Segment Information

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Note 23 — 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.

AmeriGas Propane derives its revenues principally from the sale of propane and related equipment and supplies to retail customers in all 50 states. UGI International derives its revenues principally from the distribution of LPG to retail customers in France and in northern, central and eastern European countries.  In addition, UGI International derives revenue from natural gas marketing businesses in France, Belgium and the United Kingdom and a natural gas and electricity marketing business in the Netherlands. Midstream & Marketing derives its revenues principally from the sale of natural gas, liquid fuels and electricity as well as revenues and fees from storage, pipeline transportation, natural gas gathering and natural gas production activities primarily in the Mid-Atlantic region of the U.S. eastern Ohio and the panhandle of West Virginia. Midstream & Marketing also

derives revenues from the sale of electricity through PJM, a regional electricity transmission organization in the eastern U.S., and, prior to its sale on September 30, 2020, also from contracting services provided by HVAC to customers in portions of eastern and central Pennsylvania (see Note 5). UGI Utilities derives its revenues principally from the sale and distribution of natural gas to customers in eastern and central Pennsylvania and, to a lesser extent, from the sale and distribution of electricity in two northeastern Pennsylvania counties.

Corporate & Other includes certain items that are excluded from our CODM’s assessment of segment performance (see below for further details on these items). Corporate & Other also 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 debt incurred by UGI Corporation 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. Our CODM evaluates the performance of all of our reportable segments based upon earnings before interest expense and income taxes, excluding the items noted below.

No single customer represents more than ten percent of our consolidated revenues. In addition, all of our reportable segments’ revenues, other than those of UGI International, are derived from sources within the United States, and all of our reportable segments’ long-lived assets, other than those of UGI International, are located in the United States. The amounts of revenues and long-lived assets associated with our operations in France represent approximately 20% and 10% of the respective consolidated amounts.

	Total		Elim- inations			AmeriGas Propane		UGI International			Midstream & Marketing			UGI Utilities		Corporate & Other (a)
2020
Revenues from external customers	$	6,559	$	—		$	2,381	$	2,127		$	1,065		$	983	$	3
Intersegment revenues	$	—	$	(232)	(b)	$	—	$	—		$	182		$	47	$	3
Cost of sales	$	3,149	$	(229)	(b)	$	960	$	1,191		$	892		$	448	$	(113)
Operating income (loss)	$	982	$	—		$	373	$	241	(c)	$	140		$	229	$	(1)
Income from equity investees	27		—			—		—			27		(d)	—		—
Other non-operating (expense) income, net	(20)		—			—		18			1			—		(39)
Earnings (losses) before interest expense and income taxes	989		—			373		259			168			229		(40)
Interest expense	(322)		—			(164)		(31)			(42)			(54)		(31)
Income tax (expense) benefit	(135)		—			(53)		(55)			(34)			(39)		46
Net income (loss) attributable to UGI	$	532	$	—		$	156	$	173		$	92		$	136	$	(25)
Depreciation and amortization	$	484	$	—		$	178	$	125		$	75		$	105	$	1
Total assets	$	13,985	$	(282)		$	4,327	$	3,123		$	2,775		$	3,809	$	233
Short-term borrowings	$	347	$	—		$	186	$	1		$	19		$	141	$	—
Capital expenditures (including the effects of accruals)	$	665	$	—		$	135	$	89		$	93		$	348	$	—
Investments in equity investees	$	200	$	—		$	—	$	10		$	190		$	—	$	—
2019
Revenues from external customers	$	7,320	$	—		$	2,682	$	2,372		$	1,281		$	981	$	4
Intersegment revenues	$	—	$	(306)	(b)	$	—	$	—		$	235		$	68	$	3
Cost of sales	$	4,323	$	(301)	(b)	$	1,191	$	1,416		$	1,241		$	481	$	295
Operating income (loss)	$	617	$	—		$	404	$	229		$	105		$	224	$	(345)
Income from equity investees	9		—			—		—			9		(d)	—		—
Loss on extinguishments of debt	(6)		—			—		—			—			—		(6)
Other non-operating income (expense), net	39		(1)			—		5			—			2		33
Earnings (losses) before interest expense and income taxes	659		(1)			404		234			114			226		(318)
Interest expense	(258)		—			(167)		(25)			(9)			(50)		(7)
Income tax (expense) benefit	(93)		—			(26)		(64)			(27)			(43)		67
Noncontrolling interests’ net (income) loss	(52)		—			(143)		—			—			—		91
Net income (loss) attributable to UGI	$	256	$	(1)		$	68	$	145		$	78		$	133	$	(167)

	Total		Elim- inations			AmeriGas Propane		UGI International		Midstream & Marketing			UGI Utilities		Corporate & Other (a)
Depreciation and amortization	$	448	$	—		$	179	$	124	$	51		$	93	$	1
Total assets	$	13,347	$	(353)		$	4,095	$	2,975	$	2,745		$	3,560	$	325
Short-term borrowings	$	796	$	—		$	328	$	211	$	91		$	166	$	—
Capital expenditures (including the effects of accruals)	$	707	$	—		$	107	$	106	$	138		$	355	$	1
Investments in equity investees	$	190	$	—		$	—	$	12	$	178		$	—	$	—
2018
Revenues from external customers	$	7,651	$	—		$	2,823	$	2,684	$	1,149		$	998	$	(3)
Intersegment revenues	$	—	$	(371)	(b)	$	—	$	—	$	273		$	94	$	4
Cost of sales	$	4,075	$	(367)	(b)	$	1,315	$	1,620	$	1,091		$	523	$	(107)
Operating income (loss)	$	1,065	$	1		$	422	$	248	$	175		$	240	$	(21)
Income (loss) from equity investees	4		—			—		(1)		5		(d)	—		—
Other non-operating income (expense), net	16		(1)			—		(7)		(1)			(2)		27
Earnings before interest expense and income taxes	1,085		—			422		240		179			238		6
Interest expense	(230)		—			(163)		(21)		(2)			(43)		(1)
Income tax (expense) benefit (e)	(33)		(1)			(31)		(69)		(50)			(54)		172
Noncontrolling interests’ net (income) loss	(103)		—			(152)		3		—			—		46
Net income (loss) attributable to UGI	$	719	$	(1)		$	76	$	153	$	127		$	141	$	223
Depreciation and amortization	$	455	$	—		$	186	$	141	$	43		$	85	$	—
Total assets	$	11,981	$	(125)		$	3,934	$	3,279	$	1,329		$	3,266	$	298
Short-term borrowings	$	425	$	—		$	232	$	1	$	2		$	190	$	—
Capital expenditures (including the effects of accruals)	$	597	$	—		$	101	$	111	$	43		$	339	$	3
Investments in equity investees	$	88	$	—		$	—	$	13	$	75		$	—	$	—

(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 Fiscal 2020, Fiscal 2019 and Fiscal 2018:

	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
2020
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	—	$	—	$	3
Net gains on commodity derivative instruments not associated with current-period transactions	Cost of Sales	$	72	$	—	$	42
Unrealized losses on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	(36)	$	—
Acquisition and integration expenses associated with the CMG Acquisition	Operating and administrative expenses	$	—	$	—	$	(2)
LPG business transformation expenses	Operating and administrative expenses	$	(44)	$	(18)	$	—
Loss on disposals of Conemaugh and HVAC	Loss on disposals of Conemaugh and HVAC	$	—	$	—	$	(54)
2019
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	—	$	—	$	4
Net losses on commodity derivative instruments not associated with current-period transactions	Cost of sales	$	(117)	$	(143)	$	(35)
Unrealized gains on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	32	$	—
Loss on extinguishments of debt	Loss on extinguishment of debt	$	—	$	(6)	$	—
AmeriGas Merger expenses	Operating and administrative expenses	$	(6)	$	—	$	—
Acquisition and integration expenses associated with the CMG Acquisition	Operating and administrative expenses	$	—	$	—	$	(16)
LPG business transformation expenses	Operating and administrative expenses	$	(15)	$	(9)	$	—
2018
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	—	$	—	$	(4)
Net gains (losses) on commodity derivative instruments not associated with current-period transactions	Cost of Sales	$	13	$	93	$	2
Unrealized gains on foreign currency derivative instruments	Other non-operating (expense) income, net	$	—	$	29	$	—
Integration expenses associated with Finagaz	Operating and administrative expenses	$	—	$	(31)	$	—
Impairment of Partnership tradenames and trademarks	Impairment of Partnership tradenames and trademarks	$	(75)	$	—	$	—

(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)Fiscal 2020 and Fiscal 2019 also includes income from Pennant subsequent to the CMG Acquisition (see Note 5). Includes AFUDC associated with PennEast (see Note 2).

(e)Fiscal 2018 results include impacts from the TCJA in the U.S. See Notes 7 and 9 for additional information. For Fiscal 2018, the remeasurement impacts from the TCJA and, for UGI International, the December 2017 French Finance Bills, were allocated from each of AmeriGas Propane, UGI International, Midstream & Marketing and UGI Utilities to Corporate & Other in amounts of $113, $4, $70 and $8, respectively.