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INCOME TAXES | 12 Months Ended
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Sep. 30, 2014
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Laclede Group The Company's net provisions for income taxes charged during the fiscal years ended September 30, 2014, 2013, and 2012 are as follows:
($ Millions) | 2014 |  | 2013 |  | 2012
Included in Statements of Consolidated Income: |  |  |  |  |
Federal |  |  |  |  |
Current | $ | 0.3 |  |  | $ | (4.2 | ) |  | $ | (3.8 | )
Deferred | 30.6 |  |  | 19.9 |  |  | 26.3 |
Investment tax credits | (0.2 | ) |  | (0.2 | ) |  | (0.2 | )
State and local |  |  |  |  |
Current | 0.6 |  |  | (0.3 | ) |  | (0.4 | )
Deferred | 1.0 |  |  | 2.4 |  |  | 4.4 |
Total Income Tax Expense | $ | 32.3 |  |  | $ | 17.6 |  |  | $ | 26.3 |
The Company's effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
| 2014 |  | 2013 |  | 2012
Federal income tax statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State and local income taxes, net of federal income tax benefits | 1.8 |  |  | 3.5 |  |  | 2.9 |
Certain expenses capitalized on books and deducted on tax return | (4.9 | ) |  | (9.7 | ) |  | (6.9 | )
Taxes related to prior years | (0.7 | ) |  | (1.6 | ) |  | (0.8 | )
Other items – net | (3.6 | ) |  | (2.2 | ) |  | (0.6 | )
Effective income tax rate | 27.6 | % |  | 25.0 | % |  | 29.6 | %
The Company's significant items comprising the net deferred tax liability recognized in the Consolidated Balance Sheets as of September 30 are as follows:
($ Millions) | 2014 |  | 2013
Deferred tax assets: |  |  |
Reserves not currently deductible | $ | 16.0 |  |  | $ | 13.9 |
Pension and other postretirement benefits | 67.3 |  |  | 71.4 |
Unamortized investment tax credits | 1.6 |  |  | 1.8 |
Other* | 36.9 |  |  | 12.5 |
Total deferred tax assets | $ | 121.8 |  |  | $ | 99.6 |
Deferred tax liabilities: |  |  |
Relating to property | 366.9 |  |  | 342.0 |
Regulatory pension and other postretirement benefits | 108.5 |  |  | 124.8 |
Deferred gas costs | 20.4 |  |  | 7.1 |
Other | 19.7 |  |  | 5.8 |
Total deferred tax liabilities | $ | 515.5 |  |  | $ | 479.7 |
Net deferred tax liability | 393.7 |  |  | 380.1 |
Net deferred tax liability – current* | (9.9 | ) |  | (1.0 | )
Net deferred tax liability – non-current* | $ | 383.8 |  |  | $ | 379.1 |
* The Company periodically invests in tax credits. As of September 30, 2014, $8.7 of state tax credits are included in Other and Net deferred tax liability. $6.9 of state tax credits were classified as current. $1.8 of state tax credits were classified as non-current. Pursuant to GAAP, the Company may recognize the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits, accrued interest payable, and accrued penalties payable are included in the Other line of the Deferred Credits and Other Liabilities section of the Consolidated Balance Sheets. The following table presents a reconciliation of the beginning and ending balances of the Company's unrecognized tax benefits at September 30 as reported in the Consolidated Balance Sheets:
($ Millions) | 2014 |  | 2013
Unrecognized tax benefits, beginning of year | $ | 2.4 |  |  | $ | 5.8 |
Increases related to prior year tax positions | — |  |  | 0.1 |
Increases related to tax positions taken in current year | 2.6 |  |  | 1.5 |
Reductions due to lapse of applicable statute of limitations | (0.4 | ) |  | (5.0 | )
Unrecognized tax benefits, end of year | $ | 4.6 |  |  | $ | 2.4 |
The amount of unrecognized tax benefits which, if recognized, would affect the Company’s effective tax rate were $2.5 and $1.9 as of September 30, 2014 and 2013, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of the Company’s unrecognized tax benefits. The Company does not expect that any such change will be significant to the Consolidated Balance Sheets. Interest accrued associated with the Company’s uncertain tax positions was de minimis as of September 30, 2014 and 2013, and an immaterial amount of penalties were accrued as of September 30, 2014. Laclede Gas Laclede Gas' net provisions for income taxes charged during the fiscal years ended September 30, 2014, 2013, and 2012 are as follows:
($ Millions) | 2014 |  | 2013 |  | 2012
Included in Statements of Income: |  |  |  |  |
Federal |  |  |  |  |
Current | $ | (0.1 | ) |  | $ | (6.6 | ) |  | $ | (11.3 | )
Deferred | 34.3 |  |  | 20.1 |  |  | 27.1 |
Investment tax credits | (0.2 | ) |  | (0.2 | ) |  | (0.2 | )
State and local |  |  |  |  |
Current | — |  |  | (1.0 | ) |  | (1.8 | )
Deferred | 1.5 |  |  | 2.3 |  |  | 4.6 |
Total Income Tax Expense | $ | 35.5 |  |  | $ | 14.6 |  |  | $ | 18.4 |
Laclede Gas' effective income tax rate varied from the federal statutory income tax rate for each year due to the following:
| 2014 |  | 2013 |  | 2012
Federal income tax statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State and local income taxes, net of federal |  |  |  |  |
Income tax benefits | 1.8 |  |  | 3.3 |  |  | 2.6 |
Certain expenses capitalized on books and |  |  |  |  |
Deducted on tax return | (4.5 | ) |  | (10.8 | ) |  | (8.9 | )
Taxes related to prior years | (0.7 | ) |  | (1.6 | ) |  | (0.6 | )
Other items – net | (3.3 | ) |  | (2.8 | ) |  | (1.1 | )
Effective income tax rate | 28.3 | % |  | 23.1 | % |  | 27.0 | %
Laclede Gas' significant items comprising the net deferred tax liability recognized in the Balance Sheets as of September 30 are as follows:
($ Millions) | 2014 |  | 2013
Deferred tax assets: |  |  |
Reserves not currently deductible | $ | 16.0 |  |  | $ | 13.9 |
Pension and other postretirement benefits | 67.3 |  |  | 71.4 |
Unamortized investment tax credits | 1.6 |  |  | 1.8 |
Other* | 20.7 |  |  | 10.5 |
Total deferred tax assets | $ | 105.6 |  |  | $ | 97.6 |
Deferred tax liabilities: |  |  |
Relating to utility property | 361.2 |  |  | 342.0 |
Regulatory pension and other postretirement benefits | 119.2 |  |  | 124.9 |
Deferred gas costs | 20.4 |  |  | 7.1 |
Other | 15.9 |  |  | 5.4 |
Total deferred tax liabilities | $ | 516.7 |  |  | $ | 479.4 |
Net deferred tax liability | 411.1 |  |  | 381.8 |
Net deferred tax liability – current* | (11.3 | ) |  | (1.7 | )
Net deferred tax liability – non-current* | $ | 399.8 |  |  | $ | 380.1 |
* Laclede Gas periodically invests in tax credits. As of September 30, 2014, $8.0 of state tax credits are included in Other and Net deferred tax liability. $6.2 of state tax credits were classified as current. $1.8 of state tax credits were classified as non-current. Laclede Group files a consolidated federal and state income tax return and allocates income taxes to Laclede Gas and its other subsidiaries as if each entity were a separate taxpayer. Pursuant to GAAP, Laclede Gas may recognize the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Laclede Gas records potential interest and penalties related to its uncertain tax positions as interest expense and other income deductions, respectively. Unrecognized tax benefits, accrued interest payable, and accrued penalties payable are included in the Other line of the Deferred Credits and Other Liabilities section of the Balance Sheets. The following table presents a reconciliation of the beginning and ending balances of Laclede Gas unrecognized tax benefits at September 30 as reported in the Balance Sheets:
($ Millions) | 2014 |  | 2013
Unrecognized tax benefits, beginning of year | $ | 2.0 |  |  | $ | 5.6 |
Increases related to tax positions taken in current year | 2.5 |  |  | 1.4 |
Reductions due to lapse of applicable statute of limitations | (0.3 | ) |  | (5.0 | )
Unrecognized tax benefits, end of year | $ | 4.2 |  |  | $ | 2.0 |
The amount of unrecognized tax benefits, which, if recognized, would affect Laclede Gas' effective tax rate were $2.1 and $1.5 as of September 30, 2014 and 2013, respectively. It is reasonably possible that events will occur in the next 12 months that could increase or decrease the amount of Laclede Gas' unrecognized tax benefits. Laclede Gas does not expect that any such change will be significant to Laclede Gas' Balance Sheets. Interest accrued associated with Laclede Gas' uncertain tax positions was de minimis as of September 30, 2014 and 2013, and no penalties were accrued as of those dates. The Company and/or Laclede Gas are subject to US federal income tax as well as income tax of state and local jurisdictions. The Company is no longer subject to examination for fiscal years prior to 2011. In September 2013, the Internal Revenue Service and US Treasury Department released final regulations on the deduction and capitalization of expenditures related to tangible property. The regulations do not address the tax treatment for network assets such as natural gas pipelines. These regulations apply to tax years beginning on or after January 1, 2014. Laclede Gas is evaluating the effects of the regulations, but does not believe that they will have a significant impact on its financial statements.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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