[ X ] | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2017 |
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 | Name of Registrant, Address of Principal Executive Offices and Telephone Number | State of Incorporation | I.R.S. Employer Identification Number | |||
1-16681 | Spire Inc. 700 Market Street St. Louis, MO 63101 314-342-0500 | Missouri | 74-2976504 | |||
1-1822 | Laclede Gas Company 700 Market Street St. Louis, MO 63101 314-342-0500 | Missouri | 43-0368139 | |||
2-38960 | Alabama Gas Corporation 2101 6th Avenue North Birmingham, Alabama 35203 205-326-8100 | Alabama | 63-0022000 |
Spire Inc. | Yes [ X ] | No [ ] | ||
Laclede Gas Company | Yes [ X ] | No [ ] | ||
Alabama Gas Corporation | Yes [ X ] | No [ ] |
Spire Inc. | Yes [ X ] | No [ ] | ||
Laclede Gas Company | Yes [ X ] | No [ ] | ||
Alabama Gas Corporation | Yes [ X ] | No [ ] |
Large accelerated filer | Accelerated filer | Non- accelerated filer | Smaller reporting company | Emerging growth company | |||||
Spire Inc. | X | ||||||||
Laclede Gas Company | X | ||||||||
Alabama Gas Corporation | X |
Spire Inc. | [ ] | |||
Laclede Gas Company | [ ] | |||
Alabama Gas Corporation | [ ] |
Spire Inc. | Yes [ ] | No [ X ] | ||
Laclede Gas Company | Yes [ ] | No [ X ] | ||
Alabama Gas Corporation | Yes [ ] | No [ X ] |
Spire Inc. | Common Stock, par value $1.00 per share | 48,258,599 | |||
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 No. | |||||
Spire Inc. | ||||||
Laclede Gas Company | ||||||
Alabama Gas Corporation | ||||||
Notes to Financial Statements | ||||||
Alabama Utilities | Alagasco and Mobile Gas, the utilities serving the Alabama region | MDNR | Missouri Department of Natural Resources | |
Alagasco | Alabama Gas Corporation | MGE | Missouri Gas Energy | |
AOCI | Accumulated other comprehensive income or loss | MGP | Manufactured gas plant | |
APSC | Alabama Public Service Commission | Missouri Utilities | Laclede Gas Company (including MGE), the utilities serving the Missouri region | |
ASC | Accounting Standards Codification | MMBtu | Million British thermal units | |
ASU | Accounting Standards Update | Mobile Gas | Mobile Gas Service Corporation | |
Bcf | Billion cubic feet | MoPSC | Missouri Public Service Commission | |
BVCP | Brownfields/Voluntary Cleanup Program | MSPSC | Mississippi Public Service Commission | |
CERCLA | Comprehensive Environmental Response, Compensation, and Liability Act of 1980 | 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 | NYSE | New York Stock Exchange | |
EnergySouth | EnergySouth, Inc. | O&M | Operation and maintenance expense | |
EPA | US Environmental Protection Agency | OPC | Missouri Office of the Public Counsel | |
EPS | Earnings per share | OTCBB | Over-the-Counter Bulletin Board | |
FASB | Financial Accounting Standards Board | PGA | Purchased Gas Adjustment | |
FERC | Federal Energy Regulatory Commission | PRP | Potentially responsible party | |
GAAP | Accounting principles generally accepted in the United States of America | RSE | Rate Stabilization and Equalization | |
Gas Marketing | Operating segment including Spire Marketing, which is engaged in the non-regulated marketing of natural gas and related activities | SEC | US Securities and Exchange Commission | |
Gas Utility | Segment including the regulated operations of the Utilities | Spire Marketing | Spire Marketing Inc. (formerly known as Laclede Energy Resources, Inc., or LER) | |
GSA | Gas Supply Adjustment | US | United States | |
ICE | Intercontinental Exchange | Utilities | Laclede Gas, Alagasco, and the subsidiaries of EnergySouth | |
ISRS | Infrastructure System Replacement Surcharge | Willmut Gas | Willmut Gas & Oil Company | |
Laclede Gas | Laclede Gas Company, or Missouri Utilities | |||
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
(In millions, except per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues: | |||||||||||||||
Gas Utility | $ | 641.1 | $ | 611.5 | $ | 1,113.4 | $ | 1,010.3 | |||||||
Gas Marketing and other | 22.3 | (2.2 | ) | 45.1 | (1.6 | ) | |||||||||
Total Operating Revenues | 663.4 | 609.3 | 1,158.5 | 1,008.7 | |||||||||||
Operating Expenses: | |||||||||||||||
Gas Utility | |||||||||||||||
Natural and propane gas | 254.3 | 261.1 | 448.1 | 409.6 | |||||||||||
Operation and maintenance | 98.4 | 94.3 | 197.8 | 185.9 | |||||||||||
Depreciation and amortization | 37.9 | 33.8 | 75.6 | 67.3 | |||||||||||
Taxes, other than income taxes | 48.3 | 43.9 | 81.7 | 72.1 | |||||||||||
Total Gas Utility Operating Expenses | 438.9 | 433.1 | 803.2 | 734.9 | |||||||||||
Gas Marketing and other | 44.1 | 8.5 | 85.8 | 19.1 | |||||||||||
Total Operating Expenses | 483.0 | 441.6 | 889.0 | 754.0 | |||||||||||
Operating Income | 180.4 | 167.7 | 269.5 | 254.7 | |||||||||||
Other Income | 3.6 | 0.8 | 4.1 | 2.2 | |||||||||||
Interest Charges: | |||||||||||||||
Interest on long-term debt | 19.2 | 16.7 | 38.3 | 33.6 | |||||||||||
Other interest charges | 3.5 | 2.6 | 6.5 | 4.7 | |||||||||||
Total Interest Charges | 22.7 | 19.3 | 44.8 | 38.3 | |||||||||||
Income Before Income Taxes | 161.3 | 149.2 | 228.8 | 218.6 | |||||||||||
Income Tax Expense | 53.3 | 48.4 | 75.6 | 70.9 | |||||||||||
Net Income | $ | 108.0 | $ | 100.8 | $ | 153.2 | $ | 147.7 | |||||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||||||
Basic | 45.6 | 43.3 | 45.6 | 43.3 | |||||||||||
Diluted | 45.7 | 43.5 | 45.7 | 43.5 | |||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.36 | $ | 2.32 | $ | 3.35 | $ | 3.40 | |||||||
Diluted Earnings Per Share of Common Stock | $ | 2.36 | $ | 2.31 | $ | 3.34 | $ | 3.39 | |||||||
Dividends Declared Per Share of Common Stock | $ | 0.53 | $ | 0.49 | $ | 1.05 | $ | 0.98 | |||||||
See the accompanying Notes to Financial Statements. |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | 108.0 | $ | 100.8 | $ | 153.2 | $ | 147.7 | |||||||
Other Comprehensive Income, Before Tax: | |||||||||||||||
Cash flow hedging derivative instruments: | |||||||||||||||
Net hedging gains (losses) arising during the period | 1.0 | (0.6 | ) | 12.5 | (1.3 | ) | |||||||||
Reclassification adjustment for (gains) losses included in net income | (0.1 | ) | 0.5 | 0.1 | 1.7 | ||||||||||
Net unrealized gains (losses) on cash flow hedging derivative instruments | 0.9 | (0.1 | ) | 12.6 | 0.4 | ||||||||||
Net gains on defined benefit pension and other postretirement plans | — | — | 0.1 | 0.1 | |||||||||||
Net unrealized losses (gains) on available for sale securities | — | 0.1 | (0.1 | ) | — | ||||||||||
Other Comprehensive Income, Before Tax | 0.9 | — | 12.6 | 0.5 | |||||||||||
Income Tax Expense Related to Items of Other Comprehensive Income | 0.4 | — | 4.7 | 0.2 | |||||||||||
Other Comprehensive Income, Net of Tax | 0.5 | — | 7.9 | 0.3 | |||||||||||
Comprehensive Income | $ | 108.5 | $ | 100.8 | $ | 161.1 | $ | 148.0 | |||||||
See the accompanying Notes to Financial Statements. |
March 31, | September 30, | March 31, | |||||||||
(Dollars in millions, except per share amounts) | 2017 | 2016 | 2016 | ||||||||
ASSETS | |||||||||||
Utility Plant | $ | 4,978.8 | $ | 4,793.6 | $ | 4,271.3 | |||||
Less: Accumulated depreciation and amortization | 1,585.9 | 1,506.4 | 1,286.1 | ||||||||
Net Utility Plant | 3,392.9 | 3,287.2 | 2,985.2 | ||||||||
Non-utility Property (net of accumulated depreciation and amortization of $8.3, $8.1 and $7.8 at March 31, 2017, September 30, 2016, and March 31, 2016, respectively) | 26.6 | 13.7 | 13.8 | ||||||||
Goodwill | 1,163.9 | 1,164.9 | 946.0 | ||||||||
Other Investments | 63.2 | 62.1 | 61.1 | ||||||||
Total Other Property and Investments | 1,253.7 | 1,240.7 | 1,020.9 | ||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 19.6 | 5.2 | 8.7 | ||||||||
Accounts receivable: | |||||||||||
Utility | 238.5 | 127.8 | 217.1 | ||||||||
Other | 127.9 | 113.4 | 66.8 | ||||||||
Allowance for doubtful accounts | (20.8 | ) | (20.5 | ) | (18.9 | ) | |||||
Delayed customer billings | 11.6 | 1.6 | 10.1 | ||||||||
Inventories: | |||||||||||
Natural gas | 117.6 | 174.0 | 97.5 | ||||||||
Propane gas | 12.0 | 12.0 | 12.0 | ||||||||
Materials and supplies | 16.8 | 16.3 | 14.5 | ||||||||
Natural gas receivable | 7.8 | 9.7 | 19.5 | ||||||||
Derivative instrument assets | 8.2 | 11.4 | 7.6 | ||||||||
Unamortized purchased gas adjustments | 61.0 | 49.7 | 8.9 | ||||||||
Other regulatory assets | 64.8 | 44.2 | 32.4 | ||||||||
Prepayments and other | 19.3 | 24.8 | 27.6 | ||||||||
Total Current Assets | 684.3 | 569.6 | 503.8 | ||||||||
Deferred Charges: | |||||||||||
Regulatory assets | 827.7 | 838.0 | 732.6 | ||||||||
Other | 98.1 | 128.9 | 65.0 | ||||||||
Total Deferred Charges | 925.8 | 966.9 | 797.6 | ||||||||
Total Assets | $ | 6,256.7 | $ | 6,064.4 | $ | 5,307.5 |
March 31, | September 30, | March 31, | |||||||||
2017 | 2016 | 2016 | |||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||
Capitalization: | |||||||||||
Common stock (par value $1.00 per share; 70.0 million shares authorized; 45.7 million, 45.6 million, and 43.4 million shares issued and outstanding at March 31, 2017, September 30, 2016 and March 31, 2016, respectively) | $ | 45.7 | $ | 45.6 | $ | 43.4 | |||||
Paid-in capital | 1,177.7 | 1,175.9 | 1,040.3 | ||||||||
Retained earnings | 655.9 | 550.9 | 599.4 | ||||||||
Accumulated other comprehensive income (loss) | 3.7 | (4.2 | ) | (1.7 | ) | ||||||
Total Common Stock Equity | 1,883.0 | 1,768.2 | 1,681.4 | ||||||||
Long-term debt (less current portion) | 1,925.3 | 1,820.7 | 1,839.3 | ||||||||
Total Capitalization | 3,808.3 | 3,588.9 | 3,520.7 | ||||||||
Current Liabilities: | |||||||||||
Current portion of long-term debt | — | 250.0 | — | ||||||||
Notes payable | 567.4 | 398.7 | 253.6 | ||||||||
Accounts payable | 218.6 | 210.9 | 127.1 | ||||||||
Advance customer billings | 14.5 | 70.2 | 31.7 | ||||||||
Wages and compensation accrued | 29.0 | 39.8 | 26.6 | ||||||||
Dividends payable | 24.9 | 23.5 | 22.1 | ||||||||
Customer deposits | 35.7 | 34.9 | 33.0 | ||||||||
Interest accrued | 15.3 | 14.8 | 14.3 | ||||||||
Taxes accrued | 46.7 | 55.2 | 36.8 | ||||||||
Unamortized purchased gas adjustments | 1.6 | 1.7 | 4.3 | ||||||||
Other regulatory liabilities | 29.7 | 28.9 | 33.8 | ||||||||
Other | 31.9 | 32.7 | 35.5 | ||||||||
Total Current Liabilities | 1,015.3 | 1,161.3 | 618.8 | ||||||||
Deferred Credits and Other Liabilities: | |||||||||||
Deferred income taxes | 690.6 | 607.3 | 564.2 | ||||||||
Pension and postretirement benefit costs | 308.1 | 303.7 | 254.8 | ||||||||
Asset retirement obligations | 212.4 | 206.4 | 162.8 | ||||||||
Regulatory liabilities | 144.1 | 130.7 | 110.7 | ||||||||
Other | 77.9 | 66.1 | 75.5 | ||||||||
Total Deferred Credits and Other Liabilities | 1,433.1 | 1,314.2 | 1,168.0 | ||||||||
Commitments and Contingencies (Note 10) | |||||||||||
Total Capitalization and Liabilities | $ | 6,256.7 | $ | 6,064.4 | $ | 5,307.5 | |||||
See the accompanying Notes to Financial Statements. |
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions) | Shares | Amount | Total | |||||||||||||||||||
Balance at September 30, 2015 | 43,335,012 | $ | 43.3 | $ | 1,038.1 | $ | 494.2 | $ | (2.0 | ) | $ | 1,573.6 | ||||||||||
Net income | — | — | — | 147.7 | — | 147.7 | ||||||||||||||||
Dividend reinvestment plan | 12,704 | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Stock-based compensation costs | — | — | 2.7 | — | — | 2.7 | ||||||||||||||||
Stock issued under stock-based compensation plans | 127,496 | 0.1 | 0.5 | — | — | 0.6 | ||||||||||||||||
Employee’s tax withholding for stock-based compensation | (29,227 | ) | — | (1.7 | ) | — | — | (1.7 | ) | |||||||||||||
Dividends declared | — | — | — | (42.5 | ) | — | (42.5 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.3 | 0.3 | ||||||||||||||||
Balance at March 31, 2016 | 43,445,985 | $ | 43.4 | $ | 1,040.3 | $ | 599.4 | $ | (1.7 | ) | $ | 1,681.4 | ||||||||||
Balance at September 30, 2016 | 45,650,642 | $ | 45.6 | $ | 1,175.9 | $ | 550.9 | $ | (4.2 | ) | $ | 1,768.2 | ||||||||||
Net income | — | — | — | 153.2 | — | 153.2 | ||||||||||||||||
Dividend reinvestment plan | 11,820 | — | 0.8 | — | — | 0.8 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.3 | — | — | 3.3 | ||||||||||||||||
Stock issued under stock-based compensation plans | 122,094 | 0.1 | (0.1 | ) | — | — | — | |||||||||||||||
Employee’s tax withholding for stock-based compensation | (34,589 | ) | — | (2.2 | ) | — | — | (2.2 | ) | |||||||||||||
Dividends declared | — | — | — | (48.2 | ) | — | (48.2 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 7.9 | 7.9 | ||||||||||||||||
Balance at March 31, 2017 | 45,749,967 | $ | 45.7 | $ | 1,177.7 | $ | 655.9 | $ | 3.7 | $ | 1,883.0 | |||||||||||
* Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
See the accompanying Notes to Financial Statements. | ||||||||||||||||||||||
Six Months Ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Operating Activities: | |||||||
Net Income | $ | 153.2 | $ | 147.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization, and accretion | 75.8 | 67.6 | |||||
Deferred income taxes and investment tax credits | 75.4 | 71.0 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (123.0 | ) | (53.5 | ) | |||
Unamortized purchased gas adjustments | 0.2 | (11.0 | ) | ||||
Accounts payable | 28.3 | (15.4 | ) | ||||
Delayed/advance customer billings – net | (65.7 | ) | (20.1 | ) | |||
Taxes accrued | (13.8 | ) | (14.7 | ) | |||
Inventories | 55.9 | 91.4 | |||||
Other assets and liabilities | 36.7 | (19.6 | ) | ||||
Other | 3.1 | (0.4 | ) | ||||
Net cash provided by operating activities | 226.1 | 243.0 | |||||
Investing Activities: | |||||||
Capital expenditures | (187.3 | ) | (121.8 | ) | |||
Settlement for acquisition of EnergySouth | 3.8 | — | |||||
Other | 0.6 | (0.7 | ) | ||||
Net cash used in investing activities | (182.9 | ) | (122.5 | ) | |||
Financing Activities: | |||||||
Issuance of long-term debt | 250.0 | 80.0 | |||||
Repayment of long-term debt | (393.8 | ) | (80.0 | ) | |||
Issuance (repayment) of short-term debt - net | 168.7 | (84.4 | ) | ||||
Issuance of common stock | 0.1 | 2.1 | |||||
Dividends paid | (46.8 | ) | (41.6 | ) | |||
Other | (7.0 | ) | (1.7 | ) | |||
Net cash used in financing activities | (28.8 | ) | (125.6 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 14.4 | (5.1 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 5.2 | 13.8 | |||||
Cash and Cash Equivalents at End of Period | $ | 19.6 | $ | 8.7 | |||
Supplemental disclosure of cash paid for: | |||||||
Interest | $ | (41.8 | ) | $ | (36.2 | ) | |
Income taxes | (0.9 | ) | (0.2 | ) | |||
See the accompanying Notes to Financial Statements. |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues: | |||||||||||||||
Utility | $ | 447.2 | $ | 446.7 | $ | 810.8 | $ | 763.9 | |||||||
Total Operating Revenues | 447.2 | 446.7 | 810.8 | 763.9 | |||||||||||
Operating Expenses: | |||||||||||||||
Utility | |||||||||||||||
Natural and propane gas | 241.2 | 242.8 | 432.5 | 392.6 | |||||||||||
Operation and maintenance | 57.5 | 61.5 | 118.0 | 120.3 | |||||||||||
Depreciation and amortization | 23.0 | 21.9 | 45.7 | 43.7 | |||||||||||
Taxes, other than income taxes | 35.3 | 33.5 | 59.9 | 55.2 | |||||||||||
Total Operating Expenses | 357.0 | 359.7 | 656.1 | 611.8 | |||||||||||
Operating Income | 90.2 | 87.0 | 154.7 | 152.1 | |||||||||||
Other Income | 1.9 | 0.4 | 2.0 | 1.2 | |||||||||||
Interest Charges: | |||||||||||||||
Interest on long-term debt | 8.2 | 8.2 | 16.5 | 16.6 | |||||||||||
Other interest charges | 1.5 | 1.3 | 2.9 | 2.2 | |||||||||||
Total Interest Charges | 9.7 | 9.5 | 19.4 | 18.8 | |||||||||||
Income Before Income Taxes | 82.4 | 77.9 | 137.3 | 134.5 | |||||||||||
Income Tax Expense | 25.4 | 23.6 | 42.3 | 40.8 | |||||||||||
Net Income | $ | 57.0 | $ | 54.3 | $ | 95.0 | $ | 93.7 | |||||||
See the accompanying Notes to Financial Statements. |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | 57.0 | $ | 54.3 | $ | 95.0 | $ | 93.7 | |||||||
Other Comprehensive (Loss) Income, Net of Tax | (0.2 | ) | 0.1 | — | 0.2 | ||||||||||
Comprehensive Income | $ | 56.8 | $ | 54.4 | $ | 95.0 | $ | 93.9 | |||||||
See the accompanying Notes to Financial Statements. |
March 31, | September 30, | March 31, | |||||||||
(Dollars in millions, except per share amounts) | 2017 | 2016 | 2016 | ||||||||
ASSETS | |||||||||||
Utility Plant | $ | 2,855.0 | $ | 2,718.5 | $ | 2,612.5 | |||||
Less: Accumulated depreciation and amortization | 659.6 | 604.5 | 580.7 | ||||||||
Net Utility Plant | 2,195.4 | 2,114.0 | 2,031.8 | ||||||||
Goodwill | 210.2 | 210.2 | 210.2 | ||||||||
Other Property and Investments | 58.3 | 57.3 | 56.2 | ||||||||
Total Other Property and Investments | 268.5 | 267.5 | 266.4 | ||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 3.7 | 2.1 | 3.8 | ||||||||
Accounts receivable: | |||||||||||
Utility | 166.4 | 87.9 | 159.8 | ||||||||
Associated companies | 22.7 | 2.2 | 1.2 | ||||||||
Other | 12.0 | 11.4 | 17.0 | ||||||||
Allowance for doubtful accounts | (16.5 | ) | (16.1 | ) | (14.7 | ) | |||||
Delayed customer billings | 11.6 | 1.6 | 10.1 | ||||||||
Inventories: | |||||||||||
Natural gas | 75.8 | 127.3 | 60.1 | ||||||||
Propane gas | 12.0 | 12.0 | 12.0 | ||||||||
Materials and supplies | 9.9 | 9.2 | 8.9 | ||||||||
Derivative instrument assets | 2.9 | 4.9 | — | ||||||||
Unamortized purchased gas adjustments | 17.1 | 43.1 | 3.9 | ||||||||
Other regulatory assets | 38.2 | 23.9 | 23.7 | ||||||||
Prepayments and other | 10.5 | 14.5 | 15.3 | ||||||||
Total Current Assets | 366.3 | 324.0 | 301.1 | ||||||||
Deferred Charges: | |||||||||||
Regulatory assets | 569.4 | 589.8 | 563.8 | ||||||||
Other | 2.6 | 1.1 | 5.8 | ||||||||
Total Deferred Charges | 572.0 | 590.9 | 569.6 | ||||||||
Total Assets | $ | 3,402.2 | $ | 3,296.4 | $ | 3,168.9 | |||||
March 31, | September 30, | March 31, | |||||||||
2017 | 2016 | 2016 | |||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||
Capitalization: | |||||||||||
Paid-in capital and common stock (par value $1.00 per share; 50,000 authorized; 24,577 shares issued and outstanding) | $ | 753.9 | $ | 752.0 | $ | 750.0 | |||||
Retained earnings | 398.6 | 318.3 | 342.4 | ||||||||
Accumulated other comprehensive loss | (1.8 | ) | (1.8 | ) | (1.5 | ) | |||||
Total Common Stock Equity | 1,150.7 | 1,068.5 | 1,090.9 | ||||||||
Long-term debt | 804.3 | 804.1 | 803.7 | ||||||||
Total Capitalization | 1,955.0 | 1,872.6 | 1,894.6 | ||||||||
Current Liabilities: | |||||||||||
Notes payable | — | 243.7 | 169.6 | ||||||||
Notes payable – associated companies | 282.2 | — | — | ||||||||
Accounts payable | 57.8 | 67.6 | 51.0 | ||||||||
Accounts payable – associated companies | 5.1 | 5.4 | 1.9 | ||||||||
Advance customer billings | 0.2 | 49.1 | 16.1 | ||||||||
Wages and compensation accrued | 21.8 | 29.9 | 21.0 | ||||||||
Dividends payable | — | 14.0 | 21.3 | ||||||||
Customer deposits | 13.1 | 13.5 | 12.9 | ||||||||
Interest accrued | 7.9 | 7.7 | 7.6 | ||||||||
Taxes accrued | 23.8 | 29.1 | 19.1 | ||||||||
Unamortized purchased gas adjustments | — | — | 4.3 | ||||||||
Other regulatory liabilities | 2.7 | 1.3 | 1.3 | ||||||||
Other | 8.7 | 9.9 | 16.2 | ||||||||
Total Current Liabilities | 423.3 | 471.2 | 342.3 | ||||||||
Deferred Credits and Other Liabilities: | |||||||||||
Deferred income taxes | 607.7 | 556.9 | 538.0 | ||||||||
Pension and postretirement benefit costs | 213.5 | 211.8 | 200.8 | ||||||||
Asset retirement obligations | 77.0 | 75.2 | 74.1 | ||||||||
Regulatory liabilities | 84.5 | 67.3 | 69.3 | ||||||||
Other | 41.2 | 41.4 | 49.8 | ||||||||
Total Deferred Credits and Other Liabilities | 1,023.9 | 952.6 | 932.0 | ||||||||
Commitments and Contingencies (Note 10) | |||||||||||
Total Capitalization and Liabilities | $ | 3,402.2 | $ | 3,296.4 | $ | 3,168.9 | |||||
See the accompanying Notes to Financial Statements. |
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions) | Shares | Amount | Total | |||||||||||||||||||
Balance at September 30, 2015 | 24,577 | $ | 0.1 | $ | 748.2 | $ | 291.2 | $ | (1.7 | ) | $ | 1,037.8 | ||||||||||
Net income | — | — | — | 93.7 | — | 93.7 | ||||||||||||||||
Stock-based compensation costs | — | — | 1.7 | — | — | 1.7 | ||||||||||||||||
Dividends declared | — | — | — | (42.5 | ) | — | (42.5 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||
Balance at March 31, 2016 | 24,577 | $ | 0.1 | $ | 749.9 | $ | 342.4 | $ | (1.5 | ) | $ | 1,090.9 | ||||||||||
Balance at September 30, 2016 | 24,577 | $ | 0.1 | $ | 751.9 | $ | 318.3 | $ | (1.8 | ) | $ | 1,068.5 | ||||||||||
Net income | — | — | — | 95.0 | — | 95.0 | ||||||||||||||||
Stock-based compensation costs | — | — | 1.9 | — | — | 1.9 | ||||||||||||||||
Dividends declared | — | — | — | (14.7 | ) | — | (14.7 | ) | ||||||||||||||
Balance at March 31, 2017 | 24,577 | $ | 0.1 | $ | 753.8 | $ | 398.6 | $ | (1.8 | ) | $ | 1,150.7 | ||||||||||
* Accumulated other comprehensive income (loss) | ||||||||||||||||||||||
See the accompanying Notes to Financial Statements. |
Six Months Ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Operating Activities: | |||||||
Net Income | $ | 95.0 | $ | 93.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 45.7 | 43.7 | |||||
Deferred income taxes and investment tax credits | 42.3 | 40.8 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (99.2 | ) | (42.2 | ) | |||
Unamortized purchased gas adjustments | 37.5 | 22.2 | |||||
Accounts payable | (4.5 | ) | (9.3 | ) | |||
Delayed/advance customer billings – net | (58.9 | ) | (16.6 | ) | |||
Taxes accrued | (5.3 | ) | (6.3 | ) | |||
Inventories | 50.8 | 78.5 | |||||
Other assets and liabilities | 10.3 | (12.7 | ) | ||||
Other | 0.8 | 0.2 | |||||
Net cash provided by operating activities | 114.5 | 192.0 | |||||
Investing Activities: | |||||||
Capital expenditures | (122.2 | ) | (85.6 | ) | |||
Other | 0.5 | 0.3 | |||||
Net cash used in investing activities | (121.7 | ) | (85.3 | ) | |||
Financing Activities: | |||||||
Repayment of short-term debt - net | (243.7 | ) | (63.4 | ) | |||
Borrowings from Spire - net | 282.2 | — | |||||
Dividends paid | (28.7 | ) | (41.2 | ) | |||
Other | (1.0 | ) | — | ||||
Net cash provided by (used in) financing activities | 8.8 | (104.6 | ) | ||||
Net Increase in Cash and Cash Equivalents | 1.6 | 2.1 | |||||
Cash and Cash Equivalents at Beginning of Period | 2.1 | 1.7 | |||||
Cash and Cash Equivalents at End of Period | $ | 3.7 | $ | 3.8 | |||
Supplemental disclosure of cash paid for: | |||||||
Interest | $ | (19.0 | ) | $ | (18.6 | ) | |
Income taxes | — | — | |||||
See the accompanying Notes to Financial Statements. |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues: | |||||||||||||||
Utility | $ | 158.8 | $ | 166.0 | $ | 245.5 | $ | 248.3 | |||||||
Total Operating Revenues | 158.8 | 166.0 | 245.5 | 248.3 | |||||||||||
Operating Expenses: | |||||||||||||||
Utility | |||||||||||||||
Natural gas | 25.8 | 30.2 | 42.6 | 42.3 | |||||||||||
Operation and maintenance | 31.5 | 33.1 | 62.7 | 66.2 | |||||||||||
Depreciation and amortization | 12.3 | 11.9 | 24.6 | 23.6 | |||||||||||
Taxes, other than income taxes | 10.3 | 10.4 | 16.9 | 16.9 | |||||||||||
Total Operating Expenses | 79.9 | 85.6 | 146.8 | 149.0 | |||||||||||
Operating Income | 78.9 | 80.4 | 98.7 | 99.3 | |||||||||||
Other Income | 1.1 | 0.5 | 1.5 | 1.0 | |||||||||||
Interest Charges: | |||||||||||||||
Interest on long-term debt | 2.8 | 2.7 | 5.6 | 5.7 | |||||||||||
Other interest charges | 0.7 | 0.8 | 1.5 | 1.3 | |||||||||||
Total Interest Charges | 3.5 | 3.5 | 7.1 | 7.0 | |||||||||||
Income Before Income Taxes | 76.5 | 77.4 | 93.1 | 93.3 | |||||||||||
Income Tax Expense | 28.9 | 29.3 | 35.2 | 35.3 | |||||||||||
Net Income | $ | 47.6 | $ | 48.1 | $ | 57.9 | $ | 58.0 | |||||||
See the accompanying Notes to Financial Statements. |
March 31, | September 30, | March 31, | |||||||||
(Dollars in millions, except per share amounts) | 2017 | 2016 | 2016 | ||||||||
ASSETS | |||||||||||
Utility Plant | $ | 1,776.1 | $ | 1,729.6 | $ | 1,658.8 | |||||
Less: Accumulated depreciation and amortization | 779.1 | 756.6 | 705.4 | ||||||||
Net Utility Plant | 997.0 | 973.0 | 953.4 | ||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | — | — | 2.3 | ||||||||
Accounts receivable: | |||||||||||
Utility | 62.0 | 34.0 | 57.3 | ||||||||
Associated companies | 0.4 | — | — | ||||||||
Other | 5.7 | 7.2 | 5.2 | ||||||||
Allowance for doubtful accounts | (2.3 | ) | (3.3 | ) | (4.2 | ) | |||||
Inventories: | |||||||||||
Natural gas | 26.5 | 34.6 | 30.3 | ||||||||
Materials and supplies | 5.8 | 5.9 | 5.5 | ||||||||
Unamortized purchased gas adjustments | 43.9 | 5.6 | 5.0 | ||||||||
Other regulatory assets | 11.2 | 14.9 | 8.7 | ||||||||
Prepayments and other | 4.1 | 5.1 | 8.1 | ||||||||
Total Current Assets | 157.3 | 104.0 | 118.2 | ||||||||
Deferred Charges: | |||||||||||
Regulatory assets | 229.3 | 230.7 | 168.1 | ||||||||
Deferred income taxes | 186.2 | 221.4 | 214.7 | ||||||||
Other | 62.0 | 60.8 | 56.9 | ||||||||
Total Deferred Charges | 477.5 | 512.9 | 439.7 | ||||||||
Total Assets | $ | 1,631.8 | $ | 1,589.9 | $ | 1,511.3 |
March 31, | September 30, | March 31, | |||||||||
2017 | 2016 | 2016 | |||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||
Capitalization: | |||||||||||
Paid-in capital and common stock (par value $0.01 per share; 3.0 million shares authorized; 2.0 million shares issued and outstanding) | $ | 420.9 | $ | 451.9 | $ | 451.9 | |||||
Retained earnings | 462.8 | 415.4 | 436.2 | ||||||||
Total Common Stock Equity | 883.7 | 867.3 | 888.1 | ||||||||
Long-term debt | 247.7 | 247.6 | 247.6 | ||||||||
Total Capitalization | 1,131.4 | 1,114.9 | 1,135.7 | ||||||||
Current Liabilities: | |||||||||||
Notes payable | — | 82.0 | 41.0 | ||||||||
Notes payable – associated companies | 109.3 | — | — | ||||||||
Accounts payable | 42.8 | 34.3 | 28.6 | ||||||||
Accounts payable – associated companies | 1.5 | 0.4 | 0.4 | ||||||||
Advance customer billings | 14.3 | 21.1 | 15.6 | ||||||||
Wages and compensation accrued | 5.2 | 7.8 | 5.6 | ||||||||
Customer deposits | 18.9 | 18.2 | 20.1 | ||||||||
Interest accrued | 3.4 | 3.3 | 3.4 | ||||||||
Taxes accrued | 16.9 | 21.6 | 17.8 | ||||||||
Regulatory liabilities | 25.1 | 22.7 | 32.5 | ||||||||
Other | 4.8 | 6.3 | 4.7 | ||||||||
Total Current Liabilities | 242.2 | 217.7 | 169.7 | ||||||||
Deferred Credits and Other Liabilities: | |||||||||||
Pension and postretirement benefit costs | 76.6 | 74.3 | 54.0 | ||||||||
Asset retirement obligations | 124.1 | 120.1 | 88.5 | ||||||||
Regulatory liabilities | 35.9 | 41.7 | 41.4 | ||||||||
Other | 21.6 | 21.2 | 22.0 | ||||||||
Total Deferred Credits and Other Liabilities | 258.2 | 257.3 | 205.9 | ||||||||
Commitments and Contingencies (Note 10) | |||||||||||
Total Capitalization and Liabilities | $ | 1,631.8 | $ | 1,589.9 | $ | 1,511.3 | |||||
See the accompanying Notes to Financial Statements. |
Common Stock Outstanding | Paid-in Capital | Retained Earnings | ||||||||||||||||
(Dollars in millions) | Shares | Amount | Total | |||||||||||||||
Balance at September 30, 2015 | 1,972,052 | $ | — | $ | 480.9 | $ | 393.7 | $ | 874.6 | |||||||||
Net income | — | — | — | 58.0 | 58.0 | |||||||||||||
Return of capital to Spire | — | — | (29.0 | ) | — | (29.0 | ) | |||||||||||
Dividends declared | — | — | — | (15.5 | ) | (15.5 | ) | |||||||||||
Balance at March 31, 2016 | 1,972,052 | $ | — | $ | 451.9 | $ | 436.2 | $ | 888.1 | |||||||||
Balance at September 30, 2016 | 1,972,052 | $ | — | $ | 451.9 | $ | 415.4 | $ | 867.3 | |||||||||
Net income | — | — | — | 57.9 | 57.9 | |||||||||||||
Return of capital to Spire | — | — | (31.0 | ) | — | (31.0 | ) | |||||||||||
Dividends declared | — | — | — | (10.5 | ) | (10.5 | ) | |||||||||||
Balance at March 31, 2017 | 1,972,052 | $ | — | $ | 420.9 | $ | 462.8 | $ | 883.7 | |||||||||
See the accompanying Notes to Financial Statements. |
Six Months Ended March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Operating Activities: | |||||||
Net Income | $ | 57.9 | $ | 58.0 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 24.6 | 23.6 | |||||
Deferred income taxes and investment tax credits | 35.2 | 35.3 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (25.8 | ) | (21.7 | ) | |||
Unamortized purchased gas adjustments | (38.3 | ) | (33.2 | ) | |||
Accounts payable | 10.3 | 6.2 | |||||
Advance customer billings | (6.8 | ) | (3.5 | ) | |||
Taxes accrued | (4.7 | ) | (8.2 | ) | |||
Inventories | 8.2 | 10.0 | |||||
Other assets and liabilities | 2.0 | 0.3 | |||||
Other | 0.3 | (0.4 | ) | ||||
Net cash provided by operating activities | 62.9 | 66.4 | |||||
Investing Activities: | |||||||
Capital expenditures | (48.3 | ) | (35.8 | ) | |||
Other | — | (1.2 | ) | ||||
Net cash used in investing activities | (48.3 | ) | (37.0 | ) | |||
Financing Activities: | |||||||
Issuance of long-term debt | — | 80.0 | |||||
Redemption and maturity of long-term debt | — | (80.0 | ) | ||||
(Repayment) issuance of short-term debt - net | (82.0 | ) | 10.0 | ||||
Borrowings from Spire - net | 109.3 | 0.2 | |||||
Return of capital to Spire | (31.0 | ) | (29.0 | ) | |||
Dividends paid | (10.5 | ) | (15.5 | ) | |||
Other | (0.4 | ) | — | ||||
Net cash (used in) financing activities | (14.6 | ) | (34.3 | ) | |||
Net Decrease in Cash and Cash Equivalents | — | (4.9 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | — | 7.2 | |||||
Cash and Cash Equivalents at End of Period | $ | — | $ | 2.3 | |||
Supplemental disclosure of cash paid for: | |||||||
Interest | $ | (6.3 | ) | $ | (6.4 | ) | |
Income taxes | — | — | |||||
See the accompanying Notes to Financial Statements. |
Gas Utility | Gas Marketing | Other | Total | ||||||||||||
Balance as of September 30, 2016 | $ | 210.2 | $ | — | $ | 954.7 | $ | 1,164.9 | |||||||
Adjustments related to the acquisition of EnergySouth | — | — | (1.0 | ) | (1.0 | ) | |||||||||
Balance as of March 31, 2017 | $ | 210.2 | $ | — | $ | 953.7 | $ | 1,163.9 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Spire | $ | 34.3 | $ | 32.3 | $ | 53.7 | $ | 50.2 | |||||||
Laclede Gas | 25.5 | 24.7 | 39.6 | 38.6 | |||||||||||
Alagasco | 7.7 | 7.6 | 11.9 | 11.6 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Purchases of natural gas from Spire Marketing | $ | 21.0 | $ | 11.6 | $ | 41.5 | $ | 24.8 | |||||||
Sales of natural gas to Spire Marketing | 2.7 | 1.0 | 6.3 | 1.7 | |||||||||||
Transportation services received from Laclede Pipeline Company | 0.2 | 0.2 | 0.5 | 0.5 | |||||||||||
Insurance services received from Laclede Insurance Risk Services | 1.0 | 0.3 | 2.1 | 0.5 |
March 31, 2017 | September 30, 2016 | March 31, 2016 | |||||||||
Spire | $ | 9.2 | $ | 21.6 | $ | 9.0 | |||||
Laclede Gas | 3.3 | 14.8 | 5.3 | ||||||||
Alagasco | 5.3 | 6.8 | 3.7 |
March 31, 2017 | September 30, 2016 | March 31, 2016 | |||||||||
Spire | $ | 14.8 | $ | 13.0 | $ | 12.3 | |||||
Laclede Gas | 4.1 | 4.2 | 4.5 | ||||||||
Alagasco | 2.3 | 2.4 | 2.4 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Basic EPS: | |||||||||||||||
Net Income | $ | 108.0 | $ | 100.8 | $ | 153.2 | $ | 147.7 | |||||||
Less: Income allocated to participating securities | 0.2 | 0.3 | 0.4 | 0.5 | |||||||||||
Net Income Available to Common Shareholders | $ | 107.8 | $ | 100.5 | $ | 152.8 | $ | 147.2 | |||||||
Weighted Average Shares Outstanding (in millions) | 45.6 | 43.3 | 45.6 | 43.3 | |||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.36 | $ | 2.32 | $ | 3.35 | $ | 3.40 | |||||||
Diluted EPS: | |||||||||||||||
Net Income | $ | 108.0 | $ | 100.8 | $ | 153.2 | $ | 147.7 | |||||||
Less: Income allocated to participating securities | 0.2 | 0.3 | 0.4 | 0.5 | |||||||||||
Net Income Available to Common Shareholders | $ | 107.8 | $ | 100.5 | $ | 152.8 | $ | 147.2 | |||||||
Weighted Average Shares Outstanding (in millions) | 45.6 | 43.3 | 45.6 | 43.3 | |||||||||||
Dilutive Effect of Restricted Stock, Restricted Stock Units, and Stock Options (in millions)* | 0.1 | 0.2 | 0.1 | 0.2 | |||||||||||
Weighted Average Diluted Shares (in millions) | 45.7 | 43.5 | 45.7 | 43.5 | |||||||||||
Diluted Earnings Per Share of Common Stock | $ | 2.36 | $ | 2.31 | $ | 3.34 | $ | 3.39 | |||||||
* Calculation excludes certain outstanding shares (shown in millions by period at the right) attributable to stock units subject to performance or market conditions and restricted stock, which could have a dilutive effect in the future | 0.5 | 0.4 | 0.5 | 0.4 |
March 31, | September 30, | March 31, | |||||||||
Spire | 2017 | 2016 | 2016 | ||||||||
Regulatory Assets: | |||||||||||
Current: | |||||||||||
Pension and postretirement benefit costs | $ | 41.7 | $ | 27.0 | $ | 26.9 | |||||
Unamortized purchased gas adjustments | 61.0 | 49.7 | 8.9 | ||||||||
Other | 23.1 | 17.2 | 5.5 | ||||||||
Total Regulatory Assets (current) | 125.8 | 93.9 | 41.3 | ||||||||
Non-current: | |||||||||||
Future income taxes due from customers | 159.7 | 151.3 | 142.3 | ||||||||
Pension and postretirement benefit costs | 461.8 | 487.9 | 441.0 | ||||||||
Cost of removal | 133.9 | 130.6 | 80.2 | ||||||||
Unamortized purchased gas adjustments | 1.1 | 12.6 | 15.1 | ||||||||
Energy efficiency | 27.0 | 25.5 | 23.7 | ||||||||
Other | 44.2 | 30.1 | 30.3 | ||||||||
Total Regulatory Assets (non-current) | 827.7 | 838.0 | 732.6 | ||||||||
Total Regulatory Assets | $ | 953.5 | $ | 931.9 | $ | 773.9 | |||||
Regulatory Liabilities: | |||||||||||
Current: | |||||||||||
Rate Stabilization and Equalization (RSE) adjustment | $ | 1.1 | $ | 7.5 | $ | 5.9 | |||||
Unbilled service margin | 13.5 | 5.9 | 14.9 | ||||||||
Refundable negative salvage | 8.1 | 9.3 | 9.2 | ||||||||
Unamortized purchased gas adjustments | 1.6 | 1.7 | 4.3 | ||||||||
Other | 7.0 | 6.2 | 3.8 | ||||||||
Total Regulatory Liabilities (current) | 31.3 | 30.6 | 38.1 | ||||||||
Non-current: | |||||||||||
Pension and postretirement benefit costs | 27.6 | 28.9 | 27.8 | ||||||||
Refundable negative salvage | 4.9 | 9.4 | 10.1 | ||||||||
Accrued cost of removal | 75.3 | 74.8 | 58.3 | ||||||||
Other | 36.3 | 17.6 | 14.5 | ||||||||
Total Regulatory Liabilities (non-current) | 144.1 | 130.7 | 110.7 | ||||||||
Total Regulatory Liabilities | $ | 175.4 | $ | 161.3 | $ | 148.8 |
March 31, | September 30, | March 31, | |||||||||
Laclede Gas | 2017 | 2016 | 2016 | ||||||||
Regulatory Assets: | |||||||||||
Current: | |||||||||||
Pension and postretirement benefit costs | $ | 34.8 | $ | 20.2 | $ | 20.2 | |||||
Unamortized purchased gas adjustments | 17.1 | 43.1 | 3.9 | ||||||||
Other | 3.4 | 3.7 | 3.5 | ||||||||
Total Regulatory Assets (current) | 55.3 | 67.0 | 27.6 | ||||||||
Non-current: | |||||||||||
Future income taxes due from customers | 159.7 | 151.3 | 142.3 | ||||||||
Pension and postretirement benefit costs | 358.3 | 375.7 | 357.1 | ||||||||
Unamortized purchased gas adjustments | 1.1 | 12.6 | 15.1 | ||||||||
Energy efficiency | 27.0 | 25.5 | 23.7 | ||||||||
Other | 23.3 | 24.7 | 25.6 | ||||||||
Total Regulatory Assets (non-current) | 569.4 | 589.8 | 563.8 | ||||||||
Total Regulatory Assets | $ | 624.7 | $ | 656.8 | $ | 591.4 | |||||
Regulatory Liabilities: | |||||||||||
Current: | |||||||||||
Unamortized purchased gas adjustments | $ | — | $ | — | $ | 4.3 | |||||
Other | 2.7 | 1.3 | 1.3 | ||||||||
Total Regulatory Liabilities (current) | 2.7 | 1.3 | 5.6 | ||||||||
Non-current: | |||||||||||
Accrued cost of removal | 55.6 | 55.1 | 58.3 | ||||||||
Other | 28.9 | 12.2 | 11.0 | ||||||||
Total Regulatory Liabilities (non-current) | 84.5 | 67.3 | 69.3 | ||||||||
Total Regulatory Liabilities | $ | 87.2 | $ | 68.6 | $ | 74.9 |
March 31, | September 30, | March 31, | |||||||||
Alagasco | 2017 | 2016 | 2016 | ||||||||
Regulatory Assets: | |||||||||||
Current: | |||||||||||
Pension and postretirement benefit costs | $ | 6.8 | $ | 6.8 | $ | 6.7 | |||||
Unamortized purchased gas adjustments | 43.9 | 5.6 | 5.0 | ||||||||
Other | 4.4 | 8.1 | 2.0 | ||||||||
Total Regulatory Assets (current) | 55.1 | 20.5 | 13.7 | ||||||||
Non-current: | |||||||||||
Pension and postretirement benefit costs | 94.4 | 98.9 | 83.9 | ||||||||
Cost of removal | 133.9 | 130.6 | 80.2 | ||||||||
Other | 1.0 | 1.2 | 4.0 | ||||||||
Total Regulatory Assets (non-current) | 229.3 | 230.7 | 168.1 | ||||||||
Total Regulatory Assets | $ | 284.4 | $ | 251.2 | $ | 181.8 | |||||
Regulatory Liabilities: | |||||||||||
Current: | |||||||||||
RSE adjustment | $ | 1.1 | $ | 5.0 | $ | 5.9 | |||||
Unbilled service margin | 13.5 | 5.9 | 14.9 | ||||||||
Refundable negative salvage | 8.1 | 9.3 | 9.2 | ||||||||
Other | 2.4 | 2.5 | 2.5 | ||||||||
Total Regulatory Liabilities (current) | 25.1 | 22.7 | 32.5 | ||||||||
Non-current: | |||||||||||
Pension and postretirement benefit costs | 27.6 | 28.9 | 27.8 | ||||||||
Refundable negative salvage | 4.9 | 9.4 | 10.1 | ||||||||
Other | 3.4 | 3.4 | 3.5 | ||||||||
Total Regulatory Liabilities (non-current) | 35.9 | 41.7 | 41.4 | ||||||||
Total Regulatory Liabilities | $ | 61.0 | $ | 64.4 | $ | 73.9 |
Spire | Laclede Gas | ||||||||||||||||||||||
March 31, | September 30, | March 31, | March 31, | September 30, | March 31, | ||||||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | 2016 | ||||||||||||||||||
Future income taxes due from customers | $ | 159.7 | $ | 151.3 | $ | 142.3 | $ | 159.7 | $ | 151.3 | $ | 142.3 | |||||||||||
Pension and postretirement benefit costs | 241.0 | 240.6 | 211.5 | 241.0 | 240.6 | 211.5 | |||||||||||||||||
Other | 11.8 | 12.9 | 13.6 | 11.8 | 12.9 | 13.6 | |||||||||||||||||
Total Regulatory Assets Not Earning a Return | $ | 412.5 | $ | 404.8 | $ | 367.4 | $ | 412.5 | $ | 404.8 | $ | 367.4 |
– | On February 22, 2017, the selling securityholders (as defined below) agreed to purchase the Junior Notes in connection with the remarketing of the junior subordinated notes that comprised a component of the equity units. |
– | On the same day, Spire entered two related agreements: (1) a Securities Purchase and Registration Rights Agreement (the SPRRA), among Spire and the several purchasers named therein (the selling securityholders), obligating the selling securityholders to sell the Junior Notes to Spire in exchange for $143.8 aggregate principal amount of Spire’s 3.543% Senior Notes due 2024 (the Senior Notes) and a cash payment, and (2) an underwriting agreement with the selling securityholders and the several underwriters named therein in connection with the public offering of $150.0 aggregate principal amount of Senior Notes consisting of $6.2 principal amount of the Senior Notes issued and sold by Spire and $143.8 principal amount of the Senior Notes sold by the selling securityholders. The SPRRA granted the selling securityholders the right to offer the Senior Notes to the public in secondary public offerings. |
– | The public offering was completed on February 27, 2017. Spire used its net proceeds from its sale of the Senior Notes to repay short-term debt. Spire did not receive any proceeds from the sale of the Senior Notes by the selling securityholders. |
– | On April 3, 2017, Spire settled the purchase contracts underlying equity units, by issuing 2.5 million shares of its common stock at a purchase price of $57.3921 per share. Under the contract terms, the equity units were converted to common stock at the rate of 0.8712, with a corresponding adjustment to purchase price. Spire received net cash proceeds of approximately $142.0, which it used to repay short-term debt. |
Classification of Estimated Fair Value | |||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) |
As of March 31, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 19.6 | $ | 19.6 | $ | 19.6 | $ | — | |||||||
Short-term debt | 567.4 | 567.4 | — | 567.4 | |||||||||||
Long-term debt | 1,925.3 | 1,993.9 | — | 1,993.9 | |||||||||||
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 | 1,820.7 | 2,257.1 | — | 2,257.1 | |||||||||||
As of March 31, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 8.7 | $ | 8.7 | $ | 8.7 | $ | — | |||||||
Short-term debt | 253.6 | 253.6 | — | 253.6 | |||||||||||
Long-term debt | 1,839.3 | 1,960.4 | — | 1,960.4 |
As of March 31, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 3.7 | $ | 3.7 | $ | 3.7 | $ | — | |||||||
Short-term debt | 282.2 | 282.2 | — | 282.2 | |||||||||||
Long-term debt | 804.3 | 870.1 | — | 870.1 | |||||||||||
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 | 804.1 | 900.4 | — | 900.4 | |||||||||||
As of March 31, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 3.8 | $ | 3.8 | $ | 3.8 | $ | — | |||||||
Short-term debt | 169.6 | 169.6 | — | 169.6 | |||||||||||
Long-term debt | 803.7 | 885.9 | — | 885.9 |
Classification of Estimated Fair Value | |||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | ||||||||||||
As of March 31, 2017 | |||||||||||||||
Short-term debt | 109.3 | 109.3 | — | 109.3 | |||||||||||
Long-term debt | $ | 247.7 | $ | 261.6 | $ | — | $ | 261.6 | |||||||
As of September 30, 2016 | |||||||||||||||
Short-term debt | $ | 82.0 | $ | 82.0 | $ | — | $ | 82.0 | |||||||
Long-term debt | 247.6 | 275.5 | — | 275.5 | |||||||||||
As of March 31, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 2.3 | $ | 2.3 | $ | 2.3 | $ | — | |||||||
Short-term debt | 41.0 | 41.0 | — | 41.0 | |||||||||||
Long-term debt | 247.6 | 262.7 | — | 262.7 |
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 March 31, 2017 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
US stock/bond mutual funds | $ | 17.7 | $ | 4.1 | $ | — | $ | — | $ | 21.8 | |||||||||
NYMEX/ICE natural gas contracts | 4.5 | — | — | (1.8 | ) | 2.7 | |||||||||||||
Gasoline and heating oil contracts | 0.2 | — | — | — | 0.2 | ||||||||||||||
Subtotal | 22.4 | 4.1 | — | (1.8 | ) | 24.7 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 1.0 | 3.6 | — | (4.4 | ) | 0.2 | |||||||||||||
Natural gas commodity contracts | — | 6.2 | 0.2 | (0.5 | ) | 5.9 | |||||||||||||
Other | |||||||||||||||||||
Interest rate swaps | — | 0.2 | — | — | 0.2 | ||||||||||||||
Total | $ | 23.4 | $ | 14.1 | $ | 0.2 | $ | (6.7 | ) | $ | 31.0 | ||||||||
LIABILITIES | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 0.5 | $ | — | $ | — | $ | (0.5 | ) | $ | — | ||||||||
Subtotal | 0.5 | — | — | (0.5 | ) | — | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 2.1 | 3.9 | — | (6.0 | ) | — | |||||||||||||
Natural gas commodity contracts | — | 6.5 | — | (0.5 | ) | 6.0 | |||||||||||||
Total | $ | 2.6 | $ | 10.4 | $ | — | $ | (7.0 | ) | $ | 6.0 |
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 | |||||||||||||
NYMEX 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 March 31, 2016 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
US stock/bond mutual funds | $ | 16.2 | $ | 4.0 | $ | — | $ | — | $ | 20.2 | |||||||||
NYMEX gasoline and heating oil contracts | 0.1 | — | — | — | 0.1 | ||||||||||||||
Subtotal | 16.3 | 4.0 | — | — | 20.3 | ||||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 2.0 | 6.8 | — | (5.1 | ) | 3.7 | |||||||||||||
Natural gas commodity contracts | — | 7.7 | 0.2 | (0.8 | ) | 7.1 | |||||||||||||
Total | $ | 18.3 | $ | 18.5 | $ | 0.2 | $ | (5.9 | ) | $ | 31.1 | ||||||||
LIABILITIES | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 13.5 | $ | — | $ | — | $ | (13.5 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 6.0 | — | — | 6.0 | ||||||||||||||
NYMEX gasoline and heating oil contracts | 0.2 | — | — | (0.2 | ) | — | |||||||||||||
Subtotal | 13.7 | 6.0 | — | (13.7 | ) | 6.0 | |||||||||||||
Gas Marketing | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 2.1 | 3.4 | — | (5.5 | ) | — | |||||||||||||
Natural gas commodity contracts | — | 3.7 | — | (0.8 | ) | 2.9 | |||||||||||||
Other | |||||||||||||||||||
Interest Rate Swaps | — | 1.8 | — | — | 1.8 | ||||||||||||||
Total | $ | 15.8 | $ | 14.9 | $ | — | $ | (20.0 | ) | $ | 10.7 |
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 March 31, 2017 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
US stock/bond mutual funds | $ | 17.7 | $ | 4.1 | $ | — | $ | — | $ | 21.8 | |||||||||
NYMEX/ICE natural gas contracts | 4.5 | — | — | (1.8 | ) | 2.7 | |||||||||||||
NYMEX gasoline and heating oil contracts | 0.2 | — | — | — | 0.2 | ||||||||||||||
Total | $ | 22.4 | $ | 4.1 | $ | — | $ | (1.8 | ) | $ | 24.7 | ||||||||
LIABILITIES | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 0.5 | $ | — | $ | — | $ | (0.5 | ) | $ | — | ||||||||
Total | $ | 0.5 | $ | — | $ | — | $ | (0.5 | ) | $ | — |
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 | |||||||||||||
NYMEX 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 March 31, 2016 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
US stock/bond mutual funds | $ | 16.2 | $ | 4.0 | $ | — | $ | — | $ | 20.2 | |||||||||
Total | $ | 16.2 | $ | 4.0 | $ | — | $ | — | $ | 20.2 | |||||||||
LIABILITIES | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 13.5 | $ | — | $ | — | $ | (13.5 | ) | $ | — | ||||||||
OTCBB natural gas contracts | — | 6.0 | — | — | 6.0 | ||||||||||||||
NYMEX gasoline and heating oil contracts | 0.2 | — | — | (0.2 | ) | — | |||||||||||||
Total | $ | 13.7 | $ | 6.0 | $ | — | $ | (13.7 | ) | $ | 6.0 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Spire | |||||||||||||||
Service cost – benefits earned during the period | $ | 5.2 | $ | 3.8 | $ | 10.5 | $ | 7.7 | |||||||
Interest cost on projected benefit obligation | 6.9 | 7.0 | 13.8 | 14.1 | |||||||||||
Expected return on plan assets | (9.7 | ) | (8.8 | ) | (19.6 | ) | (17.7 | ) | |||||||
Amortization of prior service cost | 0.3 | 0.1 | 0.5 | 0.2 | |||||||||||
Amortization of actuarial loss | 3.2 | 2.0 | 6.6 | 4.0 | |||||||||||
Loss (gain) on lump-sum settlements | 11.9 | (2.2 | ) | 11.9 | (2.2 | ) | |||||||||
Special termination benefits | — | — | — | 1.6 | |||||||||||
Subtotal | 17.8 | 1.9 | 23.7 | 7.7 | |||||||||||
Regulatory adjustment | (7.4 | ) | 6.1 | (2.8 | ) | 11.1 | |||||||||
Net pension cost | $ | 10.4 | $ | 8.0 | $ | 20.9 | $ | 18.8 |
Laclede Gas | |||||||||||||||
Service cost – benefits earned during the period | $ | 3.3 | $ | 2.5 | $ | 6.6 | $ | 5.0 | |||||||
Interest cost on projected benefit obligation | 4.9 | 5.4 | 9.7 | 10.8 | |||||||||||
Expected return on plan assets | (7.1 | ) | (6.7 | ) | (14.4 | ) | (13.4 | ) | |||||||
Amortization of prior service cost | 0.3 | 0.1 | 0.5 | 0.2 | |||||||||||
Amortization of actuarial loss | 2.8 | 2.0 | 5.7 | 4.0 | |||||||||||
Loss on lump-sum settlements | 11.5 | — | 11.5 | — | |||||||||||
Special termination benefits | — | — | — | 1.6 | |||||||||||
Subtotal | 15.7 | 3.3 | 19.6 | 8.2 | |||||||||||
Regulatory adjustment | (8.6 | ) | 2.3 | (5.8 | ) | 5.8 | |||||||||
Net pension cost | $ | 7.1 | $ | 5.6 | $ | 13.8 | $ | 14.0 |
Alagasco | |||||||||||||||
Service cost – benefits earned during the period | $ | 1.5 | $ | 1.3 | $ | 3.1 | $ | 2.7 | |||||||
Interest cost on projected benefit obligation | 1.5 | 1.6 | 3.0 | 3.3 | |||||||||||
Expected return on plan assets | (1.8 | ) | (2.1 | ) | (3.6 | ) | (4.3 | ) | |||||||
Amortization of actuarial loss | 0.4 | — | 0.9 | — | |||||||||||
Loss (gain) on lump-sum settlements | 0.4 | (2.2 | ) | 0.4 | (2.2 | ) | |||||||||
Subtotal | 2.0 | (1.4 | ) | 3.8 | (0.5 | ) | |||||||||
Regulatory adjustment | 1.1 | 3.8 | 2.7 | 5.3 | |||||||||||
Net pension cost | $ | 3.1 | $ | 2.4 | $ | 6.5 | $ | 4.8 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Spire | |||||||||||||||
Service cost – benefits earned during the period | $ | 2.7 | $ | 2.7 | $ | 5.5 | $ | 5.5 | |||||||
Interest cost on accumulated postretirement benefit obligation | 2.2 | 2.5 | 4.3 | 5.0 | |||||||||||
Expected return on plan assets | (3.4 | ) | (3.4 | ) | (6.8 | ) | (6.8 | ) | |||||||
Amortization of prior service credit | — | — | — | 0.1 | |||||||||||
Amortization of actuarial loss | 0.6 | 0.9 | 1.2 | 1.8 | |||||||||||
Special termination benefits | — | — | — | 2.6 | |||||||||||
Subtotal | 2.1 | 2.7 | 4.2 | 8.2 | |||||||||||
Regulatory adjustment | (0.8 | ) | (1.7 | ) | (1.6 | ) | (5.9 | ) | |||||||
Net postretirement benefit cost | $ | 1.3 | $ | 1.0 | $ | 2.6 | $ | 2.3 |
Laclede Gas | |||||||||||||||
Service cost – benefits earned during the period | $ | 2.6 | $ | 2.6 | $ | 5.2 | $ | 5.3 | |||||||
Interest cost on accumulated postretirement benefit obligation | 1.7 | 2.0 | 3.4 | 4.0 | |||||||||||
Expected return on plan assets | (2.2 | ) | (2.2 | ) | (4.5 | ) | (4.3 | ) | |||||||
Amortization of prior service credit | — | — | 0.1 | 0.1 | |||||||||||
Amortization of actuarial loss | 0.7 | 0.9 | 1.3 | 1.9 | |||||||||||
Special termination benefits | — | — | — | 2.6 | |||||||||||
Subtotal | 2.8 | 3.3 | 5.5 | 9.6 | |||||||||||
Regulatory adjustment | (0.3 | ) | (1.2 | ) | (0.7 | ) | (5.0 | ) | |||||||
Net postretirement benefit cost | $ | 2.5 | $ | 2.1 | $ | 4.8 | $ | 4.6 |
Alagasco | |||||||||||||||
Service cost – benefits earned during the period | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | |||||||
Interest cost on accumulated postretirement benefit obligation | 0.4 | 0.5 | 0.8 | 1.0 | |||||||||||
Expected return on plan assets | (1.1 | ) | (1.2 | ) | (2.2 | ) | (2.5 | ) | |||||||
Amortization of prior service credit | — | — | (0.1 | ) | — | ||||||||||
Amortization of actuarial gain | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | ||||||||
Subtotal | (0.7 | ) | (0.6 | ) | (1.4 | ) | (1.4 | ) | |||||||
Regulatory adjustment | (0.5 | ) | (0.5 | ) | (0.9 | ) | (0.9 | ) | |||||||
Net postretirement benefit income | $ | (1.2 | ) | $ | (1.1 | ) | $ | (2.3 | ) | $ | (2.3 | ) |
• | unallocated corporate costs, including certain debt and associated interest costs; |
• | Spire STL Pipeline LLC, a subsidiary of Spire planning construction of a proposed 65-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. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||
Operating Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 641.1 | $ | 22.2 | $ | 0.1 | $ | — | $ | 663.4 | |||||||||
Intersegment revenues | 2.6 | — | 1.7 | (4.3 | ) | — | |||||||||||||
Total Operating Revenues | 643.7 | 22.2 | 1.8 | (4.3 | ) | 663.4 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 275.6 | — | — | (21.3 | ) | 254.3 | |||||||||||||
Operation and maintenance | 99.3 | — | — | (0.9 | ) | 98.4 | |||||||||||||
Depreciation and amortization | 37.9 | — | — | — | 37.9 | ||||||||||||||
Taxes, other than income taxes | 48.3 | — | — | — | 48.3 | ||||||||||||||
Total Gas Utility Operating Expenses | 461.1 | — | — | (22.2 | ) | 438.9 | |||||||||||||
Gas Marketing and Other | — | 23.9 | 2.3 | 17.9 | 44.1 | ||||||||||||||
Total Operating Expenses | 461.1 | 23.9 | 2.3 | (4.3 | ) | 483.0 | |||||||||||||
Operating Income (Loss) | $ | 182.6 | $ | (1.7 | ) | $ | (0.5 | ) | $ | — | $ | 180.4 | |||||||
Net Economic Earnings (Loss) | $ | 112.2 | $ | — | $ | (3.2 | ) | $ | — | $ | 109.0 | ||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||||
Operating Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 611.5 | $ | (2.6 | ) | $ | 0.4 | $ | — | $ | 609.3 | ||||||||
Intersegment revenues | 1.2 | 10.6 | 0.5 | (12.3 | ) | — | |||||||||||||
Total Operating Revenues | 612.7 | 8.0 | 0.9 | (12.3 | ) | 609.3 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 273.0 | — | — | (11.9 | ) | 261.1 | |||||||||||||
Operation and maintenance | 94.6 | — | — | (0.3 | ) | 94.3 | |||||||||||||
Depreciation and amortization | 33.8 | — | — | — | 33.8 | ||||||||||||||
Taxes, other than income taxes | 43.9 | — | — | — | 43.9 | ||||||||||||||
Total Gas Utility Operating Expenses | 445.3 | — | — | (12.2 | ) | 433.1 | |||||||||||||
Gas Marketing and Other | — | 5.5 | 3.1 | (0.1 | ) | 8.5 | |||||||||||||
Total Operating Expenses | 445.3 | 5.5 | 3.1 | (12.3 | ) | 441.6 | |||||||||||||
Operating Income (Loss) | $ | 167.4 | $ | 2.5 | $ | (2.2 | ) | $ | — | $ | 167.7 | ||||||||
Net Economic Earnings (Loss) | $ | 102.5 | $ | 3.0 | $ | (2.0 | ) | $ | — | $ | 103.5 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
Six Months Ended March 31, 2017 | |||||||||||||||||||
Operating Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 1,113.4 | $ | 43.9 | $ | 1.2 | $ | — | $ | 1,158.5 | |||||||||
Intersegment revenues | 7.0 | — | 2.4 | (9.4 | ) | — | |||||||||||||
Total Operating Revenues | 1,120.4 | 43.9 | 3.6 | (9.4 | ) | 1,158.5 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 490.1 | — | — | (42.0 | ) | 448.1 | |||||||||||||
Operation and maintenance | 199.8 | — | — | (2.0 | ) | 197.8 | |||||||||||||
Depreciation and amortization | 75.6 | — | — | — | 75.6 | ||||||||||||||
Taxes, other than income taxes | 81.7 | — | — | — | 81.7 | ||||||||||||||
Total Gas Utility Operating Expenses | 847.2 | — | — | (44.0 | ) | 803.2 | |||||||||||||
Gas Marketing and Other | — | 46.9 | 4.3 | 34.6 | 85.8 | ||||||||||||||
Total Operating Expenses | 847.2 | 46.9 | 4.3 | (9.4 | ) | 889.0 | |||||||||||||
Operating Income (Loss) | $ | 273.2 | $ | (3.0 | ) | $ | (0.7 | ) | $ | — | $ | 269.5 | |||||||
Net Economic Earnings (Loss) | $ | 164.0 | $ | 1.4 | $ | (8.9 | ) | $ | — | $ | 156.5 | ||||||||
Six Months Ended March 31, 2016 | |||||||||||||||||||
Operating Revenues: | |||||||||||||||||||
Revenues from external customers | $ | 1,010.3 | $ | (2.4 | ) | $ | 0.8 | $ | — | $ | 1,008.7 | ||||||||
Intersegment revenues | 1.9 | 23.2 | 0.9 | (26.0 | ) | — | |||||||||||||
Total Operating Revenues | 1,012.2 | 20.8 | 1.7 | (26.0 | ) | 1,008.7 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 434.9 | — | — | (25.3 | ) | 409.6 | |||||||||||||
Operation and maintenance | 186.5 | — | — | (0.6 | ) | 185.9 | |||||||||||||
Depreciation and amortization | 67.3 | — | — | — | 67.3 | ||||||||||||||
Taxes, other than income taxes | 72.1 | — | — | — | 72.1 | ||||||||||||||
Total Gas Utility Operating Expenses | 760.8 | — | — | (25.9 | ) | 734.9 | |||||||||||||
Gas Marketing and Other | — | 14.5 | 4.7 | (0.1 | ) | 19.1 | |||||||||||||
Total Operating Expenses | 760.8 | 14.5 | 4.7 | (26.0 | ) | 754.0 | |||||||||||||
Operating Income (Loss) | $ | 251.4 | $ | 6.3 | $ | (3.0 | ) | $ | — | $ | 254.7 | ||||||||
Net Economic Earnings (Loss) | $ | 152.5 | $ | 2.7 | $ | (6.6 | ) | $ | — | $ | 148.6 |
March 31, | September 30, | March 31, | |||||||||
2017 | 2016 | 2016 | |||||||||
Total Assets: | |||||||||||
Gas Utility | $ | 5,290.8 | $ | 5,184.7 | $ | 4,680.2 | |||||
Gas Marketing | 218.2 | 205.0 | 156.5 | ||||||||
Other | 2,199.1 | 1,836.6 | 1,516.5 | ||||||||
Eliminations | (1,451.4 | ) | (1,161.9 | ) | (1,045.7 | ) | |||||
Total Assets | $ | 6,256.7 | $ | 6,064.4 | $ | 5,307.5 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Income | $ | 108.0 | $ | 100.8 | $ | 153.2 | $ | 147.7 | |||||||
Adjustments, pre-tax: | |||||||||||||||
Unrealized loss (gain) on energy-related derivative contracts | 1.6 | 2.9 | 5.4 | (2.0 | ) | ||||||||||
Lower of cost or market inventory adjustments | 0.1 | 0.1 | — | 0.7 | |||||||||||
Realized gain on economic hedges prior to sale of the physical commodity | (0.1 | ) | (0.5 | ) | (0.2 | ) | (0.6 | ) | |||||||
Acquisition, divestiture and restructuring activities | 0.1 | 2.0 | 0.2 | 3.3 | |||||||||||
Income tax effect of adjustments | (0.7 | ) | (1.8 | ) | (2.1 | ) | (0.5 | ) | |||||||
Net Economic Earnings | $ | 109.0 | $ | 103.5 | $ | 156.5 | $ | 148.6 |
• | 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; |
• | 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: |
▪ | environmental or safety matters, including the potential impact of legislative and regulatory actions related to climate change and pipeline safety, |
• | 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. |
• | Spire STL Pipeline LLC, a subsidiary of Spire planning construction of a proposed 65-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. |
• | 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 | Total | Per Diluted Share** | ||||||||||||||||
Three Months Ended March 31, 2017 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 112.3 | $ | (1.0 | ) | $ | (3.3 | ) | $ | 108.0 | $ | 2.36 | ||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 1.6 | — | 1.6 | 0.04 | |||||||||||||||
Lower of cost or market inventory adjustments | — | 0.1 | — | 0.1 | — | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.1 | ) | — | (0.1 | ) | — | |||||||||||||
Acquisition, divestiture and restructuring activities | — | — | 0.1 | 0.1 | — | |||||||||||||||
Income tax effect of adjustments* | (0.1 | ) | (0.6 | ) | — | (0.7 | ) | (0.02 | ) | |||||||||||
Net Economic Earnings (Loss) (Non-GAAP)** | $ | 112.2 | $ | — | $ | (3.2 | ) | $ | 109.0 | $ | 2.38 | |||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 102.4 | $ | 1.5 | $ | (3.1 | ) | $ | 100.8 | $ | 2.31 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 2.9 | — | 2.9 | 0.07 | |||||||||||||||
Lower of cost or market inventory adjustments | — | 0.1 | — | 0.1 | — | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.5 | ) | — | (0.5 | ) | (0.01 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 0.2 | — | 1.8 | 2.0 | 0.04 | |||||||||||||||
Income tax effect of adjustments* | (0.1 | ) | (1.0 | ) | (0.7 | ) | (1.8 | ) | (0.04 | ) | ||||||||||
Net Economic Earnings (Loss) (Non-GAAP)** | $ | 102.5 | $ | 3.0 | $ | (2.0 | ) | $ | 103.5 | $ | 2.37 |
* | Income taxes are calculated by applying effective federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
** | Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Three Months Ended March 31, 2017 | ||||||||||||||||||||
Operating Income (Loss) | $ | 182.6 | $ | (1.7 | ) | $ | (0.5 | ) | $ | — | $ | 180.4 | ||||||||
Operation and maintenance expenses | 99.3 | 1.5 | 2.1 | (1.4 | ) | 101.5 | ||||||||||||||
Depreciation and amortization | 37.9 | — | 0.1 | — | 38.0 | |||||||||||||||
Taxes, other than income taxes | 48.3 | 0.1 | — | — | 48.4 | |||||||||||||||
Less: Gross receipts tax expense | (34.1 | ) | (0.1 | ) | — | — | (34.2 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 334.0 | (0.2 | ) | 1.7 | (1.4 | ) | 334.1 | |||||||||||||
Natural and propane gas costs | 275.6 | 22.3 | 0.1 | (2.9 | ) | 295.1 | ||||||||||||||
Gross receipts tax expense | 34.1 | 0.1 | — | — | 34.2 | |||||||||||||||
Operating Revenues | $ | 643.7 | $ | 22.2 | $ | 1.8 | $ | (4.3 | ) | $ | 663.4 | |||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||||||
Operating Income (Loss) | $ | 167.4 | $ | 2.5 | $ | (2.2 | ) | $ | — | $ | 167.7 | |||||||||
Operation and maintenance expenses | 94.6 | 1.4 | 3.1 | (0.3 | ) | 98.8 | ||||||||||||||
Depreciation and amortization | 33.8 | — | 0.1 | — | 33.9 | |||||||||||||||
Taxes, other than income taxes | 43.9 | 0.1 | (0.1 | ) | — | 43.9 | ||||||||||||||
Less: Gross receipts tax expense | (32.2 | ) | (0.1 | ) | — | — | (32.3 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 307.5 | 3.9 | 0.9 | (0.3 | ) | 312.0 | ||||||||||||||
Natural and propane gas costs | 273.0 | 4.0 | — | (12.0 | ) | 265.0 | ||||||||||||||
Gross receipts tax expense | 32.2 | 0.1 | — | — | 32.3 | |||||||||||||||
Operating Revenues | $ | 612.7 | $ | 8.0 | $ | 0.9 | $ | (12.3 | ) | $ | 609.3 |
EnergySouth acquisition | $ | 37.7 | |
Missouri Utilities and Alagasco weather / volumetric usage | (45.0 | ) | |
Alagasco - Higher GSA gas costs | 14.9 | ||
Missouri Utilities – Higher PGA gas cost recoveries | 10.8 | ||
Missouri Utilities – Higher Infrastructure System Replacement Surcharge (ISRS) | 3.5 | ||
Missouri Utilities - Off system sales, capacity release | 3.8 | ||
Alagasco – No Rate Stabilization and Equalization (RSE) revenue reduction in the current year | 4.6 | ||
All other factors | 0.7 | ||
Total Variation | $ | 31.0 |
EnergySouth contribution margin | $ | 27.6 | |
Missouri Utilities - weather / volumetric usage | (9.6 | ) | |
Alagasco – No RSE revenue adjustment in the current year quarter | 4.6 | ||
Missouri Utilities – Higher Infrastructure System Replacement Surcharge (ISRS) | 3.5 | ||
All other factors | 0.4 | ||
Total Variation | $ | 26.5 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Income (Loss) | $ | 90.2 | $ | 87.0 | |||
Operation and maintenance expenses | 57.5 | 61.5 | |||||
Depreciation and amortization | 23.0 | 21.9 | |||||
Taxes, other than income taxes | 35.3 | 33.5 | |||||
Less: Gross receipts tax expense | (24.9 | ) | (24.7 | ) | |||
Contribution Margin (non-GAAP) | 181.1 | 179.2 | |||||
Natural and propane gas costs | 241.2 | 242.8 | |||||
Gross receipts tax expense | 24.9 | 24.7 | |||||
Operating Revenues | $ | 447.2 | $ | 446.7 | |||
Net Income | $ | 57.0 | $ | 54.3 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Income (Loss) | $ | 78.9 | $ | 80.4 | |||
Operation and maintenance expenses | 31.5 | 33.1 | |||||
Depreciation and amortization | 12.3 | 11.9 | |||||
Taxes, other than income taxes | 10.3 | 10.4 | |||||
Less: Gross receipts tax expense | (7.7 | ) | (7.5 | ) | |||
Contribution Margin (Non-GAAP) | 125.3 | 128.3 | |||||
Natural and propane gas costs | 25.8 | 30.2 | |||||
Gross receipts tax expense | 7.7 | 7.5 | |||||
Operating Revenues | $ | 158.8 | $ | 166.0 | |||
Net Income | $ | 47.6 | $ | 48.1 |
Gas Utility | Gas Marketing | Other | Total | Per Diluted Share** | ||||||||||||||||
Six Months Ended March 31, 2017 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 164.0 | $ | (1.8 | ) | $ | (9.0 | ) | $ | 153.2 | $ | 3.34 | ||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | — | 5.4 | — | 5.4 | 0.12 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.2 | ) | — | (0.2 | ) | — | |||||||||||||
Acquisition, divestiture and restructuring activities | 0.1 | — | 0.1 | 0.2 | 0.01 | |||||||||||||||
Income tax effect of adjustments* | (0.1 | ) | (2.0 | ) | — | (2.1 | ) | (0.05 | ) | |||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 164.0 | $ | 1.4 | $ | (8.9 | ) | $ | 156.5 | $ | 3.42 | |||||||||
Six Months Ended March 31, 2016 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 151.7 | $ | 3.8 | $ | (7.8 | ) | $ | 147.7 | $ | 3.39 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | (0.1 | ) | (1.9 | ) | — | (2.0 | ) | (0.04 | ) | |||||||||||
Lower of cost or market inventory adjustments | — | 0.7 | — | 0.7 | 0.02 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.6 | ) | — | (0.6 | ) | (0.02 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 1.4 | — | 1.9 | 3.3 | 0.07 | |||||||||||||||
Income tax effect of adjustments* | (0.5 | ) | 0.7 | (0.7 | ) | (0.5 | ) | (0.01 | ) | |||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 152.5 | $ | 2.7 | $ | (6.6 | ) | $ | 148.6 | $ | 3.41 |
* | Income taxes are calculated by applying effective federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
** | Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Six Months Ended March 31, 2017 | ||||||||||||||||||||
Operating Income (Loss) | $ | 273.2 | $ | (3.0 | ) | $ | (0.7 | ) | $ | — | $ | 269.5 | ||||||||
Operation and maintenance expenses | 199.8 | 2.9 | 3.9 | (2.6 | ) | 204.0 | ||||||||||||||
Depreciation and amortization | 75.6 | — | 0.2 | — | 75.8 | |||||||||||||||
Taxes, other than income taxes | 81.7 | 0.2 | 0.1 | — | 82.0 | |||||||||||||||
Less: Gross receipts tax expense | (53.1 | ) | (0.1 | ) | — | — | (53.2 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 577.2 | — | 3.5 | (2.6 | ) | 578.1 | ||||||||||||||
Natural and propane gas costs | 490.1 | 43.8 | 0.1 | (6.8 | ) | 527.2 | ||||||||||||||
Gross receipts tax expense | 53.1 | 0.1 | — | — | 53.2 | |||||||||||||||
Operating Revenues | $ | 1,120.4 | $ | 43.9 | $ | 3.6 | $ | (9.4 | ) | $ | 1,158.5 | |||||||||
Six Months Ended March 31, 2016 | ||||||||||||||||||||
Operating Income (Loss) | $ | 251.4 | $ | 6.3 | $ | (3.0 | ) | $ | — | $ | 254.7 | |||||||||
Operation and maintenance expenses | 186.5 | 3.0 | 4.5 | (0.6 | ) | 193.4 | ||||||||||||||
Depreciation and amortization | 67.3 | — | 0.3 | — | 67.6 | |||||||||||||||
Taxes, other than income taxes | 72.1 | 0.1 | (0.1 | ) | — | 72.1 | ||||||||||||||
Less: Gross receipts tax expense | (49.7 | ) | (0.1 | ) | — | — | (49.8 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 527.6 | 9.3 | 1.7 | (0.6 | ) | 538.0 | ||||||||||||||
Natural and propane gas costs | 434.9 | 11.4 | — | (25.4 | ) | 420.9 | ||||||||||||||
Gross receipts tax expense | 49.7 | 0.1 | — | — | 49.8 | |||||||||||||||
Operating Revenues | $ | 1,012.2 | $ | 20.8 | $ | 1.7 | $ | (26.0 | ) | $ | 1,008.7 |
EnergySouth acquisition | $ | 64.1 | |
Missouri Utilities and Alagasco - weather / volumetric usage | (31.0 | ) | |
Missouri Utilities – Higher PGA gas cost recoveries | 28.4 | ||
Alagasco - Higher GSA gas costs | 19.0 | ||
Missouri Utilities - Off system sales, capacity release | 14.6 | ||
Missouri Utilities – Higher Infrastructure System Replacement Surcharge (ISRS) | 6.8 | ||
Alagasco – Lower Rate Stabilization and Equalization (RSE) revenue reduction in the current year | 5.8 | ||
All other factors | 0.5 | ||
Total Variation | $ | 108.2 |
EnergySouth acquisition | $ | 46.9 | |
Missouri Utilities and Alagasco - weather / volumetric usage | (10.1 | ) | |
Missouri Utilities – Higher Infrastructure System Replacement Surcharge (ISRS) | 6.8 | ||
Alagasco – Lower Rate Stabilization and Equalization (RSE) revenue reduction in the current year | 5.8 | ||
All other factors | 0.2 | ||
Total Variation | $ | 49.6 |
Six Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Income (Loss) | $ | 154.7 | $ | 152.1 | |||
Operation and maintenance expenses | 118.0 | 120.3 | |||||
Depreciation and amortization | 45.7 | 43.7 | |||||
Taxes, other than income taxes | 59.9 | 55.2 | |||||
Less: Gross receipts tax expense | (39.0 | ) | (38.2 | ) | |||
Contribution Margin (Non-GAAP) | 339.3 | 333.1 | |||||
Natural and propane gas costs | 432.5 | 392.6 | |||||
Gross receipts tax expense | 39.0 | 38.2 | |||||
Operating Revenues | $ | 810.8 | $ | 763.9 | |||
Net Income | $ | 95.0 | $ | 93.7 |
Six Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Income (Loss) | $ | 98.7 | $ | 99.3 | |||
Operation and maintenance expenses | 62.7 | 66.2 | |||||
Depreciation and amortization | 24.6 | 23.6 | |||||
Taxes, other than income taxes | 16.9 | 16.9 | |||||
less: Gross receipts tax expense | (11.9 | ) | (11.5 | ) | |||
Contribution Margin (Non-GAAP) | 191.0 | 194.5 | |||||
Natural and propane gas costs | 42.6 | 42.3 | |||||
Gross receipts tax expense | 11.9 | 11.5 | |||||
Operating Revenues | $ | 245.5 | $ | 248.3 | |||
Net Income | $ | 57.9 | $ | 58.0 |
Six Months Ended March 31, | |||||||
Cash Flow Summary | 2017 | 2016 | |||||
Net cash provided by operating activities | $ | 226.1 | $ | 243.0 | |||
Net cash used in investing activities | (182.9 | ) | (122.5 | ) | |||
Net cash used in financing activities | (28.8 | ) | (125.6 | ) |
Spire Short-Term Borrowings1 | Laclede Gas Commercial Paper Borrowings2 | Alagasco Bank Line Borrowings | Total Short-Term Borrowings | |
Six Months Ended March 31, 2017 | ||||
Weighted average borrowings outstanding | $268.1 | $177.4 | $56.7 | $502.2 |
Weighted average interest rate | 1.3% | 0.9% | 1.6% | 1.2% |
Range of borrowings outstanding | $73.0 - $675.6 | $0.0 - $329.7 | $0.0 - $102.5 | $398.7 - $675.6 |
Annual decrease in pre-tax earnings and cash flows resulting from a 100-basis-point average rate increase on average borrowings* | $5.0 | |||
As of March 31, 2017 | ||||
Borrowings outstanding at end of period | $567.4 | $— | $— | $567.4 |
Weighted average interest rate | 1.2% | —% | —% | 1.2% |
– | On February 22, 2017, the selling securityholders (as defined below) agreed to purchase the Junior Notes in connection with the remarketing of the junior subordinated notes that comprised a component of the equity units. |
– | On the same day, Spire entered two related agreements: (1) a Securities Purchase and Registration Rights Agreement (the SPRRA), among Spire and the several purchasers named therein (the selling securityholders), obligating the selling securityholders to sell the Junior Notes to Spire in exchange for $143.8 aggregate principal amount of Spire’s 3.543% Senior Notes due 2024 (the Senior Notes) and a cash payment, and (2) an underwriting agreement with the selling securityholders and the several underwriters named therein in connection with the public offering of $150.0 aggregate principal amount of Senior Notes consisting of $6.2 principal amount of the Senior Notes issued and sold by Spire and $143.8 principal amount of the Senior Notes sold by the selling securityholders. The SPRRA granted the selling securityholders the right to offer the Senior Notes to the public in secondary public offerings. |
– | The public offering was completed on February 27, 2017. Spire used its net proceeds from its sale of the Senior Notes to repay short-term debt. Spire did not receive any proceeds from the sale of the Senior Notes by the selling securityholders. |
– | On April 3, 2017, Spire settled the purchase contracts underlying equity units, by issuing 2.5 million shares of its common stock at a purchase price of $57.3921 per share. Under the contract terms, the equity units were converted to common stock at the rate of 0.8712, with a corresponding adjustment to purchase price. Spire received net cash proceeds of approximately $142.0, which it used to repay short-term debt. |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs |
January 1, 2017 - January 31, 2017 | 974 | $64.80 | — | — |
February 1, 2017 - February 28, 2017 | — | $— | — | — |
March 1, 2017 - March 31, 2017 | — | $— | — | — |
Total | 974 | $64.80 | — | — |
Spire Inc. | ||||
Date: | May 3, 2017 | By: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President and Chief Financial Officer | ||||
(Authorized Signatory and Principal Financial Officer) |
Laclede Gas Company | ||||
Date: | May 3, 2017 | By: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer | ||||
(Authorized Signatory and Principal Financial Officer) |
Alabama Gas Corporation | ||||
Date: | May 3, 2017 | By: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer | ||||
(Authorized Signatory and Principal Financial Officer) |
Exhibit No. | Description | |
4.1* | Second Supplemental Indenture, dated as of February 27, 2017, between Spire Inc. and UMB Bank & Trust, N.A., as Trustee (including Form of 3.543% Senior Notes due 2024), filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed February 27, 2017. | |
4.2 | Master Note Purchase Agreement dated June 20, 2016, among Spire Inc. and certain institutional purchasers party thereto. | |
4.3 | First Supplement to Master Note Purchase Agreement dated as of March 15, 2017, among Spire Inc. and certain institutional purchasers party thereto. | |
4.4 | Bond Purchase Agreement dated March 20, 2017, among Laclede Gas Company and certain institutional purchasers party thereto (including Form of Thirty-Third Supplemental Indenture). | |
10.1† | Precedent Agreement dated as of January 25, 2017, between Laclede Gas Company and Spire STL Pipeline LLC. | |
10.2 | Amendment to Precedent Agreement dated as of April 17, 2017, between Laclede Gas Company and Spire STL Pipeline LLC. | |
31.1 | CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Spire Inc. | |
31.2 | CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Laclede Gas Company. | |
31.3 | CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Alabama Gas Corporation. | |
32.1 | CEO and CFO Section 1350 Certifications of Spire Inc. | |
32.2 | CEO and CFO Section 1350 Certifications of Laclede Gas Company. | |
32.3 | CEO and CFO Section 1350 Certifications of Alabama Gas Corporation. | |
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 Extension Definition Linkbase. (1) | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. (1) | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. (1) |
(1) | Attached as Exhibit 101 to this Quarterly Report are the following documents for each registrant formatted in extensible business reporting language (XBRL): (i) Document and Entity Information; (ii) unaudited Condensed Consolidated Statements of Income and Condensed Statements of Income for the three and six months ended March 31, 2017 and 2016; (iii) unaudited Condensed Consolidated Statements of Comprehensive Income and Condensed Statements of Comprehensive Income for the three and six months ended March 31, 2017 and 2016; (iv) unaudited Condensed Consolidated Balance Sheets and Condensed Balance Sheets at March 31, 2017, September 30, 2016 and March 31, 2016; (v) unaudited Condensed Consolidated Statements of Common Shareholders’ Equity and Condensed Statements of Common Shareholder’s Equity for the six months ended March 31, 2017 and 2016; (vi) unaudited Condensed Consolidated Statements of Cash Flows and Condensed Statements of Cash Flows for the six months ended March 31, 2017 and 2016, and (vii) combined Notes to Financial Statements. We also make available on our website the Interactive Data Files submitted as Exhibit 101 to this Quarterly Report. |
* | Incorporated herein by reference and made a part hereof. Spire Inc. File No. 1-16681. |
† | Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act. |
(c) | No part of the proceeds from the sale of the Notes hereunder: |
SPIRE INC. | ||
By: | /s/ Lynn D. Rawlings | |
Name: | Lynn D. Rawlings | |
Title: | Vice President and Treasurer |
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
METROPOLITAN LIFE INSURANCE COMPANY | ||||
METLIFE INSURANCE COMPANY USA | ||||
by: | Metropolitan Life Insurance Company, its | |||
Investment Manager | ||||
By: | /s/ John Wills | |||
Name: | John Wills | |||
Title: | Managing Director | |||
METLIFE INSURANCE K.K. | ||||
by: | MetLife Investment Advisors, LLC, Its | |||
Investment Manager | ||||
LINCOLN BENEFIT LIFE COMPANY | ||||
by: | MetLife Investment Advisors, LLC, Its | |||
Investment Manager | ||||
By: | /s/ C. Scott Inglis | |||
Name: | C. Scott Inglis | |||
Title: | Managing Director | |||
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
THE NORTHWESTERN MUTUAL LIFE INSURANCE | ||||
COMPANY | ||||
By: | Northwestern Mutual Investment | |||
Management Company, LLC, | ||||
its investment advisor | ||||
By: | /s/ David A. Barras | |||
Name: | David A. Barras | |||
Title: | Managing Director | |||
THE NORTHWESTERN MUTUAL LIFE INSURANCE | ||||
COMPANY FOR ITS GROUP ANNUITY | ||||
SEPARATE ACCOUNT | ||||
By: | /s/ David A. Barras | |||
Name: | David A. Barras | |||
Title: | Its Authorized Representative | |||
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
VOYA RETIREMENT INSURANCE AND ANNUITY | ||||
COMPANY | ||||
RELIASTAR LIFE INSURANCE COMPANY | ||||
VOYA INSURANCE AND ANNUITY COMPANY | ||||
SECURITY LIFE OF DENVER INSURANCE | ||||
COMPANY | ||||
By: | Voya Investment Management LLC, as | |||
Agent | ||||
By: | /s/ Christopher P. Lyons | |||
Name: | Christopher P. Lyons | |||
Title: | Managing Director | |||
UNITED TECHNOLOGIES CORPORATION | ||||
EMPLOYEE SAVINGS PLAN MASTER TRUST | ||||
AETNA 401(K) MASTER TRUST | ||||
By: | Voya Investment Management Co. LLC, as | |||
Agent | ||||
By: | /s/ Christopher P. Lyons | |||
Name: | Christopher P. Lyons | |||
Title: | Managing Director | |||
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
PRINCIPAL LIFE INSURANCE COMPANY | ||||
By: | Principal Global Investors, LLC | |||
a Delaware limited liability company, | ||||
its authorized signatory | ||||
By: | /s/ Justin T. Lange | |||
Name: | Justin T. Lange | |||
Title: | Counsel | |||
By: | /s/ Adrienne L. McFarland | |||
Name: | Adrienne L. McFarland | |||
Title: | Counsel | |||
PRINCIPAL LIFE INSURANCE COMPANY ON | ||||
BEHALF OF ONE OR MORE SEPARATE | ||||
ACCOUNTS | ||||
By: | Principal Global Investors, LLC | |||
a Delaware limited liability company, | ||||
its authorized signatory | ||||
By: | /s/ Justin T. Lange | |||
Name: | Justin T. Lange | |||
Title: | Counsel | |||
By: | /s/ Adrienne L. McFarland | |||
Name: | Adrienne L. McFarland | |||
Title: | Counsel | |||
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
THRIVENT FINANCIAL FOR LUTHERANS | ||||
By: | /s/ Allen Stoltman | |||
Name: | Allen Stoltman | |||
Title: | Managing Director | |||
AXA EQUITABLE LIFE INSURANCE COMPANY | ||||
By: | /s/ Amy Judd | |||
Name: | Amy Judd | |||
Title: | Investment Officer | |||
THE GUARDIAN LIFE INSURANCE COMPANY OF | ||||
AMERICA | ||||
By: | /s/ Brian Keating | |||
Name: | Brian Keating | |||
Title: | Managing Director | |||
LIFE INSURANCE COMPANY OF NORTH AMERICA | ||||
By: | Cigna Investments, Inc. (authorized agent) | |||
By: | /s/ Christopher D. Potter | |||
Name: | Christopher D. Potter | |||
Title: | Managing Director | |||
CIGNA HEATH AND LIFE INSURANCE COMPANY | ||||
By: | Cigna Investments, Inc. (authorized agent) | |||
By: | /s/ Christopher D. Potter | |||
Name: | Christopher D. Potter | |||
Title: | Managing Director |
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
MODERN WOODMEN OF AMERICA | ||||
By: | /s/ Brett M. Van | |||
Name: | Brett M. Van | |||
Title: | Treasurer & Investment Manager | |||
AMERITAS LIFE INSURANCE CORP. | ||||
AMERITAS LIFE INSURANCE CORP. OF NEW | ||||
YORK | ||||
By: | Ameritas Investment Partners Inc., as | |||
Agent | ||||
By: | /s/ Tina Udell | |||
Name: | Tina Udell | |||
Title: | Vice President & Managing Director | |||
THE STATE LIFE INSURANCE COMPANY | ||||
By: | American United Life Insurance Company | |||
Its: | Agent | |||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities | |||
This Agreement is hereby accepted and agreed to as of the date hereof. | ||||
CMFG LIFE INSURANCE COMPANY | ||||
By: | MEMBERS Capital Advisors, Inc. acting | |||
as Investment Advisor | ||||
By: | /s/ Allen R. Cantrell | |||
Name: | Allen R. Cantrell | |||
Title: | Managing Director, Investments | |||
GENWORTH MORTGAGE INSURANCE | ||||
CORPORATION | ||||
GENWORTH LIFE AN ANNUITY INSURANCE | ||||
COMPANY | ||||
By: | /s/ Joseph A. McCusker | |||
Name: | Joseph A. McCusker | |||
Title: | Investment Officer | |||
COUNTRY LIFE INSURANCE COMPANY | ||||
By: | /s/ John Jacobs | |||
Name: | John Jacobs | |||
Title: | Director - Fixed Income | |||
STANDARD INSURANCE COMPANY | ||||
By: | /s/ Chris Beaulieu | |||
Name: | Chris Beaulieu | |||
Title: | AVP Investments | |||
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Number: 13-5581829 |
(5) | UK Passport Treaty Number (if applicable): 13/M/61303/DTTP |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Number: 13-5581829 |
(5) | UK Passport Treaty Number (if applicable): 13/M/61303/DTTP |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Number: 06-0566090 |
(5) | UK Passport Treaty Number (if applicable): 13/M/61653/DTTP |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
Account Name: | MetLife Insurance Company USA, Separate Account SA (Structured Annuity) |
(2) | All notices and communications: |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Numbers: 98-1037269 (USA) and 00661996 (Japan) |
(5) | UK Passport Treaty Number (if applicable): 43/M/359828/DTTP |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Numbers: 98-1037269 (USA) and 00661996 (Japan) |
(5) | UK Passport Treaty Number (if applicable): 43/M/359828/DTTP |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: (Physical Note) |
(4) | Taxpayer I.D. Number: 47-0221457 |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: (Physical Note) |
(4) | Taxpayer I.D. Number: 47-0221457 |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: (Physical Note) |
(4) | Taxpayer I.D. Number: 47-0221457 |
(5) | UK Passport Treaty Number (if applicable): N/A |
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department | $0 $19,800,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: |
III. | All other communications shall be delivered or mailed to: |
IV. | Address for delivery of Notes and closing documents: |
V. | Tax Identification No.: 39-0509570 |
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department | $0 $200,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: |
III. | All other communications shall be delivered or mailed to: |
IV. | Address for delivery of Notes and closing documents: |
V. | Tax Identification No.: 39-0509570 |
VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $0 6,750,000 |
(3) | Address for all other communications and notices: |
(4) | Tax Identification No.: 71-0294708 |
VOYA INSURANCE AND ANNUITY COMPANY c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $0 $4,000,000 |
VOYA INSURANCE AND ANNUITY COMPANY c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $0 $2,000,000 |
(1) | All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification No.: 41-0991508 |
RELIASTAR LIFE INSURANCE COMPANY c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $0 $1,750,000 |
(1) | All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification No.: 41-0451140 |
SECURITY LIFE OF DENVER INSURANCE COMPANY c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $0 $500,000 |
(1) | All payments on account of Notes held by such purchaser should be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification No.: 84-0499703 |
STATE STREET BANK AND TRUST COMPANY, AS TRUSTEE OF THE UNITED TECHNOLOGIES CORPORATION EMPLOYEE SAVINGS PLAN MASTER TRUST c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $2,000,000 $0 |
(1) | All payments related to scheduled and unscheduled principal and interest, premiums and fees on account of Note held by such purchaser should be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification No.: 13-2950148 |
AETNA 401(K) MASTER TRUST c/o Voya Investment Management LLC 5780 Powers Ferry Road NW, Suite 300 Atlanta, GA 30327-4347 Attn: Private Placements | $1,000,000 $0 |
PRINCIPAL LIFE INSURANCE COMPANY c/o Principal Global Investors, LLC ATTN: Fixed Income Private Placements 711 High Street Des Moines, IA 50392-0800 | $6,500,000 $4,000,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 250,000 $ 250,000 $ 250,000 $ 250,000 | $0 |
PRINCIPAL LIFE INSURANCE COMPANY c/o Principal Global Investors, LLC ATTN: Fixed Income Private Placements 711 High Street, G-26 Des Moines, IA 50392-0800 | $1,000,000 $0 |
PRINCIPAL LIFE INSURANCE COMPANY ON BEHALF OF ONE OR MORE SEPARATE ACCOUNTS c/o Principal Global Investors, LLC ATTN: Fixed Income Private Placements 711 High Street, G-26 Des Moines, IA 50392-0800 | $500,000 $0 |
THRIVENT FINANCIAL FOR LUTHERANS Attn: Investment Division-Private Placements 625 Fourth Avenue South Minneapolis, MN 55415 | $0 $15,000,000 |
THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA 7 Hanover Square New York, NY 10004-2616 | $5,000,000 $0 |
THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA 7 Hanover Square New York, NY 10004-2616 | $0 $7,000,000 |
LIFE INSURANCE COMPANY OF NORTH AMERICA c/o Cigna Investments, Inc. Wilde Building, A5PRI 900 Cottage Grove Road Bloomfield, Connecticut 06002 Attention: Fixed Income Securities E-Mail: CIMFixedIncomeSecurities@Cigna.com | $0 $7,000,000 |
Name in Which Instrument is to be Registered | CIG & Co. | |
Payment on Account of Instrument | By Federal Funds Wire Transfer (without deduction for wiring fees) to | |
J.P. Morgan Chase Bank | ||
BNF=CIGNA Private Placements/AC=9009001802 | ||
ABA# 021000021 | ||
Accompanying Information | OBI=Spire Inc.; Series 2016 Tranche B Notes; 3.11% due 2026; PPN/CUSIP | |
Address for Notices Related to Payments | CIG & Co. c/o Cigna Investments, Inc. | |
Attention: Fixed Income Securities | ||
Wilde Building, A5PRI | ||
900 Cottage Grove Rd | ||
Bloomfield, Connecticut 06002 | ||
E-Mail: CIMFixedIncomeSecurities@Cigna.com | ||
Address for All Other | CIG & Co. | |
Notices | c/o Cigna Investments, Inc. | |
Attention: Fixed Income Securities | ||
Wilde Building, A5PRI | ||
900 Cottage Grove Rd | ||
Bloomfield, Connecticut 06002 | ||
E-Mail: CIMFixedIncomeSecurities@Cigna.com |
CIGNA HEALTH AND LIFE INSURANCE COMPANY c/o Cigna Investments, Inc. Wilde Building, A5PRI 900 Cottage Grove Road Bloomfield, Connecticut 06002 Attention: Fixed Income Securities E-Mail: CIMFixedIncomeSecurities@Cigna.com | $0 $1,500,000 $500,000 |
Name in Which Instrument is to be Registered | CIG & Co. | |
Payment on Account of Instrument | By Federal Funds Wire Transfer (without deduction for wiring fees) to | |
J.P. Morgan Chase Bank | ||
BNF=CIGNA Private Placements/AC=9009001802 | ||
ABA# 021000021 | ||
Accompanying Information | OBI=Spire Inc.; Series 2016 Tranche B Notes; 3.11% due 2026; PPN/CUSIP | |
Address for Notices Related to Payments | CIG & Co. c/o Cigna Investments, Inc. | |
Attention: Fixed Income Securities | ||
Wilde Building, A5PRI | ||
900 Cottage Grove Rd | ||
Bloomfield, Connecticut 06002 | ||
E-Mail: CIMFixedIncomeSecurities@Cigna.com | ||
Address for All Other | CIG & Co. | |
Notices | c/o Cigna Investments, Inc. | |
Attention: Fixed Income Securities | ||
Wilde Building, A5PRI | ||
900 Cottage Grove Rd | ||
Bloomfield, Connecticut 06002 | ||
E-Mail: CIMFixedIncomeSecurities@Cigna.com |
(1) | All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification Number: |
AMERITAS LIFE INSURANCE CORP. c/o Ameritas Investment Partners, Inc. Attn: Private Placements 390 North Cotner Blvd. Lincoln, NE 68505 | $0 $3,500,000 |
1) | All payments by wire transfer of immediately available funds to: |
2) | All notices of payments and written confirmations of such wire transfers sent to: |
3) | All other communications sent to: |
4) | Delivery of certificates by registered mail to: |
AMERITAS LIFE INSURANCE CORP. OF NEW YORK c/o Ameritas Investment Partners, Inc. Attn: Private Placements 390 North Cotner Blvd. Lincoln, NE 68505 | $0 $1,500,000 |
THE STATE LIFE INSURANCE COMPANY c/o American United Life Insurance Company Attn: Mike Bullock, Securities Department One American Square, Suite 1017 Post Office Box 368 Indianapolis, IN 46206 mike.bullock@oneamerica.com | $0 $5,000,000 |
CMFG LIFE INSURANCE COMPANY c/o Members Capital Advisors, Inc. Attn: Private Placements 5910 Mineral Point Road Madison, WI 53705-4456 | $0 $5,000,000 |
GENWORTH MORTGAGE INSURANCE CORPORATION c/o Genworth Financial, Inc. 3001 Summer Street, 4th Floor Stamford, CT 06905 Attention: Private Placements Phone Number: (203) 708-3300 Fax Number: (203) 708-3308 Email: GNW.privateplacements@genworth.com | $3,000,000 $0 |
GENWORTH LIFE AND ANNUITY INSURANCE COMPANY c/o Genworth Financial, Inc. 3001 Summer Street, 4th Floor Stamford, CT 06905 Attention: Private Placements Phone Number: (203) 708-3300 Fax Number: (203) 708-3308 Email: GNW.privateplacements@genworth.com | $0 $2,000,000 |
Method Account Information | Federal Funds Wire Transfer Northern Trust Chgo/Trust ABA Number 071000152 Wire Account Number 5186041000 SWIFT BIC: CNORUS44 For Further Credit to: 26-02712 Account Name: Country Life Insurance Company Representing P & I on (list security) [BANK] |
Address/Fax for Notices Related to Payments | Country Life Insurance Company Attention: Investment Accounting 1705 N Towanda Avenue Bloomington, IL 61702 Tel: (309) 821-6348 Fax: (309) 821-2800 |
Address/Fax for All Other Notices | Country Life Insurance Company Attention: Investments 1705 N Towanda Avenue Bloomington, IL 61702 Tel: (309) 821-6260 Fax: (309) 821-6301 PrivatePlacements@countryfinancial.com |
Instructions re: Delivery of Notes | The Northern Trust Company Trade Securities Processing C1N 801 South Canal Street Attn: 26-02712/Country Life Insurance Company Chicago, IL 60607 Include Acct # and Name in cover letter as well. |
Method Account Information | Federal Funds Wire Transfer Bank of New York ABA Number: 021000018 GLA111566 Account number: 3430878400 Account name: Standard Insurance Company |
Accompanying information | Name of Company: Spire Inc. |
Address / Fax # for notices related to payments | Standard Insurance Company c/o Bank of New York Mellon Attention: Joanne Bucci - Client Service Insurance Custody P & I Department P.O. Box 19266 Newark, NJ 07195 Tel: (315) 414-3324 Fax:1-844-803-7567 with a copy to: |
Standard Insurance Company 1100 SW Sixth Avenue, PL1A Portland, OR 97204 Telephone (971) 321-8439 Attn: Kathy Wolf (IMGOPS@standard.com) Fax: (971) 321-5890 |
Address / Fax # for all other notices | Standard Insurance Company 1100 SW Sixth Avenue, PL1A Portland, OR 97204 Telephone (971) 321-8401 Attn: Zaur Akhriev Fax: (971) 321-5890 |
Instructions re Delivery of Notes | The Depository Trust Company 570 Washington Boulevard. -5th Floor Jersey City, NJ 07310 Attn: BNY Mellon Branch Deposit Department Account Name: Standard Insurance Company Account: 343087 Ref: Standard Insurance Company #3430878400 |
Fax: | (971) 321-5890 |
Attn: | Kathy Wolf (IMGOPS@standard.com) |
If the Closing for the Series 2016 Notes occurs on any date: | The maturity date of the Tranche A Notes will be: | The maturity date of the Tranche B Notes will be: | The interest payment dates for the Tranche A Notes will be: | The interest payment dates for the Tranche B Notes will be on: | The Applicable Interest Rate per annum for the Tranche A Notes will be: | The Applicable Interest Rate for the Tranche B Notes will be: |
In August 2016 or before | September 1, 2021 | August 1, 2026 | March 1 and September 1 of each year, commencing March 1, 2017 | August 1 and February 1, of each year commencing February 1, 2017 | 2.49% | 3.11% |
In September 2016 | September 1, 2021 | September 1, 2026 | March 1 and September 1 of each year, commencing March 1, 2017 | September 1 and March 1, of each year commencing March 1, 2017 | 2.52% | 3.13% |
In October 2016 | September 1, 2021 | October 1, 2026 | March 1 and September 1 of each year, commencing March 1, 2017 | October 1 and April 1, of each year commencing April 1, 2017 | 2.55% | 3.15% |
In November 2016 | September 1, 2021 | November 1, 2026 | March 1 and September 1 of each year, commencing March 1, 2017 | November 1 and May 1, of each year commencing May 1, 2017 | 2.58% | 3.17% |
In December 2016 | September 1, 2021 | December 1, 2026 | March 1 and September 1 of each year, commencing March 1, 2017 | December 1 and June 1, of each year commencing June 1, 2017 | 2.61% | 3.19% |
1. | Confidential Private Placement Memorandum dated May 2016. |
2. | Spire Inc. Debt Private Placement presentation dated May 2016. |
Name | Jurisdiction of Organization | Type of Entity | Percent of Voting Stock Owned by Parent. | Parent Entity | |
Alabama Gas Corporation | Alabama | Corporation | 100% | Spire Inc. | |
Laclede Gas Company | Missouri | Corporation | 100% | Spire Inc. | |
Laclede Pipeline Company | Missouri | Corporation | 100% | Spire Inc. | |
Laclede Investment LLC | Missouri | Limited Liability Company | 100% | Spire Inc. | |
Laclede Energy Resources, Inc. | Missouri | Corporation | 100% | Laclede Investment LLC | |
Laclede Gas Family Services, Inc. | Missouri | Corporation | 100% | Laclede Energy Resources, Inc. | |
LER Storage Services, Inc. | Missouri | Corporation | 100% | Laclede Energy Resources, Inc. | |
Laclede Development Company | Missouri | Corporation | 100% | Spire Inc. | |
Laclede Venture Corp. | Missouri | Corporation | 100% | Laclede Development Company | |
Laclede Oil Services, LLC | Missouri | Limited Liability Company | 100% | Laclede Development Company | |
Laclede Insurance Risk Services, Inc. | South Carolina | Corporation | 100% | Spire Inc. | |
Shared Services Corporation | Missouri | Corporation | 100% | Spire Inc. | |
Spire Resources LLC | Missouri | Limited Liability Company | 100% | Spire Inc. | |
Spire Pipelines LLC | Missouri | Limited Liability Company | 100% | Spire Resources LLC | |
Spire STL Pipeline LLC | Missouri | Limited Liability Company | 100% | Spire Pipelines LLC |
1. | Form 10-K filed by the Laclede Group, Inc., Laclede Gas Company, and Alabama Gas Corporation for the fiscal year ended September 30, 2015. |
2. | Form 10-Q filed by the Laclede Group, Inc., Laclede Gas Company, and Alabama Gas Corporation. for the quarterly period ended December 31, 2015. |
3. | Form 10-Q filed by Spire Inc., Laclede Gas Company, and Alabama Gas Corporation for the quarterly period ended March 31, 2016. |
Issue Date | Maturity | Par (,000) | Coupon |
Laclede Gas First Mortgage Bonds1 | |||
8/13/2013 | 8/15/2018 | $100,000 | 2.00% |
4/28/2004 | 5/1/2019 | $50,000 | 5.50% |
3/15/2013 | 3/15/2023 | $55,000 | 3.00% |
8/13/2013 | 8/15/2023 | $250,000 | 3.40% |
3/15/2013 | 3/15/2028 | $45,000 | 3.40% |
6/1/1999 | 6/1/2029 | $25,000 | 7.00% |
9/21/2000 | 9/15/2030 | $30,000 | 7.90% |
4/28/2004 | 5/1/2034 | $100,000 | 6.00% |
6/9/2006 | 6/1/2036 | $55,000 | 6.15% |
8/13/2013 | 8/15/2043 | $100,000 | 4.63% |
$810,000 | 4.27% | ||
Alabama Gas Corp. Unsecured Notes | |||
12/1/2015 | 12/1/2045 | $80,000 | 4.31% |
1/14/2005 | 1/15/2020 | $40,000 | 5.20% |
12/22/2011 | 12/23/2021 | $50,000 | 3.86% |
9/15/2015 | 9/15/2025 | $35,000 | 3.21% |
1/15/2007 | 1/15/2037 | $45,000 | 5.90% |
$250,000 | 4.49% | ||
Spire Unsecured Notes and Equity Units | |||
8/19/2014 | 8/15/2017 | $250,000 | 3L+0.75% |
8/19/2014 | 8/15/2019 | $125,000 | 2.55% |
6/11/2014 | 4/1/2022 | $143,750 | 6.75% |
12/14/2012 | 12/15/2022 | $25,000 | 3.31% |
8/19/2014 | 8/15/2044 | $250,000 | 4.70% |
$793,750 | 3.64% | ||
Total long-term debt | $1,853,750 | 4.03% |
Laclede Gas commercial paper2 | $169,550 |
Alabama Gas Corp. bank line borrowings3 | $41,000 |
Spire bank line borrowings4 | $43,000 |
$253,550 |
SPIRE INC. | ||||
By | ||||
Name: | ||||
Title: | ||||
SPIRE INC. | ||||
By | ||||
Name: | ||||
Title: | ||||
1. | The Company (a) is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Missouri and (b) is duly qualified as a foreign corporation and is in good standing in all of the states where the nature of its business or the ownership or use of property requires such qualification, except where the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
2. | The Company has full corporate right, power and authority to execute, deliver and perform its obligations under the Note Purchase Agreement and the Series 2016 Notes and has duly taken or caused to be taken all necessary corporate actions to authorize the execution, delivery and performance of the Note Purchase Agreement and the Series 2016 Notes. |
3. | The Note Purchase Agreement has been duly authorized, executed and delivered by the Company. |
4. | The Series 2016 Notes have been duly authorized, executed and delivered by the Company. |
5. | No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority of the State of Missouri by the Company is required under any law (reasonably applicable to the Company or the transactions contemplated by the Note Purchase Agreement) in connection with the execution, delivery or performance by the Company of the Note Purchase Agreement or the Series 2016 Notes that has not already been obtained. |
6. | The consummation of the transactions contemplated by the Note Purchase Agreement and the fulfillment of the terms thereof will not result in a breach of any of the terms or provisions of, or constitute a default under, (a) any Material indenture, mortgage, deed of trust or other Material agreement or instrument known to us after due inquiry to which the Company is a party or by which it is bound or to which any of the property of the Company is subject; (b) the Articles of Incorporation or Bylaws of the Company; or (c) any Material order of any Governmental Authority of the State of Missouri having jurisdiction over the Company or any of its properties under any law (reasonably applicable to the Company or the transactions contemplated by the Note Purchase Agreement). |
7. | Except as disclosed under “Item 1. Legal Proceedings” in Part II of the Company’s most recent Form 10-Q or as otherwise disclosed in the Disclosure Documents, to the best of our knowledge, there is not pending or threatened any action, suit, proceeding, inquiry or investigation, to which the Company is a party, or which the property of the Company is subject, before or brought by any Governmental Authority, which would reasonably be expected to materially and adversely affect the consummation of the transactions contemplated by the Note Purchase Agreement or the performance by the Company of its obligations thereunder. |
1. | The Note Purchase Agreement has been duly executed and delivered by the Company and constitutes the valid and binding agreement of the Company enforceable against the Company in accordance with its terms. |
2. | The Series 2016 Notes have been duly executed and delivered by the Company and, when paid for by the Purchasers in accordance with the terms of the Note Purchase Agreement, will constitute valid and binding obligations of the Company enforceable against the Company in accordance with their terms. |
3. | No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority under any Included Law by the Company is required under any law (reasonably applicable to the Company or the transactions contemplated by the Note Purchase Agreement) in connection with the execution, delivery or performance by the Company of the Note Purchase Agreement or the Series 2016 Notes that has not already been obtained. |
4. | The consummation of the transactions contemplated by the Note Purchase Agreement and the fulfillment of the terms thereof will not result in a breach of any of the terms or provisions of, or constitute a default under, (a) any Included Law or (b) to our knowledge, any order of any Governmental Authority or regulatory body having jurisdiction over the Company or any of its properties under any Included Law (reasonably applicable to the Company or the transactions contemplated by the Note Purchase Agreement). |
5. | Assuming, without independent investigation, (a) the accuracy of the representations and warranties of, and the performance by such Persons of the covenants of, the Company and the Purchasers contained in the Note Purchase Agreement and (b) that neither the Company nor any other Person will, after the offer, issue, sale and delivery of the Series 2016 Notes, take or omit to take any action which could cause such offer, issue sale or delivery not to constitute an exempted transaction under the Securities Act, it is not necessary in connection with such offer, issue, sale or delivery to register the Series 2016 Notes under the Securities Act or to qualify the Note Purchase Agreement under the Trust Indenture Act of 1939, as amended. |
6. | Assuming the Company’s compliance with Section 5.14 of the Note Purchase Agreement, the execution, delivery and performance of the Note Purchase Agreement by the |
7. | The Company is not, and after giving effect to the offering and sale of the Series 2016 Notes, and the application of the proceeds thereof as described in the Note Purchase Agreement will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. |
[NAME OF GUARANTOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Notice Address for such Guarantor | ||||
[NAME OF GUARANTOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Notice Address for such Guarantor | ||||
[NAME OF GUARANTOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Notice Address for such Guarantor | ||||
SPIRE INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Accepted as of _________________ | ||||
[VARIATION] | ||||
By: | ||||
Name: | ||||
Title: | ||||
(1) | All payments by wire transfer of immediately available funds to: |
(2) | All notices of payments and written confirmations of such wire transfers: |
(3) | All other communications: |
SPIRE INC. | ||||
By | ||||
Name: | ||||
Title: | ||||
SPIRE INC. | |||||
By: | /s/ Lynn D. Rawlings | ||||
Name: | Lynn D. Rawlings | ||||
Title: | Vice President, Treasurer and | ||||
Assistant Corporate Secretary | |||||
This First Supplement is hereby accepted and agreed to as of the date hereof. | |||||
THE NORTHWESTERN MUTAL LIFE INSURANCE | |||||
COMPANY | |||||
By: | Northwestern Mutual Investment | ||||
Management Company, LLC, | |||||
its investment advisor | |||||
By: | /s/ Bradley T. Kunath | ||||
Name: | Bradley T. Kunath | ||||
Title: | Managing Director | ||||
THE NORTHWESTERN MUTAL LIFE INSURANCE | |||||
COMPANY FOR ITS GROUP ANNUITY | |||||
SEPARATE ACCOUNT | |||||
By: | /s/ Bradley T. Kunath | ||||
Name: | Bradley T. Kunath | ||||
Title: | Authorized Representative | ||||
This First Supplement is hereby accepted and agreed to as of the date hereof. | |||||
VOYA INSURANCE AND ANNUITY COMPANY | |||||
VOYA RETIREMENT INSURANCE AND ANNUITY | |||||
COMPANY | |||||
RELIASTAR LIFE INSURANCE COMPANY | |||||
RELIASTAR LIFE INSURANCE COMPANY OF NEW | |||||
YORK | |||||
By: | Voya Investment Management LLC, as | ||||
Agent | |||||
By: | /s/ Fitzhugh L. Wickham III | ||||
Name: | Fitzhugh L. Wickham III | ||||
Title: | Vice President | ||||
IBM PERSONAL PENSION PLAN TRUST | |||||
By: | Voya Investment Management Co. LLC, as | ||||
Agent | |||||
By: | /s/ Fitzhugh L. Wickham III | ||||
Name: | Fitzhugh L. Wickham III | ||||
Title: | Vice President | ||||
NN LIFE INSURANCE COMPANY LTD. | |||||
By: | Voya Investment Management LLC, as | ||||
Attorney in fact | |||||
By: | /s/ Fitzhugh L. Wickham III | ||||
Name: | Fitzhugh L. Wickham III | ||||
Title: | Vice President |
This First Supplement is hereby accepted and agreed to as of the date hereof. | |||||
Horizon Blue Cross and Blue Shield NJ | |||||
By: | AllianceBernstein LP, its Investment Advisor | ||||
By: | /s/ Amy Judd | ||||
Name: | Amy Judd | ||||
Title: | Senior Vice President | ||||
AXA Equitable Life Insurance Company | |||||
By: | /s/ Amy Judd | ||||
Name: | Amy Judd | ||||
Title: | Investment Officer | ||||
CONNECTICUT GENERAL LIFE INSURANCE | |||||
COMPANY | |||||
By: | Cigna Investments, Inc. (authorized agent) | ||||
By: | /s/ Christopher D. Potter | ||||
Name: | Christopher D. Potter | ||||
Title: | Managing Director | ||||
CIGNA HEALTH AND LIFE INSURANCE COMPANY | |||||
By: | Cigna Investments, Inc. (authorized agent) | ||||
By: | /s/ Christopher D. Potter | ||||
Name: | Christopher D. Potter | ||||
Title: | Managing Director | ||||
THE PRUDENTIAL INSURANCE COMPANY OF | |||||
AMERICA | |||||
By: | /s/ Lauren Soulis | ||||
Name: | Lauren Soulis | ||||
Title: | Vice President | ||||
This First Supplement is hereby accepted and agreed to as of the date hereof. | |||||
ZURICH AMERICAN LIFE INSURANCE COMPANY | |||||
By: | Prudential Private Placement Investors, | ||||
L.P. (as Investment Advisor) | |||||
By: | Prudential Private Placement Investors, Inc. | ||||
(as its General Partner) | |||||
By: | /s/ Lauren Soulis | ||||
Name: | Lauren Soulis | ||||
Title: | Vice President | ||||
THE GURADIAN LIFE INSURANCE COMPANY OF | |||||
AMERICA | |||||
By: | /s/ Amy Carroll | ||||
Name: | Amy Carroll | ||||
Title: | Director | ||||
GENWORTH LIFE INSURANCE COMPANY | |||||
By: | /s/ Stuart Shepetin | ||||
Name: | Stuart Shepetin | ||||
Title: | Investment Officer | ||||
COLONIAL LIFE & ACCIDENT INSURANCE COMPANY | |||||
By: | Provident Investment Management, LLC | ||||
Its: | Agent | ||||
By: | /s/ Ben Vance | ||||
Name: | Ben Vance | ||||
Title: | Vice President, Senior Managing | ||||
Director |
This First Supplement is hereby accepted and agreed to as of the date hereof. | ||||
PROVIDENT LIFE AND ACCIDENT INSURANCE | ||||
COMPANY | ||||
By: | Provident Investment Management, LLC | |||
Its: | Agent | |||
By: | /s/ Ben Vance | |||
Name: | Ben Vance | |||
Title: | Vice President, Senior Managing | |||
Director | ||||
MODERN WOODMEN OF AMERICA | ||||
By: | /s/ Brett M. Vance | |||
Name: | Brett M. Vance | |||
Title: | Treasurer & Investment Manager | |||
AMERICAN UNITED LIFE INSURANCE | ||||
COMPANY | ||||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities | |||
CMFG LIFE INSURANCE COMPANY | ||||
By: | MEMBERS Capital Advisors, Inc. | |||
acting as Investment Advisor | ||||
By: | /s/ Jason Micks | |||
Name: | Jason Micks | |||
Title: | Director, Investments |
NAME AND ADDRESS OF PURCHASER THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY | PRINCIPAL AMOUNT OF SERIES 2017 NOTES TO BE PURCHASED $14,850,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. Please contact our Treasury & Investment Operations Department to securely obtain wire transfer instructions for The Northwestern Mutual Life Insurance Company. E-mail: payments@northwesternnzutual.com Phone: (414) 665-1679 |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Investment Operations E-mail: payments@northwesternmutual.com Phone: (414) 665-1679 |
III. | All other communications shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department E-mail: privateinvest@northwesternmutual.com Facsimile: (414) 625-7643 |
IV. | Address for delivery of Notes and closing documents: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Anne T. Brower |
V. | Tax Identification No.: 39-0509570 |
NAME AND ADDRESS OF PURCHASER THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT | PRINCIPAL AMOUNT OF SERIES 2017 NOTES TO BE PURCHASED $150,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. Please contact our Treasury & Investment Operations Department to securely obtain wire transfer instructions for The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account. E-mail: payments@northwesternmutual.com Phone: (414) 665-1679 |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Investment Operations E-mail: payments@northwesternmutual.com Phone: (414) 665-1679 |
III. | All other communications shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department E-mail: privateinvest@northwesternmutual.com Facsimile: (414) 625-7643 |
IV. | Address for delivery of Notes and closing documents: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Anne T. Brower |
V. | Tax Identification No.: 39-0509570 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
VOYA INSURANCE AND ANNUITY COMPANY | $1,250,000 |
(3) | Address for all other communications and notices: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
VOYA INSURANCE AND ANNUITY COMPANY | $2,750,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
RELIASTAR LIFE INSURANCE COMPANY | $750,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK | $250,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY | $5,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
IBM PERSONAL PENSION PLAN TRUST | $2,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
NN LIFE INSURANCE COMPANY LTD. | $3,000,000 |
(6) | Notes should be sent directly to: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
HORIZON BLUE CROSS AND BLUE SHIELD NJ | $2,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
AXA EQUITABLE LIFE INSURANCE COMPANY | $5,000,000 |
Email: | cosmo.valente@abglobal.com |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
AXA EQUITABLE LIFE INSURANCE COMPANY | $4,000,000 |
Email: | cosmo.valente@abglobal.com |
NAME AND ADDRESS OF PURCHASER CONNECTICUT GENERAL LIFE INSURANCE COMPANY | PRINCIPAL AMOUNT OF SERIES 2017 NOTES TO BE PURCHASED $ 500,000 $1,500,000 $ 500,000 $ 500,000 $ 500,000 $3,000,000 $ 500,000 $1,000,000 |
Name in Which Instrument is to be Registered | CIG & Co. |
Payment on Account of Instruments | By Federal Funds Wire Transfer (without deduction for wiring fees) to J.P. Morgan Chase Bank BNF=CIGNA Private Placements/AC=9009001802 ABA# 021000021 |
Accompanying Information | OBI=[name of company; description of security; interest rate, maturity date; PPN/CUSIP] |
Address for Notices Related to Payments | CIG & Co. c/o Cigna Investments, Inc. Attention: Fixed Income Securities Wilde Building, A5PRI 900 Cottage Grove Rd Bloomfield, Connecticut 06002 E-Mail: CIMFixedIncomeSecurities@Cigna.com E-Mail: Christopher.Potter@Cigna.com |
Address for All Other Notices | CIG & Co. c/o Cigna Investments, Inc. Attention: Fixed Income Securities Wilde Building, A5PRI 900 Cottage Grove Rd Bloomfield, Connecticut 06002 E-Mail: Cl MFixedIncomeSecurities@Cigna.com E-Mail: Christopher.Potter@Cigna.com |
Tax Identification Number | 13-3574027 (for CIG & Co.) |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
CIGNA HEALTH AND LIFE INSURANCE COMPANY | $3,000,000 |
Name in Which Instrument is to be Registered | CIG & Co. |
Payment on Account of Instruments | By Federal Funds Wire Transfer (without deduction for wiring fees) to J.P. Morgan Chase Bank BNF=CIGNA Private Placements/AC=9009001802 ABA# 021000021 |
Accompanying Information | OBI=[name of company; description of security; interest rate, maturity date; PPN/CUSIP] |
Address for Notices Related to Payments | CIG & Co. c/o Cigna Investments, Inc. Attention: Fixed Income Securities Wilde Building, A5PRI 900 Cottage Grove Rd Bloomfield, Connecticut 06002 E-Mail: CIMFixedIncomeSecurities@Cigna.com E-Mail: Christopher.Potter@Cigna.com |
Address for All Other Notices | CIG & Co. c/o Cigna Investments, Inc. Attention: Fixed Income Securities Wilde Building, A5PRI 900 Cottage Grove Rd Bloomfield, Connecticut 06002 E-Mail: CIMFixedIncomeSecurities@Cigna.com E-Mail: Christopher.Potter@Cigna.com |
Tax Identification Number | 13-3574027 (for CIG & Co.) |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA (PRIF-L) | $5,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA (PRIF-L) | $6,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA | $8,000,000 |
(1) | All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all communications and notices: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
ZURICH AMERICAN LIFE INSURANCE COMPANY | $3,000,000 |
(1) | All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all communications and notices: |
(a) | Send physical security by nationwide overnight delivery service to: |
(b) | Send copy by email: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
GENWORTH LIFE INSURANCE COMPANY | $8,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
COLONIAL LIFE & ACCIDENT INSURANCE COMPANY | $4,000,000 |
(1) | Address all notices regarding payments and all other communications to: |
(2) | All payments on account of the Note shall be made by wire transfer of immediately available funds to: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY | $4,000,000 |
(1) | Address all notices regarding payments and all other communications to: |
(2) | All payments on account of the Note shall be made by wire transfer of immediately available funds to: |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
MODERN WOODMEN OF AMERICA | $4,000,000 |
(1) | All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: |
(2) | Address for all notices relating to payments: |
(3) | Address for all other communications and notices: |
(4) | Tax Identification Number: |
(5) | DTTP Number: (Double Taxation Treaty Passport-U.K.) |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
AMERICAN UNITED LIFE INSURANCE COMPANY | $4,000,000 |
PRINCIPAL AMOUNT OF | |
NAME AND ADDRESS OF PURCHASER | SERIES 2017 NOTES TO BE |
PURCHASED | |
CMFG LIFE INSURANCE COMPANY | $2,000,000 |
No. [_____] $[________] | [Date] PPN 84857L A#8 |
SPIRE INC. | ||||
By | ||||
Name: | ||||
Title | ||||
Name | Jurisdiction of Organization | Percent of Capital Stock Owned by Parent | Parent Entity |
Alabama Gas Corporation | Alabama | 100% | Spire Inc. |
EnergySouth Inc. | Delaware | 100% | Spire Inc. |
Laclede Gas Company | Missouri | 100% | Spire Inc. |
Laclede Development Company | Missouri | 100% | Spire Inc. |
Laclede Insurance Risk Services, Inc. | South Carolina | 100% | Spire Inc. |
Laclede Investment LLC | Missouri | 100% | Spire Inc. |
Laclede Oil Services, LLC | Missouri | 100% | Laclede Development Company |
Laclede Pipeline Company | Missouri | 100% | Spire Inc. |
Laclede Venture Corp. | Missouri | 100% | Laclede Development Company |
Mobile Gas Service Corporation | Alabama | 100% | EnergySouth, Inc |
Spire Marketing Inc. | Missouri | 100% | Laclede Investment LLC |
Spire Midstream LLC | Missouri | 100% | Spire Resources LLC |
Spire Resources LLC | Missouri | 100% | Spire Inc. |
Spire STL Pipeline LLC | Missouri | 100% | Spire Midstream LLC |
Shared Services Corporation | Missouri | 100% | Spire Inc. |
Spire Storage Inc. | Missouri | 100% | Spire Marketing, Inc. |
Wilmutt Gas & Oil Company | Mississippi | 100% | EnergySouth, Inc |
Issue Date | Maturity | Par (000) | Coupon |
Laclede Gas Company, First Mortgage Bonds 1 | |||
8/13/13 | 8/15/18 | $100,000 | 2.000% |
4/28/04 | 5/1/19 | 50,000 | 5.500% |
3/15/13 | 3/15/23 | 55,000 | 3.000% |
8/13/13 | 8/15/23 | 250,000 | 3.400% |
3/15/13 | 3/15/28 | 45,000 | 3.400% |
6/1/99 | 6/1/29 | 25,000 | 7.000% |
9/21/00 | 9/15/30 | 30,000 | 7.900% |
4/28/04 | 5/1/34 | 100,000 | 6.000% |
6/9/06 | 6/1/36 | 55,000 | 6.150% |
8/13/13 | 8/15/43 | 100,000 | 4.625% |
$810,000 | |||
Alabama Gas Corp., Unsecured Notes | |||
12/1/15 | 12/1/45 | $80,000 | 4.310% |
1/14/05 | 1/15/20 | 40,000 | 5.200% |
12/22/11 | 12/22/21 | 50,000 | 3.860% |
9/15/15 | 9/15/25 | 35,000 | 3.210% |
1/15/07 | 1/15/37 | 45,000 | 5.900% |
$250,000 |
Spire Inc., Unsecured Notes and Equity Units | |||
8/19/14 | 8/15/19 | $125,000 | 2.550% |
6/11/14 | 4/1/22 | 143,750 | 6.750% |
12/14/12 | 12/15/22 | 25,000 | 3.310% |
8/19/14 | 8/15/44 | 250,000 | 4.700% |
9/9/16 | 9/1/21 | 35,000 | 2.520% |
9/9/16 | 9/1/26 | 130,000 | 3.130% |
$708,750 |
Mobile Gas Service Corporation, First Mortgage Bonds 1 | |||
9/30/2011 | 9/30/2021 | $20,000 | 4.140% |
9/30/2011 | 9/30/2031 | 42,000 | 5.000% |
$62,000 | |||
Willmut Gas & Oil Company, Bank Loan | |||
12/30/2013 | 12/31/2018 | 5,000 | 3.100% |
Total Long-term Debt | $ 1.835,750 |
Short-Term Debt as of 12/31/16 | ||
Short-term borrowings | ||
Laclede Gas Co. commercial paper 2 | $312,850 | |
Alabama Gas Corp. bank line borrowings 2 | 102,500 | |
Spire Inc. bank line borrowings 2 | 91,000 | |
$506,350 | ||
Current portion of Spire long-term debt | $250,000 | |
8/19/14 8/15/17 3L+0.75% | ||
Total Short-term Debt | $756,350 | |
Grand total, existing indebtedness | $ 2,592,100 |
1 | Substantially all of the plant of Laclede Gas Company and Mobile Gas Service Corporation are subject to the liens of their respective first mortgage bond indentures. |
2 | The following banks participated in the credit facility that underlay the Laclede Gas commercial paper program and provided short-term advances to Alabama Gas and Spire: Wells Fargo Bank, National Association, as Administrative Agent; U.S. Bank National Association; JPMorgan Chase Bank, N.A.; Bank of America, N.A.; Morgan Stanley Bank, N.A.; Credit Suisse AG, Cayman Islands Branch; Royal Bank of Canada, Regions Bank, TD Bank, N.A.; Commerce Bank, Stifel Bank & Trust. |
– | On or about February 27, 2017, the Company replaced $143.75 million of subordinated notes with $150 million of senior notes, as disclosed in the Company's 8-K filed on February 27, 2017. |
– | On March 10, 2017, the Company redeemed 100% of its $250 million floating rate notes due August 15, 2017 (shown above under "Current portion of Spire long-term debt"). |
– | The above two actions increased the Company's short-term borrowings by $243.75 million, offset by about $75 million in cash generated by normal business activity between December 31, 2016 and March 10, 2017, and will be further offset by the issuance of $143.75 million of common equity on April 3, 2017 due to the settlement of the Company's equity units. |
– | The Laclede Gas Company commercial paper program was terminated, and the Company established a commercial paper program. |
LACLEDE GAS COMPANY | ||||
By: | /s/ Lynn D. Rawlings | |||
Name: | Lynn D. Rawlings | |||
Title: | Vice President, Treasurer and | |||
Assistant Corporate Secretary | ||||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
JOHN HANCOCK LIFE INSURANCE COMPANY | ||||
(U.S.A) | ||||
By: | /s/ Recep Kendircioglu | |||
Name: | Recep Kendircioglu | |||
Title: | Senior Managing Director | |||
JOHN HANCOCK LIFE & HEALTH INSURANCE | ||||
COMPANY | ||||
By: | /s/ Recep Kendircioglu | |||
Name: | Recep Kendircioglu | |||
Title: | Senior Managing Director | |||
JOHN HANCOCK LIFE INSURANCE COMPANY OF | ||||
NEW YORK | ||||
By: | /s/ Recep Kendircioglu | |||
Name: | Recep Kendircioglu | |||
Title: | Senior Managing Director | |||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
NEW YORK LIFE INSURANCE COMPANY | ||||
By: | /s/ Jessica L. Maizel | |||
Name: | Jessica L. Maizel | |||
Title: | Corporate Vice President | |||
NEW YORK LIFE INSURANCE AND ANNUITY | ||||
CORPORATION | ||||
By: | NYL Investors LLC, its Investment Manager | |||
By: | /s/ Jessica L. Maizel | |||
Name: | Jessica L. Maizel | |||
Title: | Senior Director | |||
NEW YORK LIFE INSURANCE AND ANNUITY | ||||
CORPORATION INSTITUTIONALLY OWNED | ||||
LIFE INSURANCE SEPARATE ACCOUNT | ||||
(BOLI 3) | ||||
By: | NYL Investors LLC, its Investment Manager | |||
By: | /s/ Jessica L. Maizel | |||
Name: | Jessica L. Maizel | |||
Title: | Senior Director | |||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
THE NORTHWESTERN MUTUAL LIFE INSURANCE | ||||
COMPANY | ||||
By: | Northwestern Mutual Investment | |||
Management Company, LLC, | ||||
its investment advisor | ||||
By: | /s/ Timothy S. Collins | |||
Name: | Timothy S. Collins | |||
Title: | Managing Director | |||
THE NORTHWESTERN MUTUAL LIFE INSURANCE | ||||
COMPANY FOR ITS GROUP ANNUITY | ||||
SEPARATE ACCOUNT | ||||
By: | /s/ Timothy S. Collins | |||
Name: | Timothy S. Collins | |||
Title: | Authorized Representative | |||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
METROPOLITAN LIFE INSURANCE COMPANY | ||||
By: | /s/ John A. Wills | |||
Name: | John A. Wills | |||
Title: | Senior Vice President and Managing | |||
Director | ||||
METLIFE INSURANCE K.K. | ||||
by: | MetLife Investment Advisors, LLC, Its | |||
Investment Manager | ||||
By: | /s/ C. Scott Inglis | |||
Name: | C. Scott Inglis | |||
Title: | Senior Vice President and Managing | |||
Director | ||||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
GREAT-WEST LIFE & ANNUITY INSURANCE | ||||
COMPANY | ||||
By: | /s/ Tad Anderson | |||
Name: | Tad Anderson | |||
Title: | Assistant Vice President, Investments | |||
By: | /s/ Ward Argust | |||
Name: | Ward Argust | |||
Title: | Assistant Vice President, Investments | |||
THE CANADA LIFE ASSURANCE COMPANY | ||||
By: | /s/ Tad Anderson | |||
Name: | Tad Anderson | |||
Title: | Assistant Vice President, Investments | |||
By: | /s/ Ward Argust | |||
Name: | Ward Argust | |||
Title: | Assistant Vice President, Investments | |||
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
AMERICAN UNITED LIFE INSURANCE COMPANY | ||||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities | |||
THE STATE LIFE INSURANCE COMPANY | ||||
By: | American United Life Insurance Company | |||
Its: | Agent | |||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities | |||
PIONEER MUTUAL LIFE INSURANCE COMPANY | ||||
By: | American United Life Insurance Company | |||
Its: | Agent | |||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities | |||
UNITED FARM FAMILY LIFE INSURANCE | ||||
COMPANY | ||||
By: | American United Life Insurance Company | |||
Its: | Agent | |||
By: | /s/ David M. Weisenburger | |||
Name: | David M. Weisenburger | |||
Title: | VP, Fixed Income Securities |
This Agreement is hereby accepted and agreed to as of the date thereof. | ||||
COUNTRY LIFE INSURANCE COMPANY | ||||
By: | /s/ John Jacobs | |||
Name: | John Jacobs | |||
Title: | Director - Fixed Income | |||
CMFG LIFE INSURANCE COMPANY | ||||
By: | MEMBERS Capital Advisors, Inc. | |||
Its: | acting as Investment Advisor | |||
By: | /s/ Jason Micks | |||
Name: | Jason Micks | |||
Title: | Director, Investments | |||
WOODMEN OF THE WORLD LIFE INSURANCE | ||||
SOCIETY | ||||
By: | /s/ Shawn Bengtson | |||
Name: | Shawn Bengtson | |||
Title: | Vice President, Investment | |||
By: | /s/ Dean Holdsworth | |||
Name: | Dean Holdsworth | |||
Title: | Director, Mortgage Loan/Real Estate | |||
NAME OF AND ADDRESS OF PURCHASER JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) | SERIES OF BONDS TO BE PURCHASED 2047 SERIES 2057 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $10,000,000 $15,000,000 |
Bank Name: ABA Number: Account Number: Account Name: For Further Credit to: On Order of: | The Bank of New York Mellon 021 000 018 8440548400 F008 US PP Collector JHUSA DDA Number 8901323349 Name of Issuer, CUSIP/PPN and P&I Breakdown Full name, interest rate and maturity date of Notes or other obligations |
Bank Name: ABA Number: Account Number: Account Name: For Further Credit to: On Order of: | The Bank of New York Mellon 021 000 018 8440548400 F008 US PP Collector JHUSA DDA Number 8901323349 Name of Issuer, CUSIP/PPN and P &I Breakdown Full name, interest rate and maturity date of Notes or other obligations |
NAME OF AND ADDRESS OF PURCHASER NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION | SERIES OF BONDS TO BE PURCHASED 2032 SERIES 2047 SERIES 2057 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $ 7,500,000 $11,000,000 $ 9,000,000 |
(1) | All payments by wire or intrabank transfer of immediately available funds to: |
(2) | All other communications: |
(3) | Note(s) to be registered in the name of: New York Life Insurance and Annuity Corporation |
NAME OF AND ADDRESS OF PURCHASER NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 3) | SERIES OF BONDS TO BE PURCHASED 2032 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $250,000 |
(1) | All payments by wire or intrabank transfer of immediately available funds to: |
(2) | All other communications: |
(3) | Note(s) to be registered in the name of: NeW York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 3) |
NAME OF AND ADDRESS OF PURCHASER THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $28,710,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. Please contact our Treasury & Investment Operations Department to securely obtain wire transfer instructions for The Northwestern Mutual Life Insurance Company. E-mail: payments@northwesternmutual.com Phone: (414) 665-1679 |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Investment Operations E-mail: pavments@northwesternmutual.com Phone: (414) 665-1679 |
III. | All other communications shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department E-mail: privateinvest@northwesternmutual.com Facsimile: (414) 625-7643 |
IV. | Address for delivery of Notes and closing documents: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Anne T. Brower |
V. | Tax Identification No.: 39-0509570 |
NAME OF AND ADDRESS OF PURCHASER THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT | SERIES OF BONDS TO BE PURCHASED 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $290,000 |
I. | All payments on account of Notes held by such Purchaser shall be made by wire transfer of immediately available funds, providing sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made. Please contact our Treasury & Investment Operations Department to securely obtain wire transfer instructions for The Northwestern Mutual Life Insurance Company for its Group annuity Separate Account. E-mail: payments@northwesternmutual.com Phone: (414) 665-1679 |
II. | All notices with respect to confirmation of payments on account of the Notes shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Investment Operations E-mail: pavments@northwesternmutual.com Phone: (414) 665-1679 |
III. | All other communications shall be delivered or mailed to: The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Securities Department E-mail: privateinvest@northwesternmutual.com Facsimile: (414) 625-7643 |
IV. | Address for delivery of Notes and closing documents: The Northwestern Mutual Life Insurance Company 720 East Wisconsin Avenue Milwaukee, WI 53202 Attention: Anne T. Brower |
V. | Tax Identification No.: 39-0509570 |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
Audit Requests: Soft copy to AuditConfirms.PvtPlacements@metlife.com or hard copy to: Metropolitan Life Insurance Company, Attn: Private Placements Operations (ATTN: Audit Confirmations), 18210 Crane Nest Drive - 5th Floor, Tampa, FL 33647 |
NAME OF AND ADDRESS OF PURCHASER METLIFE INSURANCE K.K. 4-1-3, Taihei, Sumida-ku Tokyo, 130-0012 JAPAN | SERIES OF BONDS TO BE PURCHASE 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $7,800,000 |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Number: 98-1037269 (USA) and 00661996 (Japan) |
(5) | UK Passport Treaty Number (if applicable): 43/M/359828/DTTP |
Audit Requests: Soft copy to AuditConfirms.PvtPlacements@metlife.com or hard copy to: Metropolitan Life Insurance Company, Attn: Private Placements Operations (ATTN: Audit Confirmations), 18210 Crane Nest Drive - 5th Floor, Tampa, FL 33647 |
NAME OF AND ADDRESS OF PURCHASER METLIFE INSURANCE K.K. 4-1-3, Taihei, Sumida-ku Tokyo, 130-0012 JAPAN | SERIES OF BONDS TO BE PURCHASED 2057 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $17,000,000 |
(1) | All scheduled payments of principal and interest by wire transfer of immediately available funds to: |
(2) | All notices and communications: |
(3) | Original notes delivered to: |
(4) | Taxpayer I.D. Number: 98-1037269 (USA) and 00661996 (Japan) |
(5) | UK Passport Treaty Number (if applicable): 43/M/359828/DTTP |
Audit Requests: Soft copy to AuditConfirms.PvtPlaccments@metlife.com or hard copy to: Metropolitan Life Insurance Company, Attn: Private Placements Operations (ATTN: Audit Confirmations), 18210 Crane Nest Drive - 5th Floor, Tampa, FL 33647 |
NAME OF AND ADDRESS OF PURCHASER AMERICAN UNITED LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $2,000,000 |
NAME OF AND ADDRESS OF PURCHASER THE STATE LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2032 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $3,000,000 |
NAME OF AND ADDRESS OF PURCHASER THE STATE LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $2,000,000 |
NAME OF AND ADDRESS OF PURCHASER PIONEER MUTUAL LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2047 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $1,000,000 |
NAME OF AND ADDRESS OF PURCHASER UNITED FARM FAMILY LIFE INSURANCE COMPANY | SERIES OF BONDS TO BE PURCHASED 2032 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $2,000,000 |
Name in Which Note is Registered | COUNTRY LIFE INSURANCE COMPANY |
Payment on Account of Note Method Account Information | Federal Funds Wire Transfer Northern Trust Chgo/Trust ABA Number 071000152 Wire Account Number 5186041000 SWIFT BIC: CNORUS44 For Further Credit to: 26-02712 Account Name: Country Life Insurance Company Representing P & I on (list security) [BANK] |
Accompanying Information | Name of Company: Description of Security: PPN: Due date and application (as among principal, premium and interest) of the payment being made: |
Address/Fax for Notices Related to Payments | Country Life Insurance Company Attention: Investment Accounting 1705 N Towanda Avenue Bloomington, IL 61702 Tel: (309) 821-6348 Fax: (309) 821-2800 |
Address/Fax for All Other Notices | Country Life Insurance Company Attention: Investments 1705 N Towanda Avenue Bloomington, IL 61702 Tel: (309) 821-6260 Fax: (309) 821-6301 PrivatePlacements@countryfinancial.com |
Instructions re: Delivery of Notes | The Northern Trust Company Trade Securities Processing - C1N 801 South Canal Street Attn: 26-02712/Country Life Insurance Company Chicago, IL 60607 Include Acct # and Name in cover letter as well. |
Tax Identification Number | 37-0808781 |
NAME OF AND ADDRESS OF PURCHASER CMFG LIFE INSURANCE COMPANY Nominee name TURNKEYS & CO | SERIES OF BONDS TO BE PURCHASED 2057 SERIES | PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED $4,000,000 |
Name in Which Notes are to be Registered | Woodmen of the World Life Insurance Society |
Principal Amount | One Note, principal amount |
Payment on Account of Note Method Account Information | Federal Funds Wire Transfer Northern CHGO/Trust ABA # 071000152 Credit Wire Account #5186041000 Account #26-58056 Account Name: Woodmen of the World Life Insurance Society-General Swift# CNORUS44 RE: Wire must identify payment by PPN#, with breakdown of principal/interest amounts. |
Accompanying Information | Name of Company Description of Security PPN No. Due Date and Application (as among principal, make whole and interest) of the payment being made |
Address For Notices Related to Payments | Woodmen of the World Life Insurance Society Attn: Kim Parrott 1700 Farnam Street Omaha, Nebraska 68102 kparrott@woodmen.org |
Address for All Other Notices | Woodmen of the World Life Insurance Society Attn: Kim Parrott 1700 Farnam Street Omaha, Nebraska 68102 kparrott@woodmen.org |
Instructions for Delivery of Notes | Woodmen of the World Life Insurance Society Attn: Kim Parrott 1700 Farnam Street Omaha, Nebraska 68102 |
Tax Identification Number | 47-0339250 |
Jurisdiction of Tax Residence | United States of America |
UK Passport Treaty Number (if applicable): | 13/W/359158/DTTP - Expires 11/24/2020 |
If the Closing for the Bonds occurs on any date: | The Applicable Interest Rate per annum for the Series A Bonds will be: | The Applicable Interest Rate per annum for the Series B Bonds will be: | The Applicable Interest Rate per annum for the Series C Bonds will be: |
On or before June 15, 2017 | 3.58% | 4.17% | 4.32% |
June 16, 2017 through July 15, 2017 | 3.62% | 4.19% | 4.34% |
July 16, 2017 through August 15, 2017 | 3.65% | 4.21% | 4.36% |
August 16, 2017 through September 15, 2017 | 3.68% | 4.23% | 4.38% |
1. | Private Placement Memorandum dated February 2017. |
2. | Private Placement Presentation dated March 1, 2017. |
Laclede Gas Company | Annual Report on form 10-K for the year ended September 30, 2016 |
AMOUNT OUTSTANDING | COUPON | MATURITY | CALL PROVISIONS |
$100,000,000 | 2.00% | 8/15/2018 | make-whole |
$50,000,000 | 5.50% | 05/01/19 | make-whole |
$55,000,000 | 3.00% | 3/15/2023 | make-whole |
$250,000,000 | 3.40% | 8/15/2023 | at par three months prior to maturity |
$45,000,000 | 3.40% | 3/15/2028 | make-whole |
$25,000,000 | 7.00% | 06/01/29 | none |
$30,000,000 | 7.90% | 09/15/30 | make-whole |
$100,000,000 | 6.00% | 05/01/34 | make-whole |
$55,000,000 | 6.15% | 06/01/36 | make-whole |
$100,000,000 | 4.625% | 8/15/2043 | at par six months prior to maturity |
(a) | the Bond Purchase Agreement; |
(b) | the Bonds; |
(c) | the Original Mortgage; |
(d) | the Supplemental Indenture, filed-stamped by the Secretary of State of Missouri to evidence the filing thereof pursuant to Section 443.451 of the Missouri Revised Statutes; |
(e) | the order entered by the Missouri Public Service Commission (the "MoPSC') authorizing the issuance and sale of the Bonds (the "MoPSC Order"); and |
(i) | the Certificate of the Secretary of the Company, dated as of the date hereof, and the items attached as exhibits, including the following: (i) the Articles of Incorporation of the Company and all amendments thereto as certified by the Secretary of State of Missouri on March 13, 2017 (the "Articles of Incorporation"), (ii) the Bylaws of the Company and all amendments thereto (the "Bylaws"), and (iii) the resolutions of the Board of Directors of the Company approving the transactions contemplated by the Supplemental Indenture; |
(ii) | the good standing certificates of the Company dated March 14, 2017 and issued by the State of Missouri and the states or commonwealths listed on Schedule 2 hereto (the "Good Standing Certificates"); |
(iii) | all other related agreements, documents, instruments and certificates executed and/or delivered to the Purchasers by the Company on or prior to the date hereof in connection with or pursuant to the Bond Purchase Agreement or any of the other documents comprising the transaction; and |
(iv) | such other documents, agreements and instruments as we have deemed necessary or appropriate as a basis for the opinions hereafter expressed. |
A. | We express no opinion as to the laws of any jurisdiction other than the Included Laws. We have made no special investigation or review of any published constitutions, treaties, laws, rules or regulations or judicial or administrative decisions ("Laws"), other than a review of the laws of the State of Missouri and the Federal laws of the United States of America. For purposes of this letter, the term "Included Laws" means the items described in the preceding sentence that are, in our experience, normally applicable to transactions of the type contemplated in the Bond Purchase Agreement. The term "Included Laws" specifically excludes (a) Laws of any counties, cities, towns, municipalities and special political subdivisions and any agencies thereof, (b) zoning, land use, building and construction Laws, (c) Federal Reserve Board margin regulations, (d) Federal or state antitrust or unfair competition laws; and (e) any antifraud, environmental, labor, tax, pension, employee benefit, antiterrorism, money laundering, insurance, antitrust, intellectual property and state "blue sky" Laws. |
B. | When used in this letter, the phrase "to our knowledge" and similar phrases (i) mean the conscious awareness of facts or other information by (a) the lawyer in our firm who signed this letter, (b) any lawyer in our firm actively involved in negotiating and preparing the Transaction Documents, (c) solely as to information relevant to a particular opinion, issue or confirmation regarding a particular factual matter, any lawyer in our firm who is primarily responsible for providing the response concerning that particular opinion, issue or confirmation and (d) any lawyer in our firm who otherwise devotes substantive attention to matters of the Company on behalf of this firm and could reasonably be expected to have information material to the opinions expressed herein, and (ii) do not require or imply (a) any examination of any other person's or entity's files, (b) that any inquiry be made of the client (other than as to the existence of any order referred to in paragraph 5(c) above or any action, suit, proceeding, inquiry or |
C. | This letter and the matters addressed herein are as of the date hereof or such earlier date as is specified herein, and we undertake no, and disclaim any, obligation to advise you of any change in any matter set forth herein, whether based on a change in the law, a change in any fact relating to the Company or any other person or entity, or any other circumstance. This letter is limited to the matters expressly stated herein and no opinions are to be inferred or may be implied beyond the opinions expressly set forth herein. |
D. | The matters expressed in paragraphs 3 and 4 of this letter are subject to and qualified and limited by (i) applicable bankruptcy, insolvency, fraudulent transfer and conveyance, reorganization, moratorium and similar laws affecting creditors' rights and remedies generally; (ii) general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity); (iii) principles of commercial reasonableness and unconscionability and an implied covenant of good faith and fair dealing; (iv) the power of the courts to award damages in lieu of equitable remedies; and (v) securities and other Laws and public policy underlying such Laws with respect to rights to indemnification and contribution. |
E. | We assume that no fraud, dishonesty, forgery, coercion, duress or breach of fiduciary duty exists or will exist with respect to any of the matters relevant to the opinions expressed herein. |
F. | We express no opinion as to (i) the compliance of the transactions contemplated by the Bond Purchase Agreement with any regulations or governmental requirements applicable to any party other than the Company; (ii) the financial condition or solvency of the Company; (iii) the ability (financial or otherwise) of the Company or any other party to meet their respective obligations under the Bond Purchase Agreement; (iv) the compliance of the Bond Purchase Agreement or the transactions contemplated thereby with, or the effect on any of the opinions expressed herein of, the antifraud provisions of Federal and state securities Laws, rules and regulations; (v) the conformity of the Bond Purchase Agreement to any term sheet or commitment letter; or (vi) the enforceability of any provision of the Transaction Documents purporting to (a) allow the exercise of any rights or remedies without notice to the Company or any other party signatory thereto or bound thereby; (b) provide that delay or failure to exercise any right, remedy or option is not to operate as a waiver; (c) prohibit oral amendments to or waivers of provisions of the Transaction Documents or otherwise limit the effect of a course of dealing between the parties thereto; (d) restrict, vary or waive access to legal or equitable remedies or defenses (including, without limitation, rights to notice of and hearing on matters relating to prejudgment remedies, service of process, proper jurisdiction, forum non conveniens, venue and the right to trial by jury), rights of an obligor or duties imposed on any party in violation of any Included Law, or rights to recover damages (including, without limitation, consequential, incidental, special, indirect, exemplary or punitive damages); (e) provide for enforcement of any agreement or instrument if a material portion thereof |
G. | When used in this letter, the phrase "transactions contemplated by the Bond Purchase Agreement" and similar phrases means (i) the issuance of the Bonds by the Company and (ii) the performance by the Company of its obligations under the Bond Purchase Agreement. |
H. | We express no opinion as to the subsequent resale of any Bonds. |
I. | The statement in paragraph 2 of this letter as to good standing is based solely upon the issuance of certificates of good standing by the Secretary of State of Missouri and the secretary of state or comparable state official of the states or commonwealths of the relevant jurisdictions listed on Schedule 2 attached hereto and is limited in meaning to the wording in such certificates. |
J. | We have not made any review of easements, reservations, contracts, restrictions, agreements or other matters regarding title or zoning which relate or might relate to the Mortgaged Property. Therefore, this opinion does not extend to any such items. |
K. | We have not reviewed the descriptions of any of the property or the collateral contained in any of the Transaction Documents and we express no opinion as to the sufficiency, accuracy or correctness of any such descriptions. |
L. | We express no opinion as to any choice of law or choice of judicial forum provisions contained in any of the Transaction Documents. |
M. | We have made no examinations of title or Uniform Commercial Code filing searches with respect to any of the real or personal property constituting a part of the Mortgaged Property and, accordingly, we are expressing no opinion as to the title thereto. |
N. | We are expressing no opinion as to the priority of any lien or security interest created by the Transaction Documents (except as expressed in Opinion 6 above). |
O. | We are expressing no opinion as to the enforceability of any lien created, or attempted to be created, by the Supplemental Indenture with respect to real property acquired by the Company after the date of the Supplemental Indenture. |
P. | We express no opinion with respect to the enforceability of any power of sale provided under the Supplemental Indenture. |
Q. | Particular provisions, rights, waivers and remedies in the Transaction Documents may not be enforceable in accordance with their terms, and the enforceability of any instrument referred to herein is subject to statutes and judicial decisions affecting the enforcement of contracts generally. |
R. | Default, acceleration, foreclosure and repossession are all subject to judicial supervision and, accordingly, accelerations, repossessions or foreclosures may be limited by a court of competent jurisdiction to material defaults. |
S. | We express no opinion as to any provision that provides for the severability of any provisions of any of the Transaction Documents. |
T. | In the event of foreclosure under the Supplemental Indenture, the rights, titles and interests of any purchaser will be subject to statutory and equitable redemption rights. |
U. | This letter is solely for your benefit and the benefit of your respective successors and permitted assigns in accordance with the Bond Purchase Agreement, and no other person or entity shall be entitled to rely upon this letter. Without our prior written consent, this letter may not be quoted in whole or in part or otherwise referred to in any document and may not be furnished or otherwise disclosed to or used by any other person or entity, except for (i) delivery of copies hereof to counsel for the addressees hereof; (ii) inclusion of copies hereof in a closing file; (iii) delivery of copies hereof to regulatory agencies or similar bodies having jurisdiction over you (including, but not limited to, the National Association of Insurance Commissioners) and (iv) delivery of copies hereof to any potential transferees of the Bonds. For the avoidance of doubt, we do not assume any duty or liability to any person or entity to whom any such copy hereof is provided. |
(a) | a certificate of good standing (or comparable certificate), dated [_________], 2017, issued by the Secretary of State (or comparable official) of the State of Missouri; |
(b) | [foreign good standing certificates] |
If to Company: Spire STL Pipeline LLC Attn: Scott, Jaskowiak, Vice President 700 Market Street, 6th Floor St. Louis, MO 63101 Email: scott.jaskowiak@spireenergy.com | with a copy to: Spire STL Pipeline LLC Attn: Castor Armesto, General Counsel 700 Market Street, 6th Floor St. Louis, MO 63101 Email: legalnotices@spireenergy.com | ||
If to Customer: Laclede Gas Company Attn: Scott Woley, Vice President 700 Market Street, 1st Floor St. Louis, MO 63101 Email: scott.woley@spireenergy.com | with a copy to: Laclede Gas Company Attn: David Abernathy, General Counsel 700 Market Street, 6th Floor St. Louis, MO 63101 Email: david.abernathy@spireenergy.com |
Pipeline: Spire STL Pipeline LLC By: /s/ Michael C. Geiselhart Michael C. Geiselhart President | Customer: Laclede Gas Company By: /s/ Scott Woley Scott Woley Vice President |
a. | Customer shall deliver or cause to be delivered Gas nominated and confirmed pursuant to the terms of Transporter’s FERC NGA Gas Tariff, plus Fuel Use and Lost Gas as applicable, at the Receipt Point(s). Transporter agrees to accept on a firm basis the quantity nominated by Customer and confirmed by Transporter at the Receipt Point(s) up to the maximum quantity specified for each Receipt Point in Appendix 1 to this Agreement and on an aggregate basis up to Customer’s MDTQ specified in Appendix 1, plus the applicable Fuel Use and Lost Gas quantities; and |
b. | Transporter shall transport Customer’s nominated and confirmed quantity of Gas on a firm basis from the Receipt Point(s) to the Delivery Point(s); and |
c. | Transporter shall tender to or for the account of Customer, on a firm basis at the Delivery Point(s), equivalent quantities of Gas to the quantity nominated by Customer and confirmed by Transporter at the Receipt Point(s). |
I. | Customer Name: Laclede Gas Company |
II. | Contract Number: ___________________ |
III. | Rate Schedule: FTS |
IV. | Maximum Daily Transportation Quantity: 350,000 Dth/d |
V. | Primary Receipt Points: REX, Enable MRT (Chain of Rocks) |
VI. | Primary Delivery Point: Laclede Aggregate |
VII. | Negotiated Reservation Rate: $[***]1 per Dth per Day. |
Spire STL Pipeline LLC By: /s/ Michael C. Geiselhart Name: Michael C. Geiselhart Title: SVP, Strategy and Corporate Development | Laclede Gas Company By: /s/ Scott E. Woley Name: Scott E. Woley Title: VP, Gas Supply and Operations |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Suzanne Sitherwood | |
Suzanne Sitherwood | ||||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q 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: | May 3, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | May 3, 2017 | Signature: | /s/ Suzanne Sitherwood | |
Suzanne Sitherwood | ||||
President and Chief Executive Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | May 3, 2017 | 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-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company. |
Date: | May 3, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
President and Chief Executive Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Laclede Gas Company. |
Date: | May 3, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Alabama Gas Corporation. |
Date: | May 3, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer |
(a) | To the best of my knowledge, the accompanying report on Form 10-Q for the period ended March 31, 2017 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-Q for the period ended March 31, 2017 fairly presents, in all material respects, the financial condition and results of operations of Alabama Gas Corporation. |
Date: | May 3, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY (UNAUDITED) - USD ($) $ in Millions |
Total |
Common Stock Outstanding |
Paid-in Capital |
Retained Earnings |
AOCI |
Laclede Gas |
Laclede Gas
Common Stock Outstanding
|
Laclede Gas
Paid-in Capital
|
Laclede Gas
Retained Earnings
|
Laclede Gas
AOCI
|
Alagasco |
Alagasco
Common Stock Outstanding
|
Alagasco
Paid-in Capital
|
Alagasco
Retained Earnings
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Sep. 30, 2015 | $ 1,573.6 | $ 43.3 | $ 1,038.1 | $ 494.2 | $ (2.0) | $ 1,037.8 | $ 0.1 | $ 748.2 | $ 291.2 | $ (1.7) | $ 874.6 | $ 0.0 | $ 480.9 | $ 393.7 |
Beginning Balance, (in shares) at Sep. 30, 2015 | 43,335,012 | 24,577 | 1,972,052 | |||||||||||
Stockholders' Equity Rollforward | ||||||||||||||
Net income | 147.7 | 147.7 | 93.7 | 93.7 | 58.0 | 58.0 | ||||||||
Dividend reinvestment plan | 0.7 | 0.7 | ||||||||||||
Dividend reinvestment plan (in shares) | 12,704 | |||||||||||||
Stock-based compensation costs | 2.7 | 2.7 | 1.7 | 1.7 | ||||||||||
Stock issued under stock-based compensation plans | 0.6 | $ 0.1 | 0.5 | |||||||||||
Stock issued under stock-based compensation plans (in shares) | 127,496 | |||||||||||||
Employee’s tax withholding for stock-based compensation | (1.7) | (1.7) | ||||||||||||
Employee's tax withholding for stock-based compensation (in shares) | (29,227) | |||||||||||||
Return of capital to Spire | (29.0) | (29.0) | ||||||||||||
Dividends declared | (42.5) | (42.5) | (42.5) | (42.5) | (15.5) | (15.5) | ||||||||
Other comprehensive income, net of tax | 0.3 | 0.3 | 0.2 | 0.2 | ||||||||||
Ending Balance at Mar. 31, 2016 | 1,681.4 | $ 43.4 | 1,040.3 | 599.4 | (1.7) | 1,090.9 | $ 0.1 | 749.9 | 342.4 | (1.5) | 888.1 | $ 0.0 | 451.9 | 436.2 |
Ending Balance, (in shares) at Mar. 31, 2016 | 43,445,985 | 24,577 | 1,972,052 | |||||||||||
Beginning Balance at Sep. 30, 2016 | 1,768.2 | $ 45.6 | 1,175.9 | 550.9 | (4.2) | 1,068.5 | $ 0.1 | 751.9 | 318.3 | (1.8) | 867.3 | $ 0.0 | 451.9 | 415.4 |
Beginning Balance, (in shares) at Sep. 30, 2016 | 45,650,642 | 24,577 | 1,972,052 | |||||||||||
Stockholders' Equity Rollforward | ||||||||||||||
Net income | 153.2 | 95.0 | 95.0 | 57.9 | 57.9 | |||||||||
Dividend reinvestment plan | 0.8 | 0.8 | ||||||||||||
Dividend reinvestment plan (in shares) | 11,820 | |||||||||||||
Stock-based compensation costs | 3.3 | 3.3 | 1.9 | 1.9 | ||||||||||
Stock issued under stock-based compensation plans | 0.0 | $ 0.1 | (0.1) | |||||||||||
Stock issued under stock-based compensation plans (in shares) | 122,094 | |||||||||||||
Employee’s tax withholding for stock-based compensation | (2.2) | (2.2) | ||||||||||||
Employee's tax withholding for stock-based compensation (in shares) | (34,589) | |||||||||||||
Return of capital to Spire | (31.0) | (31.0) | ||||||||||||
Dividends declared | (48.2) | (48.2) | (14.7) | (14.7) | (10.5) | (10.5) | ||||||||
Other comprehensive income, net of tax | 7.9 | 7.9 | 0.0 | |||||||||||
Ending Balance at Mar. 31, 2017 | $ 1,883.0 | $ 45.7 | $ 1,177.7 | $ 655.9 | $ 3.7 | $ 1,150.7 | $ 0.1 | $ 753.8 | $ 398.6 | $ (1.8) | $ 883.7 | $ 0.0 | $ 420.9 | $ 462.8 |
Ending Balance, (in shares) at Mar. 31, 2017 | 45,749,967 | 24,577 | 1,972,052 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 unaudited 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 & Oil Company (Willmut Gas). The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the disclosures required for complete financial statements. In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of the results of operations for the periods presented. This Form 10-Q should be read in conjunction with the Notes to Financial Statements contained in Spire’s, Laclede Gas’, and Alagasco’s Annual Reports on Form 10-K for the fiscal year ended September 30, 2016. 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. Results of operations of EnergySouth are included in Spire’s results of operations since the September 12, 2016 acquisition and impact the comparability of financial statement periods presented for the Company. 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, Spire Marketing Inc. (Spire Marketing) was formerly known as Laclede Energy Resources, Inc., which changed its name on December 12, 2016. Spire Marketing is included in the Gas Marketing segment and provides non-regulated natural gas services. The activities of other subsidiaries are described in Note 9, Information by Operating Segment, and are reported as Other. Laclede Gas and Alagasco each have a single reportable segment. The Company’s earnings are primarily derived from its Gas Utility segment. Due to the seasonal nature of the Utilities’ business, earnings are typically concentrated during the heating season of November through April each fiscal year. As a result, the interim statements of income for Spire, Laclede Gas and Alagasco are not necessarily indicative of annual results or representative of succeeding quarters of the fiscal year. 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. The changes in the carrying amount of goodwill by reportable segment are shown below, reflecting the effect of a $3.8 cash payment to Spire related to the EnergySouth acquisition, offset by net adjustments to acquired insurance receivable and prepaid assets.
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 March 31, 2017, September 30, 2016, and March 31, 2016 were $66.7, $26.1, and $57.4, respectively. Alagasco records natural gas distribution revenues in accordance with the tariff established by the Alabama Public Service Commission (APSC). Unbilled revenues for Alagasco, which are not recorded as revenue until billed, at March 31, 2017, September 30, 2016, and March 31, 2016 were $13.5, $5.9, and $14.9, respectively. The subsidiaries of EnergySouth record natural gas revenues in accordance with tariffs established by the APSC and the Mississippi Public Service Commission (MSPSC). Their unbilled revenues are accrued as described for Laclede Gas above. Spire’s other subsidiaries, including Spire Marketing, record revenues when earned, either when the product is delivered or when services are performed. In the course of its business, Spire Marketing enters into commitments associated with the purchase or sale of natural gas. Certain of their derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of Financial Accounting Standards Board (FASB) Accounting Standards Codification (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. Certain of Spire Marketing’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 in the Condensed Consolidated Statements of Income. This net presentation has no effect on operating income or net income. GROSS RECEIPTS TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Utilities and billed to their 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 as revenues.
REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with FASB 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. As authorized by the Missouri Public Service Commission (MoPSC), MSPSC and APSC, 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. See additional information about regulatory assets and liabilities in Note 3, Regulatory Matters. 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 Condensed Balance Sheets and Condensed Statements of Cash Flows and normal intercompany shared services transactions, there were no transactions between Alagasco and affiliates during the six months ended March 31, 2017 and March 31, 2016. Laclede Gas’ transactions with affiliates included:
UTILITY PLANT – Accrued capital expenditures are shown in the following table. Accrued capital expenditures are excluded from the capital expenditures shown in the statements of cash flows.
RECLASSIFICATIONS – Certain prior period amounts have been reclassified to conform to the current period presentation. Net income and total equity were not affected by these reclassifications. NEW ACCOUNTING PRONOUNCEMENTS – In April 2015, the FASB issued Accounting Standards Update (ASU) No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. Under prior GAAP, debt issuance costs were recorded as a deferred charge (asset), while debt discount and debt premium costs were recorded as a liability adjustment. This amendment requires that 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. Spire, Laclede Gas and Alagasco adopted this ASU as of December 31, 2016. Retrospective adjustments have been made to the previous year balance sheets as of September 30, 2016 and March 31, 2016. The amounts reclassified from other deferred charges to reduce long-term debt are shown in the following table. The ASU does not address the presentation of debt issuance costs related to line-of-credit arrangements, and those continue to be reported as deferred charges.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the new standard, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current guidance. 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. Entities have the option of using either a full retrospective or modified retrospective approach to adopting this guidance. 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. In 2016, the FASB issued related ASU Nos. 2016-08, 2016-10, 2016-11, 2016-12, and 2016-20 which further modified the standards for accounting for revenue. The Company, Laclede Gas and Alagasco are currently evaluating their sources of revenue and assessing the available transition methods and the potential impacts of the updates, which must be adopted by the first quarter of fiscal year 2019. The conclusions of these assessments are contingent, in part, upon the completion of deliberations currently in progress by the power and utilities industry, notably in connection with efforts to produce an accounting guide being developed by the American Institute of Certified Public Accountants (AICPA). In association with this undertaking, the AICPA formed a number of industry task forces, including a Power & Utilities Task Force. Industry representatives and organizations, the largest auditing firms, the AICPA’s Revenue Recognition Working Group and its Financial Reporting Executive Committee have undertaken, and continue to undertake, consideration of several items relevant to our industry as further discussed below. Where applicable or necessary, the FASB’s Transition Resource Group is also participating. Currently, the industry is working to address several items including 1) the evaluation of collectability from customers if a utility has regulatory mechanisms to help assure recovery of uncollected accounts from ratepayers; 2) the accounting for funds received from third parties to partially or fully reimburse the cost of construction of an asset 3) the accounting for alternative revenue programs, such as performance-based ratemaking, and 4) application of series guidance to storable commodities. Existing alternative revenue program guidance, though excluded by the FASB in updating specific guidance associated with revenue from contracts with customers, was relocated without substantial modification to accounting guidance for rate-regulated entities. It will require separate presentation of such revenues (subject to the above-noted deliberations) in the statement of income. Currently, a timeline for the resolution of these deliberations has not been established. Given the uncertainty with respect to the conclusions that might arise from these deliberations, the Company, Laclede Gas and Alagasco are currently unable to determine the effect the new guidance will have on their financial position, results of operations, cash flows, business processes or the transition method they will utilize to adopt the new guidance. 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. Entities will record a cumulative-effect adjustment as of the beginning of the fiscal year in which the guidance is adopted, which requires amounts reported in accumulated other comprehensive income for equity securities that exist as of the date of adoption previously classified as available-for-sale to be reclassified to retained earnings. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted in 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. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 amendments in this update are to be applied prospectively except for changes impacting the presentation of the cash flow statement, which can be applied prospectively or retrospectively. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted. The Company, Laclede Gas and Alagasco expect to adopt this standard in the current fiscal year with no material impact. In June 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, and may be adopted a year earlier. The new guidance will be initially applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. 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. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amended guidance requires that the service cost component of pension and postretirement benefit costs be presented within the same line item in the income statement as other compensation costs (except for the amount being capitalized), while other components are to be presented outside the subtotal of operating income and are no longer eligible for capitalization. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amended guidance will be applied retrospectively for income statement presentation and prospectively for capitalization. The Company, Laclede Gas and Alagasco are currently assessing the regulatory and other impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2019. |
EARNINGS PER COMMON SHARE |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE
Spire’s 2014 2.0% Series Equity Units issued in June 2014 were anti-dilutive for the three and six months ended March 31, 2017 and 2016; accordingly, they were excluded from the calculation of weighted average diluted shares for those periods. On April 3, 2017, the purchase contracts underlying the equity units were settled and approximately 2.5 million common shares were issued. See additional detail under Note 11, Subsequent Events. |
REGULATORY MATTERS |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS As explained in Note 1, Summary of Significant Accounting Policies, Laclede Gas and Alagasco account for regulated operations in accordance with FASB ASC Topic 980, “Regulated Operations.” The following regulatory assets and regulatory liabilities, including purchased gas adjustments, were reflected in the balance sheets of the Company and the Utilities as of March 31, 2017, September 30, 2016 and March 31, 2016.
A portion of the Company’s and Laclede Gas’ regulatory assets are not earning a return, as shown in the schedule below:
Like all the Company’s regulatory assets, these regulatory assets are expected to be recovered from customers in future rates. The Company and Laclede Gas expect these items to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC. Alagasco does not have any regulatory assets that are not earning a return. |
FINANCING ARRANGEMENTS AND LONG-TERM DEBT |
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Mar. 31, 2017 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
FINANCING ARRANGEMENTS AND LONG-TERM DEBT | FINANCING ARRANGEMENTS AND LONG-TERM DEBT On December 14, 2016, Spire, Laclede Gas, and Alagasco entered into a new syndicated revolving credit facility pursuant to a loan agreement with 11 banks, expiring December 14, 2021. The largest portion provided by a single bank under the line is 12.3%. The loan agreement replaces Spire’s and Laclede Gas’ existing loan agreements dated as of September 3, 2013 and amended September 3, 2014, which were set to expire on September 3, 2019, and Alagasco’s existing loan agreement dated September 2, 2014, which was set to expire September 2, 2019. All three agreements were terminated on December 14, 2016. The loan agreement has an aggregate credit commitment of $975.0, including sublimits of $300.0 for Spire, $475.0 for Laclede Gas, and $200.0 for Alagasco. These sublimits may be reallocated from time to time among the three borrowers within the $975.0 aggregate commitment. Spire may use its line to provide for the funding needs of various subsidiaries. Spire, Laclede Gas, and Alagasco expect to use the loan agreement for general corporate purposes, including short-term borrowings and letters of credit. The agreement also contains financial covenants limiting each borrower’s consolidated total debt, including short-term debt, to no more than 70% of its total capitalization. As defined in the line of credit, on March 31, 2017, total debt was 57% of total capitalization for the consolidated Company, 49% for Laclede Gas, and 29% for Alagasco. On December 21, 2016, Spire established a commercial paper program (Program) pursuant to which Spire may issue short-term, unsecured commercial paper notes (Notes). Amounts available under the Program may be borrowed, repaid, and re-borrowed from time to time, with the aggregate face or principal amount of the Notes outstanding under the Program at any time not to exceed $975.0. The Notes may have maturities of up to 365 days from date of issue. The net proceeds of the issuances of the Notes are expected to be used for general corporate purposes, including to provide working capital for both utility and non-utility subsidiaries. As of March 31, 2017, Notes outstanding under the Program totaled $567.4. Of that amount, $282.2 and $109.3 were lent to Laclede Gas and Alagasco, respectively, at Spire’s cost. In 2014, Spire issued 2.875 million equity units as a portion of the financing of the Alagasco acquisition. The equity units were originally issued at $50 per unit pursuant to the Purchase Contract and Pledge Agreement (purchase contract) dated as of June 11, 2014 between Spire and U.S. Bank National Association, as purchase contract agent, collateral agent, custodial agent and securities intermediary. These units consisted of $143.8 aggregate principal amount of 2014 Series A 2.00% remarketable junior subordinated notes due 2022 (the Junior Notes) and the purchase contract obligating the holder to purchase common shares at a future settlement date (anticipated to be three years in the future and prior to the Junior Notes maturity). The equity unit investments were effectively replaced as planned in a series of transactions outlined below:
On March 10, 2017, Spire redeemed in full at par its $250.0 floating rate notes due August 15, 2017, plus accrued and unpaid interest. On March 15, 2017, Spire completed the issuance and sale of $100.0 in aggregate principal amount of Senior Notes due March 15, 2027. The notes bear interest at the rate of 3.93% per annum, payable semi-annually. The notes are senior unsecured obligations of the Company. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of 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 6, Fair Value Measurements, for information on financial instruments measured at fair value on a recurring basis. The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis are shown below and classified according to the fair value hierarchy. There were no such instruments classified as Level 3 (significant unobservable inputs) as of March 31, 2017, September 30, 2016, or March 31, 2016.
Spire
Laclede Gas
Alagasco
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 New York Mercantile Exchange (NYMEX) or the Intercontinental Exchange (ICE). Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using Over-the-Counter Bulletin Board (OTCBB), broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments in active markets and derivative instruments with settlement dates more than one year into the future. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. The Level 3 balances as of March 31, 2017, September 30, 2016 and March 31, 2016 consisted of gas commodity contracts. 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 “Other Investments” on the Company’s balance sheets and in “Other Property and Investments” on Laclede Gas’ balance sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the balance sheets when a legally enforceable netting agreement exists between the Company, Laclede Gas, or Alagasco and the counterparty to a derivative contract. Spire
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 March 31, 2017, September 30, 2016, and March 31, 2016, the fair value of related gasoline contracts was not significant. |
CONCENTRATIONS OF CREDIT RISK |
6 Months Ended |
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Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Other than in Spire Marketing, Spire has no significant concentrations of credit risk. A significant portion of Spire Marketing’s transactions are with (or are associated with) energy producers, utility companies, and pipelines. The concentration of transactions with these counterparties has 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, Spire Marketing 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, Spire Marketing may require credit assurances such as prepayments, letters of credit, or parental guarantees. In addition, they may enter into netting arrangements to mitigate credit risk with counterparties in the energy industry with whom Spire Marketing conducts both sales and purchases of 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. Spire Marketing records accounts receivable, accounts payable, and prepayments for physical sales and purchases of natural gas on a gross basis. The amount included in its accounts receivable attributable to energy producers and their marketing affiliates totaled $15.1 at March 31, 2017 ($8.8 reflecting netting arrangements). Spire Marketing’s accounts receivable attributable to utility companies and their marketing affiliates were $53.4 at March 31, 2017 ($50.0 reflecting netting arrangements). Spire Marketing also has concentrations of credit risk with certain individually significant counterparties and with pipeline companies associated with its natural gas receivable amounts. At March 31, 2017, the amounts included in accounts receivable from its five largest counterparties (in terms of net accounts receivable exposure) totaled $30.0 ($27.7 reflecting netting arrangements). Four of these five counterparties are investment-grade rated companies. The fifth is not rated. |
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 Pension Plans The pension plans of Spire consist of plans for employees at the Missouri Utilities, plans covering employees of Alagasco, and plans for employees of EnergySouth since September 12, 2016. 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 United States (US) government obligations and a growth segment consisting of exposure to equity markets, commodities, real estate and inflation-indexed securities, achieved through derivative instruments. Alagasco has non-contributory, defined benefit, trusteed forms of pension plans covering the majority of its employees. Qualified plan assets are comprised of US equities consisting of mutual and commingled funds with varying strategies, global equities consisting of mutual funds, alternative investments of commingled and mutual funds, and fixed income investments. The net periodic pension cost included the following components:
Pursuant to the provisions of the Missouri Utilities’ and Alagasco’s pension plans, pension obligations may be satisfied by monthly annuities, lump-sum cash payments, or special termination benefits. 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. In the quarter ended March 31, 2017, the Laclede Gas plan and one of the Alagasco plans met the criteria for settlement recognition, resulting in the remeasurement of the obligation of the plans using updated census data and assumptions for discount and mortality. The total lump-sum payments recognized as settlements for plan remeasurement were $36.3 and $1.9 for the Laclede plan and Alagasco plan, respectively. The lump-sum settlements resulted in losses of $11.5 and $0.4 for the Laclede plan and Alagasco plan, respectively. In the quarter ended March 31, 2016, an Alagasco plan met the criteria for settlement recognition. The lump-sum payments recognized as settlements for the Alagasco remeasurement were $11.8. The lump-sum settlement resulted in a gain of $2.2. In the quarter ended December 31, 2015, the Laclede Gas pension plans provided qualified employees with voluntary early retirement packages that qualified as special termination benefits, resulting in a charge of $1.6. All gains and losses on lump-sum settlements were recorded with a regulatory adjustment and did not impact income. The funding policy of the Utilities 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. Fiscal year 2017 contributions to Laclede Gas’ pension plans through March 31, 2017 were $12.3 to the qualified trusts and $0.1 to non-qualified plans. There were no fiscal 2017 contributions to the Alagasco pension plans through March 31, 2017. Contributions to the Missouri Utilities’ pension plans for the remainder of fiscal 2017 are anticipated to be $16.7 to the qualified trusts and $0.5 to the non-qualified plans. No contributions to Alagasco’s pension plans are expected to be required for the remainder of fiscal 2017. 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 cost for the Company consisted of the following components:
Missouri and Alabama 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. The Utilities have established Voluntary Employees’ Beneficiary Association (VEBA) and Rabbi Trusts as external funding mechanisms. The assets of the VEBA and Rabbi Trusts consist primarily of money market securities and mutual funds invested in stocks and bonds. During the quarter ended December 31, 2015, the Laclede Gas postretirement plan offered qualified employees voluntary enhanced early retirement packages that resulted in a special termination benefits charge of $2.6. The Utilities’ funding policy is to contribute amounts to the trusts equal to the periodic benefit cost calculated pursuant to GAAP as recovered in rates. Year-to-date contributions to the postretirement plans through March 31, 2017 totaled $6.2 for the Missouri Utilities. Contributions to the postretirement plans for the remainder of fiscal year 2017 are anticipated to be $4.1 to the qualified trusts and $0.4 paid directly to participants from the Missouri Utilities’ funds. For Alagasco, there were no contributions to the postretirement plans during the six months of fiscal year 2017, and none are expected to be required for the remainder of the fiscal year. |
INFORMATION BY OPERATING SEGMENT |
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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. In addition, other non-utility activities of the Company include:
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.
The Company’s total assets by segment were as follows:
The following table reconciles the Company’s net economic earnings to net income.
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COMMITMENTS AND CONTINGENCIES |
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Mar. 31, 2017 | |
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 under the contracts in place at March 31, 2017 are estimated at approximately $1,484.8, $587.4, and $315.7 for the Company, Laclede Gas, and Alagasco, respectively. Additional contracts are generally entered into prior to or during the heating season of November through April. The Utilities recover their costs from customers in accordance with their PGA clauses or GSA riders. 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, which may be material. 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 four former MGP sites in eastern Missouri where costs have been incurred and claims have been asserted: one in Shrewsbury, Missouri and three in the city of St. Louis, Missouri (City). Laclede Gas has enrolled two of the sites in the City in the Missouri Department of Natural Resources Brownfields/Voluntary Cleanup Program (BVCP). The third site in the City is the result of a new claim assertion by the United States Environmental Protection Agency (EPA) and such claim is currently being investigated. In Laclede Gas’ western service area, MGE has enrolled all of its owned former manufactured gas plant 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, the 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, 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 second site located in the City 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 to date, the remedial investigation of the site will begin. Additionally, in correspondence dated November 30, 2016, Region 7 of the EPA has asserted that Laclede Gas is liable under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) for alleged coal gas waste contamination at a third site in the northern portion of the City on which Laclede Gas operated a manufactured gas plant. Laclede Gas has not owned or operated the site (also known as Station “B”) for over 70 years. Laclede Gas and the site owner have met with the EPA and reviewed its assertions. Both Laclede and the site owner have notified EPA that the information and data provided by EPA to date does not rise to the level of documenting a threat to the public health or environment. As such, Laclede Gas is requesting more information from the EPA, some of which will also be utilized to identify other former owners and operators of the site that could be added as PRPs. 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 7 regarding the former Thompson Chemical/Superior Solvents site in the City. 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. Laclede Gas has received no further inquiry from the EPA regarding this matter. 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 areas. 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 PRPs 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 PRPs), 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 March 31, 2017, Alagasco does not foresee a probable or reasonably estimable loss associated with these nine former MGP 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 condition or results of operations. In 2012, Alagasco responded to an EPA Request for Information Pursuant to Section 104 of 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 that 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 condition 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, and a related receivable has been recorded. 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 condition or results of operations. |
SUBSEQUENT EVENTS |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 3, 2017, Spire settled the purchase contracts underlying its 2.875 million equity units, by issuing 2.5 million shares of its common stock at a purchase price of $57.3921 per share. Fractional shares were settled in cash at $67.50 per share. The equity units were originally issued at $50 per unit pursuant to the Purchase Contract and Pledge Agreement dated as of June 11, 2014 between Spire and U.S. Bank National Association, as purchase contract agent, collateral agent, custodial agent and securities intermediary. Under the contract terms, the equity units were converted to common stock at the rate of 0.8712, with a corresponding adjustment to purchase price. Spire received net cash proceeds of approximately $142.0, which it used to repay short-term debt. On April 11, 2017, Laclede Gas’ eastern and western Missouri service territories each filed a general rate case with the MoPSC, representing net base rate increases of $28.5 and $37.0, respectively. No procedural schedule has been set, but Missouri statutes require the MoPSC to review and make new rates effective within 11 months of the filing. |
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 unaudited 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 & Oil Company (Willmut Gas). The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all of the disclosures required for complete financial statements. In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of the results of operations for the periods presented. This Form 10-Q should be read in conjunction with the Notes to Financial Statements contained in Spire’s, Laclede Gas’, and Alagasco’s Annual Reports on Form 10-K for the fiscal year ended September 30, 2016. 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. Results of operations of EnergySouth are included in Spire’s results of operations since the September 12, 2016 acquisition and impact the comparability of financial statement periods presented for the Company. |
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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. |
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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 March 31, 2017, September 30, 2016, and March 31, 2016 were $66.7, $26.1, and $57.4, respectively. Alagasco records natural gas distribution revenues in accordance with the tariff established by the Alabama Public Service Commission (APSC). Unbilled revenues for Alagasco, which are not recorded as revenue until billed, at March 31, 2017, September 30, 2016, and March 31, 2016 were $13.5, $5.9, and $14.9, respectively. The subsidiaries of EnergySouth record natural gas revenues in accordance with tariffs established by the APSC and the Mississippi Public Service Commission (MSPSC). Their unbilled revenues are accrued as described for Laclede Gas above. Spire’s other subsidiaries, including Spire Marketing, record revenues when earned, either when the product is delivered or when services are performed. In the course of its business, Spire Marketing enters into commitments associated with the purchase or sale of natural gas. Certain of their derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of Financial Accounting Standards Board (FASB) Accounting Standards Codification (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. Certain of Spire Marketing’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 in the Condensed Consolidated Statements of Income. This net presentation has no effect on operating income or net income. |
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GROSS RECEIPTS TAXES | GROSS RECEIPTS TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Utilities and billed to their 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. |
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REGULATED OPERATIONS | REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with FASB 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. As authorized by the Missouri Public Service Commission (MoPSC), MSPSC and APSC, 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. See additional information about regulatory assets and liabilities in Note 3, Regulatory Matters. |
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NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS – In April 2015, the FASB issued Accounting Standards Update (ASU) No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. Under prior GAAP, debt issuance costs were recorded as a deferred charge (asset), while debt discount and debt premium costs were recorded as a liability adjustment. This amendment requires that 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. Spire, Laclede Gas and Alagasco adopted this ASU as of December 31, 2016. Retrospective adjustments have been made to the previous year balance sheets as of September 30, 2016 and March 31, 2016. The amounts reclassified from other deferred charges to reduce long-term debt are shown in the following table. The ASU does not address the presentation of debt issuance costs related to line-of-credit arrangements, and those continue to be reported as deferred charges.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Under the new standard, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current guidance. 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. Entities have the option of using either a full retrospective or modified retrospective approach to adopting this guidance. 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. In 2016, the FASB issued related ASU Nos. 2016-08, 2016-10, 2016-11, 2016-12, and 2016-20 which further modified the standards for accounting for revenue. The Company, Laclede Gas and Alagasco are currently evaluating their sources of revenue and assessing the available transition methods and the potential impacts of the updates, which must be adopted by the first quarter of fiscal year 2019. The conclusions of these assessments are contingent, in part, upon the completion of deliberations currently in progress by the power and utilities industry, notably in connection with efforts to produce an accounting guide being developed by the American Institute of Certified Public Accountants (AICPA). In association with this undertaking, the AICPA formed a number of industry task forces, including a Power & Utilities Task Force. Industry representatives and organizations, the largest auditing firms, the AICPA’s Revenue Recognition Working Group and its Financial Reporting Executive Committee have undertaken, and continue to undertake, consideration of several items relevant to our industry as further discussed below. Where applicable or necessary, the FASB’s Transition Resource Group is also participating. Currently, the industry is working to address several items including 1) the evaluation of collectability from customers if a utility has regulatory mechanisms to help assure recovery of uncollected accounts from ratepayers; 2) the accounting for funds received from third parties to partially or fully reimburse the cost of construction of an asset 3) the accounting for alternative revenue programs, such as performance-based ratemaking, and 4) application of series guidance to storable commodities. Existing alternative revenue program guidance, though excluded by the FASB in updating specific guidance associated with revenue from contracts with customers, was relocated without substantial modification to accounting guidance for rate-regulated entities. It will require separate presentation of such revenues (subject to the above-noted deliberations) in the statement of income. Currently, a timeline for the resolution of these deliberations has not been established. Given the uncertainty with respect to the conclusions that might arise from these deliberations, the Company, Laclede Gas and Alagasco are currently unable to determine the effect the new guidance will have on their financial position, results of operations, cash flows, business processes or the transition method they will utilize to adopt the new guidance. 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. Entities will record a cumulative-effect adjustment as of the beginning of the fiscal year in which the guidance is adopted, which requires amounts reported in accumulated other comprehensive income for equity securities that exist as of the date of adoption previously classified as available-for-sale to be reclassified to retained earnings. The Company, Laclede Gas and Alagasco are currently assessing the timing and impacts of adopting this standard, which must be adopted in 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. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 amendments in this update are to be applied prospectively except for changes impacting the presentation of the cash flow statement, which can be applied prospectively or retrospectively. The ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and early adoption is permitted. The Company, Laclede Gas and Alagasco expect to adopt this standard in the current fiscal year with no material impact. In June 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, and may be adopted a year earlier. The new guidance will be initially applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. 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. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The amended guidance requires that the service cost component of pension and postretirement benefit costs be presented within the same line item in the income statement as other compensation costs (except for the amount being capitalized), while other components are to be presented outside the subtotal of operating income and are no longer eligible for capitalization. The ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amended guidance will be applied retrospectively for income statement presentation and prospectively for capitalization. The Company, Laclede Gas and Alagasco are currently assessing the regulatory and other impacts of adopting this standard, which must be adopted by the first quarter of fiscal year 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill by reportable segment | The changes in the carrying amount of goodwill by reportable segment are shown below, reflecting the effect of a $3.8 cash payment to Spire related to the EnergySouth acquisition, offset by net adjustments to acquired insurance receivable and prepaid assets.
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Schedule of gross receipts taxes | The following table presents gross receipts taxes recorded as revenues.
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Schedule of inter-company transactions | Laclede Gas’ transactions with affiliates included:
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Schedule of Capital Expenditure Excluded from Statement of Cash Flow | Accrued capital expenditures are shown in the following table. Accrued capital expenditures are excluded from the capital expenditures shown in the statements of cash flows.
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The ASU does not address the presentation of debt issuance costs related to line-of-credit arrangements, and those continue to be reported as deferred charges.
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EARNINGS PER COMMON SHARE (Tables) |
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REGULATORY MATTERS (Tables) |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of regulatory assets | The following regulatory assets and regulatory liabilities, including purchased gas adjustments, were reflected in the balance sheets of the Company and the Utilities as of March 31, 2017, September 30, 2016 and March 31, 2016.
A portion of the Company’s and Laclede Gas’ regulatory assets are not earning a return, as shown in the schedule below:
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Schedule of regulatory liabilities | The following regulatory assets and regulatory liabilities, including purchased gas adjustments, were reflected in the balance sheets of the Company and the Utilities as of March 31, 2017, September 30, 2016 and March 31, 2016.
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 are shown below and classified according to the fair value hierarchy. There were no such instruments classified as Level 3 (significant unobservable inputs) as of March 31, 2017, September 30, 2016, or March 31, 2016.
Spire
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Laclede Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments |
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Alagasco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments |
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 New York Mercantile Exchange (NYMEX) or the Intercontinental Exchange (ICE). Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using Over-the-Counter Bulletin Board (OTCBB), broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments in active markets and derivative instruments with settlement dates more than one year into the future. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. The Level 3 balances as of March 31, 2017, September 30, 2016 and March 31, 2016 consisted of gas commodity contracts. 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 “Other Investments” on the Company’s balance sheets and in “Other Property and Investments” on Laclede Gas’ balance sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the balance sheets when a legally enforceable netting agreement exists between the Company, Laclede Gas, or Alagasco and the counterparty to a derivative contract. Spire
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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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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost | The net periodic pension cost included the following components:
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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 cost for the Company consisted of the following components:
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Laclede Gas | Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost |
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Laclede Gas | Postretirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost |
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Alagasco | Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost |
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Alagasco | Postretirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Cost |
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INFORMATION BY OPERATING SEGMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating segment information |
The Company’s total assets by segment were as follows:
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Schedule of the reconciliation of consolidated net economic earnings to consolidated net income | The following table reconciles the Company’s net economic earnings to net income.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of September 30, 2016 | $ 1,164.9 |
Adjustments related to the acquisition of EnergySouth | (1.0) |
Balance as of March 31, 2017 | 1,163.9 |
Gas Utility | |
Goodwill [Roll Forward] | |
Balance as of September 30, 2016 | 210.2 |
Adjustments related to the acquisition of EnergySouth | 0.0 |
Balance as of March 31, 2017 | 210.2 |
Gas Marketing | |
Goodwill [Roll Forward] | |
Balance as of September 30, 2016 | 0.0 |
Adjustments related to the acquisition of EnergySouth | 0.0 |
Balance as of March 31, 2017 | 0.0 |
Other | |
Goodwill [Roll Forward] | |
Balance as of September 30, 2016 | 954.7 |
Adjustments related to the acquisition of EnergySouth | (1.0) |
Balance as of March 31, 2017 | $ 953.7 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gross Receipts Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Schedule of Gross Receipts Taxes [Line Items] | ||||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 34.3 | $ 32.3 | $ 53.7 | $ 50.2 |
Laclede Gas | ||||
Schedule of Gross Receipts Taxes [Line Items] | ||||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | 25.5 | 24.7 | 39.6 | 38.6 |
Alagasco | ||||
Schedule of Gross Receipts Taxes [Line Items] | ||||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 7.7 | $ 7.6 | $ 11.9 | $ 11.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inter-company Transactions (Details) - Affiliated Entity - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Regulated Operation | Laclede Gas | Spire Marketing | ||||
Related Party Transaction [Line Items] | ||||
Purchases of natural gas from Spire Marketing | $ 21.0 | $ 11.6 | $ 41.5 | $ 24.8 |
Regulated Operation | Laclede Gas | Laclede Insurance Risk Services | ||||
Related Party Transaction [Line Items] | ||||
Insurance services received from Laclede Insurance Risk Services | 1.0 | 0.3 | 2.1 | 0.5 |
Regulated Operation | Spire Marketing | Laclede Gas | ||||
Related Party Transaction [Line Items] | ||||
Sales of natural gas to Spire Marketing | 2.7 | 1.0 | 6.3 | 1.7 |
Unregulated Operation | Laclede Gas | Laclede Pipeline Company | ||||
Related Party Transaction [Line Items] | ||||
Transportation services received from Laclede Pipeline Company | $ 0.2 | $ 0.2 | $ 0.5 | $ 0.5 |
REGULATORY MATTERS (Details) |
6 Months Ended |
---|---|
Mar. 31, 2017 | |
Regulated Operations [Abstract] | |
Remaining recovery period for regulatory assets for which no return on investment during recovery period is provided | 15 years |
FINANCING ARRANGEMENTS AND LONG-TERM DEBT Short-Term Debt (Details) - USD ($) |
Dec. 21, 2016 |
Mar. 31, 2017 |
---|---|---|
Short-term Debt [Line Items] | ||
Short-term Debt | $ 567,400,000.0 | |
Commercial Paper Notes | ||
Short-term Debt [Line Items] | ||
Maximum aggregate face amount | $ 975,000,000 | |
Debt maturity | 365 days | |
Laclede Gas | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 282,200,000.0 | |
Alagasco | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 109,300,000.0 |
CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions |
6 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
subsegment
counterparty
| |
Concentration Risk [Line Items] | |
Number of groups with potential to affect overall exposure | subsegment | 3 |
Number of large counterparties for which credit risk is disclosed | counterparty | 5 |
Number of counterparties with investment-grade rating | counterparty | 4 |
Energy Producers And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | $ 15.1 |
Net receivable amount | 8.8 |
Utility Companies And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | 53.4 |
Net receivable amount | 50.0 |
Largest Counterparties | |
Concentration Risk [Line Items] | |
Accounts receivable | 30.0 |
Net receivable amount | $ 27.7 |
INFORMATION BY OPERATING SEGMENT - Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment Reporting [Abstract] | ||||
Net Income | $ 108.0 | $ 100.8 | $ 153.2 | $ 147.7 |
Unrealized loss (gain) on energy-related derivative contracts | 1.6 | 2.9 | 5.4 | (2.0) |
Lower of cost or market inventory adjustments | 0.1 | 0.1 | 0.0 | 0.7 |
Realized gain on economic hedges prior to sale of the physical commodity | (0.1) | (0.5) | (0.2) | (0.6) |
Acquisition, divestiture and restructuring activities | 0.1 | 2.0 | 0.2 | 3.3 |
Income tax effect of adjustments | (0.7) | (1.8) | (2.1) | (0.5) |
Net Economic Earnings | $ 109.0 | $ 103.5 | $ 156.5 | $ 148.6 |
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Millions |
6 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 1,484.8 |
Laclede Gas | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | 587.4 |
Alagasco | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 315.7 |
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