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SPIRE INC 10-Q 2016

Documents found in this filing:

  1. 10-Q
  2. Ex-31
  3. Ex-31
  4. Ex-31
  5. Ex-32
  6. Ex-32
  7. Ex-32
  8. Ex-32
10-Q

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-Q
(Mark One)
[ X ]
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 2016
 
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
 
Registrant, Address and
Telephone Number
 
State of Incorporation
 
I.R.S. Employer Identification Number
1-16681
 
Spire Inc.
700 Market Street
St. Louis, MO 63101
Telephone Number 314-342-0500
 
Missouri
 
74-2976504
1-1822
 
Laclede Gas Company
700 Market Street
St. Louis, MO 63101
Telephone Number 314-342-0500
 
Missouri
 
43-0368139
2-38960
 
Alabama Gas Corporation
2101 6th Avenue North
Birmingham, Alabama 35203
Telephone Number 205-326-8100
 
Alabama
 
63-0022000

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days.

Spire Inc.            Yes [ X ]        No [ ]
Laclede Gas Company    Yes [ X ]        No [ ]
Alabama Gas Corporation    Yes [ X ]        No [ ]

Indicate by check mark whether each registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Spire Inc.            Yes [ X ]        No [ ]
Laclede Gas Company    Yes [ X ]        No [ ]
Alabama Gas Corporation    Yes [ X ]        No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large
accelerated
filer
 
Accelerated
filer
 
Non-
accelerated
filer
 
Smaller
reporting
company
Spire Inc.
X
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
X
 
 
Alabama Gas Corporation
 
 
 
 
X
 
 

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Spire Inc.            Yes [ ]        No [ X ]
Laclede Gas Company    Yes [ ]        No [ X ]
Alabama Gas Corporation    Yes [ ]        No [ X ]
The number of shares outstanding of each registrant’s common stock as of April 29, 2016 was as follows:
Spire Inc.
 
Common Stock, par value $1.00 per share
 
43,450,458

Laclede Gas Company
 
Common Stock, par value $1.00 per share
(all owned by Spire Inc.)
 
24,577

Alabama Gas Corporation
 
Common Stock, par value $0.01 per share
(all owned by Spire Inc.)
 
1,972,052


Laclede Gas Company and Alabama Gas Corporation meet the conditions set forth in General Instructions H(1)(a) and (b) to Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instructions H(2) to Form 10-Q.

This combined Form 10-Q represents separate filings by Spire Inc., Laclede Gas Company and Alabama Gas Corporation. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants, except that information relating to Laclede Gas Company and Alabama Gas Corporation are also attributed to Spire Inc.
 
 
 
 
 



TABLE OF CONTENTS
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
Spire Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Gas Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1




GLOSSARY OF KEY TERMS AND ABBREVIATIONS
Alagasco
Alabama Gas Corporation or Alabama Utility
ISRS
Infrastructure System Replacement Surcharge
Alabama Utility
Alabama Gas Corporation or Alagasco; the utility serving the Alabama region
LER
Laclede Energy Resources, Inc.
AOC
Administrative Order on Consent
MDNR
Missouri Department of Natural Resources
APSC
Alabama Public Service Commission
MGE
Missouri Gas Energy
ASC
Accounting Standards Codification
MGP
Manufactured Gas Plant
ASU
Accounting Standards Update
Missouri Utilities
Laclede Gas Company, including MGE; the utilities serving the Missouri region
Bcf
Billion cubic feet
MMBtu
Million British thermal units
BVCP
Brownfields/Voluntary Cleanup Program
MoPSC
Missouri Public Service Commission or MPSC
CCM
Cost Control Mechanism
NSR
Negative Salvage Rebalancing
CERCLA
Comprehensive Environment Response, Compensation and Liability Act
NYMEX
New York Mercantile Exchange, Inc.
EPA
US Environmental Protection Agency
O&M
Operations and Maintenance
ESR
Enhanced Stability Reserve
OTCBB
Over-the-Counter Bulletin Board
FASB
Financial Accounting Standards Board
PGA
Purchased Gas Adjustment
FERC
Federal Energy Regulatory Commission
PRP
Potential Responsible Party
FOIA
Freedom of Information Act
RSE
Rate Stabilization and Equalization
GAAP
Accounting principles generally accepted in the United States of America
SEC
US Securities and Exchange Commission
Gas Utility
Operating segment including the regulated operations of Laclede Gas Company and Alabama Gas Corporation
US
United States
Gas Marketing
Operating segment including LER, a subsidiary engaged in the non-regulated marketing of natural gas and related activities
Utilities
Collective operations of Laclede Gas Company and Alabama Gas Corporation
GSA
Gas Supply Adjustment
VEBA
Voluntary Employees' Beneficiary Association
ICE
Intercontinental Exchange
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2




PART I. FINANCIAL INFORMATION
The interim financial statements included herein have been prepared by three separate registrants — Spire Inc. (Spire or the Company), Laclede Gas Company (Laclede Gas or Missouri Utilities) and Alabama Gas Corporation (Alagasco or Alabama Utility) — without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These financial statements should be read in conjunction with the financial statements and the notes thereto included in each registrant's respective Form 10-K for the fiscal year ended September 30, 2015.
The Financial Information in this Part I includes separate financial statements (i.e., balance sheets, statements of income and comprehensive income, statements of common shareholders' equity and statements of cash flows) for Spire, Laclede Gas and Alagasco. The Notes to Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations are also included and presented herein on a combined basis for Spire, Laclede Gas and Alagasco.

3




Item 1. Financial Statements

SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In Millions, Except Per Share Amounts)
2016
 
2015
 
2016
 
2015
Operating Revenues:
 
 
 
 
 

 
 
Gas Utility
$
611.5

 
$
847.0

 
$
1,010.3

 
$
1,428.4

Gas Marketing and other
(2.2
)
 
30.4

 
(1.6
)
 
68.6

Total Operating Revenues
609.3

 
877.4

 
1,008.7

 
1,497.0

Operating Expenses:
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
Natural and propane gas
261.1

 
482.8

 
409.6

 
787.1

Other operation and maintenance expenses
94.3

 
103.8

 
185.9

 
200.9

Depreciation and amortization
33.8

 
32.2

 
67.3

 
64.2

Taxes, other than income taxes
43.9

 
55.7

 
72.1

 
93.7

Total Gas Utility Operating Expenses
433.1

 
674.5

 
734.9

 
1,145.9

Gas Marketing and other
8.5

 
45.2

 
19.1

 
106.1

Total Operating Expenses
441.6

 
719.7

 
754.0

 
1,252.0

Operating Income
167.7

 
157.7

 
254.7

 
245.0

Other Income
0.8

 
0.7

 
2.2

 
2.1

Interest Charges:
 
 
 
 
 
 
 
Interest on long-term debt
16.7

 
16.5

 
33.6

 
33.7

Other interest charges
2.6

 
2.6

 
4.7

 
4.6

Total Interest Charges
19.3

 
19.1

 
38.3

 
38.3

Income Before Income Taxes
149.2

 
139.3

 
218.6

 
208.8

Income Tax Expense
48.4

 
44.9

 
70.9

 
67.3

Net Income
$
100.8

 
$
94.4

 
$
147.7

 
$
141.5

 
 
 
 
 
 
 
 
Weighted Average Number of Common Shares Outstanding:
 
 
 
 
 
 
 
Basic
43.3

 
43.1

 
43.3

 
43.1

Diluted
43.5

 
43.2

 
43.5

 
43.2

Basic Earnings Per Share of Common Stock
$
2.32

 
$
2.18

 
$
3.40

 
$
3.27

Diluted Earnings Per Share of Common Stock
$
2.31

 
$
2.18

 
$
3.39

 
$
3.26

Dividends Declared Per Share of Common Stock
$
0.49

 
$
0.46

 
$
0.98

 
$
0.92

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


4




SPIRE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In Millions)
2016
 
2015
 
2016
 
2015
Net Income
$
100.8

 
$
94.4

 
$
147.7

 
$
141.5

Other Comprehensive Income (Loss), Before Tax:
 
 
 
 
 
 
 
Cash flow hedging derivative instruments:
 
 
 
 
 
 
 
Net hedging losses arising during the period
(0.6
)
 
(0.6
)
 
(1.3
)
 
(6.5
)
Reclassification adjustment for losses included in net income
0.5

 
2.3

 
1.7

 
2.2

Net unrealized (losses) gains on cash flow hedging derivative instruments
(0.1
)
 
1.7

 
0.4

 
(4.3
)
Net defined benefit pension and other postretirement plans

 
0.1

 
0.1

 
0.2

Net unrealized gain on available for sale securities
0.1

 

 

 

Other Comprehensive Income (Loss), Before Tax

 
1.8

 
0.5

 
(4.1
)
Income Tax Expense (Benefit) Related to Items of Other Comprehensive Income

 
0.6

 
0.2

 
(1.6
)
Other Comprehensive Income (Loss), Net of Tax

 
1.2

 
0.3

 
(2.5
)
Comprehensive Income
$
100.8

 
$
95.6

 
$
148.0

 
$
139.0

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


5




SPIRE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
March 31,
 
September 30,
 
March 31,
(Dollars in Millions, Except Per Share Amounts)
2016
 
2015
 
2015
ASSETS
Utility Plant
$
4,271.3

 
$
4,234.5

 
$
4,037.8

Less: Accumulated depreciation and amortization
1,286.1

 
1,307.0

 
1,213.1

Net Utility Plant
2,985.2

 
2,927.5

 
2,824.7

Non-utility Property (net of accumulated depreciation and amortization of $7.8, $7.5 and $7.2 at March 31, 2016, September 30, 2015, and March 31, 2015, respectively)
13.8

 
13.7

 
10.5

Goodwill
946.0

 
946.0

 
946.0

Other Investments
61.1

 
59.9

 
60.8

Total Other Property and Investments
1,020.9

 
1,019.6

 
1,017.3

Current Assets:
 
 
 
 
 
Cash and cash equivalents
8.7

 
13.8

 
46.9

Accounts receivable:
 
 
 
 
 
Utility
217.1

 
138.1

 
303.8

Other
66.8

 
86.7

 
70.1

Allowance for doubtful accounts
(18.9
)
 
(14.2
)
 
(18.6
)
Delayed customer billings
10.1

 
2.6

 
61.7

Inventories:
 
 
 
 
 
Natural gas
97.5

 
188.6

 
90.8

Propane gas
12.0

 
12.0

 
11.9

Materials and supplies
14.5

 
14.8

 
14.3

Natural gas receivable
19.5

 
17.3

 
5.9

Derivative instrument assets
7.6

 
4.6

 
3.0

Unamortized purchased gas adjustments
8.9

 
12.9

 

Other regulatory assets
32.4

 
27.6

 
27.4

Prepayments and other
27.6

 
25.3

 
20.0

Total Current Assets
503.8

 
530.1

 
637.2

Deferred Charges:
 
 
 
 
 
Regulatory assets
732.6

 
737.6

 
632.9

Other
77.3

 
75.4

 
68.6

Total Deferred Charges
809.9

 
813.0

 
701.5

Total Assets
$
5,319.8

 
$
5,290.2

 
$
5,180.7


6




SPIRE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(UNAUDITED)

 
March 31,
 
September 30,
 
March 31,
 
2016
 
2015
 
2015
CAPITALIZATION AND LIABILITIES
 
Capitalization:
 
 
 
 
 
Common stock (par value $1.00 per share; 70.0 million shares authorized;
43.4 million and 43.3 million shares issued and outstanding at March 31, 2016 and for both September 30, 2015 and March 31, 2015, respectively)
$
43.4

 
$
43.3

 
$
43.3

Paid-in capital
1,040.3

 
1,038.1

 
1,033.3

Retained earnings
599.4

 
494.2

 
539.2

Accumulated other comprehensive loss
(1.7
)
 
(2.0
)
 
(4.2
)
Total Common Stock Equity
1,681.4

 
1,573.6

 
1,611.6

Long-term debt (less current portion)
1,851.6

 
1,771.5

 
1,736.3

Total Capitalization
3,533.0

 
3,345.1

 
3,347.9

Current Liabilities:
 
 
 
 
 
Current portion of long-term debt

 
80.0

 
80.0

Notes payable
253.6

 
338.0

 
247.6

Accounts payable
127.1

 
146.5

 
160.1

Advance customer billings
31.7

 
44.3

 
8.4

Wages and compensation accrued
26.6

 
32.7

 
30.9

Dividends payable
22.1

 
21.1

 
20.5

Customer deposits
33.0

 
32.1

 
36.2

Interest accrued
14.3

 
14.3

 
14.9

Unamortized purchased gas adjustments
4.3

 
28.2

 
76.7

Taxes accrued
36.8

 
51.7

 
85.2

Regulatory liabilities
33.8

 
32.4

 
38.5

Other
35.5

 
32.5

 
54.7

Total Current Liabilities
618.8

 
853.8

 
853.7

Deferred Credits and Other Liabilities:
 
 
 
 
 
Deferred income taxes
564.2

 
482.1

 
438.7

Pension and postretirement benefit costs
254.8

 
253.4

 
243.9

Asset retirement obligations
162.8

 
159.2

 
101.5

Regulatory liabilities
110.7

 
119.3

 
114.3

Other
75.5

 
77.3

 
80.7

Total Deferred Credits and Other Liabilities
1,168.0

 
1,091.3

 
979.1

Commitments and Contingencies (Note 9)

 

 

Total Capitalization and Liabilities
$
5,319.8

 
$
5,290.2

 
$
5,180.7

 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 


7




SPIRE INC.
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(UNAUDITED)

 
Common Stock Outstanding
 
Paid-in Capital
 
Retained Earnings
 
Accumulated
Other
Comprehensive Loss
 
 
(Dollars In Millions)
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

 

 

 
141.5

 

 
141.5

Dividend reinvestment plan
9,494

 

 
0.9

 

 

 
0.9

Stock-based compensation costs

 

 
(0.4
)
 

 

 
(0.4
)
Equity Incentive Plan
125,949

 
0.1

 
2.8

 

 

 
2.9

Tax benefit – stock compensation

 

 
0.6

 

 

 
0.6

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock

 

 

 
(39.8
)
 

 
(39.8
)
Other comprehensive loss, net of tax

 

 

 

 
(2.5
)
 
(2.5
)
Balance at March 31, 2015
43,313,848

 
$
43.3

 
$
1,033.3

 
$
539.2

 
$
(4.2
)
 
$
1,611.6

 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2015
43,335,012

 
$
43.3

 
$
1,038.1

 
$
494.2

 
$
(2.0
)
 
$
1,573.6

Net income

 

 

 
147.7

 

 
147.7

Dividend reinvestment plan
12,704

 

 
0.7

 

 

 
0.7

Stock-based compensation costs

 

 
(1.5
)
 

 

 
(1.5
)
Equity Incentive Plan
98,269

 
0.1

 
3.0

 

 

 
3.1

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock

 

 

 
(42.5
)
 

 
(42.5
)
Other comprehensive income, net of tax

 

 

 

 
0.3

 
0.3

Balance at March 31, 2016
43,445,985

 
$
43.4

 
$
1,040.3

 
$
599.4

 
$
(1.7
)
 
$
1,681.4

 
 
 
 
 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 
 
 
 


8




SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
 
Six Months Ended March 31,
(In Millions)
2016
 
2015
Operating Activities:
 
 
 
Net Income
$
147.7

 
$
141.5

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, amortization, and accretion
67.6

 
64.7

Deferred income taxes and investment tax credits
71.0

 
29.0

Changes in assets and liabilities:
 
 
 
Accounts receivable
(53.5
)
 
(139.4
)
Unamortized purchased gas adjustments
(20.0
)
 
108.2

Deferred purchased gas costs
9.0

 
(14.3
)
Accounts payable
(15.4
)
 
(12.1
)
Delayed/advance customer billings – net
(20.1
)
 
(74.7
)
Taxes accrued
(14.7
)
 
21.5

Inventories
91.4

 
153.1

Other assets and liabilities
(19.6
)
 
(2.1
)
Other
(0.4
)
 
4.5

Net cash provided by operating activities
243.0

 
279.9

Investing Activities:
 
 
 
Capital expenditures
(121.8
)
 
(129.5
)
Payments for final reconciliation of acquisitions

 
(8.6
)
Other
(0.7
)
 
(0.4
)
Net cash used in investing activities
(122.5
)
 
(138.5
)
Financing Activities:
 
 
 
Issuance of long-term debt
80.0

 

Repayment of long-term debt
(80.0
)
 
(34.7
)
Repayment of short-term debt
(84.4
)
 
(39.6
)
Issuance of common stock
2.1

 
2.8

Employee's taxes paid associated with restricted shares withheld upon vesting
(1.7
)
 
(1.6
)
Dividends paid
(41.6
)
 
(39.2
)
Other

 
1.7

Net cash used in financing activities
(125.6
)
 
(110.6
)
Net (Decrease) Increase in Cash and Cash Equivalents
(5.1
)
 
30.8

Cash and Cash Equivalents at Beginning of Period
13.8

 
16.1

Cash and Cash Equivalents at End of Period
$
8.7

 
$
46.9

 
 
 
 
Supplemental disclosure of cash (paid) refunded for:
 
 
 
Interest
$
(36.2
)
 
$
(36.1
)
Income taxes
$
(0.2
)
 
0.3

 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 

9





LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In Millions)
2016
 
2015
 
2016
 
2015
Operating Revenues:
 

 
 
 
 

 
 

Utility
$
446.7

 
$
615.7

 
$
763.9

 
$
1,078.1

Total Operating Revenues
446.7

 
615.7

 
763.9

 
1,078.1

Operating Expenses:
 
 
 
 
 
 
 
Utility
 
 
 
 
 
 
 
Natural and propane gas
242.8

 
402.7

 
392.6

 
686.1

Other operation and maintenance expenses
61.5

 
69.6

 
120.3

 
134.4

Depreciation and amortization
21.9

 
20.5

 
43.7

 
40.7

Taxes, other than income taxes
33.5

 
42.3

 
55.2

 
71.5

Total Utility Operating Expenses
359.7

 
535.1

 
611.8

 
932.7

Operating Income
87.0

 
80.6

 
152.1

 
145.4

Other Income
0.4

 
0.4

 
1.2

 
1.3

Interest Charges:
 
 
 
 
 
 
 
Interest on long-term debt
8.2

 
8.3

 
16.6

 
16.6

Other interest charges
1.3

 
1.2

 
2.2

 
2.2

Total Interest Charges
9.5

 
9.5

 
18.8

 
18.8

Income Before Income Taxes
77.9

 
71.5

 
134.5

 
127.9

Income Tax Expense
23.6

 
21.6

 
40.8

 
39.0

Net Income
$
54.3

 
$
49.9

 
$
93.7

 
$
88.9

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


10




LACLEDE GAS COMPANY
STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In Millions)
2016
 
2015
 
2016
 
2015
Net Income
$
54.3

 
$
49.9

 
$
93.7

 
$
88.9

Other Comprehensive Income (Loss), Before Tax:
 
 
 
 
 
 
 
Cash flow hedging derivative instruments:
 
 
 
 
 
 
 
Net hedging (gains) losses arising during the period
(0.1
)
 
0.1

 
(0.2
)
 
(1.3
)
Reclassification adjustment for losses included in net income
0.1

 
0.3

 
0.4

 
0.4

Net unrealized gains (losses) on cash flow hedging derivative instruments

 
0.4

 
0.2

 
(0.9
)
Net defined benefit pension and other postretirement plans

 

 
0.1

 
0.1

Net unrealized gains on available for sale securities
0.1

 

 

 

Other Comprehensive Income (Loss), Before Tax
0.1

 
0.4

 
0.3

 
(0.8
)
Income Tax Expense (Benefit) Related to Items of Other Comprehensive Income

 
0.1

 
0.1

 
(0.3
)
Other Comprehensive Income (Loss), Net of Tax
0.1

 
0.3

 
0.2

 
(0.5
)
Comprehensive Income
$
54.4

 
$
50.2

 
$
93.9

 
$
88.4

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


11




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS
(UNAUDITED)

 
March 31,
 
September 30,
 
March 31,
(Dollars in Millions, Except Shares and Per Share Amounts)
2016
 
2015
 
2015
ASSETS
 
 
 
 
 
Utility Plant
$
2,612.5

 
$
2,579.1

 
$
2,479.8

Less: Accumulated depreciation and amortization
580.7

 
590.0

 
566.2

Net Utility Plant
2,031.8

 
1,989.1

 
1,913.6

Goodwill
210.2

 
210.2

 
210.2

Other Property and Investments
56.2

 
55.3

 
56.5

Total Other Property and Investments
266.4

 
265.5

 
266.7

Current Assets:
 
 
 
 
 
Cash and cash equivalents
3.8

 
1.7

 
9.3

Accounts receivable:
 
 
 
 
 
Utility
159.8

 
103.4

 
224.1

Other
17.0

 
25.2

 
19.4

Allowance for doubtful accounts
(14.7
)
 
(10.0
)
 
(14.0
)
Receivables from associated companies
1.2

 
2.5

 
2.3

Delayed customer billings
10.1

 
2.6

 
61.7

Inventories:
 
 
 
 
 
Natural gas
60.1

 
138.2

 
60.8

Propane gas
12.0

 
12.0

 
12.0

Materials and supplies
8.9

 
9.3

 
9.2

Unamortized purchased gas adjustments
3.9

 
12.9

 

Other regulatory assets
23.7

 
16.2

 
17.4

Prepayments and other
15.3

 
12.5

 
16.2

Total Current Assets
301.1

 
326.5

 
418.4

Deferred Charges:
 
 
 
 
 
Regulatory assets
563.8

 
573.6

 
545.3

Other
10.3

 
12.8

 
11.9

Total Deferred Charges
574.1

 
586.4

 
557.2

Total Assets
$
3,173.4

 
$
3,167.5

 
$
3,155.9

 
 
 


 
 

12




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS (Continued)
(UNAUDITED)

 
March 31,
 
September 30,
 
March 31,
 
2016
 
2015
 
2015
CAPITALIZATION AND LIABILITIES
 
 
 
 
 
Capitalization:
 
 
 
 
 
Paid-in capital and common stock (par value $1.00 per share;
50,000 authorized; 24,577 shares issued and outstanding)
$
750.0

 
$
748.3

 
$
746.3

Retained earnings
342.4

 
291.2

 
314.7

Accumulated other comprehensive loss
(1.5
)
 
(1.7
)
 
(2.4
)
Total Common Stock Equity
1,090.9

 
1,037.8

 
1,058.6

Long-term debt 
808.2

 
808.1

 
808.0

Total Capitalization
1,899.1

 
1,845.9

 
1,866.6

Current Liabilities:
 
 
 
 
 
Notes payable
169.6

 
233.0

 
142.6

Notes payable – associated companies

 

 
10.4

Accounts payable
51.0

 
61.5

 
77.3

Accounts payable – associated companies
1.9

 
5.5

 
5.7

Advance customer billings
16.1

 
25.2

 

Wages and compensation accrued
21.0

 
26.8

 
26.9

Dividends payable
21.3

 
19.9

 
19.9

Customer deposits
12.9

 
13.0

 
15.2

Interest accrued
7.6

 
7.6

 
8.1

Taxes accrued
19.1

 
25.4

 
79.2

Unamortized purchased gas adjustments
4.3

 

 
39.1

Regulatory liabilities
1.3

 
0.6

 

Other
16.2

 
18.5

 
36.3

Total Current Liabilities
342.3

 
437.0

 
460.7

Deferred Credits and Other Liabilities:
 
 
 
 
 
Deferred income taxes
538.0

 
485.2

 
424.3

Pension and postretirement benefit costs
200.8

 
207.8

 
212.4

Asset retirement obligations
74.1

 
72.4

 
72.9

Regulatory liabilities
69.3

 
70.6

 
71.7

Other
49.8

 
48.6

 
47.3

Total Deferred Credits and Other Liabilities
932.0

 
884.6

 
828.6

Commitments and Contingencies (Note 9)

 

 

Total Capitalization and Liabilities
$
3,173.4

 
$
3,167.5

 
$
3,155.9

 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 



13




LACLEDE GAS COMPANY
STATEMENTS OF COMMON SHAREHOLDER'S EQUITY
(UNAUDITED)

 
Common Stock Outstanding
 
Paid-in Capital
 
Retained Earnings
 
Accumulated
Other
Comprehensive (Loss) Income
 
 
(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

 

 

 
88.9

 

 
88.9

Stock-based compensation costs

 

 
1.7

 

 

 
1.7

Tax benefit – stock compensation

 

 
0.5

 

 

 
0.5

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock

 

 

 
(39.8
)
 

 
(39.8
)
Other comprehensive loss, net of tax

 

 

 

 
(0.5
)
 
(0.5
)
Balance at March 31, 2015
24,577

 
$
0.1

 
$
746.2

 
$
314.7

 
$
(2.4
)
 
$
1,058.6

 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2015
24,577

 
$
0.1

 
$
748.2

 
$
291.2

 
$
(1.7
)
 
$
1,037.8

Net income

 

 

 
93.7

 

 
93.7

Stock-based compensation costs

 

 
1.7

 

 

 
1.7

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock

 

 

 
(42.5
)
 

 
(42.5
)
Other comprehensive income, net of tax

 

 

 

 
0.2

 
0.2

Balance at March 31, 2016
24,577

 
$
0.1

 
$
749.9

 
$
342.4

 
$
(1.5
)
 
$
1,090.9

 
 
 
 
 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 
 
 
 


14




LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 
Six Months Ended March 31,
(In Millions)
2016
 
2015
Operating Activities:
 
 
 
Net Income
$
93.7

 
$
88.9

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
43.7

 
40.7

Deferred income taxes and investment tax credits
40.8

 
(6.7
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(42.2
)
 
(100.9
)
Unamortized purchased gas adjustments
13.2

 
93.0

Deferred purchased gas costs
9.0

 
(14.3
)
Accounts payable
(9.3
)
 
11.4

Delayed / advance customer billings – net
(16.6
)
 
(66.4
)
Taxes accrued
(6.3