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Employee Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2023

Change in Pension Benefits and Other Postretirement Benefits Obligations

The following table provides a reconciliation of the PBOs of our pension plans (the U.S. Pension Plans and the UGI International pension plans), plan assets, and the related funded status of our pension plans as of September 30, 2023 and 2022. ABO is the present value of benefits earned to date with benefits based upon current compensation levels. PBO is ABO increased to reflect estimated future compensation.


	Pension Benefits
	2023		2022
Change in benefit obligations:
Benefit obligations — beginning of year	$	633	$	870
Service cost	9		16
Interest cost	35		26
Actuarial gain	(20)		(240)
Plan amendments	—		1



Foreign currency	2		(6)
Benefits paid	(36)		(34)
Benefit obligations — end of year (a)	$	623	$	633


	Pension Benefits
	2023		2022
Change in plan assets:
Fair value of plan assets — beginning of year	$	541	$	736
Actual gain (loss) on plan assets	31		(173)
Foreign currency	1		(3)
Employer contributions	19		15


Benefits paid	(36)		(34)
Fair value of plan assets — end of year	$	556	$	541
Funded status of the plans — end of year (b)	$	(67)	$	(92)





Amounts recorded in UGI Corporation stockholders’ equity (pre-tax):
Prior service cost	$	3	$	3
Net actuarial gain	(17)		(17)
Total	$	(14)	$	(14)
Amounts recorded in regulatory assets and liabilities (pre-tax):

Net actuarial loss	110		114
Total	$	110	$	114

(a) The ABO for the U.S. Pension Plans was $558 and $570 as of September 30, 2023 and 2022, respectively.

(b) Amounts are reflected in “Other noncurrent liabilities” and “Other assets” on the Consolidated Balance Sheets. Amounts reflected in “Other assets” are not material.

Actuarial Assumptions for U.S. Plans

The expected rate of return on assets assumption is based on current and expected asset allocations as well as historical and expected returns on various categories of plan assets (as further described below).


	Pension Plans
	2023		2022		2021
Weighted-average assumptions:
Discount rate – benefit obligations	6.09	%	5.70	%	3.13	%
Discount rate – benefit cost	5.70	%	3.13	%	2.90	%
Expected return on plan assets	7.50	%	7.10	%	7.10	%
Rate of increase in salary levels	3.25	%	3.25	%	3.25	%

Net periodic pension (income) cost

Net periodic pension (income) cost includes the following components:


	Pension Benefits
	2023		2022		2021
Service cost	$	9	$	16	$	12
Interest cost	35		26		22
Expected return on assets	(45)		(50)		(40)


Amortization of:

Actuarial (gain) loss	(3)		7		14


Net benefit (income) cost	$	(4)	$	(1)	$	8

Expected Payments for Pension Benefits and Other Postretirement Welfare Benefits

Expected payments for pension benefits are as follows:


	Pension Benefits
Fiscal 2024	$	39
Fiscal 2025	$	39
Fiscal 2026	$	41
Fiscal 2027	$	43
Fiscal 2028	$	44
Fiscal 2029 - 2033	$	238

Pension Plans

The targets and actual allocations for the U.S. Pension Plans’ trust assets at September 30 are as follows:


	Actual				Target Asset Allocation (b)
	2023		2022		2023		2022
Equity investments:
U.S. equities	25.8	%	26.5	%	27.6	%	24.7	%
Non-U.S. equities	21.7	%	20.9	%	23.3	%	20.9	%
Global equities (a)	13.9	%	13.8	%	10.7	%	13.1	%
Total	61.4	%	61.2	%	61.6	%	58.7	%
Fixed income funds & cash equivalents	35.5	%	35.5	%	35.0	%	35.0	%
Alternative investments	3.1	%	3.3	%	3.4	%	6.3	%
Total	100.0	%	100.0	%	100.0	%	100.0	%

(a) Comprises investment funds that consist of a mix of U.S. and Non-U.S. equity securities.

(b) There is a permitted range for the allocation of the trust assets for the U.S. Pension Plans, excluding the defined benefit pension plan for Mountaineer employees, which is 5% less than and greater than the target allocation.

Fair Value of U.S. Pension Plan and VEBA Trust Assets

The fair values of the U.S. Pension Plans trust assets by asset class as of September 30, 2023 and 2022 are as follows:


	2023		2022
U.S. Pension Plans:
Domestic equity investments:



UGI Corporation Common Stock	$	19	$	26
Total domestic equity investments (a)	19		26





Common collective trust funds:
U.S. equity index investments	120		113
Non-U.S. equity index investments	117		110
Global equity index investments	75		72
Bond index investments	183		177
Cash equivalents	8		10
Total common collective trust funds (b)	503		482
Alternative investments (b)	17		17
Total	$	539	$	525

(a) Level 1 investments within the fair value hierarchy.

(b) Assets measured at NAV and therefore excluded from the fair value hierarchy.