Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

The provision (benefit) for income taxes during the fiscal years ended September 30, 2021, 2020, and 2019 was as follows:

	Spire									Spire Missouri									Spire Alabama
	2021			2020			2019			2021			2020			2019			2021		2020		2019
Federal:
Current	$	0.2		$	0.4		$	0.6		$	—		$	—		$	—		$	—	$	—	$	—
Deferred		49.5			5.8			27.4			22.0			14.9			11.5			19.8		17.4		16.3
Investment tax credits		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		—		—		—
State and local:
Current		1.3			3.0			2.1			—			0.1			—			—		—		—
Deferred		17.7			3.4			4.6			3.5			2.5			2.0			5.2		4.6		4.2
Total income tax expense	$	68.5		$	12.4		$	34.5		$	25.3		$	17.3		$	13.3		$	25.0	$	22.0	$	20.5

Effective Income Tax Rate Variation from Stated Tax Rate

The effective income tax rate varied from the federal statutory income tax rate for each year due to the following:

	Spire									Spire Missouri									Spire Alabama
	2021			2020			2019			2021			2020			2019			2021			2020			2019
Federal income tax statutory rate		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%		21.0	%
State and local income taxes, net of federal income tax benefits		3.6			9.0			3.6			2.6			2.6			2.6			4.1			4.1			4.1
Certain expenses capitalized on books and deducted on tax return		(1.6	)		(6.6	)		(3.8	)		(3.3	)		(4.6	)		(6.5	)		—			—			—
Taxes related to prior years		(0.5	)		(1.8	)		0.2			(0.2	)		(1.4	)		0.1			—			0.1			—
Amortization of excess deferred taxes		(2.5	)		(8.3	)		(3.8	)		(5.0	)		(5.7	)		(6.6	)		—			—			—
Other items – net *		0.1			(1.0	)		(1.4	)		(0.2	)		(0.2	)		(0.3	)		0.2			(0.1	)		0.2
Effective income tax rate		20.1	%		12.3	%		15.8	%		14.9	%		11.7	%		10.3	%		25.3	%		25.1	%		25.3	%

*	Other consists primarily of property adjustments.

Significant Items in Net Deferred Tax Liability

The significant items comprising the net deferred tax liability or asset as of September 30 were as follows:

	Spire						Spire Missouri						Spire Alabama
	2021			2020			2021			2020			2021			2020
Deferred tax assets:
Reserves not currently deductible	$	18.3		$	24.8		$	8.5		$	16.7		$	6.6		$	5.9
Pension and other postretirement benefits		77.4			108.3			53.4			78.5			—			—
Goodwill		—			—			—			—			87.2			101.3
Operating losses		264.5			170.4			110.3			36.0			130.3			111.3
Regulatory amount due to customers, net		33.2			36.1			29.4			32.3			—			—
Other		32.4			44.7			—			—			—			—
Deferred tax assets		425.8			384.3			201.6			163.5			224.1			218.5
Less: Valuation allowance		(0.5	)		(0.9	)		(0.4	)		(0.9	)		—			—
Total deferred tax assets		425.3			383.4			201.2			162.6			224.1			218.5
Deferred tax liabilities:
Relating to property		(693.9	)		(614.0	)		(464.0	)		(427.1	)		(182.7	)		(151.4	)
Regulatory pension and other postretirement benefits		(95.6	)		(138.4	)		(71.2	)		(107.4	)		(1.6	)		(3.4	)
Deferred gas costs		(81.1	)		—			(79.5	)		—			—			—
Other**		(167.0	)		(142.4	)		(66.5	)		(62.8	)		(5.6	)		(4.4	)
Total deferred tax liabilities		(1,037.6	)		(894.8	)		(681.2	)		(597.3	)		(189.9	)		(159.2	)
Net deferred tax (liability) asset	$	(612.3	)	$	(511.4	)	$	(480.0	)	$	(434.7	)	$	34.2		$	59.3

**	For Spire, Other consists primarily of goodwill-related liabilities.

Federal and State Loss Carryforwards, Contribution Carryforwards, and Various Tax Credit Carryforwards

As of September 30, 2021, Spire, and on a separate company basis, Spire Missouri and Spire Alabama, had federal and state loss carryforwards, contribution carryforwards, and various tax credit carryforwards as shown below.

	Spire		Spire Missouri		Spire Alabama
Federal and state loss carryforwards	$	1,079.5	$	467.3	$	517.5
Contribution carryforwards		16.4		12.2		0.5
Tax credit carryforwards		4.5		3.4		—

Unrecognized Tax Benefit Reconciliation

The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits:

	Spire								Spire Missouri
	2021		2020			2019			2021		2020		2019
Unrecognized tax benefits, beginning of year	$	13.2	$	10.7		$	8.1		$	13.0	$	10.4	$	7.8
Increases related to tax positions taken in current year		3.2		2.6			4.5			3.1		2.6		4.5
Reductions related to tax positions taken in prior year		—		—			(1.9	)		—		—		(1.9	)
Reductions due to lapse of applicable statute of limitations		—		(0.1	)		—			—		—		—
Unrecognized tax benefits, end of year	$	16.4	$	13.2		$	10.7		$	16.1	$	13.0	$	10.4