Segment Information

3 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Note 13 — Segment Information

Our operations comprise six reportable segments generally based upon products sold, geographic location and regulatory environment. Our reportable segments comprise: (1) AmeriGas Propane; (2) an international LPG segment comprising Antargaz; (3) an international LPG segment principally comprising Flaga and AvantiGas; (4) Gas Utility; (5) Energy Services; and (6) Electric Generation. We refer to both international segments together as “UGI International” and Energy Services and Electric Generation together as “Midstream & Marketing.”

The accounting policies of our reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s 2014 Annual Report. We evaluate AmeriGas Propane’s performance principally based upon the Partnership’s earnings before interest expense, income taxes, depreciation and amortization as adjusted for net gains and losses on commodity derivative instruments not associated with current-period transactions (“Partnership Adjusted EBITDA”). Although we use Partnership Adjusted EBITDA to evaluate AmeriGas Propane’s profitability, it should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations) and is not a measure of performance or financial condition under GAAP. Our definition of Partnership Adjusted EBITDA may be different from that used by other companies. We evaluate the performance of our other reportable segments principally based upon their income before income taxes as adjusted for commodity derivative instruments. Net gains and losses on commodity derivative instruments not associated with current-period transactions are reflected in Corporate & Other because the Company’s chief operating decision maker does not consider such items when evaluating the financial performance of our reportable segments.

														Midstream & Marketing						UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation			Antargaz			Flaga & Other			Corporate & Other (b)
Three Months Ended December 31, 2014
Revenues	$	2,004.6		$	(67.7	)	(c)	$	888.8		$	260.5		$	297.0		$	16.5		$	337.9		$	224.6		$	47.0
Cost of sales	$	1,404.6		$	(67.0	)	(c)	$	462.4		$	127.2		$	234.4		$	8.0		$	209.3		$	172.6		$	257.7
Segment profit:
Operating income (loss)	$	83.3		$	—			$	139.7		$	71.8		$	46.2		$	(0.7	)	$	38.4		$	15.1		$	(227.2	)
Loss from equity investees	(1.0		)	—				—			—			—			—			(1.0		)	—			—
Interest expense	(59.0		)	—				(41.0		)	(10.1		)	(0.6		)	—			(5.6		)	(1.0		)	(0.7		)
Income (loss) before income taxes	$	23.3		$	—			$	98.7		$	61.7		$	45.6		$	(0.7	)	$	31.8		$	14.1		$	(227.9	)
Partnership Adjusted EBITDA (a)								$	188.5
Noncontrolling interests’ net income (loss)	$	(33.9	)	$	—			$	66.8		$	—		$	—		$	—		$	0.1		$	—		$	(100.8	)
Depreciation and amortization	$	91.0		$	—			$	49.4		$	14.3		$	3.6		$	2.7		$	13.3		$	6.1		$	1.6
Capital expenditures	$	123.5		$	—			$	30.4		$	53.5		$	12.8		$	6.6		$	12.1		$	6.4		$	1.7
As of December 31, 2014
Total assets	$	10,430.0		$	(92.7	)		$	4,491.0		$	2,346.2		$	699.9		$	286.4		$	1,671.5		$	579.0		$	448.7
Short-term borrowings	$	458.5		$	—			$	253.0		$	153.5		$	43.0		$	—		$	—		$	9.0		$	—
Goodwill	$	2,806.8		$	—			$	1,949.6		$	182.1		$	5.6		$	—		$	575.9		$	87.4		$	6.2

														Midstream & Marketing					UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		Antargaz			Flaga & Other			Corporate & Other (b)
Three Months Ended December 31, 2013
Revenues	$	2,315.9		$	(65.5	)	(c)	$	1,045.8		$	271.6		$	272.7		$	20.8	$	425.3		$	293.3		$	51.9
Cost of sales	$	1,429.9		$	(64.4	)	(c)	$	582.7		$	135.5		$	227.1		$	10.6	$	282.5		$	231.7		$	24.2
Segment profit:
Operating income	$	363.7		$	(0.1	)		$	179.7		$	82.1		$	31.8		$	4.4	$	43.2		$	13.7		$	8.9
Income from equity investees	—			—				—			—			—			—		—			—			—
Interest expense	(59.3		)	—				(41.6		)	(8.4		)	(1.0		)	—		(6.4		)	(1.3		)	(0.6		)
Income before income taxes	$	304.4		$	(0.1	)		$	138.1		$	73.7		$	30.8		$	4.4	$	36.8		$	12.4		$	8.3
Partnership Adjusted EBITDA (a)								$	230.2
Noncontrolling interests’ net income	$	95.5		$	—			$	95.4		$	—		$	—		$	—	$	0.1		$	—		$	—
Depreciation and amortization	$	94.0		$	—			$	52.3		$	13.4		$	2.6		$	2.6	$	15.0		$	6.6		$	1.5
Capital expenditures	$	102.8		$	(1.2	)		$	23.3		$	32.9		$	21.7		$	9.3	$	9.8		$	4.6		$	2.4
As of December 31, 2013
Total assets	$	10,663.5		$	(101.1	)		$	4,682.3		$	2,188.6		$	574.8		$	279.3	$	1,938.9		$	696.5		$	404.2
Short-term borrowings	$	421.5		$	—			$	208.8		$	73.5		$	124.5		$	—	$	—		$	14.7		$	—
Goodwill	$	2,884.5		$	—			$	1,938.8		$	182.1		$	2.8		$	—	$	654.3		$	99.5		$	7.0

(a) The following table provides a reconciliation of Partnership Adjusted EBITDA to AmeriGas Propane operating income:

Three Months Ended December 31,	2014			2013
Partnership Adjusted EBITDA	$	188.5		$	230.2
Depreciation and amortization	(49.4		)	(52.3		)
Noncontrolling interests (i)	0.6			1.8
Operating income	$	139.7		$	179.7

(i) Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.

(b) Corporate & Other results principally comprise (1) Electric Utility, (2) Enterprises’ heating, ventilation, air-conditioning, refrigeration and electrical contracting businesses (“HVAC”), (3) net expenses of UGI’s captive general liability insurance company, and (4) UGI Corporation’s unallocated corporate and general expenses and interest income. In addition, Corporate & Other results also include net gains and (losses) on commodity derivative instruments not associated with current-period transactions totaling $(229.7) and $(7.2) during the three months ended December 31, 2014 and 2013, respectively. Corporate & Other assets principally comprise cash, short-term investments, the assets of Electric Utility and HVAC, and, in the three months ended December 31, 2013, an intercompany loan. The intercompany loan and associated interest is removed in the segment presentation.

(c) Represents the elimination of intersegment transactions principally among Midstream & Marketing, Gas Utility and AmeriGas Propane.