INCOME TAXES (Tables)

12 Months Ended

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:

	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

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:

	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	%

* Other consists primarily of property adjustments.

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:

	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

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:

	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

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:

	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

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:

	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	%

* Other consists primarily of property adjustments.

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:

	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

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of Laclede Gas unrecognized tax benefits:

	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

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:

	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

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:

	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	%

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:

	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

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of Alagasco’s unrecognized tax benefits:

	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	$	—	$	—	$	—