Segment Information

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Note 16 — Segment Information

Our operations comprise four reportable segments generally based upon products or services sold, geographic location and regulatory environment: (1) AmeriGas Propane; (2) UGI International; (3) Midstream & Marketing; and (4) UGI Utilities.

During the fourth quarter of Fiscal 2019, the measurement of segment profit used by our CODM was revised to exclude certain items that are now included in Corporate & Other (in addition to net gains and losses on commodity and certain foreign currency derivative instruments not associated with current-period transactions, which had previously been excluded). The revision to our segment profit measures aligns with the financial information used by our CODM in evaluating our reportable segments’ performance and allocating resources. Prior period amounts have been recast to reflect the change in segment measure of profit. Also during the fourth quarter of Fiscal 2019, principally as a result of the AmeriGas Merger and the CMG Acquisition and related transactions, our CODM began evaluating the performance of all of our reportable segments based upon earnings before interest expense and income taxes, excluding the items noted above.

In addition to the items described above, Corporate & Other includes the net expenses of UGI’s captive general liability insurance company, UGI’s corporate headquarters facility and UGI’s unallocated corporate and general expenses as well as interest expense on UGI debt that is not allocated. Corporate & Other assets principally comprise cash and cash equivalents of UGI and its captive insurance company, and UGI corporate headquarters’ assets. 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 2019 Annual Report.

Three Months Ended June 30, 2020	Total		Eliminations			AmeriGas Propane		UGI International			Midstream & Marketing			UGI Utilities		Corporate & Other (a)
Revenues from external customers	$	1,199.3	$	—		$	450.9	$	371.5		$	201.7		$	171.6	$	3.6
Intersegment revenues	$	—	$	(29.0)	(b)	$	—	$	—		$	20.8		$	7.5	$	0.7
Cost of sales	$	416.6	$	(28.2)	(b)	$	177.9	$	198.6		$	159.2		$	67.9	$	(158.8)
Operating income	$	173.9	$	0.1		$	18.8	$	17.5	(c)	$	12.8		$	20.9	$	103.8
Income (loss) from equity investees	7.5		—			—		(0.1)			7.6		(d)	—		—
Other non-operating (expense) income, net	(3.9)		—			—		2.9			—			—		(6.8)
Earnings before interest expense and income taxes	177.5		0.1			18.8		20.3			20.4			20.9		97.0
Interest expense	(80.8)		—			(40.2)		(7.9)			(11.5)			(13.8)		(7.4)
Income (loss) before income taxes	$	96.7	$	0.1		$	(21.4)	$	12.4		$	8.9		$	7.1	$	89.6
Noncontrolling interests’ net loss	$	(0.6)	$	—		$	—	$	(0.6)		$	—		$	—	$	—
Depreciation and amortization	$	122.5	$	(0.1)		$	45.0	$	30.8		$	19.4		$	26.6	$	0.8
Capital expenditures (including the effects of accruals)	$	133.6	$	—		$	30.0	$	20.0		$	15.2		$	68.3	$	0.1

Three Months Ended June 30, 2019 (e)	Total		Eliminations			AmeriGas Propane		UGI International		Midstream & Marketing			UGI Utilities		Corporate & Other (a)
Revenues from external customers	$	1,363.7	$	—		$	478.7	$	486.6	$	239.3		$	153.0	$	6.1
Intersegment revenues	$	—	$	(39.6)	(b)	$	—	$	—	$	28.0		$	10.9	$	0.7
Cost of sales	$	781.4	$	(38.5)	(b)	$	210.3	$	278.5	$	225.4		$	61.0	$	44.7
Operating income (loss)	$	9.6	$	0.2		$	(1.2)	$	27.5	$	2.7		$	20.4	$	(40.0)
Income from equity investees	1.5		—			—		—		1.5		(d)	—		—
Other non-operating income (expense), net	0.7		—			—		1.2		0.1			0.4		(1.0)
Earnings (loss) before interest expense and income taxes	11.8		0.2			(1.2)		28.7		4.3			20.8		(41.0)
Interest expense	(60.5)		—			(41.6)		(5.8)		(0.7)			(12.4)		—
(Loss) income before income taxes	$	(48.7)	$	0.2		$	(42.8)	$	22.9	$	3.6		$	8.4	$	(41.0)
Noncontrolling interests’ net loss	$	(44.6)	$	—		$	(40.7)	$	(0.1)	$	—		$	—	$	(3.8)
Depreciation and amortization	$	109.9	$	(0.2)		$	44.0	$	30.8	$	11.8		$	23.2	$	0.3
Capital expenditures (including the effects of accruals)	$	166.0	$	—		$	21.0	$	24.1	$	36.4		$	84.5	$	—

Nine Months Ended June 30, 2020	Total		Eliminations			AmeriGas Propane		UGI International			Midstream & Marketing			UGI Utilities		Corporate & Other (a)
Revenues from external customers	$	5,434.8	$	—		$	1,983.3	$	1,726.3		$	854.8		$	862.3	$	8.1
Intersegment revenues	$	—	$	(203.2)	(b)	$	—	$	—		$	162.4		$	38.7	$	2.1
Cost of sales	$	2,672.8	$	(200.7)	(b)	$	792.7	$	968.6		$	721.7		$	403.5	$	(13.0)
Operating income (loss)	$	913.0	$	0.1		$	390.1	$	230.1	(c)	$	139.2		$	228.7	$	(75.2)
Income from equity investees	22.0		—			—		—			22.0		(d)	—		—
Other non-operating (expense) income, net	(3.7)		—			—		16.6			—			(0.2)		(20.1)
Earnings (loss) before interest expense and income taxes	931.3		0.1			390.1		246.7			161.2			228.5		(95.3)
Interest expense	(247.3)		—			(123.9)		(23.2)			(34.4)			(40.9)		(24.9)
Income (loss) before income taxes	$	684.0	$	0.1		$	266.2	$	223.5		$	126.8		$	187.6	$	(120.2)
Noncontrolling interests’ net loss	$	(0.5)	$	—		$	—	$	(0.5)		$	—		$	—	$	—
Depreciation and amortization	$	362.1	$	(0.3)		$	133.8	$	92.4		$	56.8		$	78.1	$	1.3
Capital expenditures (including the effects of accruals)	$	444.4	$	—		$	104.4	$	61.9		$	61.2		$	216.8	$	0.1
As of June 30, 2020
Total assets	$	13,843.4	$	(364.7)		$	4,311.0	$	3,208.1		$	2,740.2		$	3,708.5	$	240.3
Short-term borrowings	$	423.1	$	—		$	162.0	$	181.1		$	40.0		$	40.0	$	—
Goodwill	$	3,482.7	$	—		$	2,003.0	$	955.4		$	342.2		$	182.1	$	—

Nine Months Ended June 30, 2019 (e)	Total		Eliminations			AmeriGas Propane		UGI International		Midstream & Marketing			UGI Utilities		Corporate & Other (a)
Revenues from external customers	$	6,170.0	$	—		$	2,270.5	$	1,980.5	$	1,055.4		$	856.4	$	7.2
Intersegment revenues	$	—	$	(276.0)	(b)	$	—	$	—	$	213.7		$	59.8	$	2.5
Cost of sales	$	3,633.3	$	(272.9)	(b)	$	1,024.0	$	1,171.8	$	1,052.2		$	438.5	$	219.7
Operating income (loss)	$	716.1	$	0.2		$	412.7	$	212.7	$	95.1		$	217.3	$	(221.9)
Income from equity investees	4.6		—			—		0.1		4.5		(d)	—		—
Loss on extinguishments of debt	(6.1)		—			—		—		—			—		(6.1)
Other non-operating income, net	17.6		—			—		5.0		0.1			1.2		11.3
Earnings (loss) before interest expense and income taxes	732.2		0.2			412.7		217.8		99.7			218.5		(216.7)
Interest expense	(181.7)		—			(126.2)		(17.3)		(1.7)			(36.3)		(0.2)
Income (loss) before income taxes	$	550.5	$	0.2		$	286.5	$	200.5	$	98.0		$	182.2	$	(216.9)
Noncontrolling interests’ net income (loss)	$	131.0	$	—		$	180.1	$	0.2	$	—		$	—	$	(49.3)
Depreciation and amortization	$	330.0	$	(0.3)		$	134.0	$	92.8	$	34.8		$	68.0	$	0.7
Capital expenditures (including the effects of accruals)	$	479.0	$	—		$	77.8	$	74.0	$	93.8		$	232.6	$	0.8
As of June 30, 2019
Total assets	$	12,018.9	$	(116.9)		$	3,789.4	$	3,168.0	$	1,444.7		$	3,375.6	$	358.1
Short-term borrowings	$	380.2	$	—		$	248.5	$	0.7	$	55.0		$	76.0	$	—
Goodwill	$	3,159.1	$	—		$	2,003.0	$	956.2	$	17.8		$	182.1	$	—

(a)Corporate & Other includes specific items attributable to our reportable segments that are not included in the segment profit measures used by our CODM in assessing our reportable segments’ performance or allocating resources. The following table presents such pre-tax gains (losses) which have been included in Corporate & Other, and the reportable segments to which they relate, for the three and nine months ended June 30, 2020 and 2019:

Three Months Ended June 30, 2020	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues / Cost of sales	$	59.9	$	77.8	$	24.8
Unrealized losses on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	(6.8)	$	—
Acquisition and integration expenses associated with the CMG Acquisition	Operating and administrative expenses	$	—	$	—	$	(0.2)
LPG business transformation expenses	Operating and administrative expenses	$	(2.7)	$	(3.7)	$	—
Impairment of assets held-for-sale	Impairment of assets held-for-sale	$	—	$	—	$	(51.6)

Three Months Ended June 30, 2019	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net losses on commodity derivative instruments not associated with current-period transactions	Revenues / Cost of sales	$	(3.4)	$	(10.8)	$	(24.5)
Unrealized losses on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	(0.8)	$	—
AmeriGas Merger expenses	Operating and other administrative expenses	$	(1.8)	$	—	$	—

Nine Months Ended June 30, 2020	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net gains (losses) on commodity derivative instruments not associated with current-period transactions	Revenues / Cost of sales	$	48.2	$	(53.8)	$	26.8
Unrealized losses on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	(20.1)	$	—
Acquisition and integration expenses associated with the CMG Acquisition	Operating and administrative expenses	$	—	$	—	$	(1.9)
LPG business transformation expenses	Operating and administrative expenses	$	(26.7)	$	(15.9)	$	—
Impairment of assets held-for-sale	Impairment of assets held-for-sale	$	—	$	—	$	(51.6)

Nine Months Ended June 30, 2019	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net losses on commodity derivative instruments not associated with current-period transactions	Revenues / Cost of sales	$	(64.8)	$	(136.7)	$	(11.1)
Unrealized gains on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	11.9	$	—
Loss on extinguishments of debt	Loss on extinguishments of debt	$	—	$	(6.1)	$	—
AmeriGas Merger expenses	Operating and administrative expenses	$	(2.7)	$	—	$	—

(b)Represents the elimination of intersegment transactions principally among Midstream & Marketing, UGI Utilities and AmeriGas Propane.

(c)Beginning October 1, 2019, UGI International is allocated a portion of indirect corporate expenses. Prior to October 1, 2019, these expenses were billed to its parent company, which is included in Corporate & Other.

(d)Includes AFUDC associated with PennEast. The three and nine months ended June 30, 2020 also includes equity income from Pennant (see Note 5).

(e)Segment information recast to reflect the changes adopted during the fourth quarter of Fiscal 2019 in the segment measure of profit used by our CODM to evaluate the performance of our reportable segments.