Equity-Based Compensation

12 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

EQUITY-BASED COMPENSATION

Under the UGI Corporation 2004 Omnibus Equity Compensation Plan Amended and Restated as of December 5, 2006 (the “UGI OECP”), certain key employees of UGI Utilities may be granted stock options to acquire shares of UGI Common Stock, stock appreciation rights (“SARs”), UGI Units (comprising “Stock Units” or “Performance Units”) and other equity-based amounts. Under the UGI OECP, the exercise price for options may not be less than the fair market value on the grant date. Awards under the UGI OECP may vest immediately or ratably over a period of years (generally three-year periods), and stock options for UGI Common Stock can be exercised no later than ten years from the grant date. In addition, the UGI OECP provides that the awards of UGI Units may also provide for the crediting of UGI Common Stock dividend equivalents to participants’ accounts. Except in the event of retirement, death or disability, each grant, unless paid, will terminate when the participant ceases to be employed. There are certain change of control and retirement eligibility conditions that, if met, generally result in accelerated vesting or elimination of further service requirements.

UGI Stock and UGI Performance Unit awards entitle the grantee to shares of UGI Common Stock or cash once the service condition is met and, with respect to UGI Performance Unit awards, subject to UGI market performance conditions. With respect to UGI Performance Unit awards, the actual number of shares (or their cash equivalent) ultimately issued, and the actual amount of dividend equivalents paid, is generally dependent upon the achievement of market performance and service conditions. UGI Performance Unit grant recipients are awarded a target number of Performance Units. The number of Performance Units ultimately paid at the end of the performance period (generally three years) may range from 0% to 200% of the target award based upon UGI’s Total Shareholder Return percentile rank relative to companies in the Standard & Poor’s Utilities Index for grants prior to January 1, 2011, and the Russell Midcap Utility Index (excluding telecommunications companies) for grants on or after January 1, 2011.

We use a Black-Scholes option-pricing model to estimate the fair value of UGI stock options. We use a Monte Carlo valuation approach to estimate the fair value of UGI Performance Unit awards. We recorded total net pre-tax equity-based compensation expense associated with both UGI Units and UGI stock options of $783 ($458 after-tax) during Fiscal 2012; $1,110 ($650 after-tax) during Fiscal 2011; and $853 ($499 after-tax) during Fiscal 2010.

As of September 30, 2012, there was $618 of unrecognized compensation cost related to non-vested UGI stock options that is expected to be recognized over a weighted-average period of 1.9 years. As of September 30, 2012, there was a total of $694 of unrecognized compensation expense associated with 68,633 UGI Unit awards that is expected to be recognized over a weighted average period of 1.9 years. At September 30, 2012 and 2011, total liabilities of $143 and $327, respectively, associated with UGI Unit awards are reflected in other current liabilities and other noncurrent liabilities on the Consolidated Balance Sheets.

The following table summarizes UGI Unit award activity for Fiscal 2012:

	Total				Vested				Non-Vested
	Number of UGI Units		Weighted Average Grant Date Fair Value (per Unit)		Number of UGI Units		Weighted Average Grant Date Fair Value (per Unit)		Number of UGI Units		Weighted Average Grant Date Fair Value (per Unit)
September 30, 2011	59,799		$	29.10	18,155		$	27.33	41,644		$	29.87
Granted	27,100		$	29.89	7,764		$	31.50	19,336		$	29.25
Vested	—		$	—	16,477		$	28.18	(16,477	)	$	28.18
Performance criteria not met	(18,266	)	$	27.96	(18,266	)	$	27.96	—		$	—
September 30, 2012	68,633		$	29.72	24,130		$	28.78	44,503		$	30.23