[ X ] | ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 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 | Spire Missouri Inc. 700 Market Street St. Louis, MO 63101 314-342-0500 | Missouri | 43-0368139 | |||
2-38960 | Spire Alabama Inc. 2101 6th Avenue North Birmingham, AL 35203 205-326-8100 | Alabama | 63-0022000 |
Title of each class | Name of each exchange on which registered | |
Spire Inc. | Common Stock $1.00 par value | New York Stock Exchange |
Spire Missouri Inc. | None | Not applicable |
Spire Alabama Inc. | None | Not Applicable |
Spire Inc. | Yes [ ] | No [ X ] | |
Spire Missouri Inc. | Yes [ ] | No [ X ] | |
Spire Alabama Inc. | Yes [ ] | No [ X ] |
Spire Inc. | Yes [ X ] | No [ ] | |
Spire Missouri Inc. | Yes [ ] | No [ X ] | |
Spire Alabama Inc. | Yes [ ] | No [ X ] |
Spire Inc. | Yes [ ] | No [ X ] | |
Spire Missouri Inc. | Yes [ ] | No [ X ] | |
Spire Alabama Inc. | Yes [ ] | No [ X ] |
Spire Inc. | Yes [ X ] | No [ ] | |
Spire Missouri Inc. | Yes [ X ] | No [ ] | |
Spire Alabama Inc. | Yes [ X ] | No [ ] |
Spire Inc. | Yes [ X ] | No [ ] | |
Spire Missouri Inc. | Yes [ X ] | No [ ] | |
Spire Alabama Inc. | Yes [ X ] | No [ ] |
Spire Inc. | [ X ] | ||
Spire Missouri Inc. | [ X ] | ||
Spire Alabama Inc. | [ X ] |
Large accelerated filer | Accelerated filer | Non- accelerated filer | Smaller reporting company | Emerging growth company | |||||
Spire Inc. | X | ||||||||
Spire Missouri Inc. | X | ||||||||
Spire Alabama Inc. | X |
Spire Inc. | [ ] | ||
Spire Missouri Inc. | [ ] | ||
Spire Alabama Inc. | [ ] |
Spire Inc. | Yes [ ] | No [ X ] | |
Spire Missouri Inc. | Yes [ ] | No [ X ] | |
Spire Alabama Inc. | Yes [ ] | No [ X ] |
Spire Inc. | Common Stock, par value $1.00 per share | 48,266,858 | |||
Spire Missouri Inc. | Common Stock, par value $1.00 per share (all owned by Spire Inc.) | 24,577 | |||
Spire Alabama Inc. | Common Stock, par value $0.01 per share (all owned by Spire Inc.) | 1,972,052 |
TABLE OF CONTENTS | Page | |
Alabama Utilities | Spire Alabama and Spire Gulf | MMBtu | Million British thermal units | |
AOCI | Accumulated other comprehensive income or loss | MoPSC | Missouri Public Service Commission | |
APSC | Alabama Public Service Commission | MSPSC | Mississippi Public Service Commission | |
ASC | Accounting Standards Codification | NYSE | New York Stock Exchange | |
ASU | Accounting Standards Update | NYMEX | New York Mercantile Exchange, Inc. | |
Bcf | Billion cubic feet | O&M | Operation and maintenance expense | |
BVCP | Brownfields/Voluntary Cleanup Program | OCI | Other comprehensive income or loss | |
CCM | Cost Control Measure | OPC | Missouri Office of the Public Counsel | |
Degree days | The average of a day’s high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted | OTCBB | Over-the-Counter Bulletin Board | |
EPA | US Environmental Protection Agency | PGA | Purchased Gas Adjustment | |
EPS | Earnings per share | PRP | Potential Responsible Party | |
ESR | Enhanced Stability Reserve | RSE | Rate Stabilization and Equalization | |
FASB | Financial Accounting Standards Board | SEC | US Securities and Exchange Commission | |
FERC | Federal Energy Regulatory Commission | Spire Alabama | Spire Alabama Inc. (formerly Alabama Gas Corporation) | |
GAAP | Accounting principles generally accepted in the United States of America | Spire EnergySouth | Spire EnergySouth Inc. (formerly EnergySouth, Inc.), parent of Spire Gulf and Spire Mississippi | |
Gas Marketing | Segment including Spire Marketing, a subsidiary engaged in the non-regulated marketing of natural gas and related activities | Spire Gulf | Spire Gulf Inc. (formerly Mobile Gas Service Corporation) | |
Gas Utility | Segment including the regulated operations of the Utilities | Spire Marketing | Spire Marketing Inc. (formerly Laclede Energy Resources, Inc.) | |
GSA | Gas Supply Adjustment | Spire Mississippi | Spire Mississippi Inc. (formerly Willmut Gas & Oil Company) | |
ICE | Intercontinental Exchange | Spire Missouri | Spire Missouri Inc. (formerly Laclede Gas Company) | |
ISRS | Infrastructure System Replacement Surcharge | Spire Missouri East | Spire Missouri’s eastern service territory | |
LIBOR | London Inter-Bank Offered Rate | Spire Missouri West | Spire Missouri’s western service territory (formerly Missouri Gas Energy, or MGE) | |
LNG | Liquefied natural gas | TSR | Total shareholder return | |
MDNR | Missouri Department of Natural Resources | US | United States | |
MGP | Manufactured gas plant | Utilities | Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth | |
Missouri Utilities | Spire Missouri, including Spire Missouri East and Spire Missouri West, the utilities serving the Missouri region | |||
• | 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; |
• | The recent acquisitions may not achieve their intended results, including anticipated cost savings; |
• | The Spire STL Pipeline project may be hindered or halted by regulatory, legal, or other obstacles; |
• | Legislative, regulatory and judicial mandates and decisions, some of which may be retroactive, including those affecting: |
• | allowed rates of return, |
• | incentive regulation, |
• | industry structure, |
• | purchased gas adjustment provisions, |
• | rate design structure and implementation, |
• | regulatory assets, |
• | non-regulated and affiliate transactions, |
• | franchise renewals, |
• | environmental or safety matters, including the potential impact of legislative and regulatory actions related to climate change and pipeline safety, |
• | taxes, |
• | pension and other postretirement benefit liabilities and funding obligations, or |
• | accounting standards; |
• | The results of litigation; |
• | 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 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. |
(In millions) | 2017 | 2016* | 2015 | ||||||||
Gas Utility | $ | 1,660.0 | $ | 1,457.2 | $ | 1,891.8 | |||||
Gas Marketing and other | 80.7 | 80.1 | 84.6 | ||||||||
Total Operating Revenues | $ | 1,740.7 | $ | 1,537.3 | $ | 1,976.4 |
2017 | 2016 | ||||
Common Stock Issuance | 2,504,684 | 2,185,000 | |||
Dividend Reinvestment and Stock Purchase Plan (DRIP) | 23,731 | 22,878 | |||
Equity Incentive Plan | 84,186 | 107,752 | |||
Total Shares Issued | 2,612,601 | 2,315,630 |
Union | Local | Employees Covered | Contract Start Date | Contract End Date |
Spire Missouri | ||||
United Steel, Paper and Forestry, Rubber Manufacturing, Allied-Industrial and Service Workers International Union (USW) | 884 | 64 | August 1, 2015 | July 31, 2018 |
USW | 11-6 | 932 | August 1, 2015 | July 31, 2018 |
USW | 11-194 | 85 | August 1, 2015 | July 31, 2018 |
USW | 12561 | 130 | August 16, 2016 | July 31, 2019 |
USW | 14228 | 41 | August 16, 2016 | July 31, 2019 |
USW | 11-267 | 27 | August 16, 2016 | July 31, 2019 |
Gas Workers Metal Trades locals of the United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada | 781-Kansas City | 189 | August 16, 2016 | July 31, 2019 |
Gas Workers Metal Trades locals of the United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada | 781-Monett | 56 | August 16, 2016 | July 31, 2019 |
Total Spire Missouri | 1,524 | |||
Spire Alabama | ||||
USW | 12030 | 200 | May 1, 2017 | April 30, 2020 |
USW | 12030-A | 53 | May 1, 2017 | April 30, 2020 |
United Association of Gas Fitters | 548 | 122 | July 1, 2016 | April 30, 2019 |
Total Spire Alabama | 375 | |||
Spire Gulf | ||||
USW | 3-541 | 65 | December 1, 2013 | November 30, 2017 |
Total Spire | 1,964 |
Gas Utility Operating Revenues | ||||||||||||
(In millions) | 2017 | 2016 | 2015 | |||||||||
Residential | $ | 1,084.5 | $ | 979.0 | $ | 1,263.1 | ||||||
Commercial & Industrial | 389.2 | 331.3 | 462.3 | |||||||||
Interruptible | 5.1 | 2.0 | 2.3 | |||||||||
Transportation | 99.8 | 93.1 | 92.2 | |||||||||
Off-System and Other Incentive | 67.9 | 50.7 | 76.2 | |||||||||
Provisions for Refunds and Other | 21.4 | 3.3 | (0.3 | ) | ||||||||
Total Gas Utility Operating Revenues | $ | 1,667.9 | $ | 1,459.4 | $ | 1,895.8 | ||||||
Gas Utility Therms Sold and Transported | ||||||||||||
(In millions) | 2017 | 2016 | 2015 | |||||||||
Residential | 866.2 | 867.5 | 1,065.1 | |||||||||
Commercial & Industrial | 446.7 | 420.4 | 491.6 | |||||||||
Interruptible | 12.6 | 4.6 | 3.6 | |||||||||
Transportation | 1,467.5 | 1,089.8 | 989.0 | |||||||||
System Therms Sold and Transported | 2,793.0 | 2,382.3 | 2,549.3 | |||||||||
Off-System | 175.6 | 183.3 | 193.5 | |||||||||
Total Gas Utility Therms Sold and Transported | 2,968.6 | 2,565.6 | 2,742.8 | |||||||||
Gas Utility Customers | 2017 | 2016 | 2015 | |||||||||
Residential | 1,550,777 | 1,540,366 | 1,434,584 | |||||||||
Commercial & Industrial | 133,864 | 137,450 | 132,388 | |||||||||
Interruptible | 64 | 42 | 18 | |||||||||
Transportation | 827 | 824 | 796 | |||||||||
Total Gas Utility Customers | 1,685,532 | 1,678,682 | 1,567,786 |
• | make it difficult to pay or refinance their debts as they become due during adverse economic and industry conditions; |
• | limit flexibility to pursue strategic opportunities or react to changes in its business and the industry in which they operate and, consequently, place them at a competitive disadvantage to competitors with less debt; |
• | require a significant portion of cash flows from operations of their respective subsidiaries to be used for debt service payments, thereby reducing the availability of their cash flows to fund working capital, capital expenditures, dividend payments and other general corporate activities; |
• | result in a downgrade in the credit rating of Spire’s or the Utilities’ indebtedness, which could limit the ability to borrow additional funds or increase the applicable interest rates; |
• | result in higher interest expense in the event of an increase in market interest rates for both short-term commercial paper or bank loans; |
• | reduce the amount of credit available to support hedging activities; and |
• | require that additional terms, conditions or covenants be placed on Spire or the Utilities. |
Name | Age | Position with Company (1) | Appointed (2) | |
S. Sitherwood | 57 | Spire | ||
President and Chief Executive Officer | February 2012 | |||
Spire Missouri | ||||
Chairman of the Board | January 2015 | |||
Chairman of the Board and Chief Executive Officer | October 2012 | |||
Chairman of the Board, Chief Executive Officer and President | February 2012 | |||
Spire Alabama | ||||
Chairman of the Board | September 2014 | |||
S. L. Lindsey (3) | 51 | Spire | ||
Executive Vice President, Chief Operating Officer, Distribution Operations | October 2012 | |||
Spire Missouri | ||||
Chief Executive Officer and President | January 2015 | |||
President | October 2012 | |||
Spire Alabama | ||||
Chief Executive Officer | September 2014 | |||
S. P. Rasche | 57 | Spire | ||
Executive Vice President and Chief Financial Officer | November 2013 | |||
Senior Vice President, Chief Financial Officer | October 2013 | |||
Senior Vice President, Finance and Accounting | May 2012 | |||
Spire Missouri | ||||
Chief Financial Officer | May 2012 | |||
Spire Alabama | ||||
Chief Financial Officer | September 2014 | |||
M. C. Darrell | 59 | Spire | ||
Senior Vice President, General Counsel and Chief Compliance Officer | May 2012 | |||
M. C. Geiselhart | 58 | Spire | ||
Senior Vice President, Strategic Planning and Corporate Development | January 2015 | |||
Vice President, Strategic Planning and Corporate Development | February 2014 | |||
Vice President, Strategic Development and Planning | August 2006 | |||
K. A. Smith | 59 | Spire Alabama | ||
President | April 2015 | |||
Vice President, System Integrity | August 2011 |
(1) | The information provided relates to the Company and its principal subsidiaries. Many of the executive officers have served or currently serve as officers or directors for other subsidiaries of the Company. |
(2) | Officers of Spire are normally reappointed by the Board of Directors in November of each year. Officers of Spire Missouri and Spire Alabama are normally reappointed by their boards of directors in January of each year. |
(3) | Mr. Lindsey served as Senior Vice President, Southern Operations of AGL Resources, Inc. and President of its Atlanta Gas Light, Chattanooga Gas and Florida City Gas subsidiaries from December 2011 to October 2012. |
2017 | 2016 | ||||||||||||||
High | Low | High | Low | ||||||||||||
1st Quarter | $ | 66.65 | $ | 59.54 | $ | 61.04 | $ | 53.86 | |||||||
2nd Quarter | 68.30 | 62.33 | 68.79 | 57.10 | |||||||||||
3rd Quarter | 72.83 | 63.84 | 70.87 | 61.00 | |||||||||||
4th Quarter | 78.00 | 68.30 | 71.21 | 61.96 |
2017 | 2016 | ||||||
1st Quarter | $ | 0.525 | $ | 0.49 | |||
2nd Quarter | 0.525 | 0.49 | |||||
3rd Quarter | 0.525 | 0.49 | |||||
4th Quarter | 0.525 | 0.49 |
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 |
July 1, 2017 - July 31, 2017 | 347 | $69.55 | — | — |
August 1, 2017 - August 31, 2017 | — | — | — | — |
September 1, 2017 - September 30, 2017 | — | — | — | — |
Total | 347 | $69.55 | — | — |
September 30, | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
Spire Inc. | $ | 100.00 | $ | 108.90 | $ | 116.61 | $ | 142.06 | $ | 171.23 | $ | 206.75 | |||||||||||
S&P 500 Index | 100.00 | 119.34 | 142.89 | 142.02 | 163.93 | 194.44 | |||||||||||||||||
S&P Utilities Index | 100.00 | 106.99 | 125.32 | 133.55 | 156.74 | 175.60 |
2017 | 2016 | ||||||
1st Quarter | $ | 600.15 | $ | 864.30 | |||
2nd Quarter | — | 866.20 | |||||
3rd Quarter | — | 909.86 | |||||
4th Quarter | — | 569.64 |
2017 | 2016 | ||||||
1st Quarter | $ | 3.42 | $ | 3.80 | |||
2nd Quarter | 1.90 | 4.06 | |||||
3rd Quarter | 3.42 | 4.06 | |||||
4th Quarter | 4.94 | 4.06 |
Spire | Fiscal Years Ended September 30 | ||||||||||||||||||
(Dollars in millions, except per share amounts) | 2017 | 2016(1) | 2015 | 2014(2) | 2013(3) | ||||||||||||||
Statements of Income data | |||||||||||||||||||
Total Operating Revenues | $ | 1,740.7 | $ | 1,537.3 | $ | 1,976.4 | $ | 1,627.2 | $ | 1,017.0 | |||||||||
Net Income | 161.6 | 144.2 | 136.9 | 84.6 | 52.8 | ||||||||||||||
Common Stock data | |||||||||||||||||||
Diluted Earnings Per Share of Common Stock | $ | 3.43 | $ | 3.24 | $ | 3.16 | $ | 2.35 | $ | 2.02 | |||||||||
Dividends Declared Per Share of Common Stock | 2.10 | 1.96 | 1.84 | 1.76 | 1.70 | ||||||||||||||
Balance Sheet data (4) | |||||||||||||||||||
Total Assets | $ | 6,546.7 | $ | 6,064.4 | $ | 5,277.6 | $ | 5,059.3 | $ | 3,117.3 | |||||||||
Long-Term Debt (less current portion) | 1,995.0 | 1,820.7 | 1,758.9 | 1,836.3 | 904.6 | ||||||||||||||
Net Economic Earnings data (5) | |||||||||||||||||||
Net Income (GAAP) | $ | 161.6 | $ | 144.2 | $ | 136.9 | $ | 84.6 | $ | 52.8 | |||||||||
Unrealized loss (gain) on energy-related derivatives | 6.0 | (0.1 | ) | (2.8 | ) | (1.6 | ) | 1.0 | |||||||||||
Lower of cost or market inventory adjustments | — | 0.2 | 0.4 | (1.1 | ) | 1.4 | |||||||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (0.3 | ) | (1.6 | ) | 2.4 | (0.4 | ) | — | |||||||||||
Acquisition, divestiture and restructuring activities | 4.0 | 9.2 | 9.8 | 29.5 | 17.3 | ||||||||||||||
Gain on sale of property | — | — | (7.6 | ) | — | — | |||||||||||||
Income tax effect of adjustments | (3.7 | ) | (2.8 | ) | (0.8 | ) | (10.9 | ) | (7.6 | ) | |||||||||
Net Economic Earnings (Non-GAAP) | $ | 167.6 | $ | 149.1 | $ | 138.3 | $ | 100.1 | $ | 64.9 | |||||||||
Diluted Earnings per Share of Common Stock: | |||||||||||||||||||
Net Income (GAAP) | $ | 3.43 | $ | 3.24 | $ | 3.16 | $ | 2.35 | $ | 2.02 | |||||||||
Unrealized loss (gain) on energy-related derivatives | 0.13 | — | (0.07 | ) | (0.04 | ) | 0.04 | ||||||||||||
Lower of cost or market inventory adjustments | — | 0.01 | 0.01 | (0.03 | ) | 0.05 | |||||||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (0.01 | ) | (0.04 | ) | 0.06 | (0.01 | ) | — | |||||||||||
Acquisition, divestiture and restructuring activities | 0.09 | 0.21 | 0.23 | 0.82 | 0.67 | ||||||||||||||
Gain on sale of property | — | — | (0.18 | ) | — | — | |||||||||||||
Income tax effect of adjustments | (0.08 | ) | (0.06 | ) | (0.02 | ) | (0.31 | ) | (0.29 | ) | |||||||||
Weighted average shares adjustment | — | 0.06 | — | 0.27 | 0.38 | ||||||||||||||
Net Economic Earnings (Non-GAAP) | $ | 3.56 | $ | 3.42 | $ | 3.19 | $ | 3.05 | $ | 2.87 |
(1) | Effective September 12, 2016, Spire completed the purchase of 100% of the outstanding common stock of Spire EnergySouth for $344 (including assumed debt of $67.0). Spire funded the purchase price with a combination of the issuance of approximately 2.2 million shares of common stock on May 17, 2016, the issuance of $165.0 aggregate principal amount of senior notes on September 9, 2016, and cash on hand. |
(2) | Effective August 31, 2014, Spire completed the purchase of 100% of the outstanding common stock of Spire Alabama for $1,590.3 (including assumed debt of $264.8), funded with a combination of the issuance of 10.35 million shares of common stock and 2.875 million equity units completed on June 11, 2014, the issuance of $625.0 aggregate principal amount of senior notes on August 19, 2014, and cash on hand. |
(3) | Effective September 1, 2013, Spire Missouri completed the purchase of substantially all of the assets and liabilities of Missouri Gas Energy (now Spire Missouri West) for $940.2, supported by a combination of the issuance of approximately 10.0 million shares of common stock completed on May 29, 2013 and the issuance by Spire Missouri of $450.0 of first mortgage bonds on August 13, 2013. |
(4) | Balance Sheet data for fiscal years 2013-2016 has been restated to retrospectively reflect the impact of implementing Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, during fiscal 2017. |
(5) | This section contains the non-GAAP financial measures of net economic earnings (NEE) and net economic earnings per share (NEEPS). NEEPS are calculated by replacing consolidated net income with consolidated NEE in the GAAP diluted earnings per share calculation. Each reconciling item between NEE and net income is shown pre-tax, with total related income taxes calculated by applying effective federal, state, and local income tax rates applicable to ordinary income to those amounts. 2016 NEEPS excludes the impact of the May 2016 equity offering to fund the acquisition of Spire EnergySouth. 2014 NEEPS excludes the impact of the June 2014 equity offerings to fund the acquisition of Spire Alabama. 2013 NEEPS excludes the impact of the May 2013 equity offering to fund the Spire Missouri West acquisition. The weighted-average diluted shares used in the NEEPS calculation for fiscal years 2016, 2014, and 2013 were 43.5, 32.7, and 22.5, respectively, compared to 44.3, 35.9, and 26.0, respectively, used in the GAAP EPS calculations for those years. For more information on net economic earnings data, refer to the Earnings section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | the Utilities’ ability to recover the costs of purchasing and distributing natural gas from their customers; |
• | the impact of weather and other factors, such as customer conservation, on revenues and expenses; |
• | changes in the regulatory environment at the federal, state, and local levels, as well as decisions by regulators, that impact the Utilities’ ability to earn its authorized rate of return in all service territories they serve; |
• | the Utilities’ ability to access credit markets and maintain working capital sufficient to meet operating requirements; |
• | the effect of natural gas price volatility on the business; and |
• | the ability to integrate the operations of all acquisitions. |
• | the risks of competition; |
• | fluctuations in natural gas prices; |
• | new national infrastructure projects; |
• | the ability to procure firm transportation and storage services at reasonable rates; |
• | credit and/or capital market access; |
• | counterparty risks; and |
• | the effect of natural gas price volatility on the business. |
Customer Share | Company Share | |
Spire Missouri East | ||
First $2.0 of pre-tax income* | 85% | 15% |
Next $2.0 of pre-tax income | 80% | 20% |
Next $2.0 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $6.0 | 70% | 30% |
* Customer share was set to 85% and company share set to 15% in fiscal 2017. For fiscal 2016 and 2015, the customer share and company share were 100% and 0%, respectively. | ||
Spire Missouri West | ||
First $1.2 of pre-tax income | 85% | 15% |
Next $1.2 of pre-tax income | 80% | 20% |
Next $1.2 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $3.6 | 70% | 30% |
• | unallocated corporate items, including certain debt and associated interest costs; |
• | Spire STL Pipeline, a subsidiary of Spire planning construction and operation 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. |
• | 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 | Consol-idated | Per Diluted Share** | ||||||||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 180.5 | $ | 3.4 | $ | (22.3 | ) | $ | 161.6 | $ | 3.43 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized loss on energy-related derivatives | 0.1 | 5.9 | — | 6.0 | 0.13 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (0.3 | ) | — | (0.3 | ) | (0.01 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 1.5 | — | 2.5 | 4.0 | 0.09 | |||||||||||||||
Income tax effect of adjustments* | (0.6 | ) | (2.2 | ) | (0.9 | ) | (3.7 | ) | (0.08 | ) | ||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 181.5 | $ | 6.8 | $ | (20.7 | ) | $ | 167.6 | $ | 3.56 | |||||||||
Year Ended September 30, 2016 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 159.0 | $ | 7.1 | $ | (21.9 | ) | $ | 144.2 | $ | 3.24 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized (gain) loss on energy-related derivatives | (0.3 | ) | 0.2 | — | (0.1 | ) | — | |||||||||||||
Lower of cost or market inventory adjustments | — | 0.2 | — | 0.2 | 0.01 | |||||||||||||||
Realized gain on economic hedges prior to the sale of the physical commodity | — | (1.6 | ) | — | (1.6 | ) | (0.04 | ) | ||||||||||||
Acquisition, divestiture and restructuring activities | 2.3 | — | 6.9 | 9.2 | 0.21 | |||||||||||||||
Income tax effect of adjustments* | (0.7 | ) | 0.5 | (2.6 | ) | (2.8 | ) | (0.06 | ) | |||||||||||
Weighted average shares adjustment ** | — | — | — | — | 0.06 | |||||||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 160.3 | $ | 6.4 | $ | (17.6 | ) | $ | 149.1 | $ | 3.42 | |||||||||
Year Ended September 30, 2015 | ||||||||||||||||||||
Net Income (Loss) (GAAP) | $ | 153.3 | $ | 4.1 | $ | (20.5 | ) | $ | 136.9 | $ | 3.16 | |||||||||
Adjustments, pre-tax: | ||||||||||||||||||||
Unrealized gain on energy-related derivatives | (0.1 | ) | (2.7 | ) | — | (2.8 | ) | (0.07 | ) | |||||||||||
Lower of cost or market inventory adjustments | — | 0.4 | — | 0.4 | 0.01 | |||||||||||||||
Realized loss on economic hedges prior to the sale of the physical commodity | — | 2.4 | — | 2.4 | 0.06 | |||||||||||||||
Acquisition, divestiture and restructuring activities | 3.1 | — | 6.7 | 9.8 | 0.23 | |||||||||||||||
Gain on sale of property | (7.6 | ) | — | — | (7.6 | ) | (0.18 | ) | ||||||||||||
Income tax effect of adjustments* | 1.7 | — | (2.5 | ) | (0.8 | ) | (0.02 | ) | ||||||||||||
Net Economic Earnings (Loss) (Non-GAAP) | $ | 150.4 | $ | 4.2 | $ | (16.3 | ) | $ | 138.3 | $ | 3.19 |
* | Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items. |
** | Fiscal 2016 net economic earnings per share excludes the impact of the May 2016 equity issuance to fund a portion of the acquisition of Spire EnergySouth. The weighted average diluted shares used in the net economic earnings per share calculation for the fiscal year ended September 30, 2016 was 43.5 compared to 44.3 in the GAAP diluted earnings per share (EPS) calculation. For fiscal years 2017 and 2015, 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 | ||||||||||||||||
Year Ended September 30, 2017 | ||||||||||||||||||||
Operating Income (Loss) | $ | 321.6 | $ | 5.2 | $ | (5.1 | ) | $ | — | $ | 321.7 | |||||||||
Operation and maintenance expenses | 409.1 | 5.9 | 11.8 | (5.5 | ) | 421.3 | ||||||||||||||
Depreciation and amortization | 153.5 | 0.1 | 0.5 | — | 154.1 | |||||||||||||||
Taxes, other than income taxes | 137.8 | 0.5 | 0.2 | — | 138.5 | |||||||||||||||
Less: Gross receipts tax expense | (83.0 | ) | (0.1 | ) | — | — | (83.1 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 939.0 | 11.6 | 7.4 | (5.5 | ) | 952.5 | ||||||||||||||
Natural and propane gas costs | 645.9 | 67.6 | 0.3 | (8.7 | ) | 705.1 | ||||||||||||||
Gross receipts tax expense | 83.0 | 0.1 | — | — | 83.1 | |||||||||||||||
Operating Revenues | $ | 1,667.9 | $ | 79.3 | $ | 7.7 | $ | (14.2 | ) | $ | 1,740.7 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Year Ended September 30, 2016 | ||||||||||||||||||||
Operating Income (Loss) | $ | 278.3 | $ | 11.8 | $ | (7.8 | ) | $ | — | $ | 282.3 | |||||||||
Operation and maintenance expenses | 379.3 | 5.6 | 12.1 | (2.4 | ) | 394.6 | ||||||||||||||
Depreciation and amortization | 136.9 | 0.1 | 0.5 | 137.5 | ||||||||||||||||
Taxes, other than income taxes | 125.2 | 0.3 | (0.2 | ) | 125.3 | |||||||||||||||
Less: Gross receipts tax expense | (75.3 | ) | (0.1 | ) | — | — | (75.4 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 844.4 | 17.7 | 4.6 | (2.4 | ) | 864.3 | ||||||||||||||
Natural and propane gas costs | 539.7 | 60.7 | 0.2 | (3.0 | ) | 597.6 | ||||||||||||||
Gross receipts tax expense | 75.3 | 0.1 | — | — | 75.4 | |||||||||||||||
Operating Revenues | $ | 1,459.4 | $ | 78.5 | $ | 4.8 | $ | (5.4 | ) | $ | 1,537.3 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | ||||||||||||||||
Year Ended September 30, 2015 | ||||||||||||||||||||
Operating Income (Loss) | $ | 274.6 | $ | 6.8 | $ | (8.9 | ) | $ | — | $ | 272.5 | |||||||||
Operation and maintenance expenses | 391.5 | 5.4 | 11.7 | (1.0 | ) | 407.6 | ||||||||||||||
Depreciation and amortization | 129.9 | 0.3 | 0.6 | — | 130.8 | |||||||||||||||
Taxes, other than income taxes | 142.2 | 0.4 | — | — | 142.6 | |||||||||||||||
Less: Gross receipts tax expense | (96.1 | ) | (0.2 | ) | — | — | (96.3 | ) | ||||||||||||
Contribution Margin (Non-GAAP) | 842.1 | 12.7 | 3.4 | (1.0 | ) | 857.2 | ||||||||||||||
Natural and propane gas costs | 957.6 | 140.5 | 0.3 | (75.5 | ) | 1,022.9 | ||||||||||||||
Gross receipts tax expense | 96.1 | 0.2 | — | — | 96.3 | |||||||||||||||
Operating Revenues | $ | 1,895.8 | $ | 153.4 | $ | 3.7 | $ | (76.5 | ) | $ | 1,976.4 |
New customer revenue from Spire EnergySouth acquisition | $ | 92.1 | |
Higher wholesale gas costs passed on to customers | 87.2 | ||
Spire Alabama – Lower Rate Stabilization and Equalization (RSE) revenue reduction and higher Cost Control Measure (CCM) benefit | 19.2 | ||
Spire Missouri - Higher off-system sales and capacity release | 17.9 | ||
Spire Missouri - Higher ISRS charges | 14.2 | ||
Higher gross receipts tax | 4.9 | ||
Weather / temperature adjustment impact | (27.3 | ) | |
All other | 0.3 | ||
Total Variation | $ | 208.5 |
Contribution margin from Spire EnergySouth acquisition | $ | 66.6 | |
Spire Alabama – Lower RSE revenue reduction and higher CCM benefit | 19.2 | ||
Spire Missouri - Higher ISRS charges | 14.2 | ||
Spire Missouri - Higher off-system sales and capacity release | 1.4 | ||
Weather / temperature adjustment impact | (8.6 | ) | |
All other | 1.8 | ||
Total Variation | $ | 94.6 |
Year ended September 30, | 2017 | 2016 | |||||
Operating Income | $ | 196.9 | $ | 186.9 | |||
Operation and maintenance expenses | 243.8 | 244.4 | |||||
Depreciation and amortization | 93.1 | 88.6 | |||||
Taxes, other than income taxes | 99.8 | 96.3 | |||||
Less: Gross receipts tax expense | (60.0 | ) | (57.4 | ) | |||
Contribution Margin (non-GAAP) | 573.6 | 558.8 | |||||
Natural and propane gas costs | 538.3 | 471.3 | |||||
Gross receipts tax expense | 60.0 | 57.4 | |||||
Operating Revenues | $ | 1,171.9 | $ | 1,087.5 |
Year ended September 30, | 2017 | 2016 | |||||
Operating Income | $ | 105.8 | $ | 91.5 | |||
Operation and maintenance expenses | 130.4 | 133.5 | |||||
Depreciation and amortization | 49.9 | 47.8 | |||||
Taxes, other than income taxes | 29.9 | 28.4 | |||||
Less: Gross receipts tax expense | (19.5 | ) | (17.9 | ) | |||
Contribution Margin (Non-GAAP) | 296.5 | 283.3 | |||||
Natural and propane gas costs | 84.5 | 67.3 | |||||
Gross receipts tax expense | 19.5 | 17.9 | |||||
Operating Revenues | $ | 400.5 | $ | 368.5 |
Lower wholesale gas costs passed on to customers | $ | (262.8 | ) |
Lower system sales volumes | (147.4 | ) | |
Spire Missouri - Lower off-system sales and capacity release | (25.3 | ) | |
Lower gross receipts tax | (21.8 | ) | |
Spire Missouri - Higher ISRS charges | 13.8 | ||
Spire Alabama - Lower RSE revenue adjustments | 4.5 | ||
New customer revenue from Spire EnergySouth acquisition | 3.3 | ||
All other | (0.7 | ) | |
Total Variation | $ | (436.4 | ) |
Lower system sales volume | $ | (18.0 | ) |
Spire Missouri - Higher ISRS charges | 13.8 | ||
Spire Alabama - Lower RSE revenue adjustments | 4.5 | ||
Contribution margin from Spire EnergySouth acquisition | 2.2 | ||
All other | (0.2 | ) | |
Total Variation | $ | 2.3 |
Pension Plan Benefits: Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/ (Decrease) to Projected Benefit Obligation | Estimated Increase/ (Decrease) to Annual Net Pension Cost* | ||||||||||||||
Discount Rate | 0.25 | % | $ | (17.9 | ) | $ | 0.6 | ||||||||||
(0.25 | )% | 18.7 | (0.6 | ) | |||||||||||||
Expected Return on Plan Assets | 0.25 | % | — | (1.1 | ) | ||||||||||||
(0.25 | )% | — | 1.3 | ||||||||||||||
Rate of Future Compensation Increase | 0.25 | % | 4.9 | 0.6 | |||||||||||||
(0.25 | )% | (4.7 | ) | (0.5 | ) |
Postretirement Benefits: Actuarial Assumptions | Increase/ (Decrease) | Estimated Increase/ (Decrease) to Projected Postretirement Benefit Obligation | Estimated Increase/ (Decrease) to Annual Net Postretirement Benefit Cost* | ||||||||||||||
Discount Rate | 0.25 | % | $ | (5.0 | ) | $ | 0.1 | ||||||||||
(0.25 | )% | 5.2 | (0.1 | ) | |||||||||||||
Expected Return on Plan Assets | 0.25 | % | — | (0.6 | ) | ||||||||||||
(0.25 | )% | — | 0.6 | ||||||||||||||
Annual Medical Cost Trend | 1.00 | % | 10.0 | 1.7 | |||||||||||||
(1.00 | )% | (9.2 | ) | (1.4 | ) |
* | Excludes the impact of regulatory deferral mechanism. See Note 13, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements for information regarding the regulatory treatment of these costs. |
Cash Flow Summary | 2017 | 2016 | 2015 | ||||||||
Net cash provided by operating activities | $ | 288.3 | $ | 328.3 | $ | 322.4 | |||||
Net cash used in investing activities | (433.5 | ) | (612.7 | ) | (298.7 | ) | |||||
Net cash provided by (used in) financing activities | 147.4 | 275.8 | (26.0 | ) |
Spire Short‑term Borrowings1 | Spire Missouri Commercial Paper Borrowings2 | Spire Alabama Bank Line Borrowings | Total Short‑term Borrowings | |
Year Ended September 30, 2017 | ||||
Weighted average borrowings outstanding | $369.0 | $88.5 | $28.3 | $485.8 |
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 | $395.5 - $675.6 |
As of September 30, 2017 | ||||
Borrowings outstanding | $477.3 | $— | $— | $477.3 |
Weighted average interest rate | 1.5% | —% | —% | 1.5% |
Year Ended September 30, 2016 | ||||
Weighted average borrowings outstanding | $42.7 | $201.0 | $30.2 | $273.9 |
Weighted average interest rate | 1.6% | 0.7% | 1.4% | 0.9% |
Range of borrowings outstanding | $0.0 - $82.0 | $43.0 - $307.2 | $0.0 - $82.0 | $73.1 - $427.2 |
As of September 30, 2016 | ||||
Borrowings outstanding | $73.0 | $243.7 | $82.0 | $398.7 |
Weighted average interest rate | 1.8% | 0.8% | 1.5% | 1.1% |
1 | Spire Short-term Borrowings includes bank line borrowings of Spire Inc. (excluding its subsidiaries) and, since January 1, 2017, commercial paper. Of Spire’s $477.3 borrowings outstanding as of September 30, 2017, $440.0 was used to provide funding to its subsidiaries, including Spire Missouri ($203.0), Spire Alabama ($169.9), Spire EnergySouth and subsidiaries ($12.9), Spire STL Pipeline LLC ($26.6), and others ($27.6). |
Spire | Spire Missouri | Spire Alabama | |||||||||
2018 | $ | 100.0 | $ | 100.0 | $ | — | |||||
2019 | 180.0 | 50.0 | — | ||||||||
2020 | 40.0 | — | 40.0 | ||||||||
2021 | 55.0 | — | — | ||||||||
2022 | 50.0 | — | 50.0 |
• | 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 its 2.875 million equity units by issuing 2,504,684 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 purchase price was funded with the proceeds of the Junior Notes. Under the contract term, 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 incurred the previous month to redeem the floating rate notes. |
Payments due by period | |||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||
Principal Payments on Long-term Debt | $ | 2,112.0 | $ | 100.0 | $ | 220.0 | $ | 105.0 | $ | 1,687.0 | |||||||||
Interest Payments on Long-term Debt (a) | 1,242.5 | 85.8 | 160.4 | 144.6 | 851.7 | ||||||||||||||
Operating Leases (b) | 83.7 | 10.1 | 17.1 | 12.1 | 44.4 | ||||||||||||||
Purchase Obligations – Natural Gas (c) | 1,281.8 | 703.3 | 373.9 | 66.8 | 137.8 | ||||||||||||||
Purchase Obligations – Other (d) | 74.9 | 63.6 | 9.2 | 1.8 | 0.3 | ||||||||||||||
Asset Retirement Obligations | 296.6 | 10.1 | 23.3 | 16.8 | 246.4 | ||||||||||||||
Total (e) | $ | 5,091.5 | $ | 972.9 | $ | 803.9 | $ | 347.1 | $ | 2,967.6 |
(a) | Includes interest payments over the terms of the debt. Interest is calculated using the applicable interest rate and outstanding principal for each instrument with the terms ending at each instrument’s stated maturity. See Note 6, Long-Term Debt, of the Notes to Financial Statements. |
(b) | Lease obligations are primarily for office space, vehicles, and power operated equipment. Additional payments will be incurred if renewal options are exercised under the provisions of certain agreements. |
(c) | These purchase obligations represent the minimum payments required under existing natural gas transportation and storage contracts and natural gas supply agreements in the Gas Utility and Gas Marketing segments. These amounts reflect fixed obligations as well as obligations to purchase natural gas at future market prices, calculated using September 30, 2017 forward market prices. Each of the Utilities generally recovers costs related to its purchases, transportation, and storage of natural gas through the operation of its PGA clause or GSA rider, subject to prudence review by the appropriate regional public service commission. Variations in the timing of collections of gas costs from customers may affect short-term cash requirements. Additional contractual commitments are generally entered into prior to or during the heating season. |
(d) | These purchase obligations primarily reflect miscellaneous agreements for the purchase of materials and the procurement of services necessary for normal operations. |
(e) | Long-term liabilities associated with unrecognized tax benefits, totaling $11.0, have been excluded from the table above because the timing of future cash outflows, if any, cannot be reasonably estimated. Also, commitments related to pension and postretirement benefit plans have been excluded from the table above. The Company expects to contribute $35.5 to its qualified, trusteed pension plans and $0.5 to its non-qualified pension plans during fiscal 2018. With regard to the postretirement benefits, the Company anticipates it will contribute $7.2 to the qualified trusts and $0.2 directly to participants from Spire Missouri funds during fiscal 2018. For further discussion of the Company’s pension and postretirement benefit plans, refer to Note 13, Pension Plans and Other Postretirement Benefits, of the Notes to Financial Statements. |
Derivative Fair Values | Cash Margin | Derivatives and Cash Margin | |||||||||
Net balance of derivative assets at September 30, 2016 | $ | (1.3 | ) | $ | 4.1 | $ | 2.8 | ||||
Changes in fair value | 4.4 | — | 4.4 | ||||||||
Settlements/purchases - net | (2.7 | ) | — | (2.7 | ) | ||||||
Changes in cash margin | — | (2.2 | ) | (2.2 | ) | ||||||
Net balance of derivative assets at September 30, 2017 | $ | 0.4 | $ | 1.9 | $ | 2.3 |
As of September 30, 2017 | |||||||||||||||||||||||
Maturity by Fiscal Year | Total | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||||||||||||
Fair values of exchange-traded/cleared natural gas derivatives - net | $ | 0.6 | $ | 0.6 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Fair values of basis swaps - net | (0.1 | ) | (0.3 | ) | 0.2 | — | — | — | |||||||||||||||
Position volumes: | |||||||||||||||||||||||
MMBtu - net (short) long futures/swap/option positions | (16.1 | ) | (18.6 | ) | (0.9 | ) | 1.9 | 0.8 | 0.7 | ||||||||||||||
MMBtu - net (short) long basis swap positions | (4.2 | ) | (2.9 | ) | (1.1 | ) | (0.2 | ) | — | — |
Net balance of derivative assets at September 30, 2016 | $ | 6.3 | |
Changes in fair value | (0.7 | ) | |
Settlements | (7.1 | ) | |
Net balance of derivative liabilities at September 30, 2017 | $ | (1.5 | ) |
Item 8. Financial Statements and Supplementary Data | |||
Page | |||
Financial Statements (for years ended September 30, 2017, 2016, and 2015): | |||
Spire Inc. | |||
Spire Missouri Inc. | |||
Spire Alabama Inc. | |||
Notes to Financial Statements | |||
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(In millions, except per share amounts) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Revenues: | |||||||||||
Gas Utility | $ | 1,660.0 | $ | 1,457.2 | $ | 1,891.8 | |||||
Gas Marketing and other | 80.7 | 80.1 | 84.6 | ||||||||
Total Operating Revenues | 1,740.7 | 1,537.3 | 1,976.4 | ||||||||
Operating Expenses: | |||||||||||
Gas Utility | |||||||||||
Natural and propane gas | 570.5 | 492.2 | 882.4 | ||||||||
Other operation and maintenance expenses | 405.0 | 377.5 | 390.6 | ||||||||
Depreciation and amortization | 153.5 | 136.9 | 129.9 | ||||||||
Taxes, other than income taxes | 137.8 | 125.2 | 142.1 | ||||||||
Total Gas Utility Operating Expenses | 1,266.8 | 1,131.8 | 1,545.0 | ||||||||
Gas Marketing and other | 152.2 | 123.2 | 158.9 | ||||||||
Total Operating Expenses | 1,419.0 | 1,255.0 | 1,703.9 | ||||||||
Operating Income | 321.7 | 282.3 | 272.5 | ||||||||
Other Income – Net | 6.6 | 8.6 | 1.2 | ||||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 76.8 | 67.6 | 66.6 | ||||||||
Other interest charges | 12.3 | 9.6 | 8.0 | ||||||||
Total Interest Charges | 89.1 | 77.2 | 74.6 | ||||||||
Income Before Income Taxes | 239.2 | 213.7 | 199.1 | ||||||||
Income Tax Expense | 77.6 | 69.5 | 62.2 | ||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||
Basic | 46.9 | 44.1 | 43.2 | ||||||||
Diluted | 47.0 | 44.3 | 43.3 | ||||||||
Basic Earnings Per Share of Common Stock | $ | 3.44 | $ | 3.26 | $ | 3.16 | |||||
Diluted Earnings Per Share of Common Stock | $ | 3.43 | $ | 3.24 | $ | 3.16 |
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Other Comprehensive Income (Loss), Before Tax: | |||||||||||
Cash flow hedging derivative instruments: | |||||||||||
Net hedging gain (loss) arising during the period | 11.5 | (4.0 | ) | (5.5 | ) | ||||||
Reclassification adjustment for loss included in net income | — | 1.1 | 4.4 | ||||||||
Net unrealized gain (loss) on cash flow hedging derivative instruments | 11.5 | (2.9 | ) | (1.1 | ) | ||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net actuarial gain arising during the period | — | — | 0.1 | ||||||||
Amortization of actuarial loss (gain) included in net periodic pension and postretirement benefit cost | 0.4 | (0.3 | ) | 0.4 | |||||||
Net defined benefit pension and other postretirement benefit plans | 0.4 | (0.3 | ) | 0.5 | |||||||
Loss on available for sale securities | (0.1 | ) | — | — | |||||||
Other Comprehensive Income (Loss), Before Tax | 11.8 | (3.2 | ) | (0.6 | ) | ||||||
Income Tax Expense (Benefit) Related to Items of Other Comprehensive Income (Loss) | 4.4 | (1.0 | ) | (0.3 | ) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 7.4 | (2.2 | ) | (0.3 | ) | ||||||
Comprehensive Income | $ | 169.0 | $ | 142.0 | $ | 136.6 |
SPIRE INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30 | 2017 | 2016 | |||||
ASSETS | |||||||
Utility Plant | $ | 5,278.4 | $ | 4,793.6 | |||
Less: Accumulated depreciation and amortization | 1,613.2 | 1,506.4 | |||||
Net Utility Plant | 3,665.2 | 3,287.2 | |||||
Non-utility property (net of accumulated depreciation and amortization, $8.6 and $8.1 at September 30, 2017 and 2016, respectively) | 52.0 | 13.7 | |||||
Goodwill | 1,171.6 | 1,164.9 | |||||
Other investments | 64.2 | 62.1 | |||||
Other Property and Investments | 1,287.8 | 1,240.7 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 7.4 | 5.2 | |||||
Accounts receivable: | |||||||
Utility | 140.5 | 127.8 | |||||
Other | 149.2 | 113.4 | |||||
Allowance for doubtful accounts | (18.3 | ) | (20.5 | ) | |||
Delayed customer billings | 3.4 | 1.6 | |||||
Inventories: | |||||||
Natural gas | 194.9 | 174.0 | |||||
Propane gas | 12.0 | 12.0 | |||||
Materials and supplies | 18.9 | 16.3 | |||||
Natural gas receivable | 1.9 | 9.7 | |||||
Derivative instrument assets | 5.9 | 11.4 | |||||
Unamortized purchased gas adjustments | 102.6 | 49.7 | |||||
Other regulatory assets | 72.9 | 44.2 | |||||
Prepayments and other | 34.2 | 24.8 | |||||
Total Current Assets | 725.5 | 569.6 | |||||
Deferred Charges: | |||||||
Regulatory assets | 791.1 | 838.0 | |||||
Other | 77.1 | 128.9 | |||||
Total Deferred Charges | 868.2 | 966.9 | |||||
Total Assets | $ | 6,546.7 | $ | 6,064.4 |
SPIRE INC. | |||||||
CONSOLIDATED BALANCE SHEETS (Continued) | |||||||
September 30 | 2017 | 2016 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 1,991.3 | $ | 1,768.2 | |||
Long-term debt | 1,995.0 | 1,820.7 | |||||
Total Capitalization | 3,986.3 | 3,588.9 | |||||
Current Liabilities: | |||||||
Current portion of long-term debt | 100.0 | 250.0 | |||||
Notes payable | 477.3 | 398.7 | |||||
Accounts payable | 257.1 | 210.9 | |||||
Advance customer billings | 32.0 | 70.2 | |||||
Wages and compensation accrued | 38.7 | 39.8 | |||||
Dividends payable | 26.6 | 23.5 | |||||
Customer deposits | 34.9 | 34.9 | |||||
Interest accrued | 14.6 | 14.8 | |||||
Unamortized purchased gas adjustments | 1.0 | 1.7 | |||||
Taxes accrued | 61.0 | 55.2 | |||||
Other regulatory liabilities | 21.6 | 28.9 | |||||
Other | 33.1 | 32.7 | |||||
Total Current Liabilities | 1,097.9 | 1,161.3 | |||||
Deferred Credits and Other Liabilities: | |||||||
Deferred income taxes | 707.5 | 607.3 | |||||
Pension and postretirement benefit costs | 237.4 | 303.7 | |||||
Asset retirement obligations | 296.6 | 206.4 | |||||
Regulatory liabilities | 157.2 | 130.7 | |||||
Other | 63.8 | 66.1 | |||||
Total Deferred Credits and Other Liabilities | 1,462.5 | 1,314.2 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 6,546.7 | $ | 6,064.4 |
SPIRE INC. | |||||||
CONSOLIDATED STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2017 | 2016 | |||||
Common Stock Equity: | |||||||
Common stock, par value $1 per share: | |||||||
Authorized – 70,000,000 shares | |||||||
Outstanding – 48,263,243 shares and 45,650,642 shares, respectively | $ | 48.3 | $ | 45.6 | |||
Paid-in capital | 1,325.6 | 1,175.9 | |||||
Retained earnings | 614.2 | 550.9 | |||||
Accumulated other comprehensive income (loss) | 3.2 | (4.2 | ) | ||||
Total Common Stock Equity | 1,991.3 | 1,768.2 | |||||
Long-Term Debt - Spire: | |||||||
2.55% Senior Notes, due August 15, 2019 | 125.0 | 125.0 | |||||
2.52% Senior Notes, due September 1, 2021 | 35.0 | 35.0 | |||||
2.0% Series A Remarketable Subordinated Notes, due April 1, 2022 | — | 143.8 | |||||
3.31% Notes Payable, due December 15, 2022 | 25.0 | 25.0 | |||||
3.54% Senior Notes, due February 27, 2024 | 150.0 | — | |||||
3.13% Senior Notes, due September 1, 2026 | 130.0 | 130.0 | |||||
3.93% Senior Notes, due March 15, 2027 | 100.0 | — | |||||
4.70% Senior Notes, due August 15, 2044 | 250.0 | 250.0 | |||||
Long-Term Debt - Spire Missouri: | |||||||
First Mortgage Bonds: | |||||||
2.0% Series, due August 15, 2018 | — | 100.0 | |||||
5.5% Series, due May 1, 2019 | 50.0 | 50.0 | |||||
3.0% Series, due March 15, 2023 | 55.0 | 55.0 | |||||
3.4% Series, due August 15, 2023 | 250.0 | 250.0 | |||||
3.4% Series, due March 15, 2028 | 45.0 | 45.0 | |||||
7.0% Series, due June 1, 2029 | 25.0 | 25.0 | |||||
7.9% Series, due September 15, 2030 | 30.0 | 30.0 | |||||
3.68% Series, due September 15, 2032 | 50.0 | — | |||||
6.0% Series, due May 1, 2034 | 100.0 | 100.0 | |||||
6.15% Series, due June 1, 2036 | 55.0 | 55.0 | |||||
4.625% Series, due August 15, 2043 | 100.0 | 100.0 | |||||
4.23% Series, due September 15, 2047 | 70.0 | — | |||||
4.38% Series, due September 15, 2057 | 50.0 | — | |||||
Long-Term Debt - Spire Alabama: | |||||||
5.2% Notes, due January 15, 2020 | 40.0 | 40.0 | |||||
3.86% Notes, due December 23, 2021 | 50.0 | 50.0 | |||||
3.21% Notes, due September 15, 2025 | 35.0 | 35.0 | |||||
5.9% Notes, due January 15, 2037 | 45.0 | 45.0 | |||||
4.31% Notes, due December 1, 2045 | 80.0 | 80.0 | |||||
Long-Term Debt - Other: | |||||||
3.10% Note, due December 30, 2018 | 5.0 | 5.0 | |||||
4.14% First Mortgage Bonds, due September 30, 2021 | 20.0 | 20.0 | |||||
5.00% First Mortgage Bonds, due September 30, 2031 | 42.0 | 42.0 | |||||
Total Principal of Long-Term Debt | 2,012.0 | 1,835.8 | |||||
Unamortized debt issuance costs | (15.2 | ) | (13.0 | ) | |||
Unamortized discounts on long-term debt | (1.8 | ) | (2.1 | ) | |||
Total Long-Term Debt | 1,995.0 | 1,820.7 | |||||
Total Capitalization | $ | 3,986.3 | $ | 3,588.9 |
SPIRE INC. | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions, except per share amounts) | Shares | Amount | Total | |||||||||||||||||||
Balance at September 30, 2014 | 43,178,405 | $ | 43.2 | $ | 1,029.4 | $ | 437.5 | $ | (1.7 | ) | $ | 1,508.4 | ||||||||||
Net income | — | — | — | 136.9 | — | 136.9 | ||||||||||||||||
Dividend reinvestment plan | 31,166 | — | 1.6 | — | — | 1.6 | ||||||||||||||||
Stock-based compensation costs | — | — | 6.7 | — | — | 6.7 | ||||||||||||||||
Stock issued under stock-based compensation plans | 156,925 | 0.1 | 1.3 | — | — | 1.4 | ||||||||||||||||
Employees’ tax withholding for stock-based compensation | (31,484 | ) | — | (1.6 | ) | — | — | (1.6 | ) | |||||||||||||
Tax benefit – stock compensation | — | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($1.84 per share) | — | — | — | (80.2 | ) | — | (80.2 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (0.3 | ) | (0.3 | ) | ||||||||||||||
Balance at September 30, 2015 | 43,335,012 | $ | 43.3 | $ | 1,038.1 | $ | 494.2 | $ | (2.0 | ) | $ | 1,573.6 | ||||||||||
Net income | — | — | — | 144.2 | — | 144.2 | ||||||||||||||||
Common stock offering | 2,185,000 | 2.2 | 131.0 | — | — | 133.2 | ||||||||||||||||
Dividend reinvestment plan | 22,878 | — | 1.4 | — | — | 1.4 | ||||||||||||||||
Stock-based compensation costs | — | — | 6.7 | — | — | 6.7 | ||||||||||||||||
Stock issued under stock-based compensation plans | 136,979 | 0.1 | 0.4 | — | — | 0.5 | ||||||||||||||||
Employees’ tax withholding for stock-based compensation | (29,227 | ) | — | (1.7 | ) | — | — | (1.7 | ) | |||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($1.96 per share) | — | — | — | (87.5 | ) | — | (87.5 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (2.2 | ) | (2.2 | ) | ||||||||||||||
Balance at September 30, 2016 | 45,650,642 | $ | 45.6 | $ | 1,175.9 | $ | 550.9 | $ | (4.2 | ) | $ | 1,768.2 | ||||||||||
Net income | — | — | — | 161.6 | — | 161.6 | ||||||||||||||||
Common stock offering | 2,504,684 | 2.5 | 143.0 | — | — | 145.5 | ||||||||||||||||
Dividend reinvestment plan | 23,731 | — | 1.6 | — | — | 1.6 | ||||||||||||||||
Stock-based compensation costs | — | — | 7.4 | 0.9 | — | 8.3 | ||||||||||||||||
Stock issued under stock-based compensation plans | 119,700 | 0.2 | (0.1 | ) | — | — | 0.1 | |||||||||||||||
Employees’ tax withholding for stock-based compensation | (35,514 | ) | — | (2.2 | ) | — | — | (2.2 | ) | |||||||||||||
Dividends declared: | ||||||||||||||||||||||
Common stock ($2.10 per share) | — | — | — | (99.2 | ) | — | (99.2 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 7.4 | 7.4 | ||||||||||||||||
Balance at September 30, 2017 | 48,263,243 | $ | 48.3 | $ | 1,325.6 | $ | 614.2 | $ | 3.2 | $ | 1,991.3 |
SPIRE INC. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 154.1 | 137.5 | 130.8 | ||||||||
Deferred income taxes and investment tax credits | 77.0 | 68.8 | 65.5 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | (63.0 | ) | (12.3 | ) | (4.8 | ) | |||||
Unamortized purchased gas adjustments | (50.9 | ) | (52.8 | ) | 27.1 | ||||||
Accounts payable | 51.1 | 30.0 | (30.0 | ) | |||||||
Delayed/advance customer billings – net | (40.0 | ) | 26.9 | 20.3 | |||||||
Taxes accrued | 5.8 | (0.4 | ) | (17.0 | ) | ||||||
Inventories | (23.5 | ) | 16.5 | 54.8 | |||||||
Other assets and liabilities | 11.9 | (35.0 | ) | (67.6 | ) | ||||||
Other | 4.2 | 4.9 | 6.4 | ||||||||
Net cash provided by operating activities | 288.3 | 328.3 | 322.4 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (438.1 | ) | (293.3 | ) | (289.8 | ) | |||||
Acquisition of Spire EnergySouth (net of $2.0 cash acquired) and final settlement | 3.8 | (317.7 | ) | — | |||||||
Final settlement related to acquisition of Spire Alabama | — | — | (8.2 | ) | |||||||
Other | 0.8 | (1.7 | ) | (0.7 | ) | ||||||
Net cash used in investing activities | (433.5 | ) | (612.7 | ) | (298.7 | ) | |||||
Financing Activities: | |||||||||||
Issuance of long-term debt | 420.0 | 245.0 | 35.0 | ||||||||
Repayment of long-term debt | (393.8 | ) | (80.0 | ) | (34.8 | ) | |||||
Issuance of short-term debt - net | 78.6 | 60.7 | 50.8 | ||||||||
Issuance of common stock | 146.9 | 137.1 | 3.1 | ||||||||
Dividends paid | (96.2 | ) | (85.2 | ) | (79.0 | ) | |||||
Other | (8.1 | ) | (1.8 | ) | (1.1 | ) | |||||
Net cash provided by (used in) financing activities | 147.4 | 275.8 | (26.0 | ) | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 2.2 | (8.6 | ) | (2.3 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 5.2 | 13.8 | 16.1 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 7.4 | $ | 5.2 | $ | 13.8 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (85.5 | ) | $ | (72.5 | ) | $ | (65.3 | ) | ||
Income taxes | (1.3 | ) | 2.9 | 1.3 |
SPIRE MISSOURI INC. | |||||||||||
STATEMENTS OF INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Revenues: | |||||||||||
Utility | $ | 1,171.9 | $ | 1,087.5 | $ | 1,416.6 | |||||
Total Operating Revenues | 1,171.9 | 1,087.5 | 1,416.6 | ||||||||
Operating Expenses: | |||||||||||
Utility | |||||||||||
Natural and propane gas | 538.3 | 471.3 | 786.1 | ||||||||
Other operation and maintenance expenses | 243.8 | 244.4 | 253.6 | ||||||||
Depreciation and amortization | 93.1 | 88.6 | 82.6 | ||||||||
Taxes, other than income taxes | 99.8 | 96.3 | 108.9 | ||||||||
Total Operating Expenses | 975.0 | 900.6 | 1,231.2 | ||||||||
Operating Income | 196.9 | 186.9 | 185.4 | ||||||||
Other Income and (Income Deductions) - Net | 2.7 | 1.8 | (0.5 | ) | |||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 32.9 | 32.9 | 33.1 | ||||||||
Other interest charges | 6.2 | 4.5 | 3.3 | ||||||||
Total Interest Charges | 39.1 | 37.4 | 36.4 | ||||||||
Income Before Income Taxes | 160.5 | 151.3 | 148.5 | ||||||||
Income Tax Expense | 47.5 | 45.4 | 43.2 | ||||||||
Net Income | $ | 113.0 | $ | 105.9 | $ | 105.3 |
SPIRE MISSOURI INC. | |||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Net Income | $ | 113.0 | $ | 105.9 | $ | 105.3 | |||||
Other Comprehensive Income, Before Tax: | |||||||||||
Cash flow hedging derivative instruments: | |||||||||||
Net hedging gain (loss) arising during the period | 0.1 | — | (1.2 | ) | |||||||
Reclassification adjustment for (gain) loss included in net income | (0.2 | ) | 0.5 | 0.9 | |||||||
Net unrealized (loss) gain on cash flow hedging derivative instruments | (0.1 | ) | 0.5 | (0.3 | ) | ||||||
Defined benefit pension and other postretirement benefit plans: | |||||||||||
Net actuarial gain arising during the period | — | — | 0.1 | ||||||||
Amortization of actuarial loss (gain) included in net periodic pension and postretirement benefit cost | 0.3 | (0.3 | ) | 0.4 | |||||||
Net defined benefit pension and other postretirement benefit plans | 0.3 | (0.3 | ) | 0.5 | |||||||
Loss on available for sale securities | (0.1 | ) | (0.1 | ) | — | ||||||
Other Comprehensive Income, Before Tax | 0.1 | 0.1 | 0.2 | ||||||||
Income Tax Expense Related to Items of Other Comprehensive Income | — | 0.2 | — | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0.1 | (0.1 | ) | 0.2 | |||||||
Comprehensive Income | $ | 113.1 | $ | 105.8 | $ | 105.5 |
SPIRE MISSOURI INC. | |||||||
BALANCE SHEETS | |||||||
(In Millions) | |||||||
September 30 | 2017 | 2016 | |||||
ASSETS | |||||||
Utility Plant | $ | 3,091.8 | $ | 2,718.5 | |||
Less: Accumulated depreciation and amortization | 681.6 | 604.5 | |||||
Net Utility Plant | 2,410.2 | 2,114.0 | |||||
Goodwill | 210.2 | 210.2 | |||||
Other Property and Investments | 59.4 | 57.3 | |||||
Other Property and Investments | 269.6 | 267.5 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 2.5 | 2.1 | |||||
Accounts receivable: | |||||||
Utility | 101.7 | 87.9 | |||||
Associated companies | 3.3 | 2.2 | |||||
Other | 15.0 | 11.4 | |||||
Allowance for doubtful accounts | (14.1 | ) | (16.1 | ) | |||
Delayed customer billings | 3.4 | 1.6 | |||||
Inventories: | |||||||
Natural gas | 138.2 | 127.3 | |||||
Propane gas | 12.0 | 12.0 | |||||
Materials and supplies | 11.3 | 9.2 | |||||
Derivative instrument assets | 0.1 | 4.9 | |||||
Unamortized purchased gas adjustments | 57.4 | 43.1 | |||||
Other regulatory assets | 38.2 | 23.9 | |||||
Prepayments and other | 19.6 | 14.5 | |||||
Total Current Assets | 388.6 | 324.0 | |||||
Deferred Charges: | |||||||
Regulatory assets | 557.8 | 589.8 | |||||
Other | 5.3 | 1.1 | |||||
Total Deferred Charges | 563.1 | 590.9 | |||||
Total Assets | $ | 3,631.5 | $ | 3,296.4 |
SPIRE MISSOURI INC. | |||||||
BALANCE SHEETS (continued) | |||||||
September 30 | 2017 | 2016 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 1,171.0 | $ | 1,068.5 | |||
Long-term debt | 873.9 | 804.1 | |||||
Total Capitalization | 2,044.9 | 1,872.6 | |||||
Current Liabilities: | |||||||
Current portion of long-term debt | 100.0 | — | |||||
Notes payable | — | 243.7 | |||||
Notes payable – associated companies | 203.0 | — | |||||
Accounts payable | 89.9 | 67.6 | |||||
Accounts payable to associated companies | 5.4 | 5.4 | |||||
Advance customer billings | 13.3 | 49.1 | |||||
Wages and compensation accrued | 29.6 | 29.9 | |||||
Dividends payable | — | 14.0 | |||||
Customer deposits | 13.3 | 13.5 | |||||
Interest accrued | 8.0 | 7.7 | |||||
Taxes accrued | 34.1 | 29.1 | |||||
Regulatory liabilities | 2.7 | 1.3 | |||||
Other | 8.5 | 9.9 | |||||
Total Current Liabilities | 507.8 | 471.2 | |||||
Deferred Credits and Other Liabilities: | |||||||
Deferred income taxes | 623.8 | 556.9 | |||||
Pension and postretirement benefit costs | 173.0 | 211.8 | |||||
Asset retirement obligations | 158.6 | 75.2 | |||||
Regulatory liabilities | 81.2 | 67.3 | |||||
Other | 42.2 | 41.4 | |||||
Total Deferred Credits and Other Liabilities | 1,078.8 | 952.6 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 3,631.5 | $ | 3,296.4 |
SPIRE MISSOURI INC. | |||||||
STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2017 | 2016 | |||||
Common Stock Equity: | |||||||
Common stock, par value $1 per share: | |||||||
Authorized – 50,000,000 shares | |||||||
Outstanding – 24,577 shares | $ | 0.1 | $ | 0.1 | |||
Paid-in capital | 756.1 | 751.9 | |||||
Retained earnings | 416.5 | 318.3 | |||||
Accumulated other comprehensive loss | (1.7 | ) | (1.8 | ) | |||
Total Common Stock Equity | 1,171.0 | 1,068.5 | |||||
Long-Term Debt: | |||||||
First Mortgage Bonds: | |||||||
2.0% Series, due August 15, 2018 | — | 100.0 | |||||
5.5% Series, due May 1, 2019 | 50.0 | 50.0 | |||||
3.0% Series, due March 15, 2023 | 55.0 | 55.0 | |||||
3.4% Series, due August 15, 2023 | 250.0 | 250.0 | |||||
3.4% Series, due March 15, 2028 | 45.0 | 45.0 | |||||
7.0% Series, due June 1, 2029 | 25.0 | 25.0 | |||||
7.9% Series, due September 15, 2030 | 30.0 | 30.0 | |||||
3.68% Series, due September 15, 2032 | 50.0 | — | |||||
6.0% Series, due May 1, 2034 | 100.0 | 100.0 | |||||
6.15% Series, due June 1, 2036 | 55.0 | 55.0 | |||||
4.625% Series, due August 15, 2043 | 100.0 | 100.0 | |||||
4.23% Series, due September 15, 2047 | 70.0 | — | |||||
4.38% Series, due September 15, 2057 | 50.0 | — | |||||
Total Principal of Long-Term Debt | 880.0 | 810.0 | |||||
Unamortized debt issuance costs | (4.6 | ) | (4.2 | ) | |||
Unamortized discounts on long-term debt | (1.5 | ) | (1.7 | ) | |||
Total Long-Term Debt | 873.9 | 804.1 | |||||
Total Capitalization | $ | 2,044.9 | $ | 1,872.6 |
SPIRE MISSOURI INC. | ||||||||||||||||||||||
STATEMENTS OF COMMON SHAREHOLDER’S EQUITY | ||||||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | AOCI* | |||||||||||||||||||
(Dollars in millions) | Shares | Amount | Total | |||||||||||||||||||
Balance at September 30, 2014 | 24,577 | $ | 0.1 | $ | 744.0 | $ | 265.6 | $ | (1.9 | ) | $ | 1,007.8 | ||||||||||
Net income | — | — | — | 105.3 | — | 105.3 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.7 | — | — | 3.7 | ||||||||||||||||
Tax benefit – stock compensation | — | — | 0.5 | — | — | 0.5 | ||||||||||||||||
Dividends declared | — | — | — | (79.7 | ) | — | (79.7 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||
Balance at September 30, 2015 | 24,577 | $ | 0.1 | $ | 748.2 | $ | 291.2 | $ | (1.7 | ) | $ | 1,037.8 | ||||||||||
Net income | — | — | — | 105.9 | — | 105.9 | ||||||||||||||||
Stock-based compensation costs | — | — | 3.7 | — | — | 3.7 | ||||||||||||||||
Dividends declared | — | — | — | (78.8 | ) | — | (78.8 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||
Balance at September 30, 2016 | 24,577 | $ | 0.1 | $ | 751.9 | $ | 318.3 | $ | (1.8 | ) | $ | 1,068.5 | ||||||||||
Net income | — | — | — | 113.0 | — | 113.0 | ||||||||||||||||
Stock-based compensation costs | — | — | 4.2 | — | — | 4.2 | ||||||||||||||||
Dividends declared | — | — | — | (14.8 | ) | — | (14.8 | ) | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||
Balance at September 30, 2017 | 24,577 | $ | 0.1 | $ | 756.1 | $ | 416.5 | $ | (1.7 | ) | $ | 1,171.0 |
SPIRE MISSOURI INC. | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 113.0 | $ | 105.9 | $ | 105.3 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 93.1 | 88.6 | 82.6 | ||||||||
Deferred income taxes and investment tax credits | 47.5 | 45.3 | 45.4 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | (20.5 | ) | 35.7 | 9.9 | |||||||
Unamortized purchased gas adjustments | (11.6 | ) | (18.7 | ) | 21.3 | ||||||
Accounts payable | 16.8 | 0.9 | (11.4 | ) | |||||||
Delayed/advance customer billings – net | (37.6 | ) | 24.9 | 17.9 | |||||||
Taxes accrued | 5.0 | 4.9 | (14.6 | ) | |||||||
Inventories | (13.0 | ) | 11.0 | 51.2 | |||||||
Other assets and liabilities | (11.6 | ) | (29.6 | ) | (32.8 | ) | |||||
Other | 1.6 | 2.3 | 2.8 | ||||||||
Net cash provided by operating activities | 182.7 | 271.2 | 277.6 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (282.2 | ) | (197.8 | ) | (198.6 | ) | |||||
Other | 1.1 | 1.1 | 2.9 | ||||||||
Net cash used in investing activities | (281.1 | ) | (196.7 | ) | (195.7 | ) | |||||
Financing Activities: | |||||||||||
Issuance of first mortgage bonds | 170.0 | — | — | ||||||||
(Repayment) issuance of short-term debt - net | (243.7 | ) | 10.7 | (5.7 | ) | ||||||
Borrowings from Spire | 203.0 | — | 18.4 | ||||||||
Repayment of borrowings from Spire | — | — | (18.4 | ) | |||||||
Dividends paid | (28.7 | ) | (84.8 | ) | (78.7 | ) | |||||
Other | (1.8 | ) | — | 0.5 | |||||||
Net cash provided by (used in) financing activities | 98.8 | (74.1 | ) | (83.9 | ) | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0.4 | 0.4 | (2.0 | ) | |||||||
Cash and Cash Equivalents at Beginning of Year | 2.1 | 1.7 | 3.7 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 2.5 | $ | 2.1 | $ | 1.7 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (38.6 | ) | $ | (35.7 | ) | $ | (31.0 | ) | ||
Income taxes | — | 2.1 | 0.7 |
SPIRE ALABAMA INC. | |||||||||||
STATEMENTS OF INCOME | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Revenues: | |||||||||||
Utility | $ | 400.5 | $ | 368.5 | $ | 479.2 | |||||
Total Operating Revenues | 400.5 | 368.5 | 479.2 | ||||||||
Operating Expenses: | |||||||||||
Utility | |||||||||||
Natural and propane gas | 84.5 | 67.3 | 171.5 | ||||||||
Other operation and maintenance expenses | 130.4 | 133.5 | 138.0 | ||||||||
Depreciation and amortization | 49.9 | 47.8 | 47.3 | ||||||||
Taxes, other than income taxes | 29.9 | 28.4 | 33.2 | ||||||||
Total Operating Expenses | 294.7 | 277.0 | 390.0 | ||||||||
Operating Income | 105.8 | 91.5 | 89.2 | ||||||||
Other Income - Net | 2.5 | 7.9 | 2.0 | ||||||||
Interest Charges: | |||||||||||
Interest on long-term debt | 11.2 | 11.4 | 11.6 | ||||||||
Other interest charges | 3.2 | 2.4 | 2.3 | ||||||||
Total Interest Charges | 14.4 | 13.8 | 13.9 | ||||||||
Income Before Income Taxes | 93.9 | 85.6 | 77.3 | ||||||||
Income Tax Expense | 35.8 | 32.4 | 29.3 | ||||||||
Net Income | $ | 58.1 | $ | 53.2 | $ | 48.0 |
SPIRE ALABAMA INC. | |||||||
BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30 | 2017 | 2016 | |||||
ASSETS | |||||||
Utility Plant | $ | 1,838.0 | $ | 1,729.6 | |||
Less: Accumulated depreciation and amortization | 782.0 | 756.6 | |||||
Net Utility Plant | 1,056.0 | 973.0 | |||||
Current Assets: | |||||||
Cash and cash equivalents | 0.1 | — | |||||
Accounts receivable: | |||||||
Utility | 32.0 | 34.0 | |||||
Other | 6.2 | 7.2 | |||||
Allowance for doubtful accounts | (2.6 | ) | (3.3 | ) | |||
Inventories: | |||||||
Natural gas | 33.9 | 34.6 | |||||
Materials and supplies | 6.5 | 5.9 | |||||
Unamortized purchased gas adjustments | 45.2 | 5.6 | |||||
Other regulatory assets | 19.4 | 14.9 | |||||
Prepayments and other | 6.7 | 5.1 | |||||
Total Current Assets | 147.4 | 104.0 | |||||
Deferred Charges: | |||||||
Regulatory assets | 197.0 | 230.7 | |||||
Deferred income tax | 185.6 | 221.4 | |||||
Other | 57.0 | 60.8 | |||||
Total Deferred Charges | 439.6 | 512.9 | |||||
Total Assets | $ | 1,643.0 | $ | 1,589.9 |
SPIRE ALABAMA INC. | |||||||
BALANCE SHEETS (continued) | |||||||
September 30 | 2017 | 2016 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Common stock equity | $ | 867.4 | $ | 867.3 | |||
Long-term debt | 247.8 | 247.6 | |||||
Total Capitalization | 1,115.2 | 1,114.9 | |||||
Current Liabilities: | |||||||
Notes payable | — | 82.0 | |||||
Notes payable – associated companies | 169.9 | — | |||||
Accounts payable | 44.4 | 34.3 | |||||
Accounts payable to associated companies | 1.6 | 0.4 | |||||
Advance customer billings | 18.6 | 21.1 | |||||
Wages and compensation accrued | 7.4 | 7.8 | |||||
Customer deposits | 17.9 | 18.2 | |||||
Interest accrued | 3.3 | 3.3 | |||||
Taxes accrued | 23.4 | 21.6 | |||||
Other regulatory liabilities | 12.0 | 22.7 | |||||
Other | 2.9 | 6.3 | |||||
Total Current Liabilities | 301.4 | 217.7 | |||||
Deferred Credits and Other Liabilities: | |||||||
Pension and postretirement benefit costs | 50.2 | 74.3 | |||||
Asset retirement obligations | 128.4 | 120.1 | |||||
Regulatory liabilities | 39.6 | 41.7 | |||||
Other | 8.2 | 21.2 | |||||
Total Deferred Credits and Other Liabilities | 226.4 | 257.3 | |||||
Commitments and Contingencies (Note 16) | |||||||
Total Capitalization and Liabilities | $ | 1,643.0 | $ | 1,589.9 |
SPIRE ALABAMA INC. | |||||||
STATEMENTS OF CAPITALIZATION | |||||||
(Dollars in millions, except per share amounts) | |||||||
September 30 | 2017 | 2016 | |||||
Common Stock Equity: | |||||||
Common stock, par value $0.01 per share, and paid-in capital: | |||||||
Authorized – 3,000,000 shares | |||||||
Outstanding – 1,972,052 shares | $ | 420.9 | $ | 451.9 | |||
Retained earnings | 446.5 | 415.4 | |||||
Total Common Stock Equity | 867.4 | 867.3 | |||||
Long-Term Debt: | |||||||
5.2% Notes, due January 15, 2020 | 40.0 | 40.0 | |||||
3.86% Notes, due December 23, 2021 | 50.0 | 50.0 | |||||
3.21% Notes, due September 15, 2025 | 35.0 | 35.0 | |||||
5.9% Notes, due January 15, 2037 | 45.0 | 45.0 | |||||
4.31% Notes, due December 1, 2045 | 80.0 | 80.0 | |||||
Total Principal of Long-Term Debt | 250.0 | 250.0 | |||||
Unamortized debt issuance costs | (2.2 | ) | (2.4 | ) | |||
Total Long-Term Debt | 247.8 | 247.6 | |||||
Total Capitalization | $ | 1,115.2 | $ | 1,114.9 |
SPIRE ALABAMA INC. | ||||||||||||||||||
STATEMENTS OF COMMON SHAREHOLDER’S EQUITY | ||||||||||||||||||
Common Stock Outstanding | Paid-in Capital | Retained Earnings | ||||||||||||||||
(Dollars in millions) | Shares | Amount | Total | |||||||||||||||
Balance at September 30, 2014 | 1,972,052 | $ | — | $ | 503.9 | $ | 345.7 | $ | 849.6 | |||||||||
Net income | — | — | — | 48.0 | 48.0 | |||||||||||||
Return of capital to Spire | — | — | (27.0 | ) | — | (27.0 | ) | |||||||||||
Purchase accounting adjustments | — | — | 4.0 | — | 4.0 | |||||||||||||
Balance at September 30, 2015 | 1,972,052 | — | 480.9 | 393.7 | 874.6 | |||||||||||||
Net income | — | — | — | 53.2 | 53.2 | |||||||||||||
Dividends declared | — | — | — | (31.5 | ) | (31.5 | ) | |||||||||||
Return of capital to Spire | — | — | (29.0 | ) | — | (29.0 | ) | |||||||||||
Balance at September 30, 2016 | 1,972,052 | — | 451.9 | 415.4 | 867.3 | |||||||||||||
Net income | — | — | — | 58.1 | 58.1 | |||||||||||||
Dividends declared | — | — | — | (27.0 | ) | (27.0 | ) | |||||||||||
Return of capital to Spire | — | — | (31.0 | ) | — | (31.0 | ) | |||||||||||
Balance at September 30, 2017 | 1,972,052 | $ | — | $ | 420.9 | $ | 446.5 | $ | 867.4 |
SPIRE ALABAMA INC. | |||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
(In millions) | |||||||||||
Years Ended September 30 | 2017 | 2016 | 2015 | ||||||||
Operating Activities: | |||||||||||
Net Income | $ | 58.1 | $ | 53.2 | $ | 48.0 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 49.9 | 47.8 | 47.3 | ||||||||
Deferred income taxes | 35.8 | 33.2 | 29.2 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable – net | (10.0 | ) | (11.1 | ) | (9.1 | ) | |||||
Unamortized purchased gas adjustments | (39.6 | ) | (33.8 | ) | 5.8 | ||||||
Accounts payable | 8.8 | 9.1 | (10.4 | ) | |||||||
Advance customer billings | (2.5 | ) | 2.0 | 2.4 | |||||||
Taxes accrued | 1.8 | (5.2 | ) | (4.0 | ) | ||||||
Inventories | 0.1 | 5.3 | 7.2 | ||||||||
Other assets and liabilities | (16.6 | ) | (3.2 | ) | (18.0 | ) | |||||
Other | (1.3 | ) | 0.9 | 2.0 | |||||||
Net cash provided by operating activities | 84.5 | 98.2 | 100.4 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (113.9 | ) | (93.4 | ) | (85.8 | ) | |||||
Other | (0.4 | ) | (2.5 | ) | (1.0 | ) | |||||
Net cash used in investing activities | (114.3 | ) | (95.9 | ) | (86.8 | ) | |||||
Financing Activities: | |||||||||||
Issuance of long-term debt | — | 80.0 | 35.0 | ||||||||
Repayment of long-term debt | — | (80.0 | ) | (34.8 | ) | ||||||
(Repayment) issuance of short-term debt - net | (82.0 | ) | 51.0 | 15.0 | |||||||
Borrowings from Spire | 169.9 | — | — | ||||||||
Return of capital to Spire | (31.0 | ) | (29.0 | ) | (27.0 | ) | |||||
Dividends paid | (27.0 | ) | (31.5 | ) | — | ||||||
Other | — | — | (0.2 | ) | |||||||
Net cash provided by (used in) financing activities | 29.9 | (9.5 | ) | (12.0 | ) | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0.1 | (7.2 | ) | 1.6 | |||||||
Cash and Cash Equivalents at Beginning of Period | — | 7.2 | 5.6 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 0.1 | $ | — | $ | 7.2 | |||||
Supplemental disclosure of cash (paid) refunded for: | |||||||||||
Interest | $ | (12.8 | ) | $ | (12.4 | ) | $ | (12.3 | ) | ||
Income taxes | — | 0.8 | — |
September 30 | 2017 | 2016 | 2015 | ||||||||
Spire | $ | 41.0 | $ | 30.4 | $ | 13.4 | |||||
Spire Missouri | 28.9 | 14.8 | 9.6 | ||||||||
Spire Alabama | 9.4 | 6.8 | 3.1 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Asset retirement obligations, beginning of year | $ | 206.4 | $ | 159.2 | $ | 75.2 | $ | 72.4 | $ | 120.1 | $ | 86.6 | |||||||||||
Liabilities incurred during the period | 5.5 | 4.1 | 0.3 | 1.2 | 5.2 | 2.9 | |||||||||||||||||
Liabilities settled during the period | (4.6 | ) | (9.5 | ) | (1.1 | ) | (1.9 | ) | (1.9 | ) | (6.8 | ) | |||||||||||
Accretion | 9.1 | 13.2 | 3.6 | 3.5 | 5.0 | 9.7 | |||||||||||||||||
Revisions in estimated cash flows | 80.2 | 27.5 | 80.6 | — | — | 27.7 | |||||||||||||||||
Addition of Spire EnergySouth asset retirement obligations | — | 11.9 | — | — | — | — | |||||||||||||||||
Asset retirement obligations, end of year | $ | 296.6 | $ | 206.4 | $ | 158.6 | $ | 75.2 | $ | 128.4 | $ | 120.1 |
• | Spire Missouri has a risk management policy that allows for the purchase of natural gas derivative instruments with the goal of managing price risk associated with purchasing natural gas on behalf of its customers. The MoPSC clarified that costs, cost reductions, and carrying costs associated with the Utility’s use of natural gas derivative instruments are gas costs recoverable through the PGA mechanism. |
• | The tariffs allow Spire Missouri flexibility to make up to three discretionary PGA changes during each year, in addition to its mandatory November PGA change, so long as such changes are separated by at least two months. |
• | Spire Missouri is authorized to apply carrying costs to all over- or under-recoveries of gas costs, including costs and cost reductions associated with the use of derivative instruments, including cash payments for margin deposits. Spire Missouri East is also authorized to recover gas inventory carrying costs through its PGA rates to recover costs it incurs to finance its investment in gas supplies that are purchased during the storage injection season for sale during the heating season. |
• | The MoPSC approved a plan applicable to Spire Missouri’s gas supply commodity costs under which it retains a portion of cost savings associated with the acquisition of natural gas below an established benchmark level. This gas supply cost management program allows Spire Missouri to retain 10% of cost savings, up to a maximum of $3.0 annually. Spire Missouri did not record any such incentive compensation under the plan during the three fiscal years reported. Incentives recorded under the plan, if any, are included in Gas Utility Operating Revenues on the Consolidated Statements of Income and under Operating Revenues on Spire Missouri’s Statements of Income. |
Customer Share | Company Share | |
Spire Missouri East | ||
First $2.0 of pre-tax income* | 85% | 15% |
Next $2.0 of pre-tax income | 80% | 20% |
Next $2.0 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $6.0 | 70% | 30% |
* Customer share was set to 85% and company share set to 15% in fiscal 2017. For fiscal 2016 and 2015, the customer share and company share were 100% and 0%, respectively. | ||
Spire Missouri West | ||
First $1.2 of pre-tax income | 85% | 15% |
Next $1.2 of pre-tax income | 80% | 20% |
Next $1.2 of pre-tax income | 75% | 25% |
Amounts of pre-tax income exceeding $3.6 | 70% | 30% |
Gas Utility | Gas Marketing | Other | Total | ||||||||||||
Balance as of September 30, 2014 | $ | 210.2 | $ | — | $ | 727.6 | $ | 937.8 | |||||||
Adjustments to finalize the acquisition of Spire Alabama | — | — | 8.2 | 8.2 | |||||||||||
Balance as of September 30, 2015 | 210.2 | — | 735.8 | 946.0 | |||||||||||
Acquisition of Spire EnergySouth | — | — | 218.9 | 218.9 | |||||||||||
Balance as of September 30, 2016 | 210.2 | — | 954.7 | 1,164.9 | |||||||||||
Adjustments to finalize the acquisition of Spire EnergySouth | — | — | 6.7 | 6.7 | |||||||||||
Balance as of September 30, 2017 | $ | 210.2 | $ | — | $ | 961.4 | $ | 1,171.6 |
2017 | 2016 | 2015 | |||||||||
Spire | $ | 84.6 | $ | 75.5 | $ | 97.3 | |||||
Spire Missouri | 60.7 | 57.4 | 74.5 | ||||||||
Spire Alabama | 19.5 | 17.9 | 22.6 |
2017 | 2016 | 2015 | |||||||||
Purchases of natural gas from Spire Marketing | $ | 74.4 | $ | 46.3 | $ | 74.1 | |||||
Sales of natural gas to Spire Marketing | 7.8 | 1.9 | 4.0 | ||||||||
Transportation services received from Spire NGL Inc. | 1.0 | 1.0 | 1.0 |
• | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – Pricing inputs other than quoted prices included within Level 1, which are either directly or indirectly observable for the asset or liability as of the reporting date. These inputs are derived principally from, or corroborated by, observable market data. |
• | Level 3 – Pricing that is based upon inputs that are generally unobservable that are based on the best information available and reflect management’s assumptions about how market participants would price the asset or liability. |
As originally recorded | Measurement period adjustments | As adjusted | |||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||||||||||
Utility plant | $ | 199.5 | $ | — | $ | 199.5 | |||||
Cash | 2.0 | — | 2.0 | ||||||||
Other current assets | 17.5 | 0.2 | 17.7 | ||||||||
Other assets | 79.8 | (10.7 | ) | 69.1 | |||||||
Long-term debt | (67.0 | ) | — | (67.0 | ) | ||||||
Other current liabilities | (42.7 | ) | — | (42.7 | ) | ||||||
Deferred tax liabilities | (35.5 | ) | — | (35.5 | ) | ||||||
Other liabilities | (52.8 | ) | — | (52.8 | ) | ||||||
Total identifiable net assets | 100.8 | (10.5 | ) | 90.3 | |||||||
Goodwill | 218.9 | 6.7 | 225.6 | ||||||||
Consideration (cash) | $ | 319.7 | $ | (3.8 | ) | $ | 315.9 |
2017 | 2016 | ||||||
Total Operating Revenues | $ | 95.5 | $ | 3.3 | |||
Net Income (Loss) | 9.4 | (0.2 | ) | ||||
Earnings Per Share | $ | 0.20 | $ | — |
2017 | 2016 | 2015 | |||||||||
Total Operating Revenues | $ | 1,740.7 | $ | 1,632.4 | $ | 2,081.6 | |||||
Net Income | 161.6 | 153.9 | 143.6 | ||||||||
Basic Earnings Per Share | $ | 3.44 | $ | 3.48 | $ | 3.32 | |||||
Diluted Earnings Per Share | 3.43 | 3.46 | 3.31 |
Shares/ Units | Weighted Average Grant Date Fair Value Per Share | |||||
Nonvested at September 30, 2016 | 510,583 | $ | 40.37 | |||
Granted (maximum shares that can be earned) | 196,400 | $ | 45.01 | |||
Vested | (78,825 | ) | $ | 42.37 | ||
Forfeited | (64,128 | ) | $ | 33.03 | ||
Nonvested at September 30, 2017 (at maximum) | 564,030 | $ | 42.51 | |||
Nonvested at September 30, 2017 (at target) | 282,015 | $ | 56.32 |
Shares/ Units | Weighted Average Grant Date Fair Value Per Share | |||||
Nonvested at September 30, 2016 | 132,779 | $ | 49.83 | |||
Granted | 44,090 | $ | 63.15 | |||
Vested | (58,200 | ) | $ | 47.67 | ||
Forfeited | (7,729 | ) | $ | 55.58 | ||
Nonvested at September 30, 2017 | 110,940 | $ | 55.85 |
2017 | 2016 | 2015 | |||
Risk-free interest rate | 1.39% | 1.14% | 0.83% | ||
Expected dividend yield of stock | — | — | — | ||
Expected volatility of stock | 16.3% | 15.0% | 14.0% | ||
Vesting period | 2.8 years | 2.8 years | 2.8 years |
2017 | 2016 | 2015 | |||||||||
Total compensation cost | $ | 7.4 | $ | 6.7 | $ | 6.7 | |||||
Compensation cost capitalized | (3.3 | ) | (2.2 | ) | (1.8 | ) | |||||
Compensation cost recognized in net income | $ | 4.1 | $ | 4.5 | $ | 4.9 | |||||
Income tax benefit recognized in net income | (1.5 | ) | (1.7 | ) | (1.9 | ) | |||||
Compensation cost recognized in net income, net of income tax | $ | 2.6 | $ | 2.8 | $ | 3.0 |
2017 | 2016 | 2015 | |||||||||
Basic EPS: | |||||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Less: Income allocated to participating securities | 0.4 | 0.5 | 0.5 | ||||||||
Net Income Available to Common Shareholders | $ | 161.2 | $ | 143.7 | $ | 136.4 | |||||
Weighted Average Shares Outstanding (millions) | 46.9 | 44.1 | 43.2 | ||||||||
Earnings Per Share of Common Stock | $ | 3.44 | $ | 3.26 | $ | 3.16 | |||||
Diluted EPS: | |||||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Less: Income allocated to participating securities | 0.4 | 0.5 | 0.5 | ||||||||
Net Income Available to Common Shareholders | $ | 161.2 | $ | 143.7 | $ | 136.4 | |||||
Weighted Average Shares Outstanding (millions) | 46.9 | 44.1 | 43.2 | ||||||||
Dilutive Effect of Stock Options, Restricted Stock, and Restricted Stock Units (millions) | 0.1 | 0.2 | 0.1 | ||||||||
Weighted Average Diluted Shares (millions) | 47.0 | 44.3 | 43.3 | ||||||||
Earnings Per Share of Common Stock | $ | 3.43 | $ | 3.24 | $ | 3.16 | |||||
Outstanding Shares (in millions) Excluded from the Calculation of Diluted EPS Attributable to: | |||||||||||
Restricted stock and stock units subject to performance and/or market conditions | 0.5 | 0.3 | 0.3 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension and Other Postretirement Benefit Plans | Net Unrealized Losses on Available for Sale Securities | Total | |||||||||||||
Spire | ||||||||||||||||
Balance at September 30, 2015 | $ | (0.4 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (2.0 | ) | ||||
Other comprehensive loss | (1.9 | ) | (0.3 | ) | — | (2.2 | ) | |||||||||
Balance at September 30, 2016 | (2.3 | ) | (1.8 | ) | (0.1 | ) | (4.2 | ) | ||||||||
Other comprehensive income (loss) | 7.2 | 0.3 | (0.1 | ) | 7.4 | |||||||||||
Balance at September 30, 2017 | $ | 4.9 | $ | (1.5 | ) | $ | (0.2 | ) | $ | 3.2 | ||||||
Spire Missouri | ||||||||||||||||
Balance at September 30, 2015 | (0.2 | ) | (1.5 | ) | — | $ | (1.7 | ) | ||||||||
Other comprehensive income (loss) | 0.3 | (0.3 | ) | (0.1 | ) | (0.1 | ) | |||||||||
Balance at September 30, 2016 | 0.1 | (1.8 | ) | (0.1 | ) | (1.8 | ) | |||||||||
Other comprehensive income (loss) | — | 0.2 | (0.1 | ) | 0.1 | |||||||||||
Balance at September 30, 2017 | $ | 0.1 | $ | (1.6 | ) | $ | (0.2 | ) | $ | (1.7 | ) |
6. | LONG-TERM DEBT |
Spire | Spire Missouri | Spire Alabama | |||||||||
2018 | $ | 100.0 | $ | 100.0 | $ | — | |||||
2019 | 180.0 | 50.0 | — | ||||||||
2020 | 40.0 | — | 40.0 | ||||||||
2021 | 55.0 | — | — | ||||||||
2022 | 50.0 | — | 50.0 |
• | 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 its 2.875 million equity units by issuing 2,504,684 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 purchase price was funded with the proceeds from the Junior Notes. 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 incurred the previous month to redeem the floating rate notes. |
Spire Short‑term Borrowings1 | Spire Missouri Commercial Paper Borrowings2 | Spire Alabama Bank Line Borrowings | Total Short‑term Borrowings | |
Year Ended September 30, 2017 | ||||
Weighted average borrowings outstanding | $369.0 | $88.5 | $28.3 | $485.8 |
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 | $395.5 - $675.6 |
As of September 30, 2017 | ||||
Borrowings outstanding | $477.3 | $— | $— | $477.3 |
Weighted average interest rate | 1.5% | —% | —% | 1.5% |
Year Ended September 30, 2016 | ||||
Weighted average borrowings outstanding | $42.7 | $201.0 | $30.2 | $273.9 |
Weighted average interest rate | 1.6% | 0.7% | 1.4% | 0.9% |
Range of borrowings outstanding | $0.0 - $82.0 | $43.0 - $307.2 | $0.0 - $82.0 | $73.1 - $427.2 |
As of September 30, 2016 | ||||
Borrowings outstanding | $73.0 | $243.7 | $82.0 | $398.7 |
Weighted average interest rate | 1.8% | 0.8% | 1.5% | 1.1% |
1 | Spire Short-term Borrowings includes bank line borrowings of Spire Inc. (excluding its subsidiaries) and, since January 1, 2017, commercial paper. Of Spire’s $477.3 borrowings outstanding as of September 30, 2017, $440.0 was used to provide funding to its subsidiaries, including Spire Missouri ($203.0), Spire Alabama ($169.9), Spire EnergySouth and subsidiaries ($12.9), Spire STL Pipeline LLC ($26.6), and others ($27.6). |
Commercial Paper Borrowings | Borrowings from Spire | Total Short-term Borrowings | |
Year Ended September 30, 2017 | |||
Weighted average borrowings outstanding | $88.5 | $195.5 | $284.0 |
Weighted average interest rate | 0.9% | 1.3% | 1.2% |
Range of borrowings outstanding | $0.0 - $329.7 | $0.0 - $338.6 | $168.3 - $358.9 |
As of September 30, 2017 | |||
Borrowings outstanding | $— | $203.0 | $203.0 |
Weighted average interest rate | —% | 1.5% | 1.5% |
Year Ended September 30, 2016 | |||
Weighted average borrowings outstanding | $201.0 | $14.7 | $215.7 |
Weighted average interest rate | 0.7% | 0.8% | 0.7% |
Range of borrowings outstanding | $43.0 - $307.2 | $0.0 - $114.2 | $127.8 - $ 307.2 |
As of September 30, 2016 | |||
Borrowings outstanding | $243.7 | $— | $243.7 |
Weighted average interest rate | 0.8% | —% | 0.8% |
Bank Line Borrowings | Borrowings from Spire | Total Short-term Borrowings | |
Year Ended September 30, 2017 | |||
Weighted average borrowings outstanding | $28.3 | $78.6 | $106.9 |
Weighted average interest rate | 1.6% | 1.4% | 1.5% |
Range of borrowings outstanding | $0.0 - $102.5 | $0.0 - $171.0 | $74.0 - $171.0 |
As of September 30, 2017 | |||
Borrowings outstanding | $— | $169.9 | $169.9 |
Weighted average interest rate | —% | 1.5% | 1.5% |
Year Ended September 30, 2016 | |||
Weighted average borrowings outstanding | $30.2 | $12.4 | $42.6 |
Weighted average interest rate | 1.4% | 1.4% | 1.4% |
Range of borrowings outstanding | $0.0 - $82.0 | $0.0 - $61.9 | $19.0 - $82.0 |
As of September 30, 2016 | |||
Borrowings outstanding | $82.0 | $— | $82.0 |
Weighted average interest rate | 1.5% | —% | 1.5% |
8. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
Classification of Estimated Fair Value | |||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 7.4 | $ | 7.4 | $ | 7.4 | $ | — | |||||||
Short-term debt | 477.3 | 477.3 | — | 477.3 | |||||||||||
Long-term debt, including current portion | 2,095.0 | 2,210.3 | — | 2,210.3 | |||||||||||
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 | 2,070.7 | 2,257.1 | — | 2,257.1 |
Classification of Estimated Fair Value | |||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 2.5 | $ | 2.5 | $ | 2.5 | $ | — | |||||||
Short-term debt | 203.0 | 203.0 | — | 203.0 | |||||||||||
Long-term debt, including current portion | 973.9 | 1,056.9 | — | 1,056.9 | |||||||||||
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 |
Classification of Estimated Fair Value | |||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | — | |||||||
Short-term debt | 169.9 | 169.9 | — | 169.9 | |||||||||||
Long-term debt | 247.8 | 269.4 | — | 269.4 | |||||||||||
As of September 30, 2016 | |||||||||||||||
Short-term debt | $ | 82.0 | $ | 82.0 | $ | — | $ | 82.0 | |||||||
Long-term debt, including current portion | 247.6 | 275.5 | — | 275.5 |
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, 2017 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Gas Utility: | |||||||||||||||||||
US stock/bond mutual funds | $ | 18.3 | $ | 4.1 | $ | — | $ | — | $ | 22.4 | |||||||||
NYMEX/ICE natural gas contracts | 3.4 | — | — | (3.4 | ) | — | |||||||||||||
Gasoline and heating oil contracts | 0.1 | — | — | — | 0.1 | ||||||||||||||
Gas Marketing: | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 1.3 | 1.3 | — | (2.1 | ) | 0.5 | |||||||||||||
Natural gas commodity contracts | — | 6.8 | 0.1 | (1.2 | ) | 5.7 | |||||||||||||
Total | $ | 23.1 | $ | 12.2 | $ | 0.1 | $ | (6.7 | ) | $ | 28.7 | ||||||||
LIABILITIES | |||||||||||||||||||
Gas Utility: | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 1.9 | $ | — | $ | — | $ | (1.9 | ) | $ | — | ||||||||
Gas Marketing: | |||||||||||||||||||
NYMEX/ICE natural gas contracts | 1.8 | 0.3 | — | (2.1 | ) | — | |||||||||||||
Natural gas commodity contracts | — | 8.4 | — | (1.2 | ) | 7.2 | |||||||||||||
Other: | |||||||||||||||||||
Interest rate swaps | — | 0.9 | — | — | 0.9 | ||||||||||||||
Total | $ | 3.7 | $ | 9.6 | $ | — | $ | (5.2 | ) | $ | 8.1 | ||||||||
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 | |||||||||||||
Gasoline and heating oil contracts | 0.4 | — | — | (0.3 | ) | 0.1 | |||||||||||||
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 | ||||||||||||||
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 |
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, 2017 | |||||||||||||||||||
ASSETS | |||||||||||||||||||
US stock/bond mutual funds | $ | 18.3 | $ | 4.1 | $ | — | $ | — | $ | 22.4 | |||||||||
NYMEX/ICE natural gas contracts | 3.4 | — | — | (3.4 | ) | — | |||||||||||||
Gasoline and heating oil contracts | 0.1 | — | — | — | 0.1 | ||||||||||||||
Total | $ | 21.8 | $ | 4.1 | $ | — | $ | (3.4 | ) | $ | 22.5 | ||||||||
LIABILITIES | |||||||||||||||||||
NYMEX/ICE natural gas contracts | $ | 1.9 | $ | — | $ | — | $ | (1.9 | ) | $ | — | ||||||||
Total | $ | 1.9 | $ | — | $ | — | $ | (1.9 | ) | $ | — | ||||||||
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 | |||||||||||||
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 |
10. | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
Gas Utility | Gas Marketing | ||||||||||||
MMBtu (millions) | Avg. Price Per MMBtu | MMBtu (millions) | Avg. Price Per MMBtu | ||||||||||
NYMEX/ICE open short futures positions/swap positions | |||||||||||||
Fiscal 2018 | — | $ | — | 8.66 | $ | 3.34 | |||||||
Fiscal 2019 | — | — | 2.07 | 3.13 | |||||||||
NYMEX/ICE open long futures/swap positions | |||||||||||||
Fiscal 2018 | 14.18 | 2.98 | 3.78 | 3.16 | |||||||||
Fiscal 2019 | 1.68 | 2.89 | 1.84 | 3.02 | |||||||||
Fiscal 2020 | — | — | 0.66 | 2.91 | |||||||||
Fiscal 2021 | — | — | 0.28 | 2.90 | |||||||||
Fiscal 2022 | — | — | 0.22 | 3.00 | |||||||||
ICE open short daily swap positions | |||||||||||||
Fiscal 2018 | — | — | 1.32 | 2.87 | |||||||||
ICE open long daily swap positions | |||||||||||||
Fiscal 2018 | — | — | 0.78 | 2.79 | |||||||||
ICE open short basis swap positions | |||||||||||||
Fiscal 2018 | — | — | 14.04 | 0.10 | |||||||||
Fiscal 2019 | — | — | 3.35 | 0.27 | |||||||||
Fiscal 2020 | — | — | 0.31 | 0.36 | |||||||||
ICE open long basis swap positions | |||||||||||||
Fiscal 2018 | — | — | 11.12 | 0.38 | |||||||||
Fiscal 2019 | — | — | 4.51 | 0.45 | |||||||||
Fiscal 2020 | — | — | 0.62 | 0.45 |
Effect of Derivative Instruments on the Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | ||||||||||||
Location of Gain (Loss) | ||||||||||||
Recorded in Income | 2017 | 2016 | 2015 | |||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||
Effective portion of gain (loss) recognized in OCI on derivatives: | ||||||||||||
Gas Marketing natural gas contracts | $ | — | $ | (0.6 | ) | $ | (4.3 | ) | ||||
Gas Utility gasoline and heating oil contracts | 0.1 | — | (1.2 | ) | ||||||||
Interest rate swaps | 11.4 | (3.4 | ) | — | ||||||||
Total | $ | 11.5 | $ | (4.0 | ) | $ | (5.5 | ) | ||||
Effective portion of gain (loss) reclassified from AOCI to income: | ||||||||||||
Natural gas contracts | Gas Marketing Operating Revenues | $ | (0.4 | ) | $ | 4.3 | $ | 1.7 | ||||
Gas Marketing Operating Expenses | 0.1 | (4.9 | ) | (5.2 | ) | |||||||
Subtotal | (0.3 | ) | (0.6 | ) | (3.5 | ) | ||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | 0.2 | (0.5 | ) | (0.9 | ) | ||||||
Interest rate swaps | Interest Expense | 0.1 | — | — | ||||||||
Total | $ | — | $ | (1.1 | ) | $ | (4.4 | ) | ||||
Ineffective portion of gain (loss) on derivatives recognized in income: | ||||||||||||
Natural gas contracts | Gas Marketing Operating Revenues | $ | — | $ | 0.1 | $ | — | |||||
Gas Marketing Operating Expenses | — | 0.1 | (0.5 | ) | ||||||||
Subtotal | — | 0.2 | (0.5 | ) | ||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | — | 0.1 | 0.1 | ||||||||
Interest rate swaps | Interest Expense | 0.5 | — | — | ||||||||
Total | $ | 0.5 | $ | 0.3 | $ | (0.4 | ) | |||||
Derivatives Not Designated as Hedging Instruments* | ||||||||||||
Gain (loss) recognized in income on derivatives: | ||||||||||||
Natural gas commodity contracts | Gas Marketing Operating Revenues | $ | 0.7 | $ | 12.3 | $ | (1.3 | ) | ||||
NYMEX / ICE natural gas contracts | Gas Marketing Operating Revenues | (4.4 | ) | (1.7 | ) | (9.6 | ) | |||||
Gasoline and heating oil contracts | Other Income and (Income Deductions) - Net | — | — | (0.2 | ) | |||||||
Total | $ | (3.7 | ) | $ | 10.6 | $ | (11.1 | ) |
* | Gains and losses on Spire Missouri’s natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Missouri Utilities’ PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the statements of income. Such amounts are recognized in the statements of income as a component of Regulated Gas Distribution Natural and Propane Gas operating expenses when they are recovered through the PGA clause and reflected in customer billings. |
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | |||||||||
Asset Derivatives* | Liability Derivatives* | ||||||||
September 30, 2017 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||
Derivatives designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.1 | Derivative Instrument Assets | $ | — | |||
Gas Marketing: | |||||||||
Natural gas contracts | Derivative Instrument Assets | 0.3 | Derivative Instrument Assets | 0.2 | |||||
Deferred Charges – Other | 0.3 | Deferred Charges – Other | — | ||||||
Other: | |||||||||
Interest rate swaps | Current Liabilities - Other | — | Current Liabilities - Other | 0.9 | |||||
Subtotal | 0.7 | 1.1 | |||||||
Derivatives not designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Natural gas contracts | Accounts Receivable – Other | 3.4 | Accounts Receivable – Other | 1.9 | |||||
Gas Marketing: | |||||||||
NYMEX / ICE natural gas contracts | Derivative Instrument Assets | 1.7 | Derivative Instrument Assets | 1.4 | |||||
Deferred Charges – Other | 0.3 | Deferred Charges – Other | 0.5 | ||||||
Natural gas commodity | Derivative Instrument Assets | 5.3 | Derivative Instrument Assets | 0.1 | |||||
Other Deferred Charges | 0.4 | Other Deferred Charges | — | ||||||
Current Liabilities – Other | 0.8 | Current Liabilities – Other | 5.0 | ||||||
Deferred Credits – Other | 0.4 | Deferred Credits – Other | 3.3 | ||||||
Subtotal | 12.3 | 12.2 | |||||||
Total derivatives | $ | 13.0 | $ | 13.3 | |||||
September 30, 2016 | |||||||||
Derivatives designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.3 | Derivative Instrument Assets | $ | — | |||
Gas Marketing: | |||||||||
Natural gas contracts | Derivative Instrument Assets | 2.5 | Derivative Instrument Assets | 0.8 | |||||
Deferred Charges - Other | 0.4 | Deferred Charges - Other | 0.1 | ||||||
Other: Interest rate swaps | Derivative Instrument Assets | — | Derivative Instrument Assets | 3.0 | |||||
Subtotal | 3.2 | 3.9 | |||||||
Derivatives not designated as hedging instruments | |||||||||
Gas Utility: | |||||||||
Natural gas contracts | Accounts Receivable – Other | 5.4 | Accounts Receivable – Other | 1.6 | |||||
Derivative Instrument Assets | — | Derivative Instrument Assets | 0.2 | ||||||
Gas Marketing: | |||||||||
NYMEX / ICE natural gas contracts | Derivative Instrument Assets | 0.8 | Derivative Instrument Assets | 4.1 | |||||
Deferred Charges – Other | — | Deferred Charges – Other | 0.1 | ||||||
Natural gas commodity | Derivative Instrument Assets | 6.5 | Derivative Instrument Assets | 0.2 | |||||
Other Deferred Charges | 2.1 | Other Deferred Charges | 0.3 | ||||||
Current Liabilities – Other | 0.2 | Current Liabilities – Other | 2.0 | ||||||
Deferred Credits – Other | 0.2 | Deferred Credits – Other | 0.1 | ||||||
Subtotal | 15.2 | 8.6 | |||||||
Total derivatives | $ | 18.4 | $ | 12.5 |
* | The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the balance sheets. As such, the gross balances presented in the table above are not indicative of the Company’s net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments. |
2017 | 2016 | ||||||
Fair value of asset derivatives presented above | $ | 13.0 | $ | 18.4 | |||
Fair value of cash margin (payable) receivable offset with derivatives | (1.5 | ) | 2.5 | ||||
Netting of assets and liabilities with the same counterparty | (5.3 | ) | (7.6 | ) | |||
Total | $ | 6.2 | $ | 13.3 | |||
Derivative Instrument Assets, per Consolidated Balance Sheets: | |||||||
Derivative instrument assets | $ | 5.9 | $ | 11.4 | |||
Deferred Charges – Other | 0.3 | 1.9 | |||||
Total | $ | 6.2 | $ | 13.3 | |||
Fair value of liability derivatives presented above | $ | 13.3 | $ | 12.5 | |||
Netting of assets and liabilities with the same counterparty | (5.3 | ) | (7.6 | ) | |||
Total | $ | 8.0 | $ | 4.9 | |||
Derivative Instrument Liabilities, per Consolidated Balance Sheets: | |||||||
Current Liabilities – Other | $ | 4.9 | $ | 4.8 | |||
Deferred Credits – Other | 3.1 | 0.1 | |||||
Total | $ | 8.0 | $ | 4.9 |
MMBtu (millions) | Avg. Price Per MMBtu | |||||
NYMEX/ICE open long futures/swap positions | ||||||
Fiscal 2018 | 14.18 | $ | 2.98 | |||
Fiscal 2019 | 1.68 | 2.89 |
Effect of Derivative Instruments on the Statements of Income and Statements of Comprehensive Income | ||||||||||||
Location of Gain (Loss) | ||||||||||||
Recorded in Income | 2017 | 2016 | 2015 | |||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||
Effective portion of gain (loss) recognized in OCI on derivatives: | ||||||||||||
Gasoline and heating oil contracts | $ | 0.1 | $ | — | $ | (1.2 | ) | |||||
Effective portion of gain (loss) reclassified from AOCI to income: | ||||||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | $ | 0.2 | $ | (0.5 | ) | $ | (0.9 | ) | |||
Ineffective portion of gain (loss) on derivatives recognized in income: | ||||||||||||
Gasoline and heating oil contracts | Gas Utility Other Operating Expenses | $ | — | $ | 0.1 | $ | 0.1 | |||||
Derivatives Not Designated as Hedging Instruments* | ||||||||||||
Gain (loss) recognized in income on derivatives: | ||||||||||||
Gasoline and heating oil contracts | Other Income and (Income Deductions) - Net | $ | — | $ | — | $ | (0.2 | ) |
* | Gains and losses on Spire Missouri’s natural gas derivative instruments, which are not designated as hedging instruments for financial reporting purposes, are deferred pursuant to the Spire Missouri’s PGA clauses and initially recorded as regulatory assets or regulatory liabilities. These gains and losses are excluded from the table above because they have no direct impact on the Statements of Income. Such amounts are recognized in the Statements of Income as a component of Regulated Gas Distribution Natural and Propane Gas operating expenses when they are recovered through the PGA clause and reflected in customer billings. |
Fair Value of Derivative Instruments in the Balance Sheets | |||||||||
Asset Derivatives* | Liability Derivatives* | ||||||||
September 30, 2017 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||
Derivatives designated as hedging instruments | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.1 | Derivative Instrument Assets | $ | — | |||
Derivatives not designated as hedging instruments | |||||||||
Natural gas contracts | Accounts Receivable – Other | 3.4 | Accounts Receivable – Other | 1.9 | |||||
Total derivatives | $ | 3.5 | $ | 1.9 | |||||
September 30, 2016 | |||||||||
Derivatives designated as hedging instruments | |||||||||
Gasoline and heating oil contracts | Derivative Instrument Assets | $ | 0.3 | Derivative Instrument Assets | $ | — | |||
Subtotal | 0.3 | — | |||||||
Derivatives not designated as hedging instruments | |||||||||
Natural gas contracts | Accounts Receivable – Other | 5.4 | Accounts Receivable – Other | 1.6 | |||||
OTCBB natural gas contracts | Derivative Instrument Assets | — | Derivative Instrument Assets | 0.2 | |||||
Subtotal | 5.4 | 1.8 | |||||||
Total derivatives | $ | 5.7 | $ | 1.8 |
* | The fair values of Asset Derivatives and Liability Derivatives exclude the fair value of cash margin receivables or payables with counterparties subject to netting arrangements. Fair value amounts of derivative contracts (including the fair value amounts of cash margin receivables and payables) for which there is a legal right to set off are presented net on the Balance Sheets. As such, the gross balances presented in the table above are not indicative of Spire Missouri’s net economic exposure. Refer to Note 9, Fair Value Measurements, for information on the valuation of derivative instruments. |
2017 | 2016 | ||||||
Fair value of asset derivatives presented above | $ | 3.5 | $ | 5.7 | |||
Fair value of cash margin (payable) receivable offset with derivatives | (1.5 | ) | 0.8 | ||||
Netting of assets and liabilities with the same counterparty | (1.9 | ) | (1.6 | ) | |||
Total | $ | 0.1 | $ | 4.9 | |||
Derivative Instrument Assets, per Balance Sheets: | |||||||
Derivative instrument assets | $ | 0.1 | $ | 4.9 | |||
Total | $ | 0.1 | $ | 4.9 | |||
Fair value of liability derivatives presented above | $ | 1.9 | $ | 1.8 | |||
Netting of assets and liabilities with the same counterparty | (1.9 | ) | (1.6 | ) | |||
Total | $ | — | $ | 0.2 | |||
Derivative Instrument Liabilities, per Balance Sheets: | |||||||
Current Liabilities – Other | $ | — | $ | 0.2 | |||
Total | $ | — | $ | 0.2 |
12. | INCOME TAXES |
2017 | 2016 | 2015 | |||||||||
Federal | |||||||||||
Current | $ | 0.1 | $ | 0.1 | $ | (3.3 | ) | ||||
Deferred | 67.7 | 62.0 | 58.8 | ||||||||
Investment tax credits | (0.2 | ) | (0.2 | ) | (0.2 | ) | |||||
State and local | |||||||||||
Current | 0.5 | 0.6 | — | ||||||||
Deferred | 9.5 | 7.0 | 6.9 | ||||||||
Total income tax expense | $ | 77.6 | $ | 69.5 | $ | 62.2 |
2017 | 2016 | 2015 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 2.8 | 3.0 | |||||
Certain expenses capitalized on books and deducted on tax return | (2.3 | ) | (3.4 | ) | (3.7 | ) | ||
Taxes related to prior years | (0.9 | ) | (0.2 | ) | (0.6 | ) | ||
Other items – net * | (2.2 | ) | (1.7 | ) | (2.5 | ) | ||
Effective income tax rate | 32.4 | % | 32.5 | % | 31.2 | % |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 31.5 | $ | 21.3 | |||
Pension and other postretirement benefits | 58.6 | 68.3 | |||||
Operating losses | 169.6 | 102.3 | |||||
Other | 26.0 | — | |||||
Deferred tax assets | 285.7 | 191.9 | |||||
Less: valuation allowance | 0.5 | 0.9 | |||||
Total deferred tax assets | 285.2 | 191.0 | |||||
Deferred tax liabilities: | |||||||
Relating to property | 728.3 | 623.1 | |||||
Regulatory pension and other postretirement benefits | 108.0 | 106.8 | |||||
Deferred gas costs | 30.6 | 20.0 | |||||
Other** | 125.8 | 48.4 | |||||
Total deferred tax liabilities | 992.7 | 798.3 | |||||
Net deferred tax liability | $ | 707.5 | $ | 607.3 |
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 10.0 | $ | 7.1 | $ | 4.6 | |||||
Increases related to tax positions taken in current year | 2.4 | 3.4 | 2.9 | ||||||||
Reductions due to lapse of applicable statute of limitations | (1.4 | ) | (0.5 | ) | (0.4 | ) | |||||
Unrecognized tax benefits, end of year | $ | 11.0 | $ | 10.0 | $ | 7.1 |
2017 | 2016 | 2015 | |||||||||
Federal | |||||||||||
Current | $ | — | $ | — | $ | (2.1 | ) | ||||
Deferred | 42.0 | 37.5 | 40.9 | ||||||||
Investment tax credits | (0.2 | ) | (0.2 | ) | (0.2 | ) | |||||
State and local | |||||||||||
Current | — | 0.1 | (0.1 | ) | |||||||
Deferred | 5.7 | 8.0 | 4.7 | ||||||||
Total income tax expense | $ | 47.5 | $ | 45.4 | $ | 43.2 |
2017 | 2016 | 2015 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 2.8 | 2.8 | |||||
Certain expenses capitalized on books and deducted on tax return | (3.5 | ) | (4.8 | ) | (4.9 | ) | ||
Taxes related to prior years | (1.4 | ) | (0.2 | ) | (0.8 | ) | ||
Other items – net * | (3.3 | ) | (2.8 | ) | (3.0 | ) | ||
Effective income tax rate | 29.6 | % | 30.0 | % | 29.1 | % |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 25.3 | $ | 14.9 | |||
Pension and other postretirement benefits | 52.7 | 56.9 | |||||
Operating losses | 52.0 | 29.9 | |||||
Deferred tax assets | 130.0 | 101.7 | |||||
Less: valuation allowance | 0.5 | 0.9 | |||||
Total deferred tax assets | 129.5 | 100.8 | |||||
Deferred tax liabilities: | |||||||
Relating to utility property | 563.2 | 497.0 | |||||
Regulatory pension and other postretirement benefits | 108.0 | 106.8 | |||||
Deferred gas costs | 25.0 | 20.0 | |||||
Other | 57.1 | 33.9 | |||||
Total deferred tax liabilities | 753.3 | 657.7 | |||||
Net deferred tax liability | $ | 623.8 | $ | 556.9 |
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 9.7 | $ | 6.9 | $ | 4.2 | |||||
Increases related to tax positions taken in current year | 2.4 | 3.3 | 2.9 | ||||||||
Reductions due to lapse of applicable statute of limitations | (1.4 | ) | (0.5 | ) | (0.2 | ) | |||||
Unrecognized tax benefits, end of year | $ | 10.7 | $ | 9.7 | $ | 6.9 |
2017 | 2016 | 2015 | |||||||||
Federal | |||||||||||
Current | $ | — | $ | (0.8 | ) | $ | — | ||||
Deferred | 31.6 | 29.4 | 25.9 | ||||||||
State and local | |||||||||||
Current | — | — | 0.1 | ||||||||
Deferred | 4.2 | 3.8 | 3.3 | ||||||||
Total income tax expense | $ | 35.8 | $ | 32.4 | $ | 29.3 |
2017 | 2016 | 2015 | ||||||
Federal income tax statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes, net of federal income tax benefits | 2.8 | 2.8 | 2.8 | |||||
Other items – net | 0.3 | 0.1 | 0.1 | |||||
Effective income tax rate | 38.1 | % | 37.9 | % | 37.9 | % |
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Reserves not currently deductible | $ | 6.0 | $ | 6.3 | |||
Pension and other postretirement benefits | 4.4 | 11.4 | |||||
Goodwill | 214.4 | 233.4 | |||||
Operating losses | 88.3 | 60.2 | |||||
Total deferred tax assets | 313.1 | 311.3 | |||||
Deferred tax liabilities: | |||||||
Relating to utility property | 119.3 | 87.6 | |||||
Other | 8.2 | 2.3 | |||||
Total deferred tax liabilities | 127.5 | 89.9 | |||||
Net deferred tax asset | $ | 185.6 | $ | 221.4 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 20.5 | $ | 15.3 | $ | 17.3 | $ | 12.7 | $ | 10.0 | $ | 11.5 | $ | 6.2 | $ | 5.3 | $ | 5.8 | |||||||||||||||||
Interest cost on projected benefit obligation | 27.9 | 28.0 | 29.5 | 19.5 | 21.7 | 23.3 | 6.1 | 6.3 | 6.2 | ||||||||||||||||||||||||||
Expected return on plan assets | (38.5 | ) | (34.9 | ) | (37.4 | ) | (28.1 | ) | (26.7 | ) | (29.2 | ) | (7.2 | ) | (8.2 | ) | (8.2 | ) | |||||||||||||||||
Amortization of prior service cost | 1.0 | 0.4 | 0.5 | 1.0 | 0.4 | 0.5 | — | — | — | ||||||||||||||||||||||||||
Amortization of actuarial loss | 12.5 | 8.0 | 7.5 | 10.7 | 7.9 | 7.5 | 1.8 | 0.1 | — | ||||||||||||||||||||||||||
Loss on lump-sum settlements and curtailments | 17.9 | 3.3 | 19.6 | 13.5 | — | 18.0 | 4.6 | 3.3 | 1.6 | ||||||||||||||||||||||||||
Special termination benefits | 0.9 | 1.6 | — | — | 1.6 | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 42.2 | 21.7 | 37.0 | 29.3 | 14.9 | 31.6 | 11.5 | 6.8 | 5.4 | ||||||||||||||||||||||||||
Regulatory adjustment | (2.4 | ) | 17.8 | (2.1 | ) | (4.1 | ) | 11.7 | (5.2 | ) | 1.8 | 6.1 | 3.1 | ||||||||||||||||||||||
Net pension cost | $ | 39.8 | $ | 39.5 | $ | 34.9 | $ | 25.2 | $ | 26.6 | $ | 26.4 | $ | 13.3 | $ | 12.9 | $ | 8.5 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Current year actuarial loss | $ | 14.1 | $ | 46.8 | $ | 48.3 | $ | 14.8 | $ | 21.6 | $ | 26.0 | $ | 3.3 | $ | 25.2 | $ | 22.3 | |||||||||||||||||
Amortization of actuarial loss | (12.5 | ) | (8.0 | ) | (7.5 | ) | (10.7 | ) | (7.9 | ) | (7.5 | ) | (1.8 | ) | (0.1 | ) | — | ||||||||||||||||||
Acceleration of loss recognized due to settlement | (18.2 | ) | (3.3 | ) | (19.6 | ) | (13.5 | ) | — | (18.0 | ) | (4.5 | ) | (3.3 | ) | (1.6 | ) | ||||||||||||||||||
Current year service cost | — | 5.0 | — | — | 5.0 | — | — | — | — | ||||||||||||||||||||||||||
Current year prior year service cost | (20.7 | ) | — | — | — | — | — | (20.7 | ) | — | — | ||||||||||||||||||||||||
Amortization of prior service cost | (1.0 | ) | (0.4 | ) | (0.5 | ) | (1.0 | ) | (0.4 | ) | (0.5 | ) | — | — | — | ||||||||||||||||||||
Subtotal | (38.3 | ) | 40.1 | 20.7 | (10.4 | ) | 18.3 | — | (23.7 | ) | 21.8 | 20.7 | |||||||||||||||||||||||
Regulatory adjustment | 38.0 | (39.8 | ) | (21.2 | ) | 10.1 | (18.0 | ) | (0.5 | ) | 23.7 | (21.8 | ) | (20.7 | ) | ||||||||||||||||||||
Total recognized in OCI | $ | (0.3 | ) | $ | 0.3 | $ | (0.5 | ) | $ | (0.3 | ) | $ | 0.3 | $ | (0.5 | ) | $ | — | $ | — | $ | — |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Benefit obligation, beginning of year | $ | 794.7 | $ | 652.3 | $ | 560.0 | $ | 497.6 | $ | 174.3 | $ | 154.7 | |||||||||||
Service cost | 20.5 | 15.3 | 12.7 | 10.0 | 6.2 | 5.3 | |||||||||||||||||
Interest cost | 27.9 | 28.0 | 19.5 | 21.7 | 6.1 | 6.3 | |||||||||||||||||
Actuarial (gain) loss | (0.9 | ) | 85.8 | (0.5 | ) | 59.2 | 1.6 | 26.6 | |||||||||||||||
Plan amendments | (20.7 | ) | 5.1 | — | 5.1 | (20.7 | ) | — | |||||||||||||||
Spire EnergySouth acquisition | — | 60.4 | — | — | — | — | |||||||||||||||||
Settlement loss | 14.6 | 1.1 | 12.2 | — | 2.4 | 1.1 | |||||||||||||||||
Special termination benefits | 0.9 | 1.6 | — | 1.6 | — | — | |||||||||||||||||
Settlement benefits paid | (62.2 | ) | (16.6 | ) | (43.5 | ) | — | (18.7 | ) | (16.6 | ) | ||||||||||||
Regular benefits paid | (26.0 | ) | (38.3 | ) | (20.8 | ) | (35.2 | ) | (3.0 | ) | (3.1 | ) | |||||||||||
Benefit obligation, end of year | $ | 748.8 | $ | 794.7 | $ | 539.6 | $ | 560.0 | $ | 148.2 | $ | 174.3 | |||||||||||
Accumulated benefit obligation, end of year | $ | 701.4 | $ | 724.5 | $ | 500.4 | $ | 517.7 | $ | 142.8 | $ | 149.8 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 540.5 | $ | 448.9 | $ | 395.7 | $ | 339.9 | $ | 100.0 | $ | 109.0 | |||||||||||
Actual return on plan assets | 38.0 | 75.1 | 25.1 | 64.4 | 7.7 | 10.7 | |||||||||||||||||
Employer contributions | 41.3 | 26.6 | 29.4 | 26.6 | 11.9 | — | |||||||||||||||||
Spire EnergySouth acquisition | — | 44.8 | — | — | — | — | |||||||||||||||||
Settlement benefits paid | (62.2 | ) | (16.6 | ) | (43.5 | ) | — | (18.7 | ) | (16.6 | ) | ||||||||||||
Regular benefits paid | (26.0 | ) | (38.3 | ) | (20.8 | ) | (35.2 | ) | (3.0 | ) | (3.1 | ) | |||||||||||
Fair value of plan assets, end of year | $ | 531.6 | $ | 540.5 | $ | 385.9 | $ | 395.7 | $ | 97.9 | $ | 100.0 | |||||||||||
Funded status of plans, end of year | $ | (217.2 | ) | $ | (254.2 | ) | $ | (153.7 | ) | $ | (164.3 | ) | $ | (50.3 | ) | $ | (74.3 | ) |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Current liabilities | $ | (0.5 | ) | $ | (0.6 | ) | $ | (0.5 | ) | $ | (0.6 | ) | $ | — | $ | — | |||||||
Noncurrent liabilities | (216.7 | ) | (253.6 | ) | (153.2 | ) | (163.7 | ) | (50.3 | ) | (74.3 | ) | |||||||||||
Total | $ | (217.2 | ) | $ | (254.2 | ) | $ | (153.7 | ) | $ | (164.3 | ) | $ | (50.3 | ) | $ | (74.3 | ) |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net actuarial loss | $ | 163.0 | $ | 179.4 | $ | 126.2 | $ | 135.5 | $ | 40.9 | $ | 43.9 | |||||||||||
Prior service (credit) cost | (13.4 | ) | 8.2 | 7.3 | 8.2 | (20.7 | ) | — | |||||||||||||||
Subtotal | 149.6 | 187.6 | 133.5 | 143.7 | 20.2 | 43.9 | |||||||||||||||||
Adjustments for amounts included in regulatory assets | (147.1 | ) | (184.8 | ) | (131.0 | ) | (140.9 | ) | (20.2 | ) | (43.9 | ) | |||||||||||
Total | $ | 2.5 | $ | 2.8 | $ | 2.5 | $ | 2.8 | $ | — | $ | — |
Spire | Spire Missouri | Spire Alabama | |||||||||
Amortization of net actuarial loss | $ | 12.6 | $ | 10.5 | $ | 2.1 | |||||
Amortization of prior service (credit) cost | (0.9 | ) | 0.9 | (1.8 | ) | ||||||
Subtotal | 11.7 | 11.4 | 0.3 | ||||||||
Regulatory adjustment | (11.4 | ) | (11.1 | ) | (0.3 | ) | |||||
Total | $ | 0.3 | $ | 0.3 | $ | — |
2017 | 2016 | 2015 | |||
Weighted average discount rate - Spire Missouri East plans | 3.50% | 4.40% | 4.30% | ||
Weighted average discount rate - Spire Missouri West plans | 3.50% | 4.50% | 4.45% | ||
Weighted average rate of future compensation increase | 3.00% | 3.00% | 3.00% | ||
Expected long-term rate of return on plan assets | 7.75% | 7.75% | 7.75% |
2017 | 2016 | 2015 | |||
Weighted average discount rate | 3.45%/3.50% | 4.25%/4.30% | 4.15%/4.25% | ||
Weighted average rate of future compensation increase | 3.00% | 3.00% | 2.92% | ||
Expected long-term rate of return on plan assets | 7.25% | 7.50% | 7.00%/7.25% |
2017 | 2016 | ||
Weighted average discount rate - Spire Missouri East plans | 3.75% | 3.50% | |
Weighted average discount rate - Spire Missouri West plans | 3.70% | 3.50% | |
Weighted average discount rate - Spire Alabama plans | 3.65%/3.70% | 3.45%/3.50% | |
Weighted average rate of future compensation increase | 3.00% | 3.00% |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Projected benefit obligation | $ | 748.8 | $ | 794.7 | $ | 539.6 | $ | 560.0 | $ | 148.2 | $ | 174.3 | |||||||||||
Accumulated benefit obligation | 701.4 | 724.5 | 500.4 | 517.7 | 142.8 | 149.8 | |||||||||||||||||
Fair value of plan assets | 531.6 | 540.5 | 385.9 | 395.7 | 97.9 | 100.0 |
Spire Missouri | 2017 Target | 2017 Actual | 2016 Target | 2016 Actual | |||||||
Equity markets | 56.4 | % | 56.8 | % | 56.2 | % | 56.9 | % | |||
Debt securities | 43.6 | % | 42.0 | % | 43.8 | % | 43.1 | % | |||
Cash equivalents | — | % | 1.2 | % | — | % | — | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Spire Alabama | 2017 Target | 2017 Actual | 2016 Target | 2016 Actual | |||||||
Equity markets | 60.0 | % | 58.5 | % | 60.0 | % | 59.2 | % | |||
Debt securities | 29.0 | % | 28.7 | % | 29.0 | % | 28.8 | % | |||
Other* | 11.0 | % | 12.8 | % | 11.0 | % | 12.0 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Includes cash and funds invested in real estate, commodities, natural resources and inflation-protected securities. |
2018 | 2019 | 2020 | 2021 | 2022 | 2023- 2027 | ||||||||||||||||||
Spire | $ | 63.5 | $ | 63.2 | $ | 63.2 | $ | 58.1 | $ | 57.9 | $ | 281.1 | |||||||||||
Spire Missouri | 50.7 | 49.5 | 49.1 | 43.5 | 42.1 | 198.1 | |||||||||||||||||
Spire Alabama | 10.3 | 11.1 | 11.5 | 11.9 | 13.0 | 67.8 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Service cost – benefits earned during the period | $ | 11.0 | $ | 10.9 | $ | 12.8 | $ | 10.4 | $ | 10.6 | $ | 12.3 | $ | 0.3 | $ | 0.3 | $ | 0.5 | |||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 8.6 | 10.2 | 11.2 | 6.8 | 8.1 | 8.6 | 1.6 | 2.1 | 2.6 | ||||||||||||||||||||||||||
Expected return on plan assets | (13.6 | ) | (13.5 | ) | (13.2 | ) | (9.0 | ) | (8.5 | ) | (8.1 | ) | (4.4 | ) | (5.0 | ) | (5.1 | ) | |||||||||||||||||
Amortization of prior service cost (credit) | — | 0.3 | 0.8 | 0.2 | 0.3 | 0.8 | (0.2 | ) | — | — | |||||||||||||||||||||||||
Amortization of actuarial loss (gain) | 2.5 | 3.6 | 5.1 | 2.6 | 3.8 | 5.1 | (0.1 | ) | (0.2 | ) | — | ||||||||||||||||||||||||
Special termination benefits | — | 2.6 | — | — | 2.6 | — | — | — | — | ||||||||||||||||||||||||||
Subtotal | 8.5 | 14.1 | 16.7 | 11.0 | 16.9 | 18.7 | (2.8 | ) | (2.8 | ) | (2.0 | ) | |||||||||||||||||||||||
Regulatory adjustment | (3.2 | ) | (6.6 | ) | (11.0 | ) | (1.5 | ) | (4.8 | ) | (9.2 | ) | (1.8 | ) | (1.8 | ) | (1.8 | ) | |||||||||||||||||
Net postretirement benefit cost | $ | 5.3 | $ | 7.5 | $ | 5.7 | $ | 9.5 | $ | 12.1 | $ | 9.5 | $ | (4.6 | ) | $ | (4.6 | ) | $ | (3.8 | ) |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Current year actuarial (gain) loss | $ | (34.1 | ) | $ | 0.8 | $ | (8.5 | ) | $ | (28.5 | ) | $ | 1.4 | $ | (2.4 | ) | $ | (4.5 | ) | $ | (0.6 | ) | $ | (6.1 | ) | ||||||||||
Amortization of actuarial (loss) gain | (2.5 | ) | (3.6 | ) | (5.1 | ) | (2.6 | ) | (3.8 | ) | (5.1 | ) | 0.1 | 0.2 | — | ||||||||||||||||||||
Current year prior service credit | (1.4 | ) | (1.8 | ) | (4.9 | ) | — | — | (4.9 | ) | (1.4 | ) | (1.8 | ) | — | ||||||||||||||||||||
Amortization of prior service (cost) credit | — | (0.3 | ) | (0.8 | ) | (0.2 | ) | (0.3 | ) | (0.8 | ) | 0.2 | — | — | |||||||||||||||||||||
Subtotal | (38.0 | ) | (4.9 | ) | (19.3 | ) | (31.3 | ) | (2.7 | ) | (13.2 | ) | (5.6 | ) | (2.2 | ) | (6.1 | ) | |||||||||||||||||
Regulatory adjustment | 38.0 | 4.9 | 19.3 | 31.3 | 2.7 | 13.2 | 5.6 | 2.2 | 6.1 | ||||||||||||||||||||||||||
Total recognized in OCI | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Benefit obligation, beginning of year | $ | 259.2 | $ | 239.2 | $ | 207.9 | $ | 191.9 | $ | 45.4 | $ | 47.3 | |||||||||||
Service cost | 11.0 | 10.9 | 10.4 | 10.6 | 0.3 | 0.3 | |||||||||||||||||
Interest cost | 8.6 | 10.2 | 6.8 | 8.1 | 1.6 | 2.1 | |||||||||||||||||
Actuarial (gain) loss | (22.1 | ) | 7.1 | (20.9 | ) | 6.7 | — | 0.4 | |||||||||||||||
Plan amendments | (1.4 | ) | (1.8 | ) | — | — | (1.4 | ) | (1.8 | ) | |||||||||||||
Spire EnergySouth acquisition | — | 5.9 | — | — | — | — | |||||||||||||||||
Special termination benefits | — | 2.6 | — | 2.6 | — | — | |||||||||||||||||
Curtailments | 0.4 | — | — | — | — | — | |||||||||||||||||
Retiree drug subsidy program | 0.3 | 0.2 | 0.3 | — | — | 0.2 | |||||||||||||||||
Gross benefits paid | (17.5 | ) | (15.1 | ) | (12.0 | ) | (12.0 | ) | (5.3 | ) | (3.1 | ) | |||||||||||
Benefit obligation, end of year | $ | 238.5 | $ | 259.2 | $ | 192.5 | $ | 207.9 | $ | 40.6 | $ | 45.4 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 246.4 | $ | 223.3 | $ | 159.7 | $ | 143.6 | $ | 82.8 | $ | 79.7 | |||||||||||
Actual return on plan assets | 26.2 | 19.9 | 16.8 | 13.8 | 8.9 | 6.2 | |||||||||||||||||
Employer contributions | 10.4 | 14.3 | 10.4 | 14.3 | — | — | |||||||||||||||||
Spire EnergySouth acquisition | — | 4.0 | — | — | — | — | |||||||||||||||||
Gross benefits paid | (17.5 | ) | (15.1 | ) | (12.0 | ) | (12.0 | ) | (5.3 | ) | (3.1 | ) | |||||||||||
Fair value of plan assets, end of year | $ | 265.5 | $ | 246.4 | $ | 174.9 | $ | 159.7 | $ | 86.4 | $ | 82.8 | |||||||||||
Funded status of plans, end of year | $ | 27.0 | $ | (12.8 | ) | $ | (17.6 | ) | $ | (48.2 | ) | $ | 45.8 | $ | 37.4 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Current assets | $ | 1.4 | $ | 0.3 | $ | 1.4 | $ | 0.3 | $ | — | $ | — | |||||||||||
Noncurrent assets | 47.0 | 37.4 | 1.2 | — | 45.8 | 37.4 | |||||||||||||||||
Current liabilities | (0.4 | ) | (0.4 | ) | (0.4 | ) | (0.4 | ) | — | — | |||||||||||||
Noncurrent liabilities | (21.0 | ) | (50.1 | ) | (19.8 | ) | (48.1 | ) | — | — | |||||||||||||
Total | $ | 27.0 | $ | (12.8 | ) | $ | (17.6 | ) | $ | (48.2 | ) | $ | 45.8 | $ | 37.4 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net actuarial loss (gain) | $ | 1.5 | $ | 38.0 | $ | 12.3 | $ | 43.4 | $ | (9.7 | ) | $ | (5.4 | ) | |||||||||
Prior service credit | (6.6 | ) | (5.2 | ) | (3.7 | ) | (3.4 | ) | (2.9 | ) | (1.8 | ) | |||||||||||
Subtotal | (5.1 | ) | 32.8 | 8.6 | 40.0 | (12.6 | ) | (7.2 | ) | ||||||||||||||
Adjustments for amounts included in regulatory assets | 5.1 | (32.8 | ) | (8.6 | ) | (40.0 | ) | 12.6 | 7.2 | ||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Spire | Spire Missouri | Spire Alabama | |||||||||
Amortization of net actuarial loss | $ | 0.9 | $ | 0.9 | $ | — | |||||
Amortization of prior service (credit) cost | (0.1 | ) | 0.3 | (0.4 | ) | ||||||
Subtotal | 0.8 | 1.2 | (0.4 | ) | |||||||
Regulatory adjustment | (0.8 | ) | (1.2 | ) | 0.4 | ||||||
Total | $ | — | $ | — | $ | — |
2017 | 2016 | 2015 | |||
Weighted average discount rate - Spire Missouri East plans | 3.15% | 4.00% | 4.15% | ||
Weighted average discount rate - Spire Missouri West plans | 3.45% | 4.30% | 4.40% | ||
Weighted average rate of future compensation increase | 3.00% | 3.00% | 3.00% | ||
Expected long-term rate of return on plan assets - Spire Missouri East plans | 5.75%/7.75% | 6.00%/7.75% | 6.25%/7.75% | ||
Expected long-term rate of return on plan assets - Spire Missouri West plans | 5.50% | 4.75% | 5.00% |
2017 | 2016 | 2015 | |||
Weighted average discount rate | 3.60% | 4.50% | 4.40% | ||
Expected long-term rate of return on plan assets | 4.00%/6.25% | 4.50%/7.25% | 4.75%/7.50% |
2017 | 2016 | ||
Weighted average discount rate - Spire Alabama plans | 3.80% | 3.60% | |
Weighted average discount rate - Spire Missouri East plans | 3.60% | 3.15% | |
Weighted average discount rate - Spire Missouri West plans | 3.60% | 3.45% | |
Weighted average rate of future compensation increase - Spire Missouri East plans | 3.00% | 3.00% |
2017 | 2016 | ||
Medical cost trend assumed for next year - Spire Missouri | 7.25% | 7.50% | |
Medical cost trend assumed for next year - Spire Alabama | 7.25% | 7.50% | |
Rate to which the medical cost trend rate is assumed to decline (the ultimate medical cost trend rate) | 5.00% | 5.00% | |
Year the rate reaches the ultimate trend | 2023 | 2023 |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
1% Increase | 1% Decrease | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||||||||
Net periodic postretirement benefit cost | $ | 1.7 | $ | (1.4 | ) | $ | 1.6 | $ | (1.3 | ) | $ | 0.1 | $ | (0.1 | ) | ||||||||
Accumulated postretirement benefit obligation | 10.0 | (9.2 | ) | 8.0 | (7.4 | ) | 1.4 | (1.3 | ) |
Spire Missouri | Target | 2017 Actual | 2016 Actual | |||||
Equity securities | 60.0 | % | 59.0 | % | 59.1 | % | ||
Debt securities | 40.0 | % | 39.4 | % | 39.4 | % | ||
Other (cash and cash equivalents held to make benefit payments) | — | % | 1.6 | % | 1.5 | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Spire Alabama | Target | 2017 Actual | 2016 Actual | |||||
Equity securities | 60.0 | % | 60.1 | % | 60.5 | % | ||
Debt securities | 40.0 | % | 39.9 | % | 39.5 | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
2018 | 2019 | 2020 | 2021 | 2022 | 2023- 2027 | ||||||||||||||||||
Spire | $ | 15.0 | $ | 16.0 | $ | 17.1 | $ | 18.3 | $ | 18.9 | $ | 101.3 | |||||||||||
Spire Missouri | 11.8 | 12.8 | 14.0 | 15.2 | 15.9 | 86.5 | |||||||||||||||||
Spire Alabama | 2.8 | 2.8 | 2.8 | 2.8 | 2.7 | 13.0 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 37.3 | $ | — | $ | — | $ | 37.3 | |||||||
Equity mutual funds - domestic | 42.1 | 25.4 | — | 67.5 | |||||||||||
Equity mutual funds - international | 37.4 | 11.2 | — | 48.6 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | 34.4 | 68.5 | — | 102.9 | |||||||||||
US government | 33.2 | 4.5 | — | 37.7 | |||||||||||
US corporate | 183.7 | — | — | 183.7 | |||||||||||
US municipal | 4.2 | — | — | 4.2 | |||||||||||
International | 45.1 | 7.2 | — | 52.3 | |||||||||||
Derivatives and margin (payable) | (2.6 | ) | — | — | (2.6 | ) | |||||||||
Total | $ | 414.8 | $ | 116.8 | $ | — | $ | 531.6 | |||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 51.2 | $ | — | $ | — | $ | 51.2 | |||||||
Stock/bond mutual funds | 99.3 | 26.7 | 0.1 | 126.1 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | 23.0 | 126.0 | — | 149.0 | |||||||||||
US government | 42.1 | 3.0 | — | 45.1 | |||||||||||
US corporate | 137.4 | — | — | 137.4 | |||||||||||
US municipal | 6.3 | — | — | 6.3 | |||||||||||
International | 25.3 | — | — | 25.3 | |||||||||||
Derivatives and margin (payable) | (1.0 | ) | 1.1 | — | 0.1 | ||||||||||
Total | $ | 383.6 | $ | 156.8 | $ | 0.1 | $ | 540.5 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 4.0 | $ | — | $ | — | $ | 4.0 | |||||||
US stock/bond mutual funds | 174.1 | 71.7 | — | 245.8 | |||||||||||
International fund | 1.0 | 14.7 | — | 15.7 | |||||||||||
Total | $ | 179.1 | $ | 86.4 | $ | — | $ | 265.5 | |||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 4.8 | $ | — | $ | — | $ | 4.8 | |||||||
US stock/bond mutual funds | 157.9 | 68.5 | — | 226.4 | |||||||||||
International fund | 0.9 | 14.3 | — | 15.2 | |||||||||||
Total | $ | 163.6 | $ | 82.8 | $ | — | $ | 246.4 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 31.7 | $ | — | $ | — | $ | 31.7 | |||||||
Equity mutual funds - domestic | — | 11.9 | — | 11.9 | |||||||||||
Equity mutual funds - international | — | 5.7 | — | 5.7 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | — | 68.5 | — | 68.5 | |||||||||||
US government | 33.2 | 4.5 | — | 37.7 | |||||||||||
US corporate | 183.7 | — | — | 183.7 | |||||||||||
US municipal | 4.2 | — | — | 4.2 | |||||||||||
International | 45.1 | — | — | 45.1 | |||||||||||
Derivatives and margin (payable) | (2.6 | ) | — | — | (2.6 | ) | |||||||||
Total | $ | 295.3 | $ | 90.6 | $ | — | $ | 385.9 | |||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 46.5 | $ | — | $ | — | $ | 46.5 | |||||||
Stock/bond mutual funds | — | 14.8 | 0.1 | 14.9 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | — | 120.2 | — | 120.2 | |||||||||||
US government | 42.1 | 3.0 | — | 45.1 | |||||||||||
US corporate | 137.4 | — | — | 137.4 | |||||||||||
US municipal | 6.3 | — | — | 6.3 | |||||||||||
International | 25.2 | — | — | 25.2 | |||||||||||
Derivatives and margin (payable) | (1.0 | ) | 1.1 | — | 0.1 | ||||||||||
Total | $ | 256.5 | $ | 139.1 | $ | 0.1 | $ | 395.7 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 3.9 | $ | — | $ | — | $ | 3.9 | |||||||
US stock/bond mutual funds | 171.0 | — | — | 171.0 | |||||||||||
Total | $ | 174.9 | $ | — | $ | — | $ | 174.9 | |||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 4.6 | $ | — | $ | — | $ | 4.6 | |||||||
US stock/bond mutual funds | 155.1 | — | — | 155.1 | |||||||||||
Total | $ | 159.7 | $ | — | $ | — | $ | 159.7 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
Cash and cash equivalents | $ | 3.4 | $ | — | $ | — | $ | 3.4 | |||||||
Equity mutual funds - domestic | 28.4 | 9.1 | — | 37.5 | |||||||||||
Equity mutual funds - international | 25.2 | 3.7 | — | 28.9 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | 23.2 | — | — | 23.2 | |||||||||||
International | — | 4.9 | — | 4.9 | |||||||||||
Total | $ | 80.2 | $ | 17.7 | $ | — | $ | 97.9 | |||||||
As of September 30, 2016 | |||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | — | $ | — | $ | 0.4 | |||||||
Stock/bond mutual funds | 59.0 | 11.9 | — | 70.9 | |||||||||||
Debt securities: | |||||||||||||||
US bond mutual funds | 23.0 | 5.7 | — | 28.7 | |||||||||||
Total | $ | 82.4 | $ | 17.6 | $ | — | $ | 100.0 |
Quoted Prices in Active Markets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
As of September 30, 2017 | |||||||||||||||
US stock/bond mutual funds | $ | — | $ | 71.7 | $ | — | $ | 71.7 | |||||||
International fund | — | 14.7 | — | 14.7 | |||||||||||
Total | $ | — | $ | 86.4 | $ | — | $ | 86.4 | |||||||
As of September 30, 2016 | |||||||||||||||
US stock/bond mutual funds | $ | — | $ | 68.5 | $ | — | $ | 68.5 | |||||||
International fund | — | 14.3 | — | 14.3 | |||||||||||
Total | $ | — | $ | 82.8 | $ | — | $ | 82.8 |
• | unallocated corporate items, including certain debt and associated interest costs; |
• | Spire STL Pipeline, a subsidiary of Spire planning construction and operation of a proposed 65-mile 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. |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2017 | |||||||||||||||||||
Revenues from external customers | $ | 1,660.0 | $ | 79.3 | $ | 1.4 | $ | — | $ | 1,740.7 | |||||||||
Intersegment revenues | 7.9 | — | 6.3 | (14.2 | ) | — | |||||||||||||
Total Operating Revenues | 1,667.9 | 79.3 | 7.7 | (14.2 | ) | 1,740.7 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 645.9 | — | — | (75.4 | ) | 570.5 | |||||||||||||
Other operation and maintenance | 409.1 | — | — | (4.1 | ) | 405.0 | |||||||||||||
Depreciation and amortization | 153.5 | — | — | — | 153.5 | ||||||||||||||
Taxes, other than income taxes | 137.8 | — | — | — | 137.8 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,346.3 | — | — | (79.5 | ) | 1,266.8 | |||||||||||||
Gas Marketing and Other * | — | 74.1 | 12.8 | 65.3 | 152.2 | ||||||||||||||
Total Operating Expenses | 1,346.3 | 74.1 | 12.8 | (14.2 | ) | 1,419.0 | |||||||||||||
Operating Income (Loss) | $ | 321.6 | $ | 5.2 | $ | (5.1 | ) | $ | — | $ | 321.7 | ||||||||
Net Economic Earnings (Loss) | $ | 181.5 | $ | 6.8 | $ | (20.7 | ) | $ | — | $ | 167.6 | ||||||||
Capital Expenditures | $ | 412.6 | $ | — | $ | 25.5 | $ | — | $ | 438.1 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2016 | |||||||||||||||||||
Revenues from external customers | $ | 1,457.2 | $ | 78.5 | $ | 1.6 | $ | — | $ | 1,537.3 | |||||||||
Intersegment revenues | 2.2 | — | 3.2 | (5.4 | ) | — | |||||||||||||
Total Operating Revenues | 1,459.4 | 78.5 | 4.8 | (5.4 | ) | 1,537.3 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 539.7 | — | — | (47.5 | ) | 492.2 | |||||||||||||
Other operation and maintenance | 379.3 | — | — | (1.8 | ) | 377.5 | |||||||||||||
Depreciation and amortization | 136.9 | — | — | — | 136.9 | ||||||||||||||
Taxes, other than income taxes | 125.2 | — | — | — | 125.2 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,181.1 | — | — | (49.3 | ) | 1,131.8 | |||||||||||||
Gas Marketing and Other * | — | 66.7 | 12.6 | 43.9 | 123.2 | ||||||||||||||
Total Operating Expenses | 1,181.1 | 66.7 | 12.6 | (5.4 | ) | 1,255.0 | |||||||||||||
Operating Income (Loss) | $ | 278.3 | $ | 11.8 | $ | (7.8 | ) | $ | — | $ | 282.3 | ||||||||
Net Economic Earnings (Loss) | $ | 160.3 | $ | 6.4 | $ | (17.6 | ) | $ | — | $ | 149.1 | ||||||||
Capital Expenditures | $ | 291.7 | $ | — | $ | 1.6 | $ | — | $ | 293.3 |
Gas Utility | Gas Marketing | Other | Eliminations | Consolidated | |||||||||||||||
2015 | |||||||||||||||||||
Revenues from external customers | $ | 1,891.8 | $ | 82.9 | $ | 1.7 | $ | — | $ | 1,976.4 | |||||||||
Intersegment revenues | 4.0 | 70.5 | 2.0 | (76.5 | ) | — | |||||||||||||
Total Operating Revenues | 1,895.8 | 153.4 | 3.7 | (76.5 | ) | 1,976.4 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Gas Utility | |||||||||||||||||||
Natural and propane gas | 957.6 | — | — | (75.2 | ) | 882.4 | |||||||||||||
Other operation and maintenance | 391.6 | — | — | (1.0 | ) | 390.6 | |||||||||||||
Depreciation and amortization | 129.9 | — | — | — | 129.9 | ||||||||||||||
Taxes, other than income taxes | 142.1 | — | — | — | 142.1 | ||||||||||||||
Total Gas Utility Operating Expenses | 1,621.2 | — | — | (76.2 | ) | 1,545.0 | |||||||||||||
Gas Marketing and Other * | — | 146.6 | 12.6 | (0.3 | ) | 158.9 | |||||||||||||
Total Operating Expenses | 1,621.2 | 146.6 | 12.6 | (76.5 | ) | 1,703.9 | |||||||||||||
Operating Income (Loss) | $ | 274.6 | $ | 6.8 | $ | (8.9 | ) | $ | — | $ | 272.5 | ||||||||
Net Economic Earnings (Loss) | $ | 150.4 | $ | 4.2 | $ | (16.3 | ) | $ | — | $ | 138.3 | ||||||||
Capital Expenditures | $ | 284.4 | $ | — | $ | 5.4 | $ | — | $ | 289.8 |
* | Operating Expenses for “Gas Marketing and Other” include depreciation and amortization for Gas Marketing ($0.1 for 2017, $0.1 for 2016, and $0.3 for 2015) and for Other ($0.5 for 2017, $0.5 for 2016, and $0.6 for 2015). |
Total Assets at End of Year | 2017 | 2016 | 2015 | ||||||||
Gas Utility | $ | 5,551.2 | $ | 5,184.7 | $ | 4,679.3 | |||||
Gas Marketing | 246.2 | 205.0 | 160.6 | ||||||||
Other | 2,239.5 | 1,836.6 | 1,554.5 | ||||||||
Eliminations | (1,490.2 | ) | (1,161.9 | ) | (1,116.8 | ) | |||||
Total Assets | $ | 6,546.7 | $ | 6,064.4 | $ | 5,277.6 |
Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings | 2017 | 2016 | 2015 | ||||||||
Net Income | $ | 161.6 | $ | 144.2 | $ | 136.9 | |||||
Adjustments, pre-tax: | |||||||||||
Unrealized loss (gain) on energy-related derivatives | 6.0 | (0.1 | ) | (2.8 | ) | ||||||
Lower of cost or market inventory adjustments | — | 0.2 | 0.4 | ||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (0.3 | ) | (1.6 | ) | 2.4 | ||||||
Acquisition, divestiture and restructuring activities | 4.0 | 9.2 | 9.8 | ||||||||
Gain on sale of property | — | — | (7.6 | ) | |||||||
Income tax effect of adjustments | (3.7 | ) | (2.8 | ) | (0.8 | ) | |||||
Net Economic Earnings | $ | 167.6 | $ | 149.1 | $ | 138.3 |
15. | REGULATORY MATTERS |
Spire | Spire Missouri | Spire Alabama | |||||||||||||||||||||
September 30 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||
Pension and postretirement benefit costs | $ | 42.2 | $ | 27.0 | $ | 34.9 | $ | 20.2 | $ | 7.2 | $ | 6.8 | |||||||||||
Unamortized purchased gas adjustments | 102.6 | 49.7 | 57.4 | 43.1 | 45.2 | 5.6 | |||||||||||||||||
Other | 30.7 | 17.2 | 3.3 | 3.7 | 12.2 | 8.1 | |||||||||||||||||
Total Current Regulatory Assets | 175.5 | 93.9 | 95.6 | 67.0 | 64.6 | 20.5 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||
Future income taxes due from customers | 170.5 | 151.3 | 170.5 | 151.3 | — | — | |||||||||||||||||
Pension and postretirement benefit costs | 404.7 | 487.9 | 322.7 | 375.7 | 72.6 | 98.9 | |||||||||||||||||
Cost of removal | 123.3 | 130.6 | — | — | 123.3 | 130.6 | |||||||||||||||||
Unamortized purchased gas adjustments | 9.9 | 12.6 | 9.9 | 12.6 | — | — | |||||||||||||||||
Energy efficiency | 29.0 | 25.5 | 29.0 | 25.5 | — | — | |||||||||||||||||
Other | 53.7 | 30.1 | 25.7 | 24.7 | 1.1 | 1.2 | |||||||||||||||||
Total Noncurrent Regulatory Assets | 791.1 | 838.0 | 557.8 | 589.8 | 197.0 | 230.7 | |||||||||||||||||
Total Regulatory Assets | $ | 966.6 | $ | 931.9 | $ | 653.4 | $ | 656.8 | $ | 261.6 | $ | 251.2 | |||||||||||
Regulatory Liabilities: | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||
RSE adjustment | $ | 1.4 | $ | 7.5 | $ | — | $ | — | $ | 1.4 | $ | 5.0 | |||||||||||
Unbilled service margin | — | 5.9 | — | — | — | 5.9 | |||||||||||||||||
Refundable negative salvage | 8.2 | 9.3 | — | — | 8.2 | 9.3 | |||||||||||||||||
Unamortized purchased gas adjustments | 1.0 | 1.7 | — | — | — | — | |||||||||||||||||
Other | 12.0 | 6.2 | 2.7 | 1.3 | 2.4 | 2.5 | |||||||||||||||||
Total Current Regulatory Liabilities | 22.6 | 30.6 | 2.7 | 1.3 | 12.0 | 22.7 | |||||||||||||||||
Noncurrent: | |||||||||||||||||||||||
Pension and postretirement benefit costs | 32.2 | 28.9 | — | — | 32.2 | 28.9 | |||||||||||||||||
Refundable negative salvage | 4.1 | 9.4 | — | — | 4.1 | 9.4 | |||||||||||||||||
Accrued cost of removal | 83.8 | 74.8 | 54.5 | 55.1 | — | — | |||||||||||||||||
Other | 37.1 | 17.6 | 26.7 | 12.2 | 3.3 | 3.4 | |||||||||||||||||
Total Noncurrent Regulatory Liabilities | 157.2 | 130.7 | 81.2 | 67.3 | 39.6 | 41.7 | |||||||||||||||||
Total Regulatory Liabilities | $ | 179.8 | $ | 161.3 | $ | 83.9 | $ | 68.6 | $ | 51.6 | $ | 64.4 |
Spire | Spire Missouri | ||||||||||||||
September 30 | 2017 | 2016 | 2017 | 2016 | |||||||||||
Future income taxes due from customers | $ | 170.5 | $ | 151.3 | $ | 170.5 | $ | 151.3 | |||||||
Pension and postretirement benefit costs | 198.5 | 240.6 | 198.5 | 240.6 | |||||||||||
Other | 11.3 | 12.9 | 11.3 | 12.9 | |||||||||||
Total Regulatory Assets Not Earning a Return | $ | 380.3 | $ | 404.8 | $ | 380.3 | $ | 404.8 |
Aggregate Rental Expense | Minimum Rental Commitments | ||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2019 | 2020 | 2021 | 2022 | Later | Total | ||||||||||||||||||||||||||||||
Spire | $ | 9.7 | $ | 11.9 | $ | 14.1 | $ | 10.1 | $ | 9.3 | $ | 7.8 | $ | 6.1 | $ | 6.0 | $ | 44.4 | $ | 83.7 | |||||||||||||||||||
Spire Missouri | 4.8 | 4.3 | 7.6 | 2.1 | 1.3 | 0.2 | 0.2 | — | — | 3.8 | |||||||||||||||||||||||||||||
Spire Alabama | 4.6 | 3.7 | 4.0 | 4.0 | 4.1 | 3.8 | 2.1 | 2.1 | 2.8 | 18.9 |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2017 | |||||||||||||||
Total Operating Revenues | $ | 495.1 | $ | 663.4 | $ | 323.5 | $ | 258.7 | |||||||
Operating Income | 89.1 | 180.4 | 50.3 | 1.9 | |||||||||||
Net Income (Loss) | 45.2 | 108.0 | 21.7 | (13.3 | ) | ||||||||||
Basic Earnings (Loss) Per Share of Common Stock | $ | 0.99 | $ | 2.36 | $ | 0.45 | $ | (0.28 | ) | ||||||
Diluted Earnings (Loss) Per Share of Common Stock | $ | 0.99 | $ | 2.36 | $ | 0.45 | $ | (0.28 | ) | ||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 399.4 | $ | 609.3 | $ | 249.3 | $ | 279.3 | |||||||
Operating Income (Loss) | 87.0 | 167.7 | 35.3 | (7.7 | ) | ||||||||||
Net Income (Loss) | 46.9 | 100.8 | 10.7 | (14.2 | ) | ||||||||||
Basic Earnings (Loss) Per Share of Common Stock | $ | 1.08 | $ | 2.32 | $ | 0.24 | $ | (0.31 | ) | ||||||
Diluted Earnings (Loss) Per Share of Common Stock | $ | 1.08 | $ | 2.31 | $ | 0.24 | $ | (0.31 | ) |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2017 | |||||||||||||||
Total Operating Revenues | $ | 363.6 | $ | 447.2 | $ | 198.5 | $ | 162.6 | |||||||
Operating Income | 64.5 | 90.2 | 30.5 | 11.7 | |||||||||||
Net Income | 38.0 | 57.0 | 15.5 | 2.5 | |||||||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 317.2 | $ | 446.7 | $ | 179.3 | $ | 144.3 | |||||||
Operating Income | 65.1 | 87.0 | 29.4 | 5.4 | |||||||||||
Net Income (Loss) | 39.4 | 54.3 | 13.9 | (1.7 | ) |
Three Months Ended | Dec. 31 | March 31 | June 30 | Sept. 30 | |||||||||||
Fiscal Year 2017 | |||||||||||||||
Total Operating Revenues | $ | 86.7 | $ | 158.8 | $ | 90.5 | $ | 64.5 | |||||||
Operating Income (Loss) | 19.8 | 78.9 | 15.5 | (8.4 | ) | ||||||||||
Net Income (Loss) | 10.3 | 47.6 | 7.4 | (7.2 | ) | ||||||||||
Fiscal Year 2016 | |||||||||||||||
Total Operating Revenues | $ | 82.3 | $ | 166.0 | $ | 74.0 | $ | 46.2 | |||||||
Operating Income (Loss) | 18.9 | 80.4 | 9.3 | (17.1 | ) | ||||||||||
Net Income (Loss) | 9.9 | 48.1 | 4.0 | (8.8 | ) |
• | Changes mid-year enrollments to quarterly instead of monthly. |
• | Changes definition of “Change in Control” to align the definition to be consistent with other compensation plans, by providing that a change in control occurs upon any of the following: acquisition of 30% of the Company’s outstanding shares of common stock or combined voting power of outstanding voting securities is acquired; a change in the majority of the members of the Board without the approval of a majority of the members of the Board; a merger or reorganization after which the shareholders immediately prior to the transaction do not own more than 50% of the surviving entity’s then outstanding shares of common stock or combined voting power; or the acquisition of least 80% of the Company’s assets. |
• | Removes annual minimum deferral requirement. |
• | Changes plan name to “Spire Deferred Income Plan.” |
• | Allows daily investment election changes. |
• | Adds “Flexible Distribution Account” and “Separation Distribution Account” options to plan. |
• | Closes “Retirement Distribution Account” and “In-Service Distribution Account” options to new participants. |
• | Adds hardship withdrawal option to plan. |
• | Requires lump sum distribution of small balances not exceeding the limit imposed by Section 402(g) of the Internal Revenue Code. |
• | Allows changes to form of payment in accordance with Section 409A of the Internal Revenue Code. |
• | our directors is incorporated by reference from the discussion under Proposal 1 of our proxy statement to be filed on or about December 13, 2017 (2017 proxy statement); |
• | our executive officers is reported in Part I of this Form 10-K; |
• | compliance with Section 16(a) of the Exchange Act is incorporated by reference from the discussion in our 2017 proxy statement under the heading “Section 16(a) Beneficial Ownership Reporting Compliance”; |
• | our Financial Code of Ethics is posted on our website, www.SpireEnergy.com, under Investors/Governance/Governance documents (http://investors.spireenergy.com/governance/governance-documents); and |
• | our Audit Committee, our Audit Committee financial experts, and submitting nominations to the Corporate Governance Committee is incorporated by reference from the discussion in our 2017 proxy statement under the heading “Corporate Governance.” |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||
(a) | (b) | (c) | |||
Equity compensation plans approved by security holders (1) | 674,970 | $— | 505,545 | ||
Equity compensation plans not approved by security holders | — | — | — | ||
Total | 674,970 | $— | 505,545 |
(1) | Reflects the Company’s 2015 and 2006 Equity Incentive Plans. |
• | our policy and procedures for related party transactions and |
• | the independence of our directors |
Item 15. Exhibits, Financial Statement Schedules | ||||||
(a) | (1) | Financial Statements | ||||
See Item 8. Financial Statements and Supplementary Data, filed herewith, for a list of financial statements. | ||||||
(2) | Financial Statement Schedules | |||||
Schedules have been omitted because they are not applicable, related significance tests were not met, or the required data has been included in the financial statements or notes to financial statements. | ||||||
(3) | Exhibits |
Exhibit Number | Description | |
2.01* | ||
3.01* | ||
3.02* | ||
3.03*3 | ||
3.04*3 | ||
3.05*2 | ||
3.06*2 | ||
4.01* | Mortgage and Deed of Trust, dated as of February 1, 1945; filed as Exhibit 7-A to registration statement No. 2-5586. | |
4.02* | Fourteenth Supplemental Indenture, dated as of October 26, 1976; filed as Exhibit b-4 to registration statement No. 2-64857 filed June 26, 1979. | |
4.03*3 | ||
4.04*3 | ||
4.05*3 | ||
4.06*3 | ||
4.07*3 | ||
4.08*3 | ||
4.09*3 |
Exhibit Number | Description | |
4.10*3 | Laclede Gas Board of Directors’ Resolution dated August 28, 1986 which generally provides that the Board may delegate its authority in the adoption of certain employee benefit plan amendments to certain designated Executive Officers; filed as Exhibit 4.12 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1991. | |
4.11*3 | ||
4.12* | ||
4.13* | ||
4.14* | ||
4.15*2 | Indenture dated as of November 1, 1993, between Alagasco and NationsBank of Georgia, National Association, Trustee, (“Alagasco 1993 Indenture”), which was filed as Exhibit 4(k) to Alagasco’s Registration Statement on Form S-3 (Registration No. 33-70466). | |
4.16*2 | ||
4.17*2 | ||
4.18*2 | ||
4.19* | ||
4.20* | ||
4.21* | ||
4.22*3 | ||
10.01*†3 | ||
10.02*3 | ||
10.03*3 | ||
10.04*3 | ||
10.05*3 |
Exhibit Number | Description | |
10.06*3 | Salient Features of Laclede Gas’ Deferred Income Plan for Directors and Selected Executives, including amendments adopted by the Board of Directors on July 26, 1990; filed as Exhibit 10.12 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1991. | |
10.07*3 | Amendment to Laclede Gas’ Deferred Income Plan for Directors and Selected Executives, adopted by the Board of Directors on August 27, 1992; filed as Exhibit 10.12a to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1992. | |
10.08*3 | ||
10.09* | ||
10.10* | ||
10.11*3 | Form of Indemnification Agreement between Laclede Gas and its Directors and Officers; filed as Exhibit 10.13 to Laclede Gas’ Annual Report on Form 10-K for the fiscal year ended September 30, 1990. | |
10.12*3 | ||
10.13* | ||
10.14*3 | ||
10.15* | ||
10.16* | ||
10.17* | ||
10.18* | ||
10.19* | ||
10.20*1 | ||
10.21*1 | ||
10.22* | ||
10.23* |
Exhibit Number | Description | |
10.24* | ||
10.25* | ||
10.26* | ||
10.27*3 | ||
10.28*3 | ||
10.29*3 | ||
10.30*3 | ||
10.31*3 | ||
10.32* | ||
10.33*2 | ||
10.34*2 | ||
10.35*2 | ||
10.36*2 | ||
10.37*2 | ||
10.38*2 | ||
10.39*2 | ||
10.40*2 | ||
10.41*2 | Form of Service Agreement Under Rate Schedule IT (No. 790420), between Southern Natural Gas Company and Alagasco, which was filed as Exhibit 10(b) to Alagasco’s Annual Report on Form 10-K for the year ended September 30, 1993. |
Exhibit Number | Description | |
10.42*2 | ||
10.43*2 | ||
10.44*1 | ||
10.45*1 | ||
10.46*2 3 | ||
10.47* | ||
10.48* | ||
10.49* | ||
10.50*†3 | ||
10.51*3 | ||
10.52* | ||
10.531 | ||
10.541 | ||
10.55 | ||
10.561 | ||
10.57 | ||
12.1 | ||
12.2 | ||
21 | ||
23.1 | ||
23.23 | ||
23.32 | ||
31.1 | ||
31.23 | ||
31.32 | ||
32.1 | ||
32.23 |
Exhibit Number | Description | |
32.32 | ||
101.INS(×) | XBRL Instance Document. | |
101.SCH(×) | XBRL Taxonomy Extension Schema. | |
101.CAL(×) | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF(×) | XBRL Taxonomy Definition Linkbase. | |
101.LAB(×) | XBRL Taxonomy Extension Labels Linkbase. | |
101.PRE(×) | XBRL Taxonomy Extension Presentation Linkbase. |
(×) | Attached as Exhibit 101 to this Annual Report are the following documents formatted in extensible business reporting language (XBRL): (i) Document and Entity Information; (ii) Consolidated Statements of Income and Statements of Income for the years ended September 30, 2017, 2016, and 2015; (iii) Consolidated Statements of Comprehensive Income and Statements of Comprehensive Income for the years ended September 30, 2017, 2016, and 2015; (iv) Consolidated Statements of Common Shareholders’ Equity and Statements of Common Shareholder’s Equity for the years ended September 30, 2017, 2016, and 2015; (v) Consolidated Statements of Cash Flows and Statements of Cash Flows for the years ended September 30, 2017, 2016, and 2015; (vi) Consolidated Balance Sheets and Balance Sheets at September 30, 2017 and 2016; (vii) Consolidated Statements of Capitalization and Statements of Capitalization at September 30, 2017 and 2016; and (viii) Notes to Financial Statements. We also make available on our website the Interactive Data Files submitted as Exhibit 101 to this Annual Report. |
* | Incorporated herein by reference and made a part hereof. Spire Inc. File No. 1-16681. Spire Missouri Inc. File No. 1-1822. Spire Alabama Inc. File No. 2-38960. |
† | Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act. |
1 | The Laclede Group, Inc. changed its name to Spire Inc. effective April 28, 2016. |
2 | Alabama Gas Corporation (Alagasco) changed its name to Spire Alabama Inc. effective September 1, 2017. |
3 | Laclede Gas Company changed its name to Spire Missouri Inc. effective August 30, 2017. |
4 | Laclede Energy Resources, Inc. changed its name to Spire Marketing Inc. effective December 12, 2016. |
SPIRE INC. | ||||
Date | November 15, 2017 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Executive Vice President | ||||
and Chief Financial Officer |
Date | Signature | Title | |
November 15, 2017 | /s/ Suzanne Sitherwood | Director, President and Chief Executive Officer | |
Suzanne Sitherwood | (Principal Executive Officer) | ||
November 15, 2017 | /s/ Steven P. Rasche | Executive Vice President and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2017 | /s/ Edward L. Glotzbach | Chairman of the Board | |
Edward L. Glotzbach | |||
November 15, 2017 | /s/ Mark A. Borer | Director | |
Mark A. Borer | |||
November 15, 2017 | /s/ Maria V. Fogarty | Director | |
Maria V. Fogarty | |||
November 15, 2017 | /s/ Rob L. Jones | Director | |
Rob L. Jones | |||
November 15, 2017 | /s/ Brenda D. Newberry | Director | |
Brenda D. Newberry | |||
November 15, 2017 | /s/ John P. Stupp, Jr. | Director | |
John P. Stupp, Jr. | |||
November 15, 2017 | /s/ Mary Ann Van Lokeren | Director | |
Mary Ann Van Lokeren |
SPIRE MISSOURI INC. | ||||
Date | November 15, 2017 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
Date | Signature | Title | |
November 15, 2017 | /s/ Suzanne Sitherwood | Chairman of the Board | |
Suzanne Sitherwood | |||
November 15, 2017 | /s/ Steven P. Rasche | Director and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2017 | /s/ Steven L. Lindsey | Director, President and Chief Executive Officer | |
Steven L. Lindsey | (Principal Executive Officer) | ||
November 15, 2017 | /s/ Mark C. Darrell | Director | |
Mark C. Darrell | |||
November 15, 2017 | /s/ Scott B. Carter | Director | |
Scott B. Carter | |||
SPIRE ALABAMA INC. | ||||
Date | November 15, 2017 | By | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
Date | Signature | Title | |
November 15, 2017 | /s/ Suzanne Sitherwood | Chairman of the Board | |
Suzanne Sitherwood | |||
November 15, 2017 | /s/ Steven P. Rasche | Director and Chief Financial Officer | |
Steven P. Rasche | (Principal Financial and Accounting Officer) | ||
November 15, 2017 | /s/ Steven L. Lindsey | Director and Chief Executive Officer | |
Steven L. Lindsey | (Principal Executive Officer) | ||
November 15, 2017 | /s/ Mark C. Darrell | Director | |
Mark C. Darrell | |||
November 15, 2017 | /s/ Scott B. Carter | Director | |
Scott B. Carter | |||
3. | Section 2(g), the definition of “Company,” is hereby amended to read as follows: |
SPIRE INC. | ||
By: | /s/ Ellen L. Theroff | |
Name: | Ellen L. Theroff | |
Title: | Vice President, Corporate Secretary |
3. | Section 2.7, the definition of “Company,” is hereby amended to read as follows: |
SPIRE INC. | ||
By: | /s/ Ellen L. Theroff | |
Name: | Ellen L. Theroff | |
Title: | Vice President, Corporate Secretary |
SPIRE INC. | ||
By: | /s/ Ellen L. Theroff | |
Name: | Ellen L. Theroff | |
Title: | Vice President, Corporate Secretary |
SPIRE INC. | ||
By: | /s/ Ellen L. Theroff | |
Name: | Ellen L. Theroff | |
Title: | Vice President, Corporate Secretary |
4. | Under Section 2, the definition of “Gas” is hereby deleted in its entirety. |
12. | Section 5(c), “Earnings Credits on Amounts Deferred On and After January 1, 2016,” is hereby replaced with the following language: |
(i) | Annual Installments. The Participant may elect any number of annual installments between two (2) and fifteen (15). The first installment shall be paid in accordance with Section 8; thereafter, installment payments shall be paid in the anniversary month of the date of Termination of Employment. |
(ii) | Lump Sum. The Participant may elect to receive a single lump sum payment. |
(i) | The payment date may not be earlier than a date occurring within the third calendar year after the deferral election, including the Plan Year in which the Deferred Amount is deferred. |
(ii) | The Participant may defer the date of distribution for any Flexible Distribution Account in accordance with Section 9 of the Plan. |
(iii) | The form of payment for each Flexible Distribution Account shall be a single lump payment. |
(iv) | Unless the Plan Administrator by administrative action permits otherwise, the payment date for all Flexible Distribution Accounts shall be in January of the applicable calendar year. |
(v) | In the event the Participant has a Termination of Employment prior to the payment date for one or more Flexible Distribution Accounts, the payment date for the Flexible Distribution Account will not be altered, except as provided in Section 6(g)(vi). |
(vi) | In the event of the Participant’s Termination of Employment due to Change in Control, death, or Disability, the Participant’s Flexible Distribution Accounts shall be distributed as set forth in this Section 6 for distributions related to those events. |
SPIRE INC. | ||
By: | /s/ Ellen L. Theroff | |
Name: | Ellen L. Theroff | |
Title: | Vice President, Corporate Secretary |
(Dollars in Millions) | Years Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 239.2 | $ | 213.7 | $ | 199.1 | $ | 116.9 | $ | 70.4 | |||||||||
Add: Fixed Charges (from below) | 92.4 | 80.8 | 78.0 | 48.3 | 30.6 | ||||||||||||||
Total Earnings | $ | 331.6 | $ | 294.5 | $ | 277.1 | $ | 165.2 | $ | 101.0 | |||||||||
Fixed Charges | |||||||||||||||||||
Interest on long-term debt | $ | 76.8 | $ | 67.6 | $ | 66.6 | $ | 39.3 | $ | 25.5 | |||||||||
Other interest charges | 12.3 | 9.6 | 8.0 | 6.9 | 3.1 | ||||||||||||||
One third of applicable rentals charged to operating expense (which approximates the interest portion) | 2.5 | 3.4 | 3.4 | 2.1 | 2.0 | ||||||||||||||
Add back: Allowance for borrowed funds used during construction | 0.8 | 0.2 | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 92.4 | $ | 80.8 | $ | 78.0 | $ | 48.3 | $ | 30.6 | |||||||||
Ratio of Earnings to Fixed Charges | 3.59 | 3.64 | 3.55 | 3.41 | 3.30 |
(Dollars in Millions) | Years Ended September 30, | ||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes | $ | 160.5 | $ | 151.3 | $ | 148.5 | $ | 125.6 | $ | 63.4 | |||||||||
Add: Fixed Charges (from below) | 41.4 | 40.1 | 39.7 | 39.5 | 28.1 | ||||||||||||||
Total Earnings | $ | 201.9 | $ | 191.4 | $ | 188.2 | $ | 165.1 | $ | 91.5 | |||||||||
Fixed Charges | |||||||||||||||||||
Interest on long-term debt | $ | 32.9 | $ | 32.9 | $ | 33.1 | $ | 34.4 | $ | 24.9 | |||||||||
Other interest charges | 6.2 | 4.5 | 3.3 | 3.0 | 1.2 | ||||||||||||||
One third of applicable rentals charged to operating expense (which approximates the interest portion) | 1.8 | 2.5 | 3.3 | 2.1 | 2.0 | ||||||||||||||
Add back: Allowance for borrowed funds used during construction | 0.5 | 0.2 | — | — | — | ||||||||||||||
Total Fixed Charges | $ | 41.4 | $ | 40.1 | $ | 39.7 | $ | 39.5 | $ | 28.1 | |||||||||
Ratio of Earnings to Fixed Charges | 4.88 | 4.77 | 4.74 | 4.18 | 3.26 |
SPIRE INC. | ||
SUBSIDIARIES OF THE REGISTRANT | ||
Direct and Indirect Subsidiaries of Spire Inc.: | Doing Business As: | Organized Under the Laws of: |
Laclede Development Company | Missouri | |
Laclede Insurance Risk Services, Inc. | South Carolina | |
Spire Alabama Inc. (formerly Alabama Gas Corporation) | Spire (or Alagasco) | Alabama |
Spire CNG Inc. | Spire | Missouri |
Spire EnergySouth Inc. (formerly EnergySouth, Inc.) | Spire | Delaware |
Spire Gulf Inc. (formerly Mobile Gas Service Corporation) | Spire (or Mobile Gas) | Alabama |
Spire Marketing Inc. | Missouri | |
Spire Midstream LLC (formerly Spire Pipelines LLC) | Missouri | |
Spire Mississippi Inc. (formerly Willmut Gas & Oil Company) | Spire (or Willmut Gas) | Mississippi |
Spire Missouri Inc. (formerly Laclede Gas Company) | Spire, Spire Missouri East or Spire Missouri West (or Laclede Gas, MGE or Missouri Gas Energy) | Missouri |
Spire NGL Inc. (formerly Laclede Pipeline Company) | Spire | Missouri |
Spire Oil Services LLC (formerly Laclede Oil Services, LLC) | Spire | Missouri |
Spire Resources LLC | Missouri | |
Spire Services Inc. (formerly Shared Services Corporation) | Spire | Missouri |
Spire STL Pipeline LLC | Missouri | |
Spire Storage Inc. | Spire | Missouri |
1. | I have reviewed this annual report on Form 10-K 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; |
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: | November 15, 2017 | Signature: | /s/ Suzanne Sitherwood | |||
Suzanne Sitherwood | ||||||
President and Chief Executive Officer | ||||||
1. | I have reviewed this annual report on Form 10-K 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; |
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: | November 15, 2017 | Signature: | /s/ Steven P. Rasche | |||
Steven P. Rasche | ||||||
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of Spire Missouri 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; |
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: | November 15, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Spire Missouri 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; |
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: | November 15, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
1. | I have reviewed this annual report on Form 10-K of Spire Alabama 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; |
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: | November 15, 2017 | Signature: | /s/ Steven L. Lindsey | |
Steven L. Lindsey | ||||
Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Spire Alabama 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; |
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: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Inc. |
Date: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Missouri Inc. |
Date: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Missouri Inc. |
Date: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Alabama Inc. |
Date: | November 15, 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-K for the period ended September 30, 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-K for the period ended September 30, 2017 fairly presents, in all material respects, the financial condition and results of operations of Spire Alabama Inc. |
Date: | November 15, 2017 | Signature: | /s/ Steven P. Rasche | |
Steven P. Rasche | ||||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Assets | ||
Non-utility property, accumulated depreciation and amortization | $ 8.6 | $ 8.1 |
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
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Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, common stock (in dollars per share) | $ 2.10 | $ 1.96 | $ 1.84 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | |
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Sep. 30, 2017 |
Sep. 30, 2015 |
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Statement of Cash Flows [Abstract] | ||
Cash acquired from acquisition | $ 2.0 | $ 12.1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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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 audited financial statements of Spire Inc. presented on a consolidated basis (Spire or the Company), Spire Missouri Inc. (Spire Missouri or the Missouri Utilities) and Spire Alabama Inc. (Spire Alabama). Spire Missouri and Spire Alabama are wholly owned subsidiaries of the Company. Spire Missouri changed its name from Laclede Gas Company on August 30, 2017, and Spire Alabama changed its name from Alabama Gas Corporation on September 1, 2017. Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth Inc. (formerly known as EnergySouth, Inc.) are collectively referred to as the Utilities. The subsidiaries of Spire EnergySouth Inc. (Spire EnergySouth) are Spire Gulf Inc. (Spire Gulf, formerly known as Mobile Gas Service Corporation) and Spire Mississippi Inc. (Spire Mississippi, formerly known as Willmut Gas & Oil Company). The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Unless otherwise indicated, references to years herein are references to the fiscal years ending September 30 for the Company and its subsidiaries. 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 Spire Missouri and Spire Alabama and their affiliates, as well as intercompany balances on their balance sheets, have not been eliminated from their separate financial statements. The Company’s September 12, 2016 acquisition of Spire EnergySouth is included in the results of operations since the acquisition date and impacts the comparability of the financial statement periods presented for the Company. For a further discussion of the acquisition, see Note 2, Acquisitions. The Utilities are regulated natural gas distribution utilities. Due to the seasonal nature of the Utilities, the earnings of Spire, Spire Missouri and Spire Alabama are typically concentrated during the heating season of November through April each fiscal year. NATURE OF OPERATIONS – Spire Inc. (NYSE: SR) is a public utility holding company with principal offices in St. Louis, Missouri. 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 (Spire Missouri East) and Kansas City and western Missouri (Spire Missouri West, formerly Missouri Gas Energy, or MGE); Spire Alabama, serving central and northern Alabama; and the subsidiaries of Spire EnergySouth, serving southern Alabama and south-central Mississippi. Spire’s primary non-utility business, Spire Marketing Inc. (Spire Marketing), included in the Gas Marketing segment, provides non-regulated natural gas services. The activities of other subsidiaries are described in Note 14, Information by Operating Segment, and are reported as Other. Spire Missouri and Spire Alabama each have a single reportable segment. USE OF ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. SYSTEM OF ACCOUNTS – The accounts of the Utilities are maintained in accordance with the Uniform System of Accounts prescribed by the applicable state public service commissions, which systems substantially conform to that prescribed by the Federal Energy Regulatory Commission (FERC). PROPERTY, PLANT, AND EQUIPMENT – Utility Plant – Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. For Spire Missouri, utility plant is depreciated on a straight-line basis at rates based on estimated service lives of the various classes of property. In fiscal years 2017, 2016 and 2015, annual depreciation and amortization expense averaged 3.0% of the original cost of depreciable and amortizable property. For Spire Alabama, depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of utility property at rates approved by the Alabama Public Service Commission (APSC). The composite depreciation rate is approximately 3.1%. Non-utility Property – Non-utility property is recorded at the original cost of acquisition or construction, which includes material, labor, contractor services and, for FERC-regulated projects, an allowance for funds used during construction. Repairs, replacements and renewals of items of property determined to be less than a unit of property or that do not increase the property’s life or functionality are charged to maintenance expense. Upon retirement or sale of non-utility property, the original cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the income statements. Costs related to software developed or obtained for internal use are capitalized and amortized on a straight-line basis over the estimated useful life of the related software. If software is retired prior to being fully amortized, the difference is recorded as a loss in the income statements. Accrued Capital Expenditures – Accrued capital expenditures, shown in the following table, are excluded from capital expenditures in the statements of cash flows.
ASSET RETIREMENT OBLIGATIONS – Spire, Spire Missouri, and Spire Alabama record legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company, Spire Missouri and Spire Alabama record asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of Spire Missouri’s, Spire Alabama’s and Spire Gulf’s distribution systems and general plant. Asset retirement obligations recorded by Spire’s other subsidiaries are not material. As authorized by the Missouri Public Service Commission (MoPSC) and APSC, Spire Missouri, Spire Alabama and Spire Gulf accrue future asset removal costs associated with their property, plant and equipment even if a legal obligation does not exist. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities or regulatory assets. When those utilities retire depreciable utility plant and equipment, they charge the associated original costs to accumulated depreciation and amortization, and any related removal costs incurred are charged to regulatory liabilities or regulatory assets. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognized for financial reporting purposes is a timing difference between recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities or regulatory assets. In the rate setting process, the regulatory liabilities or regulatory assets are excluded from the rate base upon which those utilities have the opportunity to earn their allowed rates of return. The costs associated with asset retirement obligations of Spire Missouri, Spire Alabama and Spire Gulf are either currently being recovered in rates or are probable of recovery in future rates. The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, as reported in the balance sheets.
REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (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. See additional discussion on regulated operations in Note 15, Regulatory Matters. As discussed below for Spire Missouri and Spire Alabama, 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 regulatory liabilities related to the PGA clauses and the GSA rider are both labeled Unamortized Purchased Gas Adjustments herein. Spire Missouri As authorized by the MoPSC, the PGA clause allows Spire Missouri to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies. To better match customer billings with market natural gas prices, Spire Missouri is allowed to file to modify, on a periodic basis, the level of gas costs in its PGA. Certain provisions of the PGA clause are included below:
Pursuant to the provisions of the PGA clause, the difference between actual costs incurred and costs recovered through the application of the PGA clause are reflected as a deferred charge or credit at the end of the fiscal year. These costs include costs and cost reductions associated with the use of derivative instruments and gas inventory carrying costs, amounts due to or from customers related to operation of the gas supply cost management program, refunds received from the Company’s suppliers in connection with gas supply, transportation, and storage services, and carrying costs on such over- or under-recoveries. At that time, the balance is classified as a current asset or current liability and recovered from, or credited to, customers over an annual period commencing in November. The balance in the current account is amortized as amounts are reflected in customer billings. The PGA clause also provides for the treatment of income from off-system sales and capacity release revenues. Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
Spire Alabama Spire Alabama’s rate schedules for natural gas distribution charges contain a GSA rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. Spire Alabama’s tariff provides a temperature adjustment mechanism, also included in the GSA rider, which is designed to moderate the impact of departures from normal temperatures on Spire Alabama’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather-related conditions that may affect customer usage are not included in the temperature adjustment. NATURAL GAS AND PROPANE GAS – For Spire Missouri East, inventory of natural gas in storage is priced on a last in, first out (LIFO) basis and inventory of propane gas in storage is priced on a first in, first out (FIFO) basis. For the rest of the Gas Utility segment, inventory of natural gas in storage is priced on the weighted average cost basis. The replacement cost of Spire Missouri’s natural gas for current use in eastern Missouri at September 30, 2017 and September 30, 2016 was less than the LIFO cost by $20.8 and $11.4, respectively. The carrying value of the Utilities’ inventory is not adjusted to the lower of cost or market prices because, pursuant to PGA or GSA, actual gas costs are recovered in customer rates. Natural gas and propane gas storage inventory in Spire’s other operating segments is recorded at the lower of average cost or market. BUSINESS COMBINATIONS – The Spire EnergySouth acquisition was accounted for by Spire using business combination accounting. Under this method, the purchase price paid by the acquirer is allocated to the assets acquired and liabilities assumed as of the acquisition date based on their fair value. For additional information on the acquisition of Spire EnergySouth, refer to Note 2, Acquisitions. 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. Spire and Spire Missouri evaluate goodwill for impairment as of July 1 of each year, or more frequently if events and circumstances indicate that goodwill might be impaired. At July 1, 2017, 2016 and 2015, Spire and Spire Missouri each applied a quantitative goodwill evaluation model to their reporting units and concluded goodwill was not impaired because the fair value exceeded the carrying amount. The changes in the carrying amount of goodwill by reportable segment were as follows:
IMPAIRMENT OF LONG-LIVED ASSETS – Long-lived assets classified as held and used are evaluated for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Whether impairment has occurred is determined by comparing the estimated undiscounted cash flows attributable to the assets with the carrying value of the assets. If the carrying value exceeds the undiscounted cash flows, the Company recognizes an impairment charge equal to the amount of the carrying value that exceeds the estimated fair value of the assets. In the period in which the Company determines an asset meets held-for-sale criteria, an impairment charge is recorded to the extent the book value exceeds its fair value less cost to sell. REVENUE RECOGNITION – The Utilities read meters and bill customers on monthly cycles. The Missouri Utilities, Spire Gulf and Spire Mississippi 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 Spire Missouri at September 30, 2017 and 2016 were $30.1 and $26.1, respectively. Spire Alabama records natural gas distribution revenues in accordance with the tariff established by the APSC. Unbilled revenue is accrued in an amount equal to the related gas cost, as profit margin is not considered earned until billed. The amounts of accrued unbilled revenues for Spire Alabama at September 30, 2017 and 2016 were $1.9 and $5.9. 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 its derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of 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. For additional information on derivative instruments, refer to Note 10, Derivative Instruments and Hedging Activities. 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 (or expenses, if negative) in the Consolidated Statements of Income. This net presentation has no effect on operating income or net income. INCOME TAXES – Spire and its subsidiaries account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and the respective tax basis and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income or loss for a non-regulated company, and in a regulatory asset or regulatory liability for a regulated company. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with authoritative guidance. The authoritative guidance addresses the determination of whether tax benefits claimed, or expected to be claimed, on a tax return should be recorded in the financial statements. Spire may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. Tax-related interest and penalties, if any, are classified as a liability on the balance sheets. CASH AND CASH EQUIVALENTS – All highly liquid debt instruments purchased with original maturities of three months or less are considered to be cash equivalents. Such instruments are carried at cost, which approximates market value. Outstanding checks on the Company’s and Utilities’ bank accounts in excess of funds on deposit create book overdrafts (which are funded at the time checks are presented for payment) and are classified as Other in the Current Liabilities section of the balance sheets. Changes in book overdrafts are reflected as Operating Activities in the statements of cash flows. NATURAL GAS RECEIVABLE – Spire Marketing enters into natural gas transactions with natural gas pipeline companies known as park and loan arrangements. Under the terms of the arrangements, Spire Marketing purchases natural gas from a third party and delivers that natural gas to the pipeline company for the right to receive the same quantity of natural gas from the pipeline company at the same location in a future period. These arrangements are accounted for as non-monetary transactions under GAAP and are recorded at the carrying amount. As such, natural gas receivables are reflected on the Consolidated Balance Sheets at cost, which includes related pipeline fees associated with the transactions. In the period that the natural gas is returned to Spire Marketing, concurrent with the sale of the natural gas to a third party, the related natural gas receivable is expensed in the Consolidated Statements of Income. In conjunction with these transactions, Spire Marketing usually enters into New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) natural gas futures, options, and swap contracts or fixed price sales agreements to protect against market changes in future sales prices. EARNINGS PER COMMON SHARE – GAAP requires dual presentation of basic and diluted earnings per share (EPS). EPS is computed using the two-class method, which is an earnings allocation method for computing EPS that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Certain of the Company’s stock-based compensation awards pay non-forfeitable dividends to the participants during the vesting period and, as such, are deemed participating securities. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares, pursuant to the treasury stock method. Shares attributable to equity units, non-participating stock options and time-vested restricted stock/units are excluded from the calculation of diluted earnings per share if the effect would be antidilutive. Shares attributable to non-participating performance-contingent restricted stock awards are only included in the calculation of diluted earnings per share to the extent the underlying performance and/or market conditions are satisfied (a) prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. The Company’s EPS computations are presented in Note 4, Earnings Per Common Share. GROSS RECEIPTS AND SALES TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Company, Spire Missouri, and Spire Alabama and billed to its 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:
Sales taxes imposed on applicable Spire Alabama and Spire Missouri sales are billed to customers. These amounts are not recorded in the statements of income but are recorded as tax collections payable and included in the “Other” line of the Current Liabilities section of the balance sheets. TRANSACTIONS WITH AFFILIATES – Transactions between affiliates of the Company have been eliminated from the consolidated financial statements of Spire. Spire Missouri and Spire Alabama borrowed funds from the Company and incurred related interest, as reflected in their separate financial statements, and participated in normal intercompany shared services transactions. In addition, Spire Missouri’s other transactions with affiliates included:
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. Spire’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses for Spire Missouri and Spire Alabama, as approved by the MoPSC and the APSC, respectively. FINANCE RECEIVABLES – Spire Alabama finances third party contractor sales of merchandise including gas furnaces and appliances. At September 30, 2017 and September 30, 2016, the Company’s finance receivable totaled approximately $12.5 and $11.8, respectively. Financing is available only to qualified customers who meet creditworthiness thresholds for customer payment history and external agency credit reports. Spire Alabama relies upon ongoing payments as the primary indicator of credit quality during the term of each contract. The allowance for credit losses is recognized using an estimate of write-off percentages based on historical experience applied to an aging of the finance receivable balance. Delinquent accounts are evaluated on a case-by-case basis and, absent evidence of debt repayment, after 90 days are due in full and assigned to a third-party collection agency. The remaining finance receivable is written off approximately 12 months after being assigned to the third-party collection agency. Spire Alabama had finance receivables past due 90 days or more of $0.4 at September 30, 2017 and September 30, 2016. Spire Alabama recorded a related allowance for credit losses at September 30, 2017 and September 30, 2016 of $0.4. GROUP MEDICAL AND WORKERS’ COMPENSATION RESERVES – The Company self-insures its group medical and workers’ compensation costs and carries stop-loss coverage in relation to medical claims and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. FAIR VALUE MEASUREMENTS – Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The levels of the hierarchy are described below:
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. Additional information about fair value measurements is provided in Note 8, Fair Value of Financial Instruments, Note 9, Fair Value Measurements, and Note 13, Pension Plans and Other Postretirement Benefits. STOCK-BASED COMPENSATION – The Company measures stock-based compensation awards at fair value at the date of grant and recognizes the compensation cost of the awards over the requisite service period. Effective with the adoption of Accounting Standards Update No. 2016-09 at the beginning of fiscal 2017 (described under New Accounting Pronouncements below), forfeitures are recognized in the period they occur. In fiscal 2016 and fiscal 2015, forfeitures were estimated at the time of grant and revised, when necessary, in subsequent periods when the actual forfeitures differed from those estimates. Refer to Note 3, Stock-Based Compensation, for further discussion of the accounting for the Company’s stock-based compensation plans. REVISIONS TO PRIOR FINANCIAL STATEMENTS – Certain prior period amounts have been adjusted to conform with 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, Spire Missouri and Spire Alabama 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 the amounts of unamortized debt issuance costs are shown separately on the statements of capitalization. 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 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. Spire, Spire Missouri and Spire Alabama adopted this ASU in the interim quarterly reporting period ended June 30, 2017. Amendments related to the timing of excess tax benefits recognition, minimum statutory withholding requirements, and forfeitures were applied using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of October 1, 2016, and amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement were applied prospectively as of that date. Amendments related to the presentation of excess tax benefits on the statement of cash flows and the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement were applied retrospectively. There were no material impacts on the financial statements of the Company, Spire Missouri or Spire Alabama, all of which adopted a policy of accounting for forfeitures when they occur. 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. 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. 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, Spire Missouri and Spire Alabama have nearly completed their evaluation of their sources of revenue and related contracts and plan to adopt the new guidance in the first quarter of fiscal 2019 using the modified retrospective approach, and they expect no material effect on their financial position, results of operations, or cash flows. 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. Unrealized gains and losses on equity securities previously classified as available-for-sale will be recognized immediately in earnings rather than recorded in other comprehensive income. 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 such equity securities to be reclassified to retained earnings. Based on an assessment of their current financial instruments, the Company, Spire Missouri and Spire Alabama expect to adopt this standard in the first quarter of fiscal 2019 with no significant impact. 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, Spire Missouri and Spire Alabama are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal 2020. In June 2016, the FASB issued ASU No. 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, Spire Missouri and Spire Alabama are currently assessing the timing and impacts of adopting this standard, which must be adopted by the first quarter of fiscal 2021. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates Step 2 of the goodwill test, where the measurement of a goodwill impairment loss was determined by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Upon adoption, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance is required for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company and Spire Missouri do not expect this standard change to have a material impact on their financial statements and will adjust their goodwill impairment procedures accordingly upon adoption, no later than their annual tests for fiscal 2021. Step 1 of the tests for fiscal 2017 did not indicate potential impairment, so Step 2 was not necessary. In March 2017, the FASB issued ASU No. 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, Spire Missouri and Spire Alabama are currently assessing the regulatory and other impacts of adopting this standard, which must be adopted by the first quarter of fiscal 2019. In August 2017, the FASB issued ASU No.2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU more closely align the results of hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. They are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early application is permitted. The Company, Spire Missouri and Spire Alabama are currently assessing the effects of this new guidance, as well as the timing of adoption. |
ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Effective September 12, 2016, Spire completed the acquisition of 100% of the common stock of Spire EnergySouth, the parent company of Spire Gulf and Spire Mississippi, serving natural gas utility customers in Alabama and Mississippi. This acquisition is supportive of the strategic focus on growing Spire’s gas utility business and creating geographic and regulatory diversity. Total cash consideration paid, net of cash acquired, debt assumed, and a working capital settlement payment received, was $313.9. The goodwill of $225.6 arising from this acquisition, which is not deductible for tax purposes, is attributable to the assembled workforce and the expected cost efficiencies and strategic benefits of the transaction. The Company did not elect pushdown accounting, so the goodwill was recorded on the Spire parent company balance sheet rather than the Spire EnergySouth subsidiary balance sheet and is included in disclosures of segment assets under Other. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed at the acquisition date.
Spire EnergySouth’s results of operations are included in the Spire statements of income from the date of acquisition, as shown in the following table.
The following unaudited pro forma financial information presents Spire’s combined results of operations as though the Spire EnergySouth acquisition had occurred as of the beginning of fiscal 2015. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that would have been achieved if the acquisition had occurred as of the earlier date. It includes estimates and assumptions which management believes are reasonable. The timing of integration costs was not changed.
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STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Spire’s 2015 incentive plan, The Laclede Group 2015 Equity Incentive Plan (the 2015 Plan), was approved at the annual meeting of shareholders of Spire on January 29, 2015. The purpose of the 2015 Plan is to encourage directors, officers, and employees of the Company and its subsidiaries to contribute to the Company’s success and align their interests with that of shareholders. To accomplish this purpose, the Compensation Committee (Committee) of the Board of Directors may grant awards under the 2015 Plan that may be earned by achieving performance objectives and/or other criteria as determined by the Committee. Under the terms of the 2015 Plan, officers and employees of the Company and its subsidiaries, as determined by the Committee, are eligible to be selected for awards. The 2015 Plan provides for restricted stock, restricted stock units, qualified and non-qualified stock options, stock appreciation rights, and performance shares payable in stock, cash, or a combination of both. The 2015 Plan generally provides a minimum vesting period of at least three years for each type of award, with pro rata vesting permitted during the minimum three-year vesting period. The maximum number of shares reserved for issuance under the 2015 Plan is 1,000,000. The 2015 Plan replaced The Laclede Group 2006 Equity Incentive Plan (the 2006 Plan), which in turn replaced The Laclede Group, Inc. 2002 Equity Incentive Plan (the 2002 Plan). Shares reserved under the 2006 Plan and the 2002 Plan, other than those needed for outstanding awards, were canceled upon shareholder approval of the 2015 Plan. The Company issues new shares to satisfy employee restricted stock awards and stock option exercises. Restricted Stock Awards During fiscal 2017, the Company granted 196,400 performance-contingent restricted share units to executive officers and key employees at a weighted average grant date fair value of $45.01 per share. This number represents the maximum shares that can be earned pursuant to the terms of the awards. The share units have a performance period ending September 30, 2019. While the participants have no interim voting rights on these share units, dividends accrue during the performance period and are paid to the participants upon vesting, but are subject to forfeiture if the underlying share units do not vest. The number of share units that will ultimately vest is dependent upon the attainment of certain levels of earnings and other strategic goals, as well as the Company’s level of total shareholder return (TSR) during the performance period relative to a comparator group of companies. This TSR provision is considered a market condition under GAAP and is discussed further below. The weighted average grant date fair value of performance-contingent restricted shares and share units granted during fiscal years 2016 and 2015 was $45.95 and $36.69 per share, respectively. Fiscal 2017 activity of restricted stock and restricted stock units subject to performance and/or market conditions is presented below:
During fiscal 2017, the Company granted 33,240 shares of time-vested restricted stock to executive officers and key employees at a weighted average grant date fair value of $63.05 per share. Unless forfeited based on terms of the agreements, these shares will vest in fiscal 2020. In the interim, participants receive full voting rights and dividends, which are not subject to forfeiture. The weighted average grant date fair value of time-vested restricted stock and restricted stock units awarded to employees during fiscal years 2016 and 2015 was $59.40 and $50.90 per share, respectively. During fiscal 2017, the Company granted 10,850 shares of time-vested restricted stock to non-employee directors at a weighted average grant date fair value of $63.45 per share. These shares vested in fiscal 2017, six months after the grant date. The weighted average grant date fair value of restricted stock awarded to non-employee directors during fiscal years 2016 and 2015 was $63.93 and $54.66 per share, respectively. Time-vested restricted stock and stock unit activity for fiscal 2017 is presented below:
For restricted stock and stock units (performance-contingent and time-vested) that vested during fiscal years 2017, 2016, and 2015, the Company withheld 35,514 shares, 30,712 shares, and 31,688, respectively, at weighted average prices of $63.83, $57.29, and $50.65 per share, respectively, pursuant to elections by employees to satisfy tax withholding obligations. The total fair value of restricted stock (performance-contingent and time-vested) that vested during fiscal years 2017, 2016, and 2015 was $8.9, $6.3, and $6.4, respectively, and the related tax benefit was $3.3, $2.4, and $2.4, respectively. None of the tax benefits have been realized. Stock Option Awards No stock options were granted during fiscal years 2017, 2016, and 2015. There was no stock option activity in fiscal 2017, as all outstanding stock options either vested or forfeited in fiscal 2016. During fiscal 2016, cash received from the exercise of stock options was $0.7 and the related intrinsic value was $0.7. During fiscal 2015, cash received from the exercise of stock options was $1.5 and the related intrinsic value was $0.9. Related tax benefits were not material in any of those years. Equity Compensation Costs Compensation cost for performance-contingent restricted stock and stock unit awards is based upon the probable outcome of the performance conditions. For shares or units that do not vest or that are not expected to vest due to the outcome of the performance conditions (excluding market conditions), no compensation cost is recognized and any previously recognized compensation cost is reversed. The fair value of awards of performance-contingent and time-vested restricted stock and restricted stock units, not subject to the TSR provision, are estimated using the closing price of the Company’s stock on the grant date. For those awards that do not pay dividends during the vesting period, the estimate of fair value is reduced by the present value of the dividends expected to be paid on the Company’s common stock during the performance period, discounted using an appropriate United States (US) Treasury yield. For shares subject to the TSR provision, the estimated impact of this market condition is reflected in the grant date fair value per share of the awards. Accordingly, compensation cost is not reversed to reflect any actual reductions in the awards that may result from the TSR provision. However, if the Company’s TSR during the performance period ranks below the level specified in the award agreements, relative to a comparator group of companies, and the Committee elects not to reduce the award (or reduce by a lesser amount), this election would be accounted for as a modification of the original award and additional compensation cost would be recognized at that time. The grant date fair value of the awards subject to the TSR provision awarded during fiscal years 2017, 2016, and 2015 was valued by a Monte Carlo simulation model that assessed the probabilities of various TSR outcomes. The significant assumptions used in the Monte Carlo simulations are as follows:
The risk-free interest rate was based on the yield on US Treasury securities matching the vesting period. A zero percent dividend yield was used, which is mathematically equivalent to the assumption that dividends are reinvested as they are paid. The expected volatility is based on the historical volatility of the Company’s stock. Volatility assumptions were also made for each of the companies included in the comparator group. The vesting period is equal to the performance period set forth in the terms of the award. The amounts of compensation cost recognized for share-based compensation arrangements are presented below:
As of September 30, 2017, there was $8.9 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.8 years. |
EARNINGS PER COMMON SHARE |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE
Spire’s 2.875 million equity units issued in June 2014 were anti-dilutive for the periods they were outstanding. Accordingly, they were also excluded from the calculation of weighted average diluted shares for those periods. On April 3, 2017, Spire settled the purchase contracts underlying those equity units by issuing approximately 2.5 million shares of its common stock. See Note 5 for more information. |
STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Spire In 2014, Spire issued 2.875 million equity units as a portion of the Spire Alabama acquisition financing. 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 and the Purchase Contract obligating the holder to purchase common shares at a future settlement date. The equity unit investments were effectively replaced as planned in a series of transactions outlined in Note 6, resulting in the issuance of 2,504,684 shares of the Company’s 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 shares per unit, with a corresponding adjustment to purchase price. Spire filed a registration statement on Form S-3 with the US Securities and Exchange Commission (SEC) on June 15, 2017 for the issuance and sale of up to 250,000 shares of its common stock under its Dividend Reinvestment and Direct Stock Purchase Plan. There were 244,130 and 239,945 shares at September 30, 2017 and November 10, 2017, respectively, remaining available for issuance under this Form S-3. On May 17, 2016, Spire completed a public offering of 2,185,000 shares of its common stock, generating $133.2 of proceeds net of issuance costs. On September 23, 2016, Spire and Spire Missouri filed with the SEC a joint shelf registration statement on Form S-3 for issuance of various types of debt and equity securities, which registration statement will expire September 22, 2019. The amount, timing, and type of additional financing to be issued under this shelf registration statement will depend on cash requirements and market conditions. At September 30, 2017 and 2016, Spire had authorized 5,000,000 shares of preferred stock, but none were issued and outstanding. Spire Missouri Substantially all of Spire Missouri’s plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Spire Missouri’s ability to pay cash dividends on its common stock or to make loans to its parent company. These mortgage restrictions are applicable regardless of whether the stock is publicly held or held solely by Spire Missouri’s parent company. Under the most restrictive of these provisions, no cash dividend may be declared or paid if, after the dividend, the aggregate net amount spent for all dividends after September 30, 1953 would exceed a maximum amount determined by a formula set out in the mortgage. Under that formula, the maximum amount is the sum of $8.0 plus earnings applicable to common stock (adjusted for stock repurchases and issuances) for the period from September 30, 1953 to the last day of the quarter before the declaration or payment date for the dividends. As of September 30, 2017 and 2016, the amount under the mortgage’s formula that was available to pay dividends was $1,010.8 and $916.8, respectively. Thus, all of Spire Missouri’s retained earnings were free from such dividend restrictions as of those dates. On September 23, 2016, Spire and Spire Missouri filed with the SEC a joint shelf registration statement on Form S-3 for issuance of various types of debt and equity securities, which registration statement will expire September 22, 2019. The amount, timing, and type of additional financing to be issued under this shelf registration statement will depend on cash requirements and market conditions, as well as future MoPSC authorizations. Spire Missouri has authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in capital, and enter into capital lease agreements, all for a total of up to $300.0. On September 15, 2017, Spire Missouri issued $170.0 in first mortgage bonds, leaving $130.0 available under the MoPSC authorization. At September 30, 2017 and 2016, Spire Missouri had authorized 1,480,000 shares of preferred stock, but none were issued and outstanding. Spire Alabama At September 30, 2017 and 2016, Spire Alabama had authorized 120,000 shares of preferred stock, but none were issued and outstanding. Other Comprehensive Income The components of accumulated other comprehensive income (loss), net of income taxes, recognized in the balance sheets at September 30 were as follows:
Income tax expense (benefit) recorded for items of other comprehensive income (loss) reported in the statements of comprehensive income is calculated by applying statutory federal, state, and local income tax rates applicable to ordinary income. The tax rates applied to individual items of other comprehensive income (loss) are similar within each reporting period. For the periods presented, Spire Alabama had no accumulated other comprehensive income (loss) balances. |
LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Composition of long-term debt for Spire, Spire Missouri and Spire Alabama are shown in each registrant’s statements of capitalization as part of the financial statements. Maturities of long-term debt for Spire on a consolidated basis, Spire Missouri and Spire Alabama for the five fiscal years subsequent to September 30, 2017 are as follows:
Spire’s, Spire Missouri’s and Spire Alabama’s short-term credit facilities and long-term debt agreements contain customary covenants and default provisions. As of September 30, 2017, there were no events of default under these covenants. The Company’s, Spire Missouri’s and Spire Alabama’s access to capital markets, including the commercial paper market, and their respective financing costs, may depend on the credit rating of the entity that is accessing the capital markets. The credit ratings of the Company, Spire Missouri and Spire Alabama remain at investment grade, but are subject to review and change by the rating agencies. It is management’s view that the Company, Spire Missouri and Spire Alabama have adequate access to capital markets and will have sufficient capital resources, both internal and external, to meet anticipated capital requirements, which primarily include capital expenditures, interest payments on long-term debt, scheduled maturities of long-term debt, short-term seasonal needs, and dividends. Spire 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. The Company used the proceeds from the sale of the notes for the repayment of other debt. In 2014, Spire issued 2.875 million equity units as a portion of the Spire Alabama acquisition financing. The equity units were originally issued at $50 per unit pursuant to the 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. The equity unit investments were effectively replaced as planned in a series of transactions outlined below:
At September 30, 2017, including the current portion but excluding unamortized discounts and debt issuance costs, Spire had long-term debt totaling $2,112.0, of which $980.0 was issued by Spire Missouri, $250.0 was issued by Spire Alabama, and $67.0 was issued by other subsidiaries. All long-term debt bears fixed rates and is subject to changes in fair value as market interest rates change. However, increases and decreases in fair value would impact earnings and cash flows only if the Company were to reacquire any of these issues in the open market prior to maturity. Under GAAP applicable to the Utilities’ regulated operations, losses or gains on early redemption of long-term debt would typically be deferred as regulatory assets or regulatory liabilities and amortized over a future period. Of the Company’s $2,112.0 long-term debt (including the current portion), $25.0 has no call options, $1,037.0 has make-whole call options, $5.0 is callable currently, and $1,045.0 is callable at par one to six months prior to maturity. As indicated in Note 5, Shareholders’ Equity, Spire has a shelf registration statement on Form S-3 on file with the SEC for the issuance of equity and debt securities. Including the current portion of long-term debt, the Company’s capitalization at September 30, 2017 consisted of 48.7% of common stock equity and 51.3% long-term debt, compared to 46.1% of common stock equity and 53.9% of long-term debt at September 30, 2016. Spire Missouri On September 15, 2017, Spire Missouri issued and sold in a private placement $50.0 in aggregate principal amount of its first mortgage bonds due September 15, 2032, $70.0 in aggregate principal amount of its first mortgage bonds due September 15, 2047 and $50.0 in aggregate principal amount of its first mortgage bonds due September 15, 2057. Spire Missouri used the proceeds to refinance existing indebtedness and for other general corporate purposes. The 2032 bonds, 2047 bonds and 2057 bonds bear interest at a rate per annum of 3.68%, 4.23% and 4.38%, respectively, payable semi-annually on the 15th day of March and September of each year. Spire Missouri has authority from the MoPSC to issue debt securities and preferred stock, including on a private placement basis, as well as to issue common stock, receive paid-in-capital, and enter into capital lease agreements, all for a total of up to $300.0 for financings placed any time before September 30, 2018. During the year ended September 30, 2017, Spire Missouri issued $170.0 in securities under this authorization, so as of that date, $130.0 remains available to be issued. At September 30, 2017, including the current portion but excluding unamortized discounts and debt issuance costs, Spire Missouri had long-term debt totaling $980.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. Of Spire Missouri’s $980.0 in long-term debt, $25.0 has no call options, $435.0 has make-whole call options and $520.0 is callable at par three to six months prior to maturity. As indicated in Note 5, Shareholders’ Equity, Spire Missouri has a shelf registration on Form S-3 on file with the SEC for issuance of first mortgage bonds, unsecured debt, and preferred stock, which expires on September 22, 2019. Substantially all of Spire Missouri’s plant is subject to the liens of its first mortgage bonds. The mortgage contains several restrictions on Spire Missouri’s ability to pay cash dividends on its common stock, which are described in Note 5, Shareholders’ Equity. Including the current portion of long-term debt, Spire Missouri’s capitalization at September 30, 2017 consisted of 54.6% of common stock equity and 45.4% long-term debt compared to 57.1% of common stock equity and 42.9% of long-term debt at September 30, 2016. Spire Alabama At September 30, 2017, excluding unamortized debt issuance costs, Spire Alabama had fixed-rate long-term debt totaling $250.0. While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. All of Spire Alabama’s $250.0 long-term debt has make-whole call options. Spire Alabama’s capitalization at September 30, 2017 consisted of 77.8% of common stock equity and 22.2% long-term debt, consistent with 77.8% of common stock equity and 22.2% of long-term debt at September 30, 2016. Because Spire Alabama has no standing authority to issue long-term debt, it must petition the APSC for each planned issuance. On October 3, 2017, Spire Alabama received authorization and approval from the APSC to borrow up to $75.0 for general corporate purposes and to retire short-term debt. |
NOTES PAYABLE AND CREDIT AGREEMENTS |
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Short-term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND CREDIT AGREEMENTS | NOTES PAYABLE AND CREDIT AGREEMENTS Short-term cash requirements outside of the Utilities have generally been funded by Spire or met with internally generated funds. The Utilities’ short term borrowing requirements typically peak during the colder months. Total short-term borrowing requirements can be met through the sale of commercial paper supported by a revolving credit facility or through direct use of the revolving credit facility. On December 14, 2016, Spire, Spire Missouri, and Spire Alabama 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 replaced Spire’s and Spire Missouri’s existing loan agreements dated as of September 3, 2013 and amended September 3, 2014, which were set to expire on September 3, 2019, and Spire Alabama’s existing loan agreement dated September 2, 2014, which was set to expire September 2, 2019. All three previous 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 Spire Missouri, and $200.0 for Spire Alabama. 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, Spire Missouri, and Spire Alabama 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 September 30, 2017, total debt was 56% of total capitalization for the consolidated Company, 50% for Spire Missouri, and 33% for Spire Alabama. There were no borrowings against this credit facility as of September 30, 2017. 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 September 30, 2017, Notes outstanding under the Program totaled $477.3. Information about Spire’s consolidated short-term borrowings is presented below. Based on average short-term borrowings for the year ended September 30, 2017, an increase in the average interest rate of 100 basis points would decrease Spire’s pre-tax earnings and cash flows by approximately $4.9 on an annual basis, portions of which may be offset through the application of PGA or GSA carrying costs.
2 The commercial paper program for Spire Missouri terminated February 2, 2017. Spire Missouri Information about Spire Missouri’s short-term borrowings is presented below. Based on average short-term borrowings for the year ended September 30, 2017, an increase in the average interest rate of 100 basis points would decrease Spire Missouri’s pre-tax earnings and cash flows by approximately $2.8 on an annual basis, portions of which may be offset through the application of PGA carrying costs.
Spire Alabama Information about Spire Alabama’s short-term borrowings is presented below. Based on average short-term borrowings for the year ended September 30, 2017, an increase in the average interest rate of 100 basis points would decrease Spire Alabama’s pre-tax earnings and cash flows by approximately $1.1 on an annual basis, portions of which may be offset through the application of GSA carrying costs.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Spire The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for the Company are as follows:
Spire Missouri The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Spire Missouri are as follows:
Spire Alabama The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis for Spire Alabama are as follows:
The carrying amounts for 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 9, Fair Value Measurements, for information on financial instruments measured at fair value on a recurring basis. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Spire 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 NYMEX. Derivative instruments classified as 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. 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. There were no material Level 3 balances as of September 30, 2017 or 2016. 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 “Property and other investments” on Spire Missouri’s balance sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net on the balance sheets when a legally enforceable netting agreement exist between the Company or Spire Missouri and the counterparty to the derivative contract. For additional information on derivative instruments, see Note 10, Derivative Instruments and Hedging Activities.
Spire Missouri
Spire Alabama During the fiscal second quarter of 2016 Spire Alabama commenced a gasoline derivative program to stabilize the cost of fuel used in operations. As of September 30, 2017, the fair value of related gasoline contracts was not significant. |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Spire Spire Missouri has a risk management policy to utilize various derivatives, including futures contracts, exchange-traded options, and swaps for the explicit purpose of managing price risk associated with purchasing and delivering natural gas on a regular basis to customers in accordance with its tariffs. The objective of this policy is to limit Spire Missouri’s exposure to natural gas price volatility and to manage, hedge and mitigate substantial price risk. Further discussion of this policy can be found in the Spire Missouri section. From time to time Spire Missouri and Spire Alabama purchase NYMEX futures and options contracts to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of their business. Further information on these derivatives can be found in the Spire Missouri and Spire Alabama sections, respectively. In the course of its business, Spire’s gas marketing subsidiary, Spire Marketing, which includes its wholly owned subsidiary Spire Storage Inc., enters into commitments associated with the purchase or sale of natural gas. Certain of Spire Marketing’s derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of ASC Topic 815 and are accounted for as executory contracts on an accrual basis. Any of Spire Marketing’s derivative natural gas contracts that are not designated as normal purchases or normal sales are accounted for at fair value. At September 30, 2017, the fair values of 202.1 million MMBtu of non-exchange traded natural gas commodity contracts were reflected in the Consolidated Balance Sheet. Of these contracts, 156.8 million MMBtu will settle during fiscal 2018, and 34.3 million MMBtu, 5.9 million MMBtu, 4.1 million MMBtu, 0.9 million MMBtu, and 0.1 million MMBtu will settle during fiscal years 2019, 2020, 2021, 2022, and 2023, respectively. These contracts have not been designated as hedges; therefore, changes in the fair value of these contracts are reported in earnings each period. Furthermore, Spire Marketing manages the price risk associated with its fixed-priced commitments by either closely matching the offsetting physical purchase or sale of natural gas at fixed prices or through the use of NYMEX or ICE futures, swap, and option contracts to lock in margins. At September 30, 2017, Spire Marketing’s unmatched fixed-price positions were not material to Spire’s financial position or results of operations. Spire Marketing’s NYMEX and ICE natural gas futures, swap, and option contracts used to lock in margins may be designated as cash flow hedges of forecasted transactions for financial reporting purposes. During fiscal 2015, Spire Alabama entered into interest rate swap transactions to protect itself against adverse movement in interest rates in anticipation of its issuance of $115.0 of long-term debt. The notional amount of these interest rate swaps was$104.5. These derivative instruments were designated as cash flow hedges of forecasted transactions. These forward starting swaps involved the payment of a fixed interest rate and the receipt of the London Interbank Offered Rate (LIBOR) over the terms specified in the contracts. Termination of these interest rate swap agreements later in fiscal 2015 resulted in a $2.7 gain which was recorded as a regulatory liability. Of the total issuance of long-term debt, $35.0 was issued on September 15, 2015 and $80.0 was issued on December 1, 2015, and the gain is being amortized to reduce interest expense over the hedged periods. During fiscal 2016, Spire entered into interest rate swap agreements, with a notional amount of $85.0, to effectively lock in interest rates on a portion of the long-term debt it anticipated issuing to finance its acquisition of Spire EnergySouth. These derivative instruments were designated as cash flow hedges of forecasted transactions. Termination of the interest rate swap agreements later in fiscal 2016 resulted in a $0.4 loss recorded in accumulated other comprehensive loss to be amortized to interest expense over the life of the related debt issuances. Also during fiscal 2016, Spire entered into interest rate swap transactions with a notional amount of $225.0 to protect itself against adverse movement in interest rates in anticipation of the issuance of long-term debt in fiscal 2017. These hedge positions were settled during fiscal 2017, resulting in a gain of $14.1 which will be amortized to reduce interest expense over the hedged periods. Also during fiscal 2017, Spire entered into a ten-year interest rate swap with a fixed interest rate of 2.658% and a notional amount of $60.0 to protect itself against adverse movements in interest rates on future interest rate payments. The Company recorded a $0.9 mark-to-market loss on these swaps as part of other comprehensive income for the year ended September 30, 2017. The Company’s and Spire Missouri’s exchange-traded/cleared derivative instruments consist primarily of NYMEX and ICE positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX/ICE natural gas futures and swap positions at September 30, 2017 were as follows:
At September 30, 2017, Spire Missouri also had 33.9 million MMBtu of other price mitigation in place through the use of NYMEX natural gas option-based strategies while Spire Marketing had none. Derivative instruments designated as cash flow hedges of forecasted transactions are recognized on the balance sheets of the Company at fair value, and the change in fair value of the effective portion of these hedge instruments is recorded, net of income tax, in other comprehensive income or loss (OCI). Accumulated other comprehensive income or loss (AOCI) is a component of Total Common Stock Equity. Amounts are reclassified from AOCI into earnings when the hedged items affect net income, using the same revenue or expense category that the hedged item impacts. Based on market prices at September 30, 2017, it is expected that an immaterial amount of unrealized gains will be reclassified into the Consolidated Statements of Income of the Company during the next twelve months. Cash flows from hedging transactions are classified in the same category as the cash flows from the items that are being hedged in the Consolidated Statements of Cash Flows.
Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:
Additionally, at September 30, 2017 and 2016, the Company had $4.0 and $2.9, respectively, in cash margin receivables not offset with derivatives, which are presented in Accounts Receivable – Other. Spire Missouri Spire Missouri has a risk management policy to utilize various derivatives, including futures contracts, exchange-traded options, swaps and over-the-counter instruments for the explicit purpose of managing price risk associated with purchasing and delivering natural gas on a regular basis to customers in accordance with its tariffs. The objective of this policy is to limit Spire Missouri’s exposure to natural gas price volatility and to manage, hedge and mitigate substantial price risk. This policy strictly prohibits speculation and permits Spire Missouri to hedge current physical natural gas purchase commitments or forecasted or anticipated future peak (maximum) physical need for natural gas delivered. Costs and cost reductions, including carrying costs, associated with Spire Missouri’s use of natural gas derivative instruments are allowed to be passed on to Spire Missouri customers through the operation of its PGA clause, through which the MoPSC allows Spire Missouri to recover gas supply costs, subject to prudence review by the MoPSC. Accordingly, Spire Missouri does not expect any adverse earnings impact as a result of the use of these derivative instruments. Spire Missouri does not designate these instruments as hedging instruments for financial reporting purposes because gains or losses associated with the use of these derivative instruments are deferred and recorded as regulatory assets or regulatory liabilities pursuant to ASC Topic 980, “Regulated Operations,” and, as a result, have no direct impact on the statements of income. The timing of the operation of the PGA clause may cause interim variations in short-term cash flows, because Spire Missouri is subject to cash margin requirements associated with changes in the values of these instruments. Nevertheless, carrying costs associated with such requirements are recovered through the PGA clause. From time to time, Spire Missouri purchases NYMEX futures and options contracts to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of its business. At September 30, 2017, Spire Missouri held 0.3 million gallons of gasoline futures contracts at an average price of $1.27 per gallon. Most of these contracts, the longest of which extends to December 2017, are designated as cash flow hedges of forecasted transactions pursuant to ASC Topic 815, “Derivatives and Hedging.” The gains or losses on these derivative instruments are not subject to Spire Missouri’s PGA clause. Derivative instruments designated as cash flow hedges of forecasted transactions are recognized on the balance sheets at fair value and the change in the fair value of the effective portion of these hedge instruments is recorded, net of income tax, in OCI. AOCI is a component of Total Common Stock Equity. Amounts are reclassified from AOCI into earnings when the hedged items affect net income, using the same revenue or expense category that the hedged item impacts. Based on market prices at September 30, 2017, it is expected that an immaterial amount of pre-tax gains will be reclassified into the statements of income during fiscal 2018. Cash flows from hedging transactions are classified in the same category as the cash flows from the items that are being hedged in the statements of cash flows. Spire Missouri’s derivative instruments consist primarily of NYMEX positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX natural gas futures positions at September 30, 2017 were as follows:
At September 30, 2017, Spire Missouri also had 33.9 million MMBtu of other price mitigation in place through the use of NYMEX natural gas option-based strategies.
Following is a reconciliation of the amounts in the tables above to the amounts presented in Spire Missouri’s Balance Sheets:
Additionally, at September 30, 2017 and 2016, Spire Missouri had $4.0 and $0.5, respectively, in cash margin receivables not offset with derivatives, which are presented in Accounts Receivable – Other. Spire Alabama In prior years, Spire Alabama entered into cash flow derivative commodity instruments to hedge its exposure to price fluctuations on its gas supply. Spire Alabama recognizes all derivatives at fair value as either assets or liabilities on the balance sheet. Any realized gains or losses are passed through to customers using the mechanisms of the GSA rider in accordance with Spire Alabama’s APSC approved tariff. During the second quarter of fiscal 2015, Spire Alabama entered into certain interest rate swap transactions to protect itself against adverse movement in interest rates in anticipation of its issuance of $115.0 of long-term debt. Spire Alabama received prior approval from the APSC to enter into these hedges. The notional amount of interest rate swaps outstanding was $80.5 with stated maturities ranging from 2025 to 2045 and fixed interest rates ranging between 2.18% and 2.85%. In April 2015, Spire Alabama entered into an additional hedge with a notional amount of $24.0 and terms within the same range. These derivative instruments were designated as cash flow hedges of forecasted transactions. These forward starting swaps involved the payment of a fixed interest rate and the receipt of LIBOR over the terms specified in the contracts. On May 21, 2015, the interest rate swap agreements were terminated and the settlement resulted in a $2.7 gain which was recorded as a regulatory liability. Of the total issuance of long-term debt, $35.0 was issued on September 15, 2015 and the remaining $80.0 was issued on December 1, 2015. During the fiscal second quarter of 2016, Spire Alabama commenced a gasoline derivative program to help stabilize operating costs associated with forecasted purchases of gasoline and diesel fuels used to power vehicles and equipment used in the course of its business. At September 30, 2017, Spire Alabama held 0.1 million gallons of gasoline futures contracts at an average price of $1.28 per gallon. Most of these contracts, the longest of which extends to December 2017, are designated as cash flow hedges of forecasted transactions pursuant to ASC Topic 815, “Derivatives and Hedging.” The gains or losses on these derivative instruments are not subject to Spire Alabama’s GSA rider. As of September 30, 2017 and 2016, the fair value of gasoline contracts was not significant. |
CONCENTRATIONS OF CREDIT RISK |
12 Months Ended |
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Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | CONCENTRATIONS OF CREDIT RISK Other than in Spire Marketing, Spire has no significant concentration 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, Spire Marketing may enter into netting arrangements to mitigate credit risk with counterparties in the energy industry with whom it 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 accounts receivable attributable to energy producers and their marketing affiliates amounted to $17.9 at September 30, 2017 ($8.9 reflecting netting arrangements). Spire Marketing’s accounts receivable attributable to utility companies and their marketing affiliates comprised $58.2 of total accounts receivable at September 30, 2017 ($55.8 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 amount. At September 30, 2017, the amounts included in accounts receivable from Spire Marketing’s five largest counterparties (in terms of net accounts receivable exposure) totaled $23.8 ($23.1 reflecting netting arrangements). Four of these five counterparties are investment-grade rated companies. The fifth is not rated, but each of its owners is investment-grade. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Spire The Company’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015 are as follows:
The Company’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. The Company’s significant items comprising the net deferred tax liability recorded in the Consolidated Balance Sheets as of September 30 are as follows:
** Other consists primarily of Goodwill related liabilities. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not the Company will realize the benefits of these deferred tax assets, except for the contribution carryforward valuation allowance noted below. The Company has federal and state loss carryforwards of approximately $478.6 at September 30, 2017. The Company also has contribution carryforwards of approximately $12.1 at September 30, 2017. The loss carryforwards begin to expire in fiscal 2030 for certain state purposes and fiscal 2035 for federal and other states purposes. The contribution carryforwards begin to expire in fiscal 2018. The Company has a valuation allowance of $0.5 as a portion of the contribution carryforward will not be realized prior to its expiration. The Company also has various tax credit carryforwards of approximately $2.5 that begin to expire in 2020. The Company recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits are reported as a reduction of a deferred tax asset for an operating loss carryforward. The following table presents a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:
The amount of unrecognized tax benefits which, if recognized, would affect the Company’s effective tax rate were $5.1 and $3.3 as of September 30, 2017 and 2016, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of the Company’s unrecognized tax benefits. The Company does not expect that any such change will be significant to the Consolidated Balance Sheets. As of September 30, 2017 and 2016, interest accrued associated with the Company’s uncertain tax positions was de minimis, and no penalties were accrued as of September 30, 2017. The Company is subject to US federal income tax as well as income tax in various state and local jurisdictions. The Company is no longer subject to examination for fiscal years prior to 2014. Regarding the Company’s recent Spire EnergySouth acquisition, tax returns for calendar years 2013 through 2015 remain open and subject to examination by the Internal Revenue Service and state taxing jurisdictions. These returns cover periods during which Spire EnergySouth was owned by Sempra Global. The impact of any adjustments made to these returns by the relevant taxing authorities would be addressed by the indemnification provisions of the stock purchase agreement with Sempra Global. Spire Missouri Spire Missouri’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015 are as follows:
Spire Missouri’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. Spire Missouri’s significant items comprising the net deferred tax liability reported in the Balance Sheets as of September 30 are as follows:
Spire files a consolidated federal return and various state income tax returns and allocates income taxes to Spire Missouri and its other subsidiaries as if each entity were a separate taxpayer. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not that Spire Missouri will realize the benefits of these deferred tax assets, except for the contribution carryforward valuation allowance noted below. Spire Missouri has federal and state loss carryforwards of approximately $166.0, at September 30, 2017, based on a separate company basis. For federal tax purposes, these loss carryforwards may be utilized against income from another member of the consolidated group. Spire Missouri also has contribution carryforwards of approximately $11.2 at September 30, 2017. The loss carryforwards begin to expire in fiscal 2035 for federal and state purposes. The contribution carryforwards begin to expire in fiscal 2018. Spire Missouri has a valuation allowance of $0.5 as a portion of the contribution carryforward will not be realized prior to its expiration. Spire Missouri also has approximately $2.0 of various tax credit carryforwards with expiration dates which begin to expire in 2020. Spire Missouri recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Spire Missouri records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits are reported as a reduction of a deferred tax asset for an operating loss carryforward. The following table presents a reconciliation of the beginning and ending balances of Spire Missouri unrecognized tax benefits:
The amount of unrecognized tax benefits, which, if recognized, would affect Spire Missouri’s effective tax rate were $4.8 and $3.1 as of September 30, 2017 and 2016, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of Spire Missouri’s unrecognized tax benefits. Spire Missouri does not expect that any such change will be significant to Spire Missouri’s Balance Sheets. As of September 30, 2017 and 2016, interest accrued associated with Spire Missouri’s uncertain tax positions was de minimis, and no penalties were accrued. Spire Missouri is subject to US federal income tax as well as income tax in various state and local jurisdictions, and is no longer subject to examination for fiscal years prior to 2014. Spire Alabama Spire Alabama’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015, are as follows:
Spire Alabama’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
Spire Alabama’s significant items comprising the net deferred tax asset reported in the Balance Sheets as of September 30 are as follows:
Spire files a consolidated federal return and various state income tax returns and allocates income taxes to Spire Alabama and its other subsidiaries as if each entity were a separate taxpayer. In assessing whether deferred tax assets are realizable, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management considers all significant available positive and negative evidence, including the existence of losses in recent years, the timing of deferred tax liability reversals, projected future taxable income, taxable income in carryback years, and tax planning strategies to assess the need for a valuation allowance. Based upon this evidence, management believes it is more likely than not that Spire Alabama will realize the benefits of these deferred tax assets. On a separate company basis, Spire Alabama has federal and state loss carryforwards of approximately $233.5, at September 30, 2017 generated since the acquisition. The loss carryforwards begin to expire in fiscal 2030 for state purposes and fiscal 2035 for federal purposes. For federal tax purposes, these loss carryforwards may be utilized against income from another member of the consolidated group. Spire Alabama recognizes the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Spire Alabama records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Spire Alabama has reported no unrecognized tax benefits for fiscal years 2017, 2016, and 2015. Spire Alabama is subject to US federal income tax as well as income tax in various state and local jurisdictions. Spire Alabama’s tax returns for the periods after 2013 remain open and subject to examination by the Internal Revenue Service and state taxing jurisdictions. The returns covering 2014 include the period during which Spire Alabama was owned by Energen. The impact of any adjustments made to those returns by the relevant taxing authorities would be addressed by the indemnification provisions of the stock purchase agreement with Energen. |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
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Defined Contribution Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS The Spire information in this note reflects all plans of the Company, including information for plans of Spire EnergySouth since September 12, 2016. The net pension and postretirement obligations were re-measured at that acquisition date as well as at the fiscal year end. Pension Plans The pension plans of Spire consist of plans for employees at the Missouri Utilities, plans covering the employees of Spire Alabama, and plans covering employees of the subsidiaries of Spire EnergySouth. 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 US government obligations and a growth segment consisting of exposure to equity markets, commodities, real estate and inflation-indexed securities, achieved through derivative instruments. Spire Alabama has non-contributory, defined benefit, trusteed forms of pension plans covering the majority of its employees. Qualified plan assets are comprised of mutual and commingled funds consisting of US equities with varying strategies, global equities, alternative investments, and fixed income investments. The net periodic pension costs include the following components:
Other changes in plan assets and pension benefit obligations recognized in other comprehensive income or loss include the following:
Spire pension obligations are driven by separate plan and regulatory provisions governing Spire Missouri, Spire Alabama and Spire EnergySouth pension plans. Pursuant to the provisions of the Missouri Utilities’ and Spire Alabama’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. Two Spire Alabama plans and one Spire Missouri plan met the criteria for settlement recognition in the fiscal year ended September 30, 2017, requiring re-measurement of the obligation under those plans using updated census data and assumptions for discount rate and mortality. Lump-sum payments recognized as settlements during fiscal years 2017, 2016, and 2015 were $62.2 ($43.5 attributable to Spire Missouri and $18.7 to Spire Alabama), $16.6 (attributable to Spire Alabama), and $71.1 ($58.2 attributable to Spire Missouri and $12.9 to Spire Alabama), respectively. Pursuant to a MoPSC Order, the return on plan assets is based on the market-related value of plan assets implemented prospectively over a four-year period. Gains or losses not yet includible in pension cost are amortized only to the extent that such gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets. Such excess is amortized over the average remaining service life of active participants. The recovery in rates for Spire Missouri East’s qualified pension plan is based on an annual allowance of $15.5 effective January 1, 2011. The recovery in rates for Spire Missouri West’s qualified pension plan is based on an annual allowance of approximately $10 effective February 20, 2010. The difference between these amounts and pension expense as calculated pursuant to the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability. The following table shows the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic pension cost consist of:
At September 30, 2017, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic pension cost during fiscal 2018:
The assumptions used to calculate net periodic pension costs for Spire Missouri are as follows:
The assumptions used to calculate net periodic pension costs for Spire Alabama are as follows:
The weighted average discount rate is based on long-term, high quality bond indices at the measurement date. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each class. The assumptions used to calculate the benefit obligations are as follows:
Following are the year-end projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
Following are the targeted and actual plan assets by category as of September 30 of each year for Spire Missouri and Spire Alabama:
Spire Missouri’s investment policies are designed to maximize, to the extent possible, the funded status of the plans over time, and minimize volatility of funding and costs. The policy seeks to maximize investment returns consistent with these objectives and Spire Missouri’s tolerance for risk. The duration of plan liabilities and the impact of potential changes in asset values on the funded status are fundamental considerations in the selection of plan assets. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with the policy. The policy seeks to avoid significant concentrations of risk by investing in a diversified portfolio of assets, currently including a growth (equity) component and a liability-driven (debt) component. Investments in corporate, US government and agencies, and, to a lesser extent, international debt securities seek to provide duration matching with plan liabilities, and typically have investment grade ratings and reflect allocations across various entities and industries. There are also exposures to additional asset types in the target portfolio: commodities, real estate and inflation-indexed securities. For the Missouri East plan, the investment policy permits the use of derivative instruments, which may be used to achieve the desired market exposure of an index, adjust portfolio duration, or rebalance the total portfolio to the target asset allocation. The growth strategy utilizes a combination of derivative instruments and debt securities to achieve diversified exposure to equity and other markets while generating returns from the fixed-income investments and providing further duration matching with the liabilities. Performance and compliance with the guidelines is regularly monitored. The policy calls for increased allocations to debt securities as the funded status improves. Spire Alabama employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets with a prudent level of risk. Risk tolerance is established through consideration of plan liabilities, plan funded status, corporate financial condition and market conditions. Spire Alabama has developed an investment strategy that focuses on asset allocation, diversification and quality guidelines. The investment goals are to obtain an adequate level of return to meet future obligations of the plans by providing above average risk-adjusted returns with a risk exposure in the mid-range of comparable funds. Investment managers are retained by Spire Alabama to manage separate pools of assets. Funds are allocated to such managers in order to achieve an appropriate, diversified, and balanced asset mix. Comparative market and peer group benchmarks are utilized to ensure that investment managers are performing satisfactorily. Spire Alabama seeks to maintain an appropriate level of diversification to minimize the risk of large losses in a single asset class. Accordingly, plan assets for the pension plans do not have a concentration of assets in a single entity, industry, country, commodity or class of investment fund. Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five fiscal years thereafter, for Spire, Spire Missouri, and Spire Alabama:
The funding policy of Spire Missouri and Spire Alabama 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. Spire Missouri contributions to the pension plans in fiscal 2018 are anticipated to be $35.5 into the qualified trusts, and $0.5 into the non-qualified plans. Spire Alabama had no required contributions to the qualified pension plans during 2017. Additionally, it is not anticipated that the funded status of the qualified pension plans will fall below statutory thresholds requiring accelerated funding or constraints on benefit levels or plan administration. During fiscal 2017, Spire Alabama made discretionary contributions to the qualified pension plans totaling $11.9; none are expected in fiscal 2018. Postretirement Benefits The Utilities provide certain life insurance benefits at retirement. Spire Missouri plans provide for medical insurance after early retirement until age 65. For retirements prior to January 1, 2015, the Spire Missouri West plans provided medical insurance after retirement until death. For retirements after January 1, 2015, the Spire Missouri West plans provide medical insurance after early retirement until age 65. Under the Spire Alabama 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 costs consist of the following components:
Other changes in plan assets and postretirement benefit obligations recognized in OCI include the following:
Pursuant to a MoPSC Order, the return on plan assets is based on the market-related value of plan assets implemented prospectively over a four-year period. Gains and losses not yet includible in postretirement benefit cost are amortized only to the extent that such gain or loss exceeds 10% of the greater of the accumulated postretirement benefit obligation or the market-related value of plan assets. Such excess is amortized over the average remaining service life of active participants. The recovery in rates for Spire Missouri’s postretirement benefit plans is based on an annual allowance of $9.5 effective January 1, 2011. The difference between these amounts and postretirement benefit cost based on the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability. The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic postretirement benefit cost consist of:
At September 30, 2017, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during fiscal 2018:
The assumptions used to calculate net periodic postretirement benefit costs for Spire Missouri are as follows:
The assumptions used to calculate net periodic postretirement benefit costs for Spire Alabama are as follows:
The weighted average discount rate is based on long-term, high quality bond indices at the measurement date. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each class. The assumptions used to calculate the accumulated postretirement benefit obligations are as follows:
The assumed medical cost trend rates at September 30 are as follows:
The following table presents the effects of an assumed 1% change in the assumed medical cost trend rate:
Following are the targeted and actual plan assets by category as of September 30 of each year for Spire Missouri and Spire Alabama:
Missouri and Alabama state laws provide for the recovery in rates of costs accrued pursuant to GAAP provided that such costs are funded through an independent, external funding mechanism. Spire Missouri and Spire Alabama have established Voluntary Employees’ Beneficiary Association and Rabbi Trusts as external funding mechanisms. Their investment policies seek to maximize investment returns consistent with their tolerance for risk. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with policy. Performance and compliance with the guidelines is regularly monitored. Spire Missouri and Spire Alabama currently invest in mutual funds which are rebalanced periodically to the target allocation. The mutual funds are diversified across US stock and bond markets, and for Spire Alabama, international stock markets. Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five fiscal years thereafter for Spire, Spire Missouri, and Spire Alabama:
Spire Missouri’s and Spire Alabama’s funding policy is to contribute amounts to the trusts equal to the periodic benefit cost calculated pursuant to GAAP as recovered in rates. For Spire Missouri, contributions to the postretirement plans in fiscal 2018 are anticipated to be $7.2 to the qualified trusts and $0.2 paid directly to participants from Spire Missouri funds. It is not anticipated that contributions will be made to the Spire Alabama postretirement plans in fiscal 2018. Other Plans Spire Missouri and Spire Alabama sponsor 401(k) plans that cover substantially all employees. The plans allow employees to contribute a portion of their base pay in accordance with specific guidelines. Spire Missouri provides a match of such contributions within specific limits. The cost of the defined contribution plans of Spire Missouri amounted to $8.4, $8.2, and $8.0 for fiscal years 2017, 2016, and 2015, respectively. Spire Alabama also provides a match of employee contributions within specific limits. The cost of the defined contribution plans of Spire Alabama amounted to $2.7, $2.3, and $3.0 for fiscal years 2017, 2016, and 2015, respectively. Fair Value Measurements of Pension and Other Postretirement Plan Assets Spire The table below categorizes the fair value measurements of the Spire pension plan assets:
The table below categorizes the fair value measurements of Spire’s postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. Spire Missouri The table below categorizes the fair value measurements of Spire Missouri’s pension plan assets:
The table below categorizes the fair value measurements of Spire Missouri’s postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. Spire Alabama The table below categorizes the fair value measurements of Spire Alabama’s pension plan assets:
The table below categorizes the fair value measurements of Spire Alabama’s postretirement plan assets:
Cash and cash equivalents include money market mutual funds valued based on quoted market prices. Fair values of derivative instruments are calculated by investment managers who use valuation models that incorporate observable market inputs. Debt securities are valued based on broker/dealer quotations or by using observable market inputs. The stock and bond mutual funds are valued at the quoted market price of the identical securities. |
INFORMATION BY OPERATING SEGMENT |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INFORMATION BY OPERATING SEGMENT | INFORMATION BY OPERATING SEGMENT Spire 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, and Spire Storage Inc., which utilizes natural gas storage contracts for providing natural gas sales. Other includes:
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. (formerly Laclede Pipeline Company) 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 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.
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REGULATORY MATTERS |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS The Utilities account for regulated operations in accordance with 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. Also, 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). The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2017 and 2016. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
A portion of the Company’s regulatory assets are not earning a return and are 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 recovery period for the future income taxes due from customers and pension and postretirement benefit costs could be as long as 20 years, based on current Internal Revenue Service guidelines and average remaining service life of active participants, respectively. The other items not earning a return are expected to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC. Spire Alabama does not have any regulatory assets that are not earning a return. Spire Missouri On September 30, 2016 Spire Missouri filed to increase its Infrastructure System Replacement Surcharge (ISRS) revenues by $5.0 for Spire Missouri East and $3.4 for Spire Missouri West, related to ISRS investments from March 2016 through October 2016. On November 29, 2016, MoPSC staff recommended $4.5 and $3.4 for Spire Missouri East and Spire Missouri West, respectively, based on updated filings. On January 3, 2017, the MoPSC held a hearing to decide two issues raised by the Missouri Office of the Public Counsel (OPC) pertaining to the ISRS eligibility of hydrostatic testing done by Spire Missouri West and of the replacement of cast iron main interspersed with portions of plastic pipe. On January 18, 2017, the MoPSC found in favor of the Missouri Utilities on the interspersed plastics issue, but against Spire Missouri West on hydrostatic testing, and issued an order setting the ISRS increases at $4.5 and $3.2 for Spire Missouri East and Spire Missouri West, respectively, bringing total annualized ISRS revenue to $29.5 and $13.4, respectively. Rates were effective January 28, 2017. On March 3, 2017, the OPC filed an appeal to Missouri’s Western District Court of Appeals of the MoPSC’s decision permitting Spire Missouri to include in the ISRS the replacement of cast iron main interspersed with plastic pipe. The appeal will be heard in November 2017. On February 3, 2017, Spire Missouri filed to increase its ISRS revenues, by $3.3 for Spire Missouri East and $2.9 for Spire Missouri West, related to ISRS investments from November 2016 through February 2017. Following the submission of updated information, on April 4, 2017, MoPSC staff submitted its recommendation for an increase in rates of approximately $3.0 each, for a cumulative total of $32.6 and $16.4 for Spire Missouri East and Spire Missouri West, respectively. On that same date, the OPC again raised an objection to the ISRS eligibility of replacing cast iron main interspersed with portions of plastic. On April 18, 2017, the parties filed with the MoPSC a unanimous stipulation and agreement proposing to apply the judicial outcome of the OPC’s March 3, 2017 appeal on the plastics issue to both the ISRS cases on appeal and the current ISRS cases. The agreement was approved by the MoPSC on April 26, 2017. ISRS rates for each of the two service territories were increased by the MoPSC staff-recommended amounts, effective June 1, 2017. On April 15, 2015, Spire Missouri applied to the MoPSC for a new authorization of long-term financing in the amount of $550.0. On February 10, 2016, the MoPSC issued an order, by a 3-2 vote, authorizing Spire Missouri financing authority of $300.0 for long-term financings placed any time before September 30, 2018. Spire Missouri filed an application for rehearing, which was denied on March 9, 2016. On March 31, 2016, Spire Missouri filed an appeal with Missouri’s Western District Court of Appeals concerning this matter. The parties filed briefs and oral arguments were heard on November 17, 2016. On May 30, 2017, Missouri’s Western District Court of Appeals issued a decision upholding the MoPSC’s February 10, 2016 Order granting Spire Missouri $300.0 in long-term financing authority. On July 5, 2017, the Court denied Spire Missouri’s request to transfer the case to the Missouri Supreme Court, and on October 5, 2017, the Missouri Supreme Court declined to hear Spire Missouri’s direct appeal. On March 20, 2017, Spire Missouri entered into a bond purchase agreement for $170.0 that was funded on September 15, 2017, and applied against the $300.0 authorization. On April 11, 2017, both Spire Missouri East and Spire Missouri West filed for a general rate case, and did so concurrently as agreed to in GM-2013-0254, as part of the acquisition of Spire Missouri West by Spire Missouri in fiscal 2013. The request for Spire Missouri East represents a net rate increase of $25.5. With the $32.6 already being billed in ISRS, the total base rate increase request was $58.1. Spire Missouri West’s request represents a net rate increase of $34.0. With the $16.4 already being billed in ISRS, the total base rate increase request was $50.4. The rates were premised upon a 10.35% return on equity and the details of the filing can be found in GR-2017-0215 and GR-2017-0216 for Spire Missouri East and Spire Missouri West, respectively. An evidentiary hearing has been set for December 4 through 15, 2017, with a MoPSC decision expected by February 2018. Missouri statutes require new rates to be effective within 11 months of the filing, or by March 8, 2018. Spire Alabama Spire Alabama is subject to regulation by the APSC which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. Spire Alabama’s current RSE order has a term extending beyond September 30, 2018, unless the APSC enters an order to the contrary in a manner consistent with law. In the event of unforeseen circumstances, whether physical or economic, of the nature of force majeure and including a change in control, the APSC and Spire Alabama will consult in good faith with respect to modifications, if any. Effective January 1, 2014, Spire Alabama’s allowed range of return on average common equity is 10.5% to 10.95% with an adjusting point of 10.8%. Spire Alabama is eligible to receive a performance-based adjustment of 5 basis points to the return on equity adjusting point, based on meeting certain customer satisfaction criteria. Under RSE, the APSC conducts quarterly reviews to determine whether Spire Alabama’s return on average common equity at the end of the rate year will be within the allowed range of return. Reductions in rates can be made quarterly to bring the projected return within the allowed range; increases, however, are allowed only once each rate year, effective December 1, and cannot exceed 4% of prior-year revenues. The RSE reduction for the July 31, 2016 quarterly point of test was $4.8 and went into effect October 1, 2016, and for the quarterly point of test at September 30, 2016, Spire Alabama recorded a $2.7 RSE reduction effective December 1, 2016. As part of the annual update for RSE, on November 30, 2016, Spire Alabama filed a reduction for rate year 2017 of $2.5 that also became effective December 1, 2016. There was no RSE reduction for the January 31, 2017, April 30, 2017 and July 31, 2017 points of test. As of September 30, 2017, Spire Alabama recorded a $2.7 RSE reduction to operating revenues to bring the expected rate of return on average common equity at the end of the year to within the allowed range of return. The inflation-based Cost Control Measure (CCM), established by the APSC, allows for annual increases to operation and maintenance (O&M) expense. The CCM range is Spire Alabama’s 2007 actual rate year O&M expense inflation-adjusted using the June Consumer Price Index For All Urban Consumers each rate year plus or minus 1.75% (Index Range). If rate year O&M expense falls within the Index Range, no adjustment is required. If rate year O&M expense exceeds the Index Range, three-quarters of the difference is returned to customers through future rate adjustments. To the extent rate year O&M is less than the Index Range, Spire Alabama benefits by one-half of the difference through future rate adjustments. Certain items that fluctuate based on situations demonstrated to be beyond Spire Alabama’s control may be excluded from the CCM calculation. As of September 30, 2017, Spire Alabama recorded a CCM benefit of $10.7 for rate year 2017, which will be reflected in rates effective December 1, 2017. The CCM benefit was $7.8 for rate year 2016 and $4.7 for rate year 2015. On June 28, 2010, the APSC approved a reduction in depreciation rates, effective June 1, 2010, and a regulatory liability recorded for Spire Alabama. Refunds from such negative salvage liability will be passed back to eligible customers on a declining basis through lower tariff rates through rate year 2019 pursuant to the terms of the Negative Salvage Rebalancing (NSR) rider. The total amount refundable to customers is subject to adjustments over the remaining period for charges made to the Enhanced Stability Reserve (ESR) and other APSC-approved charges. The refunds are due to a re-estimation of future removal costs provided for through the prior depreciation rates. For fiscal 2017, approximately $6.3 of the customer refund was returned to customers. As of September 30, 2017, $12.3 is remaining to be refunded to customers. The NSR pass back for fiscal 2018 is $8.2 and will be reflected in rates effective December 1, 2017 through March 31, 2018. Spire Alabama has APSC approval for an intercompany revolving credit agreement allowing Spire Alabama to borrow from Spire in a principal amount not to exceed $200.0 at any time outstanding in combination with its bank line of credit, and to loan to Spire in a principal amount not to exceed $25.0 at any time outstanding. Borrowings may be used for the following purposes: (a) meeting increased working capital requirements; (b) financing construction requirements related to additions, extensions, and replacements of the distribution systems; and (c) financing other expenditures that may arise from time to time in the normal course of business. On September 18, 2017, Spire Alabama filed an application with the APSC for authorization to issue and sell $75.0 principal amount of debt and to purchase interest rate derivative instruments for the purpose of locking in favorable interest rates and to include the associated interest charges, issuance costs, fees and any gain or loss resulting from the settlement of such interest rate derivative instruments through rates. The application was approved by the APSC October 3, 2017. |
COMMITMENTS AND CONTINGENCIES |
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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 September 30, 2017 are estimated at $1,281.8, $563.9 and $285.6 for the Company, Spire Missouri and Spire Alabama, 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. Spire NGL Inc. is providing liquid propane transportation service to Spire Missouri pursuant to an approved FERC tariff and a contractual arrangement with Spire Missouri. In accordance with the terms of that agreement, Spire Missouri is obligated to pay Spire NGL Inc. approximately $1.0 annually, at current rates. The agreement renews at the end of each contract year, unless terminated by either party upon provision of at least six months’ notice. A consolidated subsidiary is a general partner in an unconsolidated partnership that invests in real estate partnerships. The subsidiary and third parties are jointly and severally liable for the payment of mortgage loans in the aggregate outstanding amount of approximately $1.3 incurred in connection with various real estate ventures. Spire has no reason to believe that the other principal liable parties will not be able to meet their proportionate share of these obligations. Spire further believes that the asset values of the real estate properties are sufficient to support these mortgage loans. Leases Aggregate rental expense and annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below:
The lease agreement covering the Company’s primary office space in Missouri extends through January 2035. The lease agreement covering the primary office space of Spire Alabama extends through February 2020. Spire Alabama has an operating lease for additional office space that extends to January 31, 2024. Spire Alabama has subleased all of this additional office space to Energen pursuant to a sublease that expires on December 31, 2019 with an option to extend through January 31, 2024. Amounts in the table above have not been reduced for sublease rentals. For Spire Alabama and Spire, sublease rentals were $2.1, $2.1, and $2.1 for fiscal years 2017, 2016, and 2015, and minimum future rentals to be received in fiscal years 2018, 2019, and 2020 are $2.1, $2.1, and $0.5, respectively. Spire Missouri, Spire Alabama and Spire Marketing have other relatively minor rental arrangements that provide for minimum rental payments. 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, Spire Missouri, and Spire Alabama 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 statements of income, balance sheets, and statements of cash flows of the Company, Spire Missouri, or Spire Alabama. 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. Spire On June 14, 2017, Spire filed a lawsuit against Cellular South, Inc. d/b/a C-Spire in federal district court for the Southern District of Alabama, Civil Action 17-00266-KD-N, seeking a declaratory order that Spire’s SPIRE trademarks do not infringe upon Cellular South’s C-SPIRE trademarks, and that Spire is entitled to federal registration of its trademarks. In prior proceedings before the United States Patent and Trademark Office, Cellular South filed oppositions to Spire’s attempts to register the SPIRE name, the SPIRE logo and the SPIRE LOGO + HANDSHAKE trademarks. In answer to Spire’s lawsuit, Cellular South filed counterclaims alleging infringement and unfair business practices, and seeking a declaration of infringement and that SPIRE marks are not registrable by Spire. On September 11, 2017, a federal district court judge denied Cellular South’s motion for a temporary restraining order and an injunction that would have prohibited Spire from using the SPIRE trademarks in Alabama and Mississippi. After consultation with counsel, the Company does not believe that the final resolution of this matter will have a detrimental impact on the Company’s financial condition or results of operations. Spire Gulf is in the chain of title of one former MGP site which it still owns in Mobile, Alabama. On September 15, 2010, Spire Gulf filed an application to enroll the site into the Alabama Department of Environmental Management’s (ADEM) Voluntary Cleanup Program. This application was accepted by ADEM on November 16, 2010. Investigation and testing have been completed. Spire Gulf received an approved remediation plan from ADEM and the remedial actions under the plan were completed in fiscal 2017. Spire Gulf 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 Spire Gulf in Mobile County Circuit Court alleging that in the first half of 2008, Spire Gulf 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. The Company has resolved all coverage disputes with its insurance carriers relating to this matter. The Company does not expect potential liabilities that may arise from these lawsuits to have a material impact on its future financial condition or results of operations. Spire Missouri Spire Missouri 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). Spire Missouri 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 more recent claim assertion by the United States Environmental Protection Agency (EPA), and such claim is currently being investigated. With regard to the former MGP site located in Shrewsbury, Missouri, Spire Missouri 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, EPA Region 7 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, Spire Missouri may incur additional costs. In conjunction with redevelopment of one of the sites located in the City, Spire Missouri 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 Spire Missouri 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 Spire Missouri 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 Spire Missouri did not materially impact the financial condition, results of operations, or cash flows of the Company. Spire Missouri 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 Spire Missouri that the MDNR had completed an investigation of the site. The Attorney General requested that Spire Missouri participate in the follow up investigations of the site. In a letter dated January 10, 2012, Spire Missouri 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, Spire Missouri 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 Spire Missouri 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 Spire Missouri operated a MGP. Spire Missouri has not owned or operated the site (also known as Station “B”) for over 70 years. Spire Missouri and the site owner have met with the EPA and reviewed its assertions. Both Spire Missouri and the site owner have notified the EPA that the information and data provided by the EPA to date does not rise to the level of documenting a threat to the public health or environment. As such, Spire Missouri 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. To date, Spire Missouri has not received a response from the EPA. Spire Missouri 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, Spire Missouri continues to discuss potential reimbursements with them. On March 10, 2015, Spire Missouri received a Section 104(e) information request from EPA Region 7 regarding the former Thompson Chemical/Superior Solvents site in the City. In turn, Spire Missouri 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. Spire Missouri has received no further inquiry from the EPA regarding this matter. In its western service area, Spire Missouri has seven owned MGP sites enrolled in the BVCP: 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, Spire Missouri 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 Spire Missouri 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 Spire Missouri 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, Spire Missouri retained an outside consultant to conduct probabilistic cost modeling of 19 former MGP sites owned or operated by Spire 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. Spire Missouri 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, Spire Missouri would request from the MoPSC authority to defer such costs and collect them in the next rate case. Spire Missouri 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. Spire Alabama Spire Alabama 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. Spire Alabama does not foresee a probable or reasonably estimable loss associated with these nine sites. Spire Alabama and the Company do not expect potential liabilities that may arise from remediating these sites to have a material impact on their future financial conditions or results of operations. In 2012, Spire Alabama 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. Spire Alabama 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, Spire Alabama 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. Spire Alabama 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. Spire Alabama has been named as a defendant in several lawsuits arising from the incident, and additional lawsuits and claims may be filed against Spire Alabama. |
INTERIM FINANCIAL INFORMATION (UNAUDITED) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTERIM FINANCIAL INFORMATION (UNAUDITED) | INTERIM FINANCIAL INFORMATION (UNAUDITED) Spire In the opinion of Spire, the quarterly information presented below for fiscal years 2017 and 2016 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in consolidated operations reported on a quarterly basis primarily reflect the seasonal nature of the business of the Utilities.
Spire Missouri In the opinion of Spire Missouri, the quarterly information presented below for fiscal years 2017 and 2016 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in operations reported on a quarterly basis primarily reflect their seasonal nature.
Spire Alabama In the opinion of Spire Alabama, the quarterly information presented below for fiscal years 2017 and 2016 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in operations reported on a quarterly basis primarily reflect their seasonal nature.
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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 audited financial statements of Spire Inc. presented on a consolidated basis (Spire or the Company), Spire Missouri Inc. (Spire Missouri or the Missouri Utilities) and Spire Alabama Inc. (Spire Alabama). Spire Missouri and Spire Alabama are wholly owned subsidiaries of the Company. Spire Missouri changed its name from Laclede Gas Company on August 30, 2017, and Spire Alabama changed its name from Alabama Gas Corporation on September 1, 2017. Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth Inc. (formerly known as EnergySouth, Inc.) are collectively referred to as the Utilities. The subsidiaries of Spire EnergySouth Inc. (Spire EnergySouth) are Spire Gulf Inc. (Spire Gulf, formerly known as Mobile Gas Service Corporation) and Spire Mississippi Inc. (Spire Mississippi, formerly known as Willmut Gas & Oil Company). The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Unless otherwise indicated, references to years herein are references to the fiscal years ending September 30 for the Company and its subsidiaries. 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 Spire Missouri and Spire Alabama and their affiliates, as well as intercompany balances on their balance sheets, have not been eliminated from their separate financial statements. The Company’s September 12, 2016 acquisition of Spire EnergySouth is included in the results of operations since the acquisition date and impacts the comparability of the financial statement periods presented for the Company. For a further discussion of the acquisition, see Note 2, Acquisitions. The Utilities are regulated natural gas distribution utilities. Due to the seasonal nature of the Utilities, the earnings of Spire, Spire Missouri and Spire Alabama are typically concentrated during the heating season of November through April each fiscal year. |
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USE OF ESTIMATES | USE OF ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
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SYSTEM OF ACCOUNTS | SYSTEM OF ACCOUNTS – The accounts of the Utilities are maintained in accordance with the Uniform System of Accounts prescribed by the applicable state public service commissions, which systems substantially conform to that prescribed by the Federal Energy Regulatory Commission (FERC). |
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UTILITY PLANT, DEPRECIATION AND AMORTIZATION | PLANT, AND EQUIPMENT – Utility Plant – Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. For Spire Missouri, utility plant is depreciated on a straight-line basis at rates based on estimated service lives of the various classes of property. In fiscal years 2017, 2016 and 2015, annual depreciation and amortization expense averaged 3.0% of the original cost of depreciable and amortizable property. For Spire Alabama, depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of utility property at rates approved by the Alabama Public Service Commission (APSC). |
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ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS – Spire, Spire Missouri, and Spire Alabama record legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company, Spire Missouri and Spire Alabama record asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of Spire Missouri’s, Spire Alabama’s and Spire Gulf’s distribution systems and general plant. Asset retirement obligations recorded by Spire’s other subsidiaries are not material. As authorized by the Missouri Public Service Commission (MoPSC) and APSC, Spire Missouri, Spire Alabama and Spire Gulf accrue future asset removal costs associated with their property, plant and equipment even if a legal obligation does not exist. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities or regulatory assets. When those utilities retire depreciable utility plant and equipment, they charge the associated original costs to accumulated depreciation and amortization, and any related removal costs incurred are charged to regulatory liabilities or regulatory assets. The difference between removal costs recognized in depreciation rates and the accretion expense and depreciation expense recognized for financial reporting purposes is a timing difference between recovery of these costs in rates and their recognition for financial reporting purposes. Accordingly, these differences are deferred as regulatory liabilities or regulatory assets. In the rate setting process, the regulatory liabilities or regulatory assets are excluded from the rate base upon which those utilities have the opportunity to earn their allowed rates of return. The costs associated with asset retirement obligations of Spire Missouri, Spire Alabama and Spire Gulf are either currently being recovered in rates or are probable of recovery in future rates. |
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REGULATED OPERATIONS | REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (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. See additional discussion on regulated operations in Note 15, Regulatory Matters. As discussed below for Spire Missouri and Spire Alabama, 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 regulatory liabilities related to the PGA clauses and the GSA rider are both labeled Unamortized Purchased Gas Adjustments herein. Spire Missouri As authorized by the MoPSC, the PGA clause allows Spire Missouri to flow through to customers, subject to prudence review by the MoPSC, the cost of purchased gas supplies. To better match customer billings with market natural gas prices, Spire Missouri is allowed to file to modify, on a periodic basis, the level of gas costs in its PGA. Certain provisions of the PGA clause are included below:
Pursuant to the provisions of the PGA clause, the difference between actual costs incurred and costs recovered through the application of the PGA clause are reflected as a deferred charge or credit at the end of the fiscal year. These costs include costs and cost reductions associated with the use of derivative instruments and gas inventory carrying costs, amounts due to or from customers related to operation of the gas supply cost management program, refunds received from the Company’s suppliers in connection with gas supply, transportation, and storage services, and carrying costs on such over- or under-recoveries. At that time, the balance is classified as a current asset or current liability and recovered from, or credited to, customers over an annual period commencing in November. The balance in the current account is amortized as amounts are reflected in customer billings. The PGA clause also provides for the treatment of income from off-system sales and capacity release revenues. Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
Spire Alabama Spire Alabama’s rate schedules for natural gas distribution charges contain a GSA rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. Spire Alabama’s tariff provides a temperature adjustment mechanism, also included in the GSA rider, which is designed to moderate the impact of departures from normal temperatures on Spire Alabama’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather-related conditions that may affect customer usage are not included in the temperature adjustment. |
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NATURAL GAS AND PROPANE GAS | NATURAL GAS AND PROPANE GAS – For Spire Missouri East, inventory of natural gas in storage is priced on a last in, first out (LIFO) basis and inventory of propane gas in storage is priced on a first in, first out (FIFO) basis. For the rest of the Gas Utility segment, inventory of natural gas in storage is priced on the weighted average cost basis. The replacement cost of Spire Missouri’s natural gas for current use in eastern Missouri at September 30, 2017 and September 30, 2016 was less than the LIFO cost by $20.8 and $11.4, respectively. The carrying value of the Utilities’ inventory is not adjusted to the lower of cost or market prices because, pursuant to PGA or GSA, actual gas costs are recovered in customer rates. Natural gas and propane gas storage inventory in Spire’s other operating segments is recorded at the lower of average cost or market. |
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BUSINESS COMBINATIONS | BUSINESS COMBINATIONS – The Spire EnergySouth acquisition was accounted for by Spire using business combination accounting. Under this method, the purchase price paid by the acquirer is allocated to the assets acquired and liabilities assumed as of the acquisition date based on their fair value. |
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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. Spire and Spire Missouri evaluate goodwill for impairment as of July 1 of each year, or more frequently if events and circumstances indicate that goodwill might be impaired. At July 1, 2017, 2016 and 2015, Spire and Spire Missouri each applied a quantitative goodwill evaluation model to their reporting units and concluded goodwill was not impaired because the fair value exceeded the carrying amount. |
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IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS – Long-lived assets classified as held and used are evaluated for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Whether impairment has occurred is determined by comparing the estimated undiscounted cash flows attributable to the assets with the carrying value of the assets. If the carrying value exceeds the undiscounted cash flows, the Company recognizes an impairment charge equal to the amount of the carrying value that exceeds the estimated fair value of the assets. In the period in which the Company determines an asset meets held-for-sale criteria, an impairment charge is recorded to the extent the book value exceeds its fair value less cost to sell. |
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REVENUE RECOGNITION | REVENUE RECOGNITION – The Utilities read meters and bill customers on monthly cycles. The Missouri Utilities, Spire Gulf and Spire Mississippi 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 Spire Missouri at September 30, 2017 and 2016 were $30.1 and $26.1, respectively. Spire Alabama records natural gas distribution revenues in accordance with the tariff established by the APSC. Unbilled revenue is accrued in an amount equal to the related gas cost, as profit margin is not considered earned until billed. The amounts of accrued unbilled revenues for Spire Alabama at September 30, 2017 and 2016 were $1.9 and $5.9. 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 its derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of 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. For additional information on derivative instruments, refer to Note 10, Derivative Instruments and Hedging Activities. 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 (or expenses, if negative) in the Consolidated Statements of Income. This net presentation has no effect on operating income or net income. |
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INCOME TAXES | INCOME TAXES – Spire and its subsidiaries account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and the respective tax basis and for tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income or loss for a non-regulated company, and in a regulatory asset or regulatory liability for a regulated company. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with authoritative guidance. The authoritative guidance addresses the determination of whether tax benefits claimed, or expected to be claimed, on a tax return should be recorded in the financial statements. Spire may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by the taxing authority, based on the technical merits of the position. Tax-related interest and penalties, if any, are classified as a liability on the balance sheets. |
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CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS – All highly liquid debt instruments purchased with original maturities of three months or less are considered to be cash equivalents. Such instruments are carried at cost, which approximates market value. Outstanding checks on the Company’s and Utilities’ bank accounts in excess of funds on deposit create book overdrafts (which are funded at the time checks are presented for payment) and are classified as Other in the Current Liabilities section of the balance sheets. Changes in book overdrafts are reflected as Operating Activities in the statements of cash flows. |
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NATURAL GAS RECEIVABLE | NATURAL GAS RECEIVABLE – Spire Marketing enters into natural gas transactions with natural gas pipeline companies known as park and loan arrangements. Under the terms of the arrangements, Spire Marketing purchases natural gas from a third party and delivers that natural gas to the pipeline company for the right to receive the same quantity of natural gas from the pipeline company at the same location in a future period. These arrangements are accounted for as non-monetary transactions under GAAP and are recorded at the carrying amount. As such, natural gas receivables are reflected on the Consolidated Balance Sheets at cost, which includes related pipeline fees associated with the transactions. In the period that the natural gas is returned to Spire Marketing, concurrent with the sale of the natural gas to a third party, the related natural gas receivable is expensed in the Consolidated Statements of Income. In conjunction with these transactions, Spire Marketing usually enters into New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE) natural gas futures, options, and swap contracts or fixed price sales agreements to protect against market changes in future sales prices. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. Spire’s provision for uncollectible accounts includes the amortization of previously deferred uncollectible expenses for Spire Missouri and Spire Alabama, as approved by the MoPSC and the APSC |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE – GAAP requires dual presentation of basic and diluted earnings per share (EPS). EPS is computed using the two-class method, which is an earnings allocation method for computing EPS that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Certain of the Company’s stock-based compensation awards pay non-forfeitable dividends to the participants during the vesting period and, as such, are deemed participating securities. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding that are increased for additional shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares, pursuant to the treasury stock method. Shares attributable to equity units, non-participating stock options and time-vested restricted stock/units are excluded from the calculation of diluted earnings per share if the effect would be antidilutive. Shares attributable to non-participating performance-contingent restricted stock awards are only included in the calculation of diluted earnings per share to the extent the underlying performance and/or market conditions are satisfied (a) prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. |
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GROSS RECEIPTS AND SALES TAXES | GROSS RECEIPTS AND SALES TAXES – Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Company, Spire Missouri, and Spire Alabama and billed to its 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:
Sales taxes imposed on applicable Spire Alabama and Spire Missouri sales are billed to customers. These amounts are not recorded in the statements of income but are recorded as tax collections payable and included in the “Other” line of the Current Liabilities section of the balance sheets. |
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TRANSACTIONS WITH AFFILIATES | TRANSACTIONS WITH AFFILIATES – Transactions between affiliates of the Company have been eliminated from the consolidated financial statements of Spire. |
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GROUP MEDICAL AND WORKERS' COMPENSATION RESERVES | GROUP MEDICAL AND WORKERS’ COMPENSATION RESERVES – The Company self-insures its group medical and workers’ compensation costs and carries stop-loss coverage in relation to medical claims and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. |
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FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS – Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The levels of the hierarchy are described below:
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION – The Company measures stock-based compensation awards at fair value at the date of grant and recognizes the compensation cost of the awards over the requisite service period. Effective with the adoption of Accounting Standards Update No. 2016-09 at the beginning of fiscal 2017 (described under New Accounting Pronouncements below), forfeitures are recognized in the period they occur. In fiscal 2016 and fiscal 2015, forfeitures were estimated at the time of grant and revised, when necessary, in subsequent periods when the actual forfeitures differed from those estimates. |
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NEW ACCOUNTING STANDARDS | 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, Spire Missouri and Spire Alabama 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 the amounts of unamortized debt issuance costs are shown separately on the statements of capitalization. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Expenditure Excluded from Statement of Cash Flow | Accrued capital expenditures, shown in the following table, are excluded from capital expenditures in the statements of cash flows.
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Asset retirement obligations | The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, as reported in the balance sheets.
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Off-system sales | Pre-tax income from off-system sales and capacity release revenues is shared with customers, with an estimated amount assumed in PGA rates. The difference between the actual amount allocated to customers for each fiscal year and the estimated amount assumed in PGA rates is recovered from, or credited to, customers over an annual period commencing in the subsequent November. The customer share of such income is determined in accordance with the following tables, shown for each service territory for which the PGA clauses were approved by the MoPSC.
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Changes in the carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill by reportable segment were as follows:
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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 |
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ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of consideration paid and amounts of assets acquired and liabilities assumed | The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed at the acquisition date.
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Schedule of Pro Forma Information | results of operations are included in the Spire statements of income from the date of acquisition, as shown in the following table.
The following unaudited pro forma financial information presents Spire’s combined results of operations as though the Spire EnergySouth acquisition had occurred as of the beginning of fiscal 2015. The unaudited pro forma financial information is not necessarily indicative of either future results of operations or results that would have been achieved if the acquisition had occurred as of the earlier date. It includes estimates and assumptions which management believes are reasonable. The timing of integration costs was not changed.
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STOCK-BASED COMPENSATION (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock and restricted stock unit activity | 2017 activity of restricted stock and restricted stock units subject to performance and/or market conditions is presented below:
Time-vested restricted stock and stock unit activity for fiscal 2017 is presented below:
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Stock option awards activity | No stock options were granted during fiscal years 2017, 2016, and 2015. There was no stock option activity in fiscal 2017, as all outstanding stock options either vested or forfeited in fiscal 2016. |
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Significant assumptions used in the Monte Carlo simulations | The significant assumptions used in the Monte Carlo simulations are as follows:
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Compensation cost recognized for share-based compensation arrangements | The amounts of compensation cost recognized for share-based compensation arrangements are presented below:
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EARNINGS PER COMMON SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share |
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STOCKHOLDERS' EQUITY (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss), net of income taxes, recognized in the balance sheets at September 30 were as follows:
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LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of maturities of long-term debt by fiscal year | Maturities of long-term debt for Spire on a consolidated basis, Spire Missouri and Spire Alabama for the five fiscal years subsequent to September 30, 2017 are as follows:
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NOTES PAYABLE AND CREDIT AGREEMENTS (Tables) |
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Short-term borrowings | Information about Spire’s consolidated short-term borrowings is presented below. Based on average short-term borrowings for the year ended September 30, 2017, an increase in the average interest rate of 100 basis points would decrease Spire’s pre-tax earnings and cash flows by approximately $4.9 on an annual basis, portions of which may be offset through the application of PGA or GSA carrying costs.
2 The commercial paper program for Spire Missouri terminated February 2, 2017. |
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Spire Missouri | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
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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 for the Company are as follows:
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 for Spire Missouri are as follows:
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Spire Alabama | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 for Spire Alabama are as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 NYMEX. Derivative instruments classified as 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. 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. There were no material Level 3 balances as of September 30, 2017 or 2016. 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 “Property and other investments” on Spire Missouri’s balance sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net on the balance sheets when a legally enforceable netting agreement exist between the Company or Spire Missouri and the counterparty to the derivative contract. For additional information on derivative instruments, see Note 10, Derivative Instruments and Hedging Activities.
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Measured on Recurring Basis |
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Open NYMEX/ICE natural gas futures and swap positions at September 30, 2017 were as follows:
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The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income |
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Fair Value of Derivative Instruments in the Consolidated Balance Sheet |
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Derivative instrument Reconciliation | Following is a reconciliation of the amounts in the tables above to the amounts presented in the Consolidated Balance Sheets:
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ’s derivative instruments consist primarily of NYMEX positions. The NYMEX is the primary national commodities exchange on which natural gas derivatives are traded. Open NYMEX natural gas futures positions at September 30, 2017 were as follows:
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The Effect of Derivative Instruments on the Statements of Consolidated Income and Statements of Consolidated Comprehensive Income |
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Fair Value of Derivative Instruments in the Consolidated Balance Sheet |
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Derivative instrument Reconciliation | Following is a reconciliation of the amounts in the tables above to the amounts presented in Spire Missouri’s Balance Sheets:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | The Company’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015 are as follows:
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Effective income tax rate variation from stated tax rate | The Company’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. |
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Significant Items in Net Deferred Tax Liability | The Company’s significant items comprising the net deferred tax liability recorded in the Consolidated Balance Sheets as of September 30 are as follows:
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Unrecognized Tax Benefit Reconciliation | The following table presents a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | ’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015 are as follows:
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Effective income tax rate variation from stated tax rate | ’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
* Other consists primarily of property adjustments. |
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Significant Items in Net Deferred Tax Liability | ’s significant items comprising the net deferred tax liability reported in the Balance Sheets as of September 30 are as follows:
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Unrecognized Tax Benefit Reconciliation | The following table presents a reconciliation of the beginning and ending balances of Spire Missouri unrecognized tax benefits:
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Spire Alabama | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Provision For Income Tax | ’s provision for income taxes charged during the fiscal years ended September 30, 2017, 2016, and 2015, are as follows:
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Effective income tax rate variation from stated tax rate | ’s effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
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Significant Items in Net Deferred Tax Liability | ’s significant items comprising the net deferred tax asset reported in the Balance Sheets as of September 30 are as follows:
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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements of plan assets | The table below categorizes the fair value measurements of the Spire pension plan assets:
The table below categorizes the fair value measurements of Spire’s postretirement plan assets:
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Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | The net periodic pension costs include the following components:
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Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and pension benefit obligations recognized in other comprehensive income or loss include the following:
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Reconciliation of the beginning and ending balances of benefit obligation | The following table shows the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
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Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic pension cost consist of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2017, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic pension cost during fiscal 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate the benefit obligations are as follows:
The assumptions used to calculate net periodic pension costs for Spire Missouri are as follows:
The assumptions used to calculate net periodic pension costs for Spire Alabama are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have projected benefit obligation and accumulated benefit obligation in excess of plan assets | Following are the year-end projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Spire Missouri and Spire Alabama:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected benefit payments for the succeeding five fiscal years | Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five fiscal years thereafter, for Spire, Spire Missouri, and Spire Alabama:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | Net periodic postretirement benefit costs consist of the following components:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and postretirement benefit obligations recognized in OCI include the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the beginning and ending balances of benefit obligation | The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the balance sheets at September 30:
Pre-tax amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic postretirement benefit cost consist of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2017, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during fiscal 2018:
|
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Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate net periodic postretirement benefit costs for Spire Missouri are as follows:
The assumptions used to calculate net periodic postretirement benefit costs for Spire Alabama are as follows:
The assumptions used to calculate the accumulated postretirement benefit obligations are as follows:
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Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Spire Missouri and Spire Alabama:
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Expected benefit payments for the succeeding five fiscal years | Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five fiscal years thereafter for Spire, Spire Missouri, and Spire Alabama:
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Assumed medical cost trend rates and effect of an assumed 1% changed in assumed medical cost trend. | The assumed medical cost trend rates at September 30 are as follows:
The following table presents the effects of an assumed 1% change in the assumed medical cost trend rate:
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements of plan assets | The table below categorizes the fair value measurements of Spire Alabama’s pension plan assets:
The table below categorizes the fair value measurements of Spire Alabama’s postretirement plan assets:
The table below categorizes the fair value measurements of Spire Missouri’s pension plan assets:
The table below categorizes the fair value measurements of Spire Missouri’s postretirement plan assets:
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INFORMATION BY OPERATING SEGMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating segment information |
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Schedule of the reconciliation of consolidated net economic earnings to consolidated net income |
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REGULATORY MATTERS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of regulatory assets | The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2017 and 2016. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
A portion of the Company’s regulatory assets are not earning a return and are shown in the schedule below:
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Schedule of regulatory liabilities | The following regulatory assets and regulatory liabilities were reflected in the Balance Sheets as of September 30, 2017 and 2016. Unamortized Purchased Gas Adjustments are also included below, which are reported separately in the current assets and liabilities sections of each balance sheet.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Rental Expense and Annual Minimum Rental Commitments | Aggregate rental expense and annual minimum rental commitments under all leases having an initial or remaining non-cancelable term of more than one year are shown below:
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INTERIM FINANCIAL INFORMATION (UNAUDITED) (Tables) |
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Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Spire Missouri | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Spire Alabama | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Goodwill [Line Items] | |||
Accruals for capital expenditures | $ 41.0 | $ 30.4 | $ 13.4 |
Goodwill [Roll Forward] | |||
Beginning balance | 1,164.9 | 946.0 | 937.8 |
Goodwill | 6.7 | 8.2 | |
Acquisition | 218.9 | ||
Ending balance | 1,171.6 | 1,164.9 | 946.0 |
Operating Segments | Gas Utility: | |||
Goodwill [Roll Forward] | |||
Beginning balance | 210.2 | 210.2 | 210.2 |
Goodwill | 0.0 | 0.0 | |
Acquisition | 0.0 | ||
Ending balance | 210.2 | 210.2 | 210.2 |
Operating Segments | Gas Marketing: | |||
Goodwill [Roll Forward] | |||
Beginning balance | 0.0 | 0.0 | 0.0 |
Goodwill | 0.0 | 0.0 | |
Acquisition | 0.0 | ||
Ending balance | 0.0 | 0.0 | 0.0 |
Other | |||
Goodwill [Roll Forward] | |||
Beginning balance | 954.7 | 735.8 | 727.6 |
Goodwill | 6.7 | 8.2 | |
Acquisition | 218.9 | ||
Ending balance | 961.4 | 954.7 | 735.8 |
Spire Missouri | |||
Goodwill [Line Items] | |||
Accruals for capital expenditures | 28.9 | 14.8 | $ 9.6 |
Goodwill [Roll Forward] | |||
Beginning balance | 210.2 | ||
Ending balance | $ 210.2 | $ 210.2 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gross Receipts and Sales Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 84.6 | $ 75.5 | $ 97.3 |
Spire Missouri | |||
Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | 60.7 | 57.4 | 74.5 |
Spire Alabama | |||
Schedule of Gross Receipts Taxes [Line Items] | |||
Gross Receipts taxes recorded in regulated gas distribution operating revenues | $ 19.5 | $ 17.9 | $ 22.6 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Transactions with Affiliates (Details) - Affiliated Entity - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Laclede Pipeline Company [Member] | Unregulated Operation | Spire Missouri | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.0 | $ 1.0 | |
Spire Missouri | Regulated Operation | Spire marketing | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 7.8 | 1.9 | $ 4.0 |
Spire marketing | Regulated Operation | Spire Missouri | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 74.4 | $ 46.3 | $ 74.1 |
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 12, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 12, 2017 |
Sep. 30, 2014 |
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Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 3.8 | $ (317.7) | $ 0.0 | |||
Goodwill | 1,171.6 | $ 1,164.9 | $ 946.0 | $ 937.8 | ||
EnergySouth | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interest acquired | 100.00% | |||||
Payments to acquire businesses, net of cash acquired | $ (313.9) | |||||
Goodwill | $ 218.9 | $ 225.6 | $ 225.6 |
ACQUISITIONS - Summary of Consideration Paid, Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 12, 2016 |
Sep. 30, 2017 |
Sep. 30, 2015 |
Sep. 12, 2017 |
Sep. 30, 2016 |
Sep. 30, 2014 |
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Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,171.6 | $ 1,171.6 | $ 946.0 | $ 1,164.9 | $ 937.8 | ||
Measurement period adjustments | |||||||
Goodwill | 6.7 | $ 8.2 | |||||
EnergySouth | |||||||
Business Acquisition [Line Items] | |||||||
Utility plant | 199.5 | $ 199.5 | 199.5 | ||||
Cash | 2.0 | 2.0 | 2.0 | ||||
Other current assets | 17.7 | 17.5 | 17.7 | ||||
Other assets | 69.1 | 79.8 | 69.1 | ||||
Long-term debt | (67.0) | (67.0) | (67.0) | ||||
Other current liabilities | (42.7) | (42.7) | (42.7) | ||||
Deferred tax liabilities | (35.5) | (35.5) | (35.5) | ||||
Other liabilities | (52.8) | (52.8) | (52.8) | ||||
Total identifiable net assets | 90.3 | 100.8 | 90.3 | ||||
Goodwill | 225.6 | 218.9 | $ 225.6 | $ 225.6 | |||
Measurement period adjustments | |||||||
Other current assets | 0.2 | ||||||
Other assets | (10.7) | ||||||
Total identifiable net assets | (10.5) | ||||||
Goodwill | 6.7 | ||||||
Consideration (cash) | (3.8) | ||||||
Consideration (cash) | $ 315.9 | $ 319.7 |
ACQUISITIONS - Pro Forma Information, Revenues and Earnings (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Alagasco and EnergySouth | |||
Business Acquisition [Line Items] | |||
Total Operating Revenues | $ 1,740.7 | $ 1,632.4 | $ 2,081.6 |
Net Income | $ 161.6 | $ 153.9 | $ 143.6 |
Basic earnings (loss) per share (in dollars per share) | $ 3.44 | $ 3.48 | $ 3.32 |
Diluted earnings (loss) per share (in dollars per share) | $ 3.43 | $ 3.46 | $ 3.31 |
EnergySouth | |||
Business Acquisition [Line Items] | |||
Pro forma, Total Operating Revenues | $ 95.5 | $ 3.3 | |
Pro forma, Net Income (Loss) | $ 9.4 | $ (0.2) | |
Pro forma, Earnings (Loss) Per Share (in dollars per share) | $ 0.20 | $ 0.00 |
STOCK-BASED COMPENSATION - Fair Value Measurement Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.39% | 1.14% | 0.83% |
Expected dividend yield of stock | 0.00% | 0.00% | 0.00% |
Expected volatility of stock | 16.30% | 15.00% | 14.00% |
Vesting period | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
STOCK-BASED COMPENSATION - Compensation Costs Recognized (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total compensation cost | $ 7.4 | $ 6.7 | $ 6.7 |
Compensation cost capitalized | (3.3) | (2.2) | (1.8) |
Compensation cost recognized in net income | 4.1 | 4.5 | 4.9 |
Income tax benefit recognized in net income | (1.5) | (1.7) | (1.9) |
Compensation cost recognized in net income, net of income tax | $ 2.6 | $ 2.8 | $ 3.0 |
STOCKHOLDERS' EQUITY - Schedule of Company's Equity Units (Details) equity_unit in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2014
equity_unit
| |
Stockholders' Equity Note [Abstract] | |
Number of equity units issued (in shares) | 2,875 |
LONG-TERM DEBT - Maturities of Long-term Debt (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Maturities on long-term debt [Abstract] | |
2018 | $ 100.0 |
2019 | 180.0 |
2020 | 40.0 |
2021 | 55.0 |
2022 | 50.0 |
Spire Missouri | |
Maturities on long-term debt [Abstract] | |
2018 | 100.0 |
2019 | 50.0 |
2020 | 0.0 |
2021 | 0.0 |
2022 | 0.0 |
Spire Alabama | |
Maturities on long-term debt [Abstract] | |
2018 | 0.0 |
2019 | 0.0 |
2020 | 40.0 |
2021 | 0.0 |
2022 | $ 50.0 |
CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions |
Sep. 30, 2017
USD ($)
counterparty
|
---|---|
Concentration Risk [Line Items] | |
Number of large counterparties for which credit risk is disclosed | counterparty | 5 |
Energy Producers And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | $ 17.9 |
Net receivable amount | 8.9 |
Utility Companies And Their Affiliates | |
Concentration Risk [Line Items] | |
Accounts receivable | 58.2 |
Net receivable amount | 55.8 |
Largest Counterparties | |
Concentration Risk [Line Items] | |
Accounts receivable | 23.8 |
Net receivable amount | $ 23.1 |
INCOME TAXES - Narrative (Details) - USD ($) |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | $ 478,600,000 | |
Contribution carryforwards | 12,100,000 | |
Valuation allowance | 500,000 | $ 900,000 |
Tax credit carryforwards | 2,500,000 | |
Unrecognized tax benefits affect on the Company's effective tax rate | 5,100,000 | 3,300,000 |
Income taxes accrued | 0 | 0 |
income tax penalties accrued | 0 | |
Spire Missouri | ||
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | 166,000,000 | |
Contribution carryforwards | 11,200,000 | |
Valuation allowance | 500,000 | 900,000 |
Tax credit carryforwards | 2,000,000 | |
Unrecognized tax benefits affect on the Company's effective tax rate | 4,800,000 | 3,100,000 |
Income taxes accrued | 0 | 0 |
income tax penalties accrued | 0 | $ 0 |
Spire Alabama | ||
Tax Credit Carryforward [Line Items] | ||
Federal and state loss carryforwards | $ 233,500,000 |
INCOME TAXES - Net Provisions for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Federal | |||
Current | $ 0.1 | $ 0.1 | $ (3.3) |
Deferred | 67.7 | 62.0 | 58.8 |
Investment tax credits | (0.2) | (0.2) | (0.2) |
State and local | |||
Current | 0.5 | 0.6 | 0.0 |
Deferred | 9.5 | 7.0 | 6.9 |
Total income tax expense | 77.6 | 69.5 | 62.2 |
Spire Missouri | |||
Federal | |||
Current | 0.0 | 0.0 | (2.1) |
Deferred | 42.0 | 37.5 | 40.9 |
Investment tax credits | (0.2) | (0.2) | (0.2) |
State and local | |||
Current | 0.0 | 0.1 | (0.1) |
Deferred | 5.7 | 8.0 | 4.7 |
Total income tax expense | 47.5 | 45.4 | 43.2 |
Spire Alabama | |||
Federal | |||
Current | 0.0 | (0.8) | 0.0 |
Deferred | 31.6 | 29.4 | 25.9 |
State and local | |||
Current | 0.0 | 0.0 | 0.1 |
Deferred | 4.2 | 3.8 | 3.3 |
Total income tax expense | $ 35.8 | $ 32.4 | $ 29.3 |
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Unrecognized tax benefits [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 10.0 | $ 7.1 | $ 4.6 |
Increases related to tax positions taken in current year | 2.4 | 3.4 | 2.9 |
Reductions due to lapse of applicable statute of limitations | (1.4) | (0.5) | (0.4) |
Unrecognized tax benefits, end of year | 11.0 | 10.0 | 7.1 |
Spire Missouri | |||
Unrecognized tax benefits [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | 9.7 | 6.9 | 4.2 |
Increases related to tax positions taken in current year | 2.4 | 3.3 | 2.9 |
Reductions due to lapse of applicable statute of limitations | (1.4) | (0.5) | (0.2) |
Unrecognized tax benefits, end of year | $ 10.7 | $ 9.7 | $ 6.9 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Projected Benefit Obligation (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 748.8 | $ 794.7 |
Accumulated benefit obligation | 701.4 | 724.5 |
Fair value of plan assets | 531.6 | 540.5 |
Spire Missouri | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 539.6 | 560.0 |
Accumulated benefit obligation | 500.4 | 517.7 |
Fair value of plan assets | 385.9 | 395.7 |
Spire Alabama | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 148.2 | 174.3 |
Accumulated benefit obligation | 142.8 | 149.8 |
Fair value of plan assets | $ 97.9 | $ 100.0 |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Expected Future Benefit Payments (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | $ 63.5 |
2018 | 63.2 |
2019 | 63.2 |
2020 | 58.1 |
2021 | 57.9 |
2022 - 2026 | 281.1 |
Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 15.0 |
2018 | 16.0 |
2019 | 17.1 |
2020 | 18.3 |
2021 | 18.9 |
2022 - 2026 | 101.3 |
Spire Missouri | Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | 50.7 |
2018 | 49.5 |
2019 | 49.1 |
2020 | 43.5 |
2021 | 42.1 |
2022 - 2026 | 198.1 |
Spire Missouri | Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 11.8 |
2018 | 12.8 |
2019 | 14.0 |
2020 | 15.2 |
2021 | 15.9 |
2022 - 2026 | 86.5 |
Spire Alabama | Pension Plans | |
Expected benefit payments [Abstract] | |
2017 | 10.3 |
2018 | 11.1 |
2019 | 11.5 |
2020 | 11.9 |
2021 | 13.0 |
2022 - 2026 | 67.8 |
Spire Alabama | Postretirement Plans | |
Expected benefit payments [Abstract] | |
2017 | 2.8 |
2018 | 2.8 |
2019 | 2.8 |
2020 | 2.8 |
2021 | 2.7 |
2022 - 2026 | $ 13.0 |
INFORMATION BY OPERATING SEGMENT - Reconciliation of Consolidated Net Income to Consolidated Net Economic Earnings (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting [Abstract] | |||||||||||
Net Income | $ (13.3) | $ 21.7 | $ 108.0 | $ 45.2 | $ (14.2) | $ 10.7 | $ 100.8 | $ 46.9 | $ 161.6 | $ 144.2 | $ 136.9 |
Unrealized loss (gain) on energy-related derivatives | 6.0 | (0.1) | (2.8) | ||||||||
Lower of cost or market inventory adjustments | 0.0 | 0.2 | 0.4 | ||||||||
Realized (gain) loss on economic hedges prior to the sale of the physical commodity | (0.3) | (1.6) | 2.4 | ||||||||
Acquisition, divestiture and restructuring activities | 4.0 | 9.2 | 9.8 | ||||||||
Gain on sale of property | 0.0 | 0.0 | (7.6) | ||||||||
Income tax effect of adjustments | (3.7) | (2.8) | (0.8) | ||||||||
Net Economic Earnings | $ 167.6 | $ 149.1 | $ 138.3 |
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Millions |
12 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 1,281.8 |
Spire Missouri | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | 563.9 |
Spire Missouri | Purchase Commitment | Subsidiary of Common Parent | |
Long-term Purchase Commitment [Line Items] | |
Annual purchase commitment | $ 1.0 |
Commitment termination minimum required notification period | 6 months |
Spire Alabama | |
Long-term Purchase Commitment [Line Items] | |
Minimum total payments required for natural gas contracts | $ 285.6 |
INTERIM FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Quarterly Financial Information [Line Items] | |||||||||||
Total Operating Revenues | $ 258.7 | $ 323.5 | $ 663.4 | $ 495.1 | $ 279.3 | $ 249.3 | $ 609.3 | $ 399.4 | $ 1,740.7 | $ 1,537.3 | $ 1,976.4 |
Operating Income | 1.9 | 50.3 | 180.4 | 89.1 | (7.7) | 35.3 | 167.7 | 87.0 | 321.7 | 282.3 | 272.5 |
Net Income (Loss) | $ (13.3) | $ 21.7 | $ 108.0 | $ 45.2 | $ (14.2) | $ 10.7 | $ 100.8 | $ 46.9 | $ 161.6 | $ 144.2 | $ 136.9 |
Basic Earnings Per Share of Common Stock (in dollars per share) | $ (0.28) | $ 0.45 | $ 2.36 | $ 0.99 | $ (0.31) | $ 0.24 | $ 2.32 | $ 1.08 | $ 3.44 | $ 3.26 | $ 3.16 |
Diluted Earnings Per Share of Common Stock (in dollars per share) | $ (0.28) | $ 0.45 | $ 2.36 | $ 0.99 | $ (0.31) | $ 0.24 | $ 2.31 | $ 1.08 | $ 3.43 | $ 3.24 | $ 3.16 |
Spire Missouri | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total Operating Revenues | $ 162.6 | $ 198.5 | $ 447.2 | $ 363.6 | $ 144.3 | $ 179.3 | $ 446.7 | $ 317.2 | $ 1,171.9 | $ 1,087.5 | $ 1,416.6 |
Operating Income | 11.7 | 30.5 | 90.2 | 64.5 | 5.4 | 29.4 | 87.0 | 65.1 | 196.9 | 186.9 | 185.4 |
Net Income (Loss) | 2.5 | 15.5 | 57.0 | 38.0 | (1.7) | 13.9 | 54.3 | 39.4 | 113.0 | 105.9 | 105.3 |
Spire Alabama | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total Operating Revenues | 64.5 | 90.5 | 158.8 | 86.7 | 46.2 | 74.0 | 166.0 | 82.3 | 400.5 | 368.5 | 479.2 |
Operating Income | (8.4) | 15.5 | 78.9 | 19.8 | (17.1) | 9.3 | 80.4 | 18.9 | 105.8 | 91.5 | 89.2 |
Net Income (Loss) | $ (7.2) | $ 7.4 | $ 47.6 | $ 10.3 | $ (8.8) | $ 4.0 | $ 48.1 | $ 9.9 | $ 58.1 | $ 53.2 | $ 48.0 |
Label | Element | Value |
---|---|---|
Spire Alabama Inc [Member] | ||
Dividends, Common Stock, Cash | us-gaap_DividendsCommonStockCash | $ 31,500,000 |
Retained Earnings [Member] | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 0 |
Retained Earnings [Member] | Spire Alabama Inc [Member] | ||
Dividends, Common Stock, Cash | us-gaap_DividendsCommonStockCash | $ 31,500,000 |
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