Note 10 - Information by Operating Segment

3 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10. INFORMATION BY OPERATING SEGMENT

The Company has three reportable segments: Gas Utility, Gas Marketing, and Midstream. 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. The Midstream segment includes Spire STL Pipeline, a subsidiary of Spire providing interstate natural gas pipeline transportation services, and Spire Storage, subsidiaries of Spire providing interstate and intrastate natural gas storage services. Other components of the Company’s consolidated information include Spire’s subsidiaries engaged in the operation of a propane pipeline and risk management, among other activities, and unallocated corporate items, including certain debt and associated interest costs.

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, Spire Alabama and Spire Storage, storage services from Spire Storage to Spire Missouri and Spire Marketing, and natural gas transportation services provided by Spire STL Pipeline to Spire Missouri and Spire Marketing. 

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 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 impairments and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions.

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Three Months Ended December 31, 2023
Revenues from external customers	$	715.2	$	36.3	$	5.0	$	0.1		$	—		$	756.6
Intersegment revenues		—		—		9.9		4.0			(13.9	)		—
Total Operating Revenues		715.2		36.3		14.9		4.1			(13.9	)		756.6
Depreciation and amortization expense		64.2		0.4		2.3		0.1			—			67.0
Interest expense		39.0		—		1.8		24.0			(14.2	)		50.6
Income tax expense		15.7		3.8		0.6		0.9			—			21.0
Net economic earnings (loss)		75.8		7.2		2.4		(2.7	)		—			82.7
Capital expenditures		174.9		—		52.0		—			(0.4	)		226.5

	Gas Utility		Gas Marketing		Midstream		Other			Eliminations			Consolidated
Three Months Ended December 31, 2022
Revenues from external customers	$	733.0	$	74.1	$	6.8	$	0.1		$	—		$	814.0
Intersegment revenues		—		—		8.4		3.9			(12.3	)		—
Total Operating Revenues		733.0		74.1		15.2		4.0			(12.3	)		814.0
Depreciation and amortization expense		59.7		0.3		1.9		0.2			—			62.1
Interest expense		32.1		—		1.9		19.5			(9.9	)		43.6
Income tax expense (benefit)		12.4		10.5		1.4		(2.7	)		—			21.6
Net economic earnings (loss)		62.9		25.7		3.8		(7.3	)		—			85.1
Capital expenditures		146.3		0.2		7.7		0.6			—			154.8

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

	Three Months Ended December 31,
	2023			2022
Net Income	$	85.1		$	91.0
Adjustments, pre-tax:
Fair value and timing adjustments		(5.2	)		(7.8	)
Acquisition activities		1.9			—
Income tax adjustments		0.9			1.9
Net Economic Earnings	$	82.7		$	85.1

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

	December 31,			September 30,			December 31,
	2023			2023			2022
Total Assets:
Gas Utility	$	8,736.7		$	8,486.7		$	8,355.1
Gas Marketing		207.0			332.0			492.4
Midstream		633.9			574.3			466.6
Other		2,755.1			2,533.3			2,882.8
Eliminations		(1,701.0	)		(1,612.7	)		(1,869.2	)
Total Assets	$	10,631.7		$	10,313.6		$	10,327.7