Defined Benefit Pension and Other Postretirement Plans

9 Months Ended

Jun. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Defined Benefit Pension and Other Postretirement Plans

Defined Benefit Pension and Other Postretirement Plans

In the U.S., we currently sponsor one defined benefit pension plan for employees hired prior to January 1, 2009 of UGI, UGI Utilities, PNG, CPG and certain of UGI’s other domestic wholly owned subsidiaries (“Pension Plan”). We also provide postretirement health care benefits to certain retirees and a limited number of active employees, and postretirement life insurance benefits to nearly all domestic active and retired employees. In addition, Antargaz employees are covered by certain defined benefit pension and postretirement plans.

Net periodic pension expense and other postretirement benefit costs include the following components:

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended June 30,						Three Months Ended June 30,
	2012			2011			2012			2011
Service cost	$	2.1		$	2.1		$	0.1		$	0.1
Interest cost	6.1			6.1			0.2			0.3
Expected return on assets	(6.4		)	(6.4		)	(0.1		)	(0.1		)
Amortization of:
Prior service cost (benefit)	0.1			0.1			(0.1		)	(0.2		)
Actuarial loss	2.1			1.7			0.1			0.1
Net benefit cost	4.0			3.6			0.2			0.2
Change in associated regulatory liabilities	—			—			0.8			0.8
Net expense	$	4.0		$	3.6		$	1.0		$	1.0
							Other
	Pension Benefits						Postretirement Benefits
	Nine Months Ended						Nine Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Service cost	$	6.4		$	6.6		$	0.3		$	0.4
Interest cost	18.3			18.1			0.8			0.8
Expected return on assets	(19.2		)	(19.4		)	(0.4		)	(0.4		)
Amortization of:
Prior service cost (benefit)	0.2			0.2			(0.3		)	(0.5		)
Actuarial loss	6.3			5.7			0.3			0.3
Net benefit cost	12.0			11.2			0.7			0.6
Change in associated regulatory liabilities	—			—			2.3			2.4
Net expense	$	12.0		$	11.2		$	3.0		$	3.0

Pension Plan assets are held in trust and consist principally of publicly traded, diversified equity and fixed income mutual funds and UGI Common Stock. It is our general policy to fund amounts for pension benefits equal to at least the minimum contribution required by ERISA. Based upon current assumptions, the Company estimates that it will be required to contribute approximately $24 to the Pension Plan during the next twelve months. During the nine months ended June 30, 2012 and 2011, the Company made contributions to the Pension Plan of $25.4 and $16.7, respectively. UGI Utilities has established a Voluntary Employees’ Beneficiary Association (“VEBA”) trust to pay UGI Gas and Electric Utility’s postretirement health care and life insurance benefits referred to above by depositing into the VEBA the annual amount of postretirement benefit costs determined under GAAP for postretirement benefits other than pensions. The difference between such amounts calculated under GAAP and the amounts included in UGI Gas’ and Electric Utility’s rates is deferred for future recovery from, or refund to, ratepayers. Amounts contributed to the VEBA by UGI Utilities were not material during the nine months ended June 30, 2012 and 2011, nor are they expected to be material for all of Fiscal 2012.

We also sponsor unfunded and non-qualified defined benefit supplemental executive retirement plans. We recorded pre-tax expense associated with these plans of $2.1 and $2.2 for the nine months ended June 30, 2012 and 2011, respectively.