Employee Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2017

Change in Pension Benefits and Other Postretirement Benefit Obligations, Plan Assets, and Funded Status

The following table provides a reconciliation of the projected benefit obligations (“PBOs”) of the Pension Plan, the accumulated benefit obligations (“ABOs”) of the Other Postretirement Plans, plan assets and the funded status of the Pension Plan and Other Postretirement Plans as of September 30, 2017 and 2016. ABO is the present value of benefits earned to date with benefits based upon current compensation levels. PBO is ABO increased to reflect future compensation.



	Pension Benefits						Other Postretirement Benefits
	2017			2016			2017			2016
Change in benefit obligations:
Benefit obligations — beginning of year	$	645,444		$	563,621		$	12,075		$	10,676
Service cost	9,038			7,772			303			198
Interest cost	24,394			25,733			460			483
Actuarial (gain) loss	(14,575		)	72,418			(512		)	1,117
Benefits paid	(25,056		)	(24,100		)	(422		)	(399		)
Benefit obligations — end of year	$	639,245		$	645,444		$	11,904		$	12,075
Change in plan assets:
Fair value of plan assets — beginning of year	$	463,432		$	430,789		$	13,715		$	12,523
Actual gain on assets	48,309			46,874			1,333			1,347
Employer contributions	11,395			9,869			85			98
Benefits paid	(25,056		)	(24,100		)	(362		)	(253		)
Fair value of plan assets — end of year	$	498,080		$	463,432		$	14,771		$	13,715
Funded status of the plans — end of year	$	(141,165	)	$	(182,012	)	$	2,867		$	1,640
Assets (liabilities) recorded in the balance sheet:
Assets in excess of liabilities – included in other noncurrent assets	$	—		$	—		$	5,382		$	4,139
Unfunded liabilities – included in other noncurrent liabilities	(141,165		)	(182,012		)	(2,514		)	(2,499		)
Net amount recognized	$	(141,165	)	$	(182,012	)	$	2,868		$	1,640
Amounts recorded in stockholder’s equity (pre-tax):
Prior service cost (credit)	$	105		$	138		$	(23	)	$	(35	)
Net actuarial loss (gain)	15,106			19,866			(46		)	(1		)
Total	$	15,211		$	20,004		$	(69	)	$	(36	)
Amounts recorded in regulatory assets and liabilities (pre-tax):
Prior service cost (credit)	$	970		$	1,262		$	(1,605	)	$	(2,247	)
Net actuarial loss	139,505			180,964			1,192			2,425
Total	$	140,475		$	182,226		$	(413	)	$	178

Actuarial Assumptions for Domestic Plans

The expected rate of return on assets assumption is based on current and expected asset allocations as well as historical and expected returns on various categories of plan assets (as further described below).



	Pension Benefits						Other Postretirement Benefits
Weighted-average assumptions:	2017		2016		2015		2017		2016		2015
Discount rate – benefit obligations	4.00	%	3.80	%	4.60	%	4.00	%	3.80	%	4.70	%
Discount rate – benefit cost	3.80	%	4.60	%	4.60	%	3.80	%	4.70	%	4.60	%
Expected return on plan assets	7.50	%	7.55	%	7.75	%	5.00	%	5.00	%	5.00	%
Rate of increase in salary levels	3.25	%	3.25	%	3.25	%	3.25	%	3.25	%	3.25	%

Components of Net Periodic Pension Expense and Other Postretirement Benefit Costs

Net periodic pension and other postretirement benefit costs relating to the Company’s employees include the following components:



	Pension Benefits									Other Postretirement Benefits
	2017			2016			2015			2017			2016			2015
Service cost	$	8,091		$	6,927		$	6,962		$	273		$	183		$	202
Interest cost	22,157			23,270			22,511			431			465			479
Expected return on assets	(29,986		)	(28,668		)	(28,898		)	(656		)	(596		)	(612		)
Amortization of:
Prior service cost (benefit)	325			348			348			(641		)	(641		)	(641		)
Actuarial loss	14,825			9,571			8,793			108			98			122
Net benefit cost (income)	15,412			11,448			9,716			(485		)	(491		)	(450		)
Change in associated regulatory liabilities	—			—			—			(490		)	971			3,740
Net benefit cost after change in regulatory liabilities	$	15,412		$	11,448		$	9,716		$	(975	)	$	480		$	3,290

Expected Payments for Pension Benefits and Other Postretirement Welfare Benefits

Expected payments for pension and other postretirement welfare benefits are as follows:



	Pension Benefits		Other Postretirement Benefits
Fiscal 2018	$	27,176	$	566
Fiscal 2019	28,471		566
Fiscal 2020	29,812		552
Fiscal 2021	31,084		537
Fiscal 2022	32,323		540
Fiscal 2023 - 2027	179,945		2,710

Schedule of Effect of One-percentage-point Change in Assumed Health Care Cost Trend Rates

The assumed health care cost trend rates at September 30 are as follows:



	2017		2016
Health care cost trend rate assumed for next year	7.00	%	7.25	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.0	%	5.0	%
Fiscal year that the rate reaches the ultimate trend rate	2026		2026

Allocation of Pension Plan and VEBA Trust Assets

The targets, target ranges and actual allocations for the Pension Plan and VEBA trust assets at September 30 are as follows:



	Actual				Target Asset	Permitted
Pension Plan:	2017		2016		Allocation	Range
Equity investments:
Domestic	55.2	%	54.1	%	52.5%	40.0% – 65.0%
International	12.4	%	10.2	%	12.5%	7.5% – 17.5%
Total	67.6	%	64.3	%	65.0%	60.0% – 70.0%
Fixed income funds & cash equivalents	32.4	%	35.7	%	35.0%	30.0% – 40.0%
Total	100.0	%	100.0	%	100.0%



	Actual				Target Asset	Permitted
VEBA:	2017		2016		Allocation	Range
Domestic equity investments	63.1	%	69.9	%	65.0%	60.0% – 70.0%
Fixed income funds & cash equivalents	36.9	%	30.1	%	35.0%	30.0% – 40.0%
Total	100.0	%	100.0	%	100.0%

Fair Value of Pension Plan and VEBA Trust Assets

The fair values of the Pension Plan and VEBA trust assets by asset class and level within the fair value hierarchy, as described in Note 2, as of September 30, 2017 and 2016 are as follows:



	Pension Plan
	Level 1		Level 2		Level 3		Other^(a)		Total
September 30, 2017:
Domestic equity investments:
S&P 500 Index equity mutual funds	$	171,600	$	—	$	—	$	—	$	171,600
Small and midcap equity mutual funds	65,167		—		—		—		65,167
UGI Corporation Common Stock	38,137		—		—		—		38,137
Total domestic equity investments	274,904		—		—		—		274,904
International index equity mutual funds	61,613		—		—		—		61,613
Fixed income investments:
Bond index mutual funds	156,228		—		—		—		156,228
Cash equivalents	—		—		—		5,332		5,332
Total fixed income investments	156,228		—		—		5,332		161,560
Total	$	492,745	$	—	$	—	$	5,332	$	498,077
September 30, 2016:
Equity investments:
S&P 500 Index equity mutual funds	$	158,906	$	—	$	—	$	—	$	158,906
Small and midcap equity mutual funds	43,170		—		—		—		43,170
Smallcap common stocks	11,414		—		—		—		11,414
UGI Corporation Common Stock	37,013		—		—		—		37,013
Total domestic equity investments	250,503		—		—		—		250,503
International index equity mutual funds	47,324		—		—		—		47,324
Fixed income investments:
Bond index mutual funds	147,794		—		—		—		147,794
Cash equivalents	—		—		—		17,811		17,811
Total fixed income investments	147,794		—		—		17,811		165,605
Total	$	445,621	$	—	$	—	$	17,811	$	463,432



	VEBA
	Level 1		Level 2		Level 3		Other^(a)		Total
September 30, 2017:
S&P 500 Index equity mutual fund	$	9,318	$	—	$	—	$	—	$	9,318
Bond index mutual fund	5,044		—		—		—		5,044
Cash equivalents	—		—		—		409		409
Total	$	14,362	$	—	$	—	$	409	$	14,771
September 30, 2016:
S&P 500 Index equity mutual fund	$	9,583	$	—	$	—	$	—	$	9,583
Bond index mutual fund	4,019		—		—		—		4,019
Cash equivalents	—		—		—		113		113
Total	$	13,602	$	—	$	—	$	113	$	13,715


(a)	Assets measured at net asset value (“NAV”) and therefore excluded from the fair value hierarchy.