Line Items] | |
Accounts receivable | 31.2 |
Net receivable amount | $ 27.2 |
INCOME TAXES - Narrative (Details) - USD ($) |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | $ 297,000,000 | |
Contribution carryforwards | 12,200,000 | |
Valuation allowance | 900,000 | $ 0 |
Tax credit carryforwards | 3,500,000 | |
Unrecognized tax benefits affect on the Company's effective tax rate | 3,300,000 | 3,100,000 |
Income taxes accrued | 0 | 0 |
income tax penalties accrued | 0 | |
Laclede Gas | ||
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | 105,000,000 | |
Contribution carryforwards | 12,000,000 | |
Valuation allowance | 900,000 | 0 |
Tax credit carryforwards | 2,000,000 | |
Unrecognized tax benefits affect on the Company's effective tax rate | 3,100,000 | 2,900,000 |
Income taxes accrued | 0 | 0 |
income tax penalties accrued | 0 | $ 0 |
Alagasco | ||
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | $ 159,000,000 |
INCOME TAXES - Net Provisions for Income Taxes (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Federal | ||||
Current | $ 0.1 | $ (3.3) | $ 0.3 | |
Deferred | 62.0 | 58.8 | 30.6 | |
Investment tax credits | (0.2) | (0.2) | (0.2) | |
State and local | ||||
Current | 0.6 | 0.0 | 0.6 | |
Deferred | 7.0 | 6.9 | 1.0 | |
Total income tax expense | 69.5 | 62.2 | 32.3 | |
Laclede Gas | ||||
Federal | ||||
Current | 0.0 | (2.1) | (0.1) | |
Deferred | 37.5 | 40.9 | 34.3 | |
Investment tax credits | (0.2) | (0.2) | (0.2) | |
State and local | ||||
Current | 0.1 | (0.1) | 0.0 | |
Deferred | 8.0 | 4.7 | 1.5 | |
Total income tax expense | 45.4 | 43.2 | $ 35.5 | |
Alagasco | ||||
Federal | ||||
Current | $ 14.1 | (0.8) | 0.0 | |
Deferred | 3.5 | 29.4 | 25.9 | |
State and local | ||||
Current | 1.8 | 0.0 | 0.1 | |
Deferred | 0.5 | 3.8 | 3.3 | |
Total income tax expense | $ 19.9 | $ 32.4 | $ 29.3 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Projected Benefit Obligation (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 794.8 | $ 652.3 |
Accumulated benefit obligation | 724.5 | 591.4 |
Fair value of plan assets | 540.5 | 448.9 |
Laclede Gas | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 560.0 | 497.6 |
Accumulated benefit obligation | 517.7 | 456.9 |
Fair value of plan assets | 395.7 | 339.9 |
Alagasco | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 174.3 | 154.7 |
Accumulated benefit obligation | 149.8 | 134.5 |
Fair value of plan assets | $ 100.0 | $ 109.0 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Expected Future Benefit Payments (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | $ 61.3 |
2018 | 56.2 |
2019 | 57.1 |
2020 | 56.6 |
2021 | 56.8 |
2022 - 2026 | 286.3 |
Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 15.4 |
2018 | 16.7 |
2019 | 17.9 |
2020 | 19.1 |
2021 | 20.1 |
2022 - 2026 | 108.6 |
Laclede Gas | Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | 48.2 |
2018 | 43.3 |
2019 | 43.5 |
2020 | 42.2 |
2021 | 40.4 |
2022 - 2026 | 196.6 |
Laclede Gas | Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 12.3 |
2018 | 13.7 |
2019 | 14.8 |
2020 | 15.8 |
2021 | 16.8 |
2022 - 2026 | 92.5 |
Alagasco | Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | 10.9 |
2018 | 10.6 |
2019 | 11.2 |
2020 | 11.9 |
2021 | 13.7 |
2022 - 2026 | 74.5 |
Alagasco | Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 2.9 |
2018 | 2.8 |
2019 | 2.8 |
2020 | 2.9 |
2021 | 2.9 |
2022 - 2026 | $ 14.1 |
INFORMATION BY OPERATING SEGMENT - Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Segment Reporting [Abstract] | |||||||||||
Net Income | $ (14.2) | $ 10.7 | $ 100.8 | $ 46.9 | $ (18.7) | $ 14.1 | $ 94.4 | $ 47.1 | $ 144.2 | $ 136.9 | $ 84.6 |
Unrealized gain on energy-related derivatives | (0.1) | (2.8) | (1.6) | ||||||||
Lower of cost or market inventory adjustments | 0.2 | 0.4 | (1.1) | ||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (1.6) | 2.4 | (0.4) | ||||||||
Acquisition, divestiture and restructuring activities | 9.2 | 9.8 | 29.5 | ||||||||
Gain on sale of property | 0.0 | (7.6) | 0.0 | ||||||||
Income tax effect of adjustments | (2.8) | (0.8) | (10.9) | ||||||||
Net Economic Earnings | $ 149.1 | $ 138.3 | $ 100.1 |
COMMITMENTS AND CONTINGENCIES - Commitments (Details) MMcf in Thousands, $ in Millions |
12 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
MMcf
| |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 1,647.8 |
Laclede Gas | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | 1,227.6 |
Laclede Gas | Purchase Commitment | Subsidiary of Common Parent | |
Long-term Purchase Commitment [Line Items] | |
Annual purchase commitment | $ 1.0 |
Commitment termination minimum required notification period | 6 months |
Alagasco | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 352.7 |
Alagasco | Inventories | |
Long-term Purchase Commitment [Line Items] | |
Minimum volume purchase commitment required (in Mmcf) | MMcf | 93 |
INTERIM FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
Quarterly Financial Information [Line Items] | ||||||||||||
Total Operating Revenues | $ 279.3 | $ 249.3 | $ 609.3 | $ 399.4 | $ 204.2 | $ 275.2 | $ 877.4 | $ 619.6 | $ 1,537.3 | $ 1,976.4 | $ 1,627.2 | |
Operating Income (Loss) | (7.7) | 35.3 | 167.7 | 87.0 | (8.5) | 36.0 | 157.7 | 87.3 | 282.3 | 272.5 | 166.4 | |
Net Income (Loss) | $ (14.2) | $ 10.7 | $ 100.8 | $ 46.9 | $ (18.7) | $ 14.1 | $ 94.4 | $ 47.1 | $ 144.2 | $ 136.9 | $ 84.6 | |
Basic Earnings Per Share of Common Stock (in dollars per share) | $ (0.31) | $ 0.24 | $ 2.32 | $ 1.08 | $ (0.43) | $ 0.32 | $ 2.18 | $ 1.09 | $ 3.26 | $ 3.16 | $ 2.36 | |
Diluted Earnings Per Share of Common Stock (in dollars per share) | $ (0.31) | $ 0.24 | $ 2.31 | $ 1.08 | $ (0.43) | $ 0.32 | $ 2.18 | $ 1.09 | $ 3.24 | $ 3.16 | $ 2.35 | |
Laclede Gas | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Total Operating Revenues | $ 144.3 | $ 179.3 | $ 446.7 | $ 317.2 | $ 151.0 | $ 187.5 | $ 615.7 | $ 462.4 | $ 1,087.5 | $ 1,416.6 | $ 1,448.2 | |
Operating Income (Loss) | 5.4 | 29.4 | 87.0 | 65.1 | 5.5 | 34.5 | 80.6 | 64.8 | 186.9 | 185.4 | 166.4 | |
Net Income (Loss) | (1.7) | 13.9 | 54.3 | 39.4 | (3.6) | 20.0 | 49.9 | 39.0 | 105.9 | 105.3 | $ 90.1 | |
Alagasco | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Total Operating Revenues | 46.2 | 74.0 | 166.0 | 82.3 | 52.2 | 73.7 | 233.3 | 120.0 | $ 417.2 | 368.5 | 479.2 | |
Operating Income (Loss) | (17.1) | 9.3 | 80.4 | 18.9 | (12.5) | 3.9 | 77.4 | 20.4 | 62.2 | 91.5 | 89.2 | |
Net Income (Loss) | $ (8.8) | $ 4.0 | $ 48.1 | $ 9.9 | $ (9.6) | $ 0.7 | $ 46.3 | $ 10.6 | $ 33.0 | $ 53.2 | $ 48.0 |
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