Information by Operating Segment

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Information by Operating Segment

9. 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, a subsidiary of Spire which has constructed and, as of November 2019, operates a 65-mile FERC-regulated pipeline to deliver natural gas into eastern Missouri;

• Spire Storage, a subsidiary of Spire providing physical natural gas storage services; and

• Spire’s subsidiaries engaged in the operation of a propane pipeline, the 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, Spire Alabama and Spire Storage, sales of natural gas from Spire Missouri and Spire Alabama 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 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 (discussed in Note 1) and other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. For the fiscal 2020 periods presented, adjustments for Spire Missouri ISRS revenues reflect the regulatory settlement reached in the third quarter of fiscal 2020, as discussed in Note 4, Regulatory Matters, such that the related GAAP provision for customer credit for fiscal 2020 to date is reflected in net economic earnings.

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended June 30, 2020
Operating Revenues:
Revenues from external customers	$	305.7	$	11.6		$	3.8		$	—		$	321.1
Intersegment revenues		0.3		—			11.6			(11.9	)		—
Total Operating Revenues		306.0		11.6			15.4			(11.9	)		321.1
Operating Expenses:
Gas Utility
Natural and propane gas		90.6		—			—			(19.9	)		70.7
Operation and maintenance		115.5		—			—			(3.0	)		112.5
Depreciation and amortization		47.8		—			—			—			47.8
Taxes, other than income taxes		31.7		—			—			—			31.7
Total Gas Utility Operating Expenses		285.6		—			—			(22.9	)		262.7
Impairments		—		—			148.6			—			148.6
Gas Marketing and Other		—		(6.6	)		11.9			11.0			16.3
Total Operating Expenses		285.6		(6.6	)		160.5			(11.9	)		427.6
Operating Income (Loss)	$	20.4	$	18.2		$	(145.1	)	$	—		$	(106.5	)
Net Economic Earnings (Loss)	$	8.4	$	0.1		$	(1.2	)	$	—		$	7.3

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended June 30, 2019
Operating Revenues:
Revenues from external customers	$	301.4	$	18.4		$	1.5		$	—		$	321.3
Intersegment revenues		0.2		(0.1	)		3.1			(3.2	)		—
Total Operating Revenues		301.6		18.3			4.6			(3.2	)		321.3
Operating Expenses:
Gas Utility
Natural and propane gas		88.1		—			—			(12.6	)		75.5
Operation and maintenance		113.4		—			—			(2.2	)		111.2
Depreciation and amortization		45.1		—			—			—			45.1
Taxes, other than income taxes		29.7		—			—			—			29.7
Total Gas Utility Operating Expenses		276.3		—			—			(14.8	)		261.5
Gas Marketing and Other		—		25.3			9.6			11.6			46.5
Total Operating Expenses		276.3		25.3			9.6			(3.2	)		308.0
Operating Income (Loss)	$	25.3	$	(7.0	)	$	(5.0	)	$	—		$	13.3
Net Economic Earnings (Loss)	$	7.6	$	3.3		$	(5.9	)	$	—		$	5.0

	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Nine Months Ended June 30, 2020
Operating Revenues:
Revenues from external customers	$	1,515.4	$	77.2	$	10.9		$	—		$	1,603.5
Intersegment revenues		0.3		—		30.3			(30.6	)		—
Total Operating Revenues		1,515.7		77.2		41.2			(30.6	)		1,603.5
Operating Expenses:
Gas Utility
Natural and propane gas		603.7		—		—			(69.4	)		534.3
Operation and maintenance		319.9		—		—			(8.3	)		311.6
Depreciation and amortization		141.2		—		—			—			141.2
Taxes, other than income taxes		121.3		—		—			—			121.3
Total Gas Utility Operating Expenses		1,186.1		—		—			(77.7	)		1,108.4
Impairments		—		—		148.6			—			148.6
Gas Marketing and Other		—		59.0		34.1			47.1			140.2
Total Operating Expenses		1,186.1		59.0		182.7			(30.6	)		1,397.2
Operating Income (Loss)	$	329.6	$	18.2	$	(141.5	)	$	—		$	206.3
Net Economic Earnings (Loss)	$	221.8	$	11.3	$	(10.0	)	$	—		$	223.1
	Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Nine Months Ended June 30, 2019
Operating Revenues:
Revenues from external customers	$	1,651.9	$	69.6	$	5.3		$	—		$	1,726.8
Intersegment revenues		1.7		—		9.0			(10.7	)		—
Total Operating Revenues		1,653.6		69.6		14.3			(10.7	)		1,726.8
Operating Expenses:
Gas Utility
Natural and propane gas		746.6		—		—			(82.0	)		664.6
Operation and maintenance		330.3		—		—			(7.1	)		323.2
Depreciation and amortization		133.2		—		—			—			133.2
Taxes, other than income taxes		126.3		—		—			—			126.3
Total Gas Utility Operating Expenses		1,336.4		—		—			(89.1	)		1,247.3
Gas Marketing and Other		—		47.3		25.9			78.4			151.6
Total Operating Expenses		1,336.4		47.3		25.9			(10.7	)		1,398.9
Operating Income (Loss)	$	317.2	$	22.3	$	(11.6	)	$	—		$	327.9
Net Economic Earnings (Loss)	$	220.7	$	17.8	$	(19.7	)	$	—		$	218.8

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

	June 30,			September 30,			June 30,
	2020			2019			2019
Total Assets:
Gas Utility	$	6,330.1		$	6,094.6		$	5,830.1
Gas Marketing		158.6			212.3			232.3
Other		2,324.8			2,692.7			2,537.4
Eliminations		(990.9	)		(1,380.4	)		(1,267.8	)
Total Assets	$	7,822.6		$	7,619.2		$	7,332.0

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

	Three Months Ended June 30,						Nine Months Ended June 30,
	2020			2019			2020			2019
Net Income	$	(92.3	)	$	(3.0	)	$	108.3		$	218.9
Adjustments, pre-tax:
Impairments		148.6			—			148.6			—
Provision for ISRS rulings		(4.8	)		—			—			—
Unrealized (gain) loss on energy-related derivatives		(18.5	)		8.0			(3.2	)		(3.3	)
Lower of cost or market inventory adjustments		—			2.7			—			2.7
Acquisition, divestiture and restructuring activities		—			—			—			0.4
Income tax effect of adjustments		(25.7	)		(2.7	)		(30.6	)		0.1
Net Economic Earnings	$	7.3		$	5.0		$	223.1		$	218.8