Segment Information

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 14 — 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) Utilities.

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 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 2021 Annual Report.

Three Months Ended December 31, 2021	Total		Eliminations			AmeriGas Propane		UGI International		Midstream & Marketing		Utilities		Corporate & Other (a)
Revenues from external customers	$	2,673	$	—		$	778	$	1,049	$	441	$	396	$	9
Intersegment revenues	$	—	$	(118)	(b)	$	—	$	—	$	94	$	23	$	1
Cost of sales	$	2,120	$	(117)	(b)	$	418	$	793	$	413	$	200	$	413
Operating (loss) income	$	(68)	$	—		$	86	$	78	$	74	$	96	$	(402)
Income from equity investees	8		—			—		—		8		—		—
Loss on extinguishments of debt	(11)		—			—		—		—		—		(11)
Other non-operating income, net	10		—			—		4		—		2		4
(Loss) earnings before interest expense and income taxes	(61)		—			86		82		82		98		(409)
Interest expense	(81)		—			(41)		(7)		(10)		(16)		(7)
(Loss) income before income taxes	$	(142)	$	—		$	45	$	75	$	72	$	82	$	(416)
Depreciation and amortization	$	129	$	—		$	44	$	31	$	19	$	35	$	—
Capital expenditures (including the effects of accruals)	$	175	$	—		$	35	$	23	$	6	$	111	$	—
As of December 31, 2021
Total assets	$	16,800	$	(269)		$	4,614	$	4,197	$	2,999	$	5,071	$	188

Three Months Ended December 31, 2020	Total		Eliminations			AmeriGas Propane		UGI International		Midstream & Marketing		Utilities		Corporate & Other (a)
Revenues from external customers	$	1,932	$	—		$	666	$	700	$	279	$	285	$	2
Intersegment revenues	$	—	$	(78)	(b)	$	—	$	—	$	62	$	15	$	1
Cost of sales	$	833	$	(77)	(b)	$	272	$	383	$	237	$	132	$	(114)
Operating income	$	502	$	—		$	141	$	135	$	52	$	77	$	97
Income from equity investees	7		—			—		—		7		—		—
Other non-operating (expense) income, net	(19)		—			—		1		—		1		(21)
Earnings before interest expense and income taxes	490		—			141		136		59		78		76
Interest expense	(78)		—			(40)		(7)		(10)		(14)		(7)
Income before income taxes	$	412	$	—		$	101	$	129	$	49	$	64	$	69
Depreciation and amortization	$	124	$	—		$	43	$	33	$	18	$	29	$	1
Capital expenditures (including the effects of accruals)	$	152	$	—		$	27	$	29	$	17	$	79	$	—
As of December 31, 2020
Total assets	$	14,725	$	(353)		$	4,471	$	3,564	$	2,851	$	3,959	$	233

(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:

Three Months Ended December 31, 2021	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	—	$	3	$	7
Net losses on commodity derivative instruments not associated with current-period transactions	Cost of sales	$	(69)	$	(212)	$	(132)
Unrealized gains on foreign currency derivative instruments	Other non-operating income (expense), net	$	—	$	6	$	—
Loss on extinguishment of debt	Loss on extinguishment of debt	$	—	$	(11)	$	—

Three Months Ended December 31, 2020	Location on Income Statement	AmeriGas Propane		UGI International		Midstream & Marketing
Net gains on commodity derivative instruments not associated with current-period transactions	Revenues	$	—	$	—	$	2
Net gains (losses) on commodity derivative instruments not associated with current-period transactions	Cost of sales	$	37	$	106	$	(29)
Unrealized losses on foreign currency derivative instruments	Other non-operating income (expense), net	$	—	$	(20)	$	—
Business transformation expenses	Operating and administrative expenses	$	(12)	$	(3)	$	—

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