Employee Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2018

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, 2018 and 2017. 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
	2018			2017			2018			2017
Change in benefit obligations:
Benefit obligations — beginning of year	$	639,245		$	645,444		$	11,904		$	12,075
Service cost	8,469			9,038			147			303
Interest cost	25,358			24,394			448			460
Actuarial gain	(36,050		)	(14,575		)	(1,348		)	(512		)
Benefits paid	(25,831		)	(25,056		)	(467		)	(422		)
Benefit obligations — end of year	$	611,191		$	639,245		$	10,684		$	11,904
Change in plan assets:
Fair value of plan assets — beginning of year	$	498,080		$	463,432		$	14,771		$	13,715
Actual gain on assets	44,408			48,309			913			1,333
Employer contributions	15,079			11,395			—			85
Benefits paid	(25,831		)	(25,056		)	(335		)	(362		)
Fair value of plan assets — end of year	$	531,736		$	498,080		$	15,349		$	14,771
Funded status of the plans — end of year	$	(79,455	)	$	(141,165	)	$	4,665		$	2,867
Assets (liabilities) recorded in the balance sheet:
Assets in excess of liabilities – included in other noncurrent assets	$	—		$	—		$	6,729		$	5,382
Unfunded liabilities – included in other noncurrent liabilities	(79,455		)	(141,165		)	(2,064		)	(2,514		)
Net amount recognized	$	(79,455	)	$	(141,165	)	$	4,665		$	2,868
Amounts recorded in stockholder’s equity (pre-tax):
Prior service cost (benefit)	$	80		$	105		$	(12	)	$	(23	)
Net actuarial loss (gain)	9,490			15,106			(368		)	(46		)
Total	$	9,570		$	15,211		$	(380	)	$	(69	)
Amounts recorded in regulatory assets and liabilities (pre-tax):
Prior service cost (benefit)	$	720		$	970		$	(1,163	)	$	(1,605	)
Net actuarial loss (gain)	85,746			139,505			(135		)	1,192
Total	$	86,466		$	140,475		$	(1,298	)	$	(413	)

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:	2018		2017		2016		2018		2017		2016
Discount rate – benefit obligations	4.40	%	4.00	%	3.80	%	4.40	%	4.00	%	3.80	%
Discount rate – benefit cost	4.00	%	3.80	%	4.60	%	4.00	%	3.80	%	4.70	%
Expected return on plan assets	7.40	%	7.50	%	7.55	%	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
	2018			2017			2016			2018			2017			2016
Service cost	$	7,525		$	8,091		$	6,927		$	267		$	273		$	183
Interest cost	23,067			22,157			23,270			447			431			465
Expected return on assets	(31,107		)	(29,986		)	(28,668		)	(709		)	(656		)	(596		)
Amortization of:
Prior service cost (benefit)	250			325			348			(440		)	(641		)	(641		)
Actuarial loss	11,936			14,825			9,571			94			108			98
Net benefit cost (benefit)	11,671			15,412			11,448			(341		)	(485		)	(491		)
Change in associated regulatory liabilities	—			—			—			(490		)	(490		)	971
Net benefit cost (benefit) after change in regulatory liabilities	$	11,671		$	15,412		$	11,448		$	(831	)	$	(975	)	$	480

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 2019	$	28,183	$	556
Fiscal 2020	29,602		544
Fiscal 2021	30,889		529
Fiscal 2022	32,166		531
Fiscal 2023	33,567		518
Fiscal 2024 - 2028	185,205		2,683

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:	2018		2017		Allocation	Range
Equity investments:
Domestic	58.2	%	55.2	%	52.5%	40.0% – 65.0%
International	11.8	%	12.4	%	12.5%	7.5% – 17.5%
Total	70.0	%	67.6	%	65.0%	60.0% – 70.0%
Fixed income funds & cash equivalents	30.0	%	32.4	%	35.0%	30.0% – 40.0%
Total	100.0	%	100.0	%	100.0%



	Actual				Target Asset	Permitted
VEBA:	2018		2017		Allocation	Range
Domestic equity investments	65.6	%	63.1	%	65.0%	60.0% – 70.0%
Fixed income funds & cash equivalents	34.4	%	36.9	%	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, 2018 and 2017 are as follows:



	Pension Plan
	Level 1		Level 2		Level 3		Other^(a)		Total
September 30, 2018:
Domestic equity investments:
S&P 500 Index equity mutual funds	$	188,437	$	—	$	—	$	—	$	188,437
Small and midcap equity mutual funds	75,675		—		—		—		75,675
UGI Corporation Common Stock	45,152		—		—		—		45,152
Total domestic equity investments	309,264		—		—		—		309,264
International index equity mutual funds	62,907		—		—		—		62,907
Fixed income investments:
Bond index mutual funds	154,345		—		—		—		154,345
Cash equivalents	—		—		—		5,198		5,198
Total fixed income investments	154,345		—		—		5,198		159,543
Total	$	526,516	$	—	$	—	$	5,198	$	531,714
September 30, 2017:
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



	VEBA
	Level 1		Level 2		Level 3		Other^(a)		Total
September 30, 2018:
S&P 500 Index equity mutual fund	$	10,074	$	—	$	—	$	—	$	10,074
Bond index mutual fund	4,973		—		—		—		4,973
Cash equivalents	—		—		—		301		301
Total	$	15,047	$	—	$	—	$	301	$	15,348
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


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