During the preparation of the Fiscal 2013 consolidated financial statements, management concluded that it had incorrectly accounted for certain commodity derivative instruments as cash flow hedges. Management had incorrectly applied the hedge accounting criteria when designating certain commodity derivative instruments at its Midstream & Marketing businesses as cash flow hedges. As a result, the accompanying financial statements as of and for the two years in the period ended September 30, 2012, have been revised to report changes in the fair values of unsettled commodity derivative instruments and gains and losses on settled commodity derivative instruments for which the associated forecasted transactions have not yet occurred in cost of sales or revenues in the Consolidated Statements of Income rather than in other comprehensive income. Management has discontinued the use of hedge accounting for substantially all of Midstream & Marketing’s commodity derivative instruments and has reported changes in the fair values of unsettled commodity derivative instruments, and gains and losses on settled commodity derivatives for which the associated forecasted transaction has not yet occurred, in net income.

Although the impact of the error was not material to the Company’s historical annual consolidated financial statements, management decided to revise its consolidated financial statements and disclosures to correct this error in accounting for the years ended September 30, 2012 and 2011. Management did conclude that the error in accounting was material to its consolidated financial statements for the fiscal quarters ended March 31, 2013, June 30, 2012, and December 31, 2011, and that it is necessary to restate the Company’s financial statements for those periods while the Company’s consolidated financial statements for other quarterly periods have been revised (see Note 21).

The following table sets forth the effects of the revision on affected line items within the Company’s previously reported consolidated financial statements for fiscal years ended September 30, 2012 and 2011. Also included in the adjustment columns in the tables below are certain other immaterial corrections that the Company made, including, but not limited to, adjustments to correct the Partnership’s accounting for certain customer credits and to correct the classification of deferred income tax assets, as further described below, as well as certain other minor adjustments related principally to the timing of certain expense and income accruals.

Consolidated Balance Sheet



	September 30, 2012
	As Previously Reported			Adjustment			As Revised
Assets:
Accounts receivable	$	632.6		$	(5.1	)	$	627.5
Inventories	$	356.9		$	(2.8	)	$	354.1
Deferred income taxes	$	56.8		$	(27.0	)	$	29.8
Prepaid expenses and other current assets	$	98.7		$	0.8		$	99.5
Non-utility property, plant and equipment	$	4,223.4		$	0.5		$	4,223.9
Accumulated depreciation and amortization	$	(2,286.0	)	$	0.8		$	(2,285.2	)
Liabilities and equity:
Accounts payable	$	411.3		$	(1.4	)	$	409.9
Employee compensation and benefits accrued	$	91.1		$	(1.4	)	$	89.7
Accrued interest	$	72.7		$	(1.1	)	$	71.6
Other current liabilities	$	226.4		$	(0.8	)	$	225.6
Deferred income taxes	$	935.0		$	(29.3	)	$	905.7
Other noncurrent liabilities	$	616.7		$	4.6		$	621.3
Retained earnings	$	1,166.1		$	(10.1	)	$	1,156.0
Accumulated other comprehensive (loss) income	$	(62.0	)	$	6.8		$	(55.2	)
Noncontrolling interests, principally in AmeriGas Partners	$	1,085.7		$	(0.1	)	$	1,085.6

During the three months ended September 30, 2013, we identified an error in the classification of deferred income tax assets on the September 30, 2012, Consolidated Balance Sheet in the amount of $27.0. The adjustment to correct this error is included in the table above in deferred income taxes (assets) and deferred income taxes (liabilities).

Consolidated Statements of Income



	Fiscal years ended September 30,
				2012									2011
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
Non-utility revenues	$	5,636.7		$	2.1		$	5,638.8		$	4,955.8		$	(0.4	)	$	4,955.4
Non-utility cost of sales	$	3,652.1		$	(12.1	)	$	3,640.0		$	3,332.4		$	(28.2	)	$	3,304.2
Operating and administrative expenses	$	1,591.7		$	(0.6	)	$	1,591.1		$	1,266.4		$	0.6		$	1,267.0
Depreciation	$	264.2		$	(1.0	)	$	263.2		$	201.2		$	(0.2	)	$	201.0
Other income, net	$	(38.3	)	$	(1.5	)	$	(39.8	)	$	(46.5	)	$	1.0		$	(45.5	)
Operating income	$	521.3		$	17.3		$	538.6		$	616.0		$	26.4		$	642.4
Interest expense	$	(221.5	)	$	1.1		$	(220.4	)	$	(138.0	)	N/A			N/A
Income before income taxes	$	286.2		$	18.4		$	304.6		$	439.0		$	26.4		$	465.4
Income taxes	$	(99.6	)	$	(7.3	)	$	(106.9	)	$	(130.8	)	$	(14.6	)	$	(145.4	)
Net income	$	186.6		$	11.1		$	197.7		$	308.2		$	11.8		$	320.0
(Deduct net income) add net loss attributable to noncontrolling interests, principally in AmeriGas Partners	$	12.8		$	(0.3	)	$	12.5		$	(75.3	)	$	0.7		$	(74.6	)
Net income attributable to UGI Corporation	$	199.4		$	10.8		$	210.2		$	232.9		$	12.5		$	245.4
Basic earnings per common share	$	1.77					$	1.87		$	2.09					$	2.20
Diluted earnings per common share	$	1.76					$	1.85		$	2.06					$	2.17

Consolidated Statements of Comprehensive Income



	Fiscal years ended September 30,
				2012									2011
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
Net income	$	186.6		$	11.1		$	197.7		$	308.2		$	11.8		$	320.0
Net (losses) gains on derivative instruments	$	(127.1	)	$	21.7		$	(105.4	)	$	(10.8	)	$	14.7		$	3.9
Reclassifications of net losses (gains) on derivative instruments	$	87.9		$	(31.6	)	$	56.3		$	11.8		$	(30.8	)	$	(19.0	)
Comprehensive income	$	114.3		$	1.2		$	115.5		$	295.1		$	(4.3	)	$	290.8
Comprehensive income attributable to UGI Corporation	$	153.2		$	0.9		$	154.1		$	225.3		$	(3.6	)	$	221.7

Consolidated Statements of Cash Flows



	Fiscal years ended September 30,
				2012									2011
CASH FLOWS FROM OPERATING ACTIVITIES:	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
Net income	$	186.6		$	11.1		$	197.7		$	308.2		$	11.8		$	320.0
Depreciation and amortization	$	316.0		$	(1.0	)	$	315.0		$	227.9		$	(0.2	)	$	227.7
Deferred income taxes, net	$	82.9		$	7.3		$	90.2		$	82.7		$	8.8		$	91.5
Net change in realized gains and losses deferred as cash flow hedges	$	(6.6	)	$	6.6		$	—		$	12.2		$	(12.2	)	$	—
Unrealized gains on derivative instruments	$	—		$	(17.2	)	$	(17.2	)	$	—		$	(19.6	)	$	(19.6	)
Other, net	$	(10.7	)	$	(6.8	)	$	(17.5	)	$	(7.1	)	$	11.4		$	4.3

Consolidated Statements of Changes in Equity



	Fiscal years ended September 30,
				2012									2011
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
Retained earnings	$	1,166.1		$	(10.1	)	$	1,156.0		$	1,085.8		$	(20.9	)	$	1,064.9
Accumulated other comprehensive (loss) income	$	(62.0	)	$	6.8		$	(55.2	)	$	(17.7	)	$	16.7		$	(1.0	)
Noncontrolling interests	$	1,085.7		$	(0.1	)	$	1,085.6		$	213.4		$	(0.4	)	$	213.0

During the three months ended March 31, 2013, the Partnership determined that the recording of propane revenues did not appropriately consider the effects of certain customer credits which were recorded in a subsequent period. Although the Company evaluated the impact of the error on prior periods and determined the effect was not material to any prior period financial statement and corrected the error during the three months ended March 31, 2013, the tables above include correction of the error in accounting for customer credits in the appropriate historical period.

The impacts of the corrections on the key financial metrics operating income, net income attributable to UGI Corporation and diluted earnings per share for the years ended September 30, 2013 and 2012 are as follows:



	Fiscal 2012			Fiscal 2011
Operating income :
Midstream & Marketing hedge accounting	$	17.0		$	27.6
Partnership customer credits	(1.8		)	0.1
Other	2.1			(1.3		)
Total	$	17.3		$	26.4

Net income attributable to UGI Corporation:
Midstream & Marketing hedge accounting	$	10.0		$	16.2
Partnership customer credits	(0.6		)	—
Other	1.4			(3.7		)
Total	$	10.8		$	12.5

Diluted earnings per common share attributable to UGI Corporation stockholders:
Midstream & Marketing hedge accounting	$	0.09		$	0.14
Partnership customer credits	—			—
Other	—			(0.03		)
Total	$	0.09		$	0.11