INFORMATION BY OPERATING SEGMENT

6 Months Ended

Mar. 31, 2017

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:

• 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.

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

Management evaluates the performance of the operating segments based on the computation of net economic earnings. Net economic earnings exclude from reported net income the after-tax impacts of net unrealized gains and losses and other timing differences associated with energy-related transactions. Net economic earnings also exclude the after-tax impacts related to acquisition, divestiture, and restructuring activities.

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended 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

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

	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

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

	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