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INFORMATION BY OPERATING SEGMENT
 9 Months Ended
Jun. 30, 2018
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 operations of the Utilities. The Gas Marketing segment includes the results of Spire Marketing, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, including utilizing natural gas storage contracts for providing natural gas sales. Other components of the Company’s consolidated information include:
•
unallocated corporate items, including certain debt and associated interest costs;
•
Spire STL Pipeline LLC, a subsidiary planning the construction and operation of a proposed 65-mile Federal Energy Regulatory Commission (FERC)-regulated pipeline to deliver natural gas into eastern Missouri;
•
physical natural gas storage operations, acquired in December 2017 and May 2018; and
•
Spire’s subsidiaries engaged in the operation of a propane pipeline, compression of natural gas, and risk management, among other activities.
Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Spire Marketing to Spire Missouri, sales of natural gas from Spire Missouri to Spire Marketing, propane transportation services provided by Spire NGL Inc. to Spire Missouri, and propane storage services provided by Spire Missouri to Spire NGL Inc.
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 impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items include the revaluation of deferred tax assets and liabilities due to the federal Tax Cuts and Jobs Act (see Note 11, Income Taxes) and the write-off of certain long-standing assets as a result of our Missouri rate proceedings (see Note 3, Regulatory Matters).
 
Gas Utility
 
Gas Marketing
 
Other
 
Eliminations
 
Consolidated
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
334.8

 
$
14.4

 
$
1.4

 
$
—

 
$
350.6

Intersegment revenues
—

 
—

 
2.9

 
(2.9
)
 
—

Total Operating Revenues
334.8

 
14.4

 
4.3

 
(2.9
)
 
350.6

Operating Expenses:
 
 
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
 
 
Natural and propane gas
117.9

 
—

 
—

 
(10.7
)
 
107.2

Operation and maintenance
107.9

 
—

 
—

 
(2.3
)
 
105.6

Depreciation and amortization
40.5

 
—

 
—

 
—

 
40.5

Taxes, other than income taxes
33.5

 
—

 
—

 
—

 
33.5

Total Gas Utility Operating Expenses
299.8

 
—

 
—

 
(13.0
)
 
286.8

Gas Marketing and Other
—

 
(7.2
)
 
8.5

 
10.1

 
11.4

Total Operating Expenses
299.8

 
(7.2
)
 
8.5

 
(2.9
)
 
298.2

Operating Income (Loss)
$
35.0

 
$
21.6

 
$
(4.2
)
 
$
—

 
$
52.4

Net Economic Earnings (Loss)
$
16.9

 
$
4.4

 
$
(6.1
)
 
$
—

 
$
15.2

 
 
 
 
 
 
 
 
 
 

 
Gas Utility
 
Gas Marketing
 
Other
 
Eliminations
 
Consolidated
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Operating Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
305.1

 
$
17.9

 
$
0.5

 
$
—

 
$
323.5

Intersegment revenues
1.5

 
—

 
1.6

 
(3.1
)
 
—

Total Operating Revenues
306.6

 
17.9

 
2.1

 
(3.1
)
 
323.5

Operating Expenses:
 
 
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
 
 
Natural and propane gas
88.7

 
—

 
—

 
(12.0
)
 
76.7

Operation and maintenance
101.9

 
—

 
—

 
(1.1
)
 
100.8

Depreciation and amortization
38.4

 
—

 
—

 
—

 
38.4

Taxes, other than income taxes
30.5

 
—

 
—

 
—

 
30.5

Total Gas Utility Operating Expenses
259.5

 
—

 
—

 
(13.1
)
 
246.4

Gas Marketing and Other
—

 
12.0

 
4.8

 
10.0

 
26.8

Total Operating Expenses
259.5

 
12.0

 
4.8

 
(3.1
)
 
273.2

Operating Income (Loss)
$
47.1

 
$
5.9

 
$
(2.7
)
 
$
—

 
$
50.3

Net Economic Earnings (Loss)
$
23.3

 
$
2.3

 
$
(4.0
)
 
$
—

 
$
21.6

 
 
 
 
 
 
 
 
 
 
 
Gas Utility
 
Gas Marketing
 
Other
 
Eliminations
 
Consolidated
Nine Months Ended June 30, 2018
 

 
 

 
 

 
 

 
 

Operating Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,667.3

 
$
55.3

 
$
3.2

 
$
—

 
$
1,725.8

Intersegment revenues
0.3

 
—

 
8.3

 
(8.6
)
 
—

Total Operating Revenues
1,667.6

 
55.3

 
11.5

 
(8.6
)
 
1,725.8

Operating Expenses:
 
 
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
 
 
Natural and propane gas
784.5

 
—

 
—

 
(52.8
)
 
731.7

Operation and maintenance
353.5

 
—

 
—

 
(6.4
)
 
347.1

Depreciation and amortization
121.9

 
—

 
—

 
—

 
121.9

Taxes, other than income taxes
128.2

 
—

 
—

 
—

 
128.2

Total Gas Utility Operating Expenses
1,388.1

 
—

 
—

 
(59.2
)
 
1,328.9

Gas Marketing and Other
—

 
27.6

 
19.4

 
50.6

 
97.6

Total Operating Expenses
1,388.1

 
27.6

 
19.4

 
(8.6
)
 
1,426.5

Operating Income (Loss)
$
279.5

 
$
27.7

 
$
(7.9
)
 
$
—

 
$
299.3

Net Economic Earnings (Loss)
$
208.1

 
$
18.2

 
$
(16.0
)
 
$
—

 
$
210.3

 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

Operating Revenues:
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,419.1

 
$
61.8

 
$
1.1

 
$
—

 
$
1,482.0

Intersegment revenues
7.9

 
—

 
4.6

 
(12.5
)
 
—

Total Operating Revenues
1,427.0

 
61.8

 
5.7

 
(12.5
)
 
1,482.0

Operating Expenses:
 
 
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
 
 
Natural and propane gas
578.8

 
—

 
—

 
(54.0
)
 
524.8

Operation and maintenance
301.7

 
—

 
—

 
(3.1
)
 
298.6

Depreciation and amortization
114.0

 
—

 
—

 
—

 
114.0

Taxes, other than income taxes
112.2

 
—

 
—

 
—

 
112.2

Total Gas Utility Operating Expenses
1,106.7

 
—

 
—

 
(57.1
)
 
1,049.6

Gas Marketing and Other
—

 
58.9

 
9.1

 
44.6

 
112.6

Total Operating Expenses
1,106.7

 
58.9

 
9.1

 
(12.5
)
 
1,162.2

Operating Income (Loss)
$
320.3

 
$
2.9

 
$
(3.4
)
 
$
—

 
$
319.8

Net Economic Earnings (Loss)
$
187.3

 
$
3.7

 
$
(12.9
)
 
$
—

 
$
178.1

The Company’s total assets by segment were as follows:
 
June 30,
 
September 30,
 
June 30,
 
2018
 
2017
 
2017
Total Assets:
Gas Utility
$
5,445.5

 
$
5,551.2

 
$
5,323.1

Gas Marketing
234.5

 
246.2

 
223.6

Other
2,135.9

 
2,239.5

 
2,171.8

Eliminations
(1,231.0
)
 
(1,490.2
)
 
(1,420.3
)
Total Assets
$
6,584.9

 
$
6,546.7

 
$
6,298.2



The following table reconciles the Company’s net economic earnings to net income.
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Net Income
$
25.9

 
$
21.7

 
$
240.1

 
$
174.9

Adjustments, pre-tax:
 
 
 
 
 
 
 
Missouri regulatory adjustments
—

 
—

 
30.6

 
—

Unrealized (gain) loss on energy-related derivative contracts
(16.0
)
 
(2.2
)
 
(3.4
)
 
3.2

Realized gain on economic hedges prior to sale of the physical commodity
—

 
—

 
(0.3
)
 
(0.2
)
Acquisition, divestiture and restructuring activities
3.3

 
1.9

 
7.0

 
2.1

Income tax effect of adjustments
2.0

 
0.2

 
(9.7
)
 
(1.9
)
Effects of the Tax Cuts and Jobs Act
—

 
—

 
(54.0
)
 
—

Net Economic Earnings
$
15.2

 
$
21.6

 
$
210.3

 
$
178.1