INFORMATION BY OPERATING SEGMENT

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

INFORMATION BY OPERATING SEGMENT

INFORMATION BY OPERATING SEGMENT

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 Spire Marketing, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, including utilizing natural gas storage contracts for providing natural gas sales. Other includes:

• unallocated corporate costs, including certain debt and associated interest costs;

• Spire STL Pipeline LLC, a subsidiary of Spire planning construction of a 70-mile Federal Energy Regulatory Commission (FERC)-regulated pipeline to deliver natural gas into eastern Missouri; and

• Spire’s subsidiaries engaged in the operation of a propane pipeline, compression of natural gas and risk management, among other activities. All subsidiaries are wholly owned.

Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Spire Marketing to Laclede Gas and from Laclede Gas to Spire Marketing, insurance services provided by Laclede Insurance Risk Services to Laclede Gas, and propane transportation services provided by Laclede Pipeline Company to Laclede Gas.

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.

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended December 31, 2016
Operating Revenues:
Revenues from external customers	$	472.3	$	21.7		$	1.1		$	—		$	495.1
Intersegment revenues	4.4		—			0.7			(5.1		)	—
Total Operating Revenues	476.7		21.7			1.8			(5.1		)	495.1
Operating Expenses:
Gas Utility
Natural and propane gas	214.5		—			—			(20.7		)	193.8
Other operation and maintenance	100.5		—			—			(1.1		)	99.4
Depreciation and amortization	37.7		—			—			—			37.7
Taxes, other than income taxes	33.4		—			—			—			33.4
Total Gas Utility Operating Expenses	386.1		—			—			(21.8		)	364.3
Gas Marketing and Other	—		23.0			2.0			16.7			41.7
Total Operating Expenses	386.1		23.0			2.0			(5.1		)	406.0
Operating Income (Loss)	$	90.6	$	(1.3	)	$	(0.2	)	$	—		$	89.1
Net Economic Earnings (Loss)	$	51.8	$	1.4		$	(5.7	)	$	—		$	47.5
Three Months Ended December 31, 2015
Operating Revenues:
Revenues from external customers	$	398.8	$	0.2		$	0.4		$	—		$	399.4
Intersegment revenues	0.7		12.6			0.4			(13.7		)	—
Total Operating Revenues	399.5		12.8			0.8			(13.7		)	399.4
Operating Expenses:
Gas Utility
Natural and propane gas	161.9		—			—			(13.4		)	148.5
Other operation and maintenance	91.9		—			—			(0.3		)	91.6
Depreciation and amortization	33.5		—			—			—			33.5
Taxes, other than income taxes	28.2		—			—			—			28.2
Total Gas Utility Operating Expenses	315.5		—			—			(13.7		)	301.8
Gas Marketing and Other	—		9.0			1.6			—			10.6
Total Operating Expenses	315.5		9.0			1.6			(13.7		)	312.4
Operating Income (Loss)	$	84.0	$	3.8		$	(0.8	)	$	—		$	87.0
Net Economic Earnings (Loss)	$	50.0	$	(0.3	)	$	(4.6	)	$	—		$	45.1

	Gas Utility	Gas Marketing	Other	Eliminations	Consolidated
Three Months Ended December 31, 2016

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

	December 31,			September 30,			December 31,
	2016			2016			2015
Total Assets:
Gas Utility	$	5,375.6		$	5,184.7		$	4,799.0
Gas Marketing	225.0			205.0			163.8
Other	1,848.7			1,836.6			1,545.5
Eliminations	(1,139.2		)	(1,161.9		)	(1,109.5		)
Total Assets	$	6,310.1		$	6,064.4		$	5,398.8

The following table reconciles the Company’s net economic earnings to net income.

	Three Months Ended December 31,
	2016			2015
Net Income	$	45.2		$	46.9
Adjustments, pre-tax:
Unrealized loss (gain) on energy-related derivative contracts	3.8			(4.9		)
Lower of cost or market inventory adjustments	(0.1		)	0.6
Realized gain on economic hedges prior to sale of the physical commodity	(0.1		)	(0.1		)
Acquisition, divestiture and restructuring activities	0.1			1.3
Income tax effect of adjustments	(1.4		)	1.3
Net Economic Earnings	$	47.5		$	45.1