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Three Months Ended December 31, | ||||||
2015 | 2014 | |||||
Denominator (thousands of shares): | ||||||
Weighted-average common shares outstanding for basic computation | 172,862 | 172,945 | ||||
Incremental shares issuable for stock options and awards | 2,356 | 2,841 | ||||
Weighted-average common shares outstanding for diluted computation | 175,218 | 175,786 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Non-utility LPG and natural gas | $ | 148.6 | $ | 140.7 | $ | 260.4 | ||||||
Gas Utility natural gas | 35.9 | 37.5 | 72.4 | |||||||||
Materials, supplies and other | 62.3 | 61.7 | 58.2 | |||||||||
Total inventories | $ | 246.8 | $ | 239.9 | $ | 391.0 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Goodwill (not subject to amortization) | $ | 2,965.1 | $ | 2,953.4 | $ | 2,806.8 | ||||||
Intangible assets: | ||||||||||||
Customer relationships, noncompete agreements and other | $ | 764.6 | $ | 761.1 | $ | 709.3 | ||||||
Accumulated amortization | (292.2 | ) | (282.4 | ) | (271.9 | ) | ||||||
Intangible assets, net (definite-lived) | 472.4 | 478.7 | 437.4 | |||||||||
Trademarks and tradenames (indefinite-lived) | 130.0 | 131.4 | 126.3 | |||||||||
Total intangible assets, net | $ | 602.4 | $ | 610.1 | $ | 563.7 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Regulatory assets: | ||||||||||||
Income taxes recoverable | $ | 117.4 | $ | 115.9 | $ | 111.1 | ||||||
Underfunded pension and postretirement plans | 138.3 | 140.8 | 107.8 | |||||||||
Environmental costs | 17.6 | 20.0 | 14.7 | |||||||||
Deferred fuel and power costs | — | — | 16.7 | |||||||||
Removal costs, net | 22.3 | 21.2 | 17.6 | |||||||||
Other | 6.2 | 6.3 | 2.7 | |||||||||
Total regulatory assets | $ | 301.8 | $ | 304.2 | $ | 270.6 | ||||||
Regulatory liabilities (a): | ||||||||||||
Postretirement benefits | $ | 20.3 | $ | 20.0 | $ | 19.0 | ||||||
Deferred fuel and power refunds | 28.1 | 36.6 | — | |||||||||
State tax benefits—distribution system repairs | 13.7 | 13.3 | 10.3 | |||||||||
Other | 1.1 | 1.1 | 3.6 | |||||||||
Total regulatory liabilities | $ | 63.2 | $ | 71.0 | $ | 32.9 |
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Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 2.5 | $ | 2.4 | $ | 0.2 | $ | 0.2 | ||||||||
Interest cost | 6.6 | 6.3 | 0.2 | 0.2 | ||||||||||||
Expected return on assets | (8.0 | ) | (7.9 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service cost (benefit) | 0.1 | 0.1 | (0.1 | ) | (0.1 | ) | ||||||||||
Actuarial loss | 2.7 | 2.5 | — | — | ||||||||||||
Net benefit cost | 3.9 | 3.4 | 0.1 | 0.1 | ||||||||||||
Change in associated regulatory liabilities | — | — | 0.9 | 0.9 | ||||||||||||
Net expense | $ | 3.9 | $ | 3.4 | $ | 1.0 | $ | 1.0 |
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Asset (Liability) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
December 31, 2015: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 19.7 | $ | 10.8 | $ | — | $ | 30.5 | ||||||||
Foreign currency contracts | $ | — | $ | 25.4 | $ | — | $ | 25.4 | ||||||||
Interest rate contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Cross-currency swaps | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (70.5 | ) | $ | (97.5 | ) | $ | — | $ | (168.0 | ) | |||||
Interest rate contracts | $ | — | $ | (9.8 | ) | $ | — | $ | (9.8 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 31.7 | $ | — | $ | — | $ | 31.7 | ||||||||
September 30, 2015: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 17.4 | $ | 11.6 | $ | — | $ | 29.0 | ||||||||
Foreign currency contracts | $ | — | $ | 29.1 | $ | — | $ | 29.1 | ||||||||
Cross-currency swaps | $ | — | $ | 0.4 | $ | — | $ | 0.4 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (70.0 | ) | $ | (99.0 | ) | $ | — | $ | (169.0 | ) | |||||
Foreign currency contracts | $ | — | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | ||||||
Interest rate contracts | $ | — | $ | (10.8 | ) | $ | — | $ | (10.8 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 30.3 | $ | — | $ | — | $ | 30.3 | ||||||||
December 31, 2014: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 14.1 | $ | 26.1 | $ | — | $ | 40.2 | ||||||||
Foreign currency contracts | $ | — | $ | 18.7 | $ | — | $ | 18.7 | ||||||||
Interest rate contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Cross-currency swaps | $ | — | $ | 4.3 | $ | — | $ | 4.3 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (69.4 | ) | $ | (228.5 | ) | $ | — | $ | (297.9 | ) | |||||
Interest rate contracts | $ | — | $ | (17.0 | ) | $ | — | $ | (17.0 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 31.4 | $ | — | $ | — | $ | 31.4 |
(a) | Consists primarily of mutual fund investments held in grantor trusts associated with non-qualified supplemental retirement plans. |
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December 31, 2015 | December 31, 2014 | |||||||
Derivative assets: | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Foreign currency contracts | $ | 25.4 | $ | 18.7 | ||||
Cross-currency contracts | 1.9 | 4.3 | ||||||
Interest rate contracts | 0.6 | 0.1 | ||||||
27.9 | 23.1 | |||||||
Derivatives subject to PGC and DS mechanisms: | ||||||||
Commodity contracts | 0.2 | 0.2 | ||||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | 30.3 | 40.0 | ||||||
Total derivative assets - gross | 58.4 | 63.3 | ||||||
Gross amounts offset in the balance sheet | (15.6 | ) | (27.5 | ) | ||||
Total derivative assets - net | $ | 42.8 | $ | 35.8 | ||||
Derivative liabilities: | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate contracts | $ | (9.8 | ) | $ | (17.0 | ) | ||
Derivatives subject to PGC and DS mechanisms: | ||||||||
Commodity contracts | (6.3 | ) | (9.4 | ) | ||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | (161.7 | ) | (288.5 | ) | ||||
Total derivative liabilities - gross | (177.8 | ) | (314.9 | ) | ||||
Gross amounts offset in the balance sheet | 15.6 | 27.5 | ||||||
Cash collateral pledged | 5.5 | 90.5 | ||||||
Total derivative liabilities - net | $ | (156.7 | ) | $ | (196.9 | ) |
Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified from AOCI and Noncontrolling Interests into Income | Location of Gain (Loss) Reclassified from AOCI and Noncontrolling Interests into Income | ||||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Commodity contracts | $ | — | $ | — | $ | — | $ | (2.4 | ) | Cost of sales | ||||||||
Foreign currency contracts | 5.4 | 8.7 | 9.1 | 2.7 | Cost of sales | |||||||||||||
Cross-currency contracts | — | 2.1 | — | — | Interest expense/other operating income, net | |||||||||||||
Interest rate contracts | 5.6 | 0.8 | (0.6 | ) | (3.9 | ) | Interest expense | |||||||||||
Total | $ | 11.0 | $ | 11.6 | $ | 8.5 | $ | (3.6 | ) | |||||||||
Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | |||||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Commodity contracts | $ | (46.2 | ) | $ | (292.5 | ) | Cost of sales | |||||||||||
Commodity contracts | 1.6 | 3.8 | Revenues | |||||||||||||||
Commodity contracts | (0.1 | ) | (0.5 | ) | Operating expenses/other operating income, net | |||||||||||||
Total | $ | (44.7 | ) | $ | (289.2 | ) |
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Three Months Ended December 31, 2015 | Postretirement Benefit Plans | Derivative Instruments | Foreign Currency | Total | ||||||||||||
AOCI - September 30, 2015 | $ | (20.4 | ) | $ | 11.2 | $ | (105.4 | ) | $ | (114.6 | ) | |||||
Other comprehensive income (loss) before reclassification adjustments (after-tax) | — | 6.8 | (30.2 | ) | (23.4 | ) | ||||||||||
Amounts reclassified from AOCI: | ||||||||||||||||
Reclassification adjustments (pre-tax) | 0.7 | (8.5 | ) | — | (7.8 | ) | ||||||||||
Reclassification adjustments tax expense | (0.3 | ) | 3.2 | — | 2.9 | |||||||||||
Reclassification adjustments (after-tax) | 0.4 | (5.3 | ) | — | (4.9 | ) | ||||||||||
Other comprehensive income (loss) attributable to UGI | 0.4 | 1.5 | (30.2 | ) | (28.3 | ) | ||||||||||
AOCI - December 31, 2015 | $ | (20.0 | ) | $ | 12.7 | $ | (135.6 | ) | $ | (142.9 | ) | |||||
Three Months Ended December 31, 2014 | Postretirement Benefit Plans | Derivative Instruments | Foreign Currency (a) | Total | ||||||||||||
AOCI - September 30, 2014 | $ | (20.6 | ) | $ | (9.3 | ) | $ | 8.7 | $ | (21.2 | ) | |||||
Other comprehensive income (loss) before reclassification adjustments (after-tax) | — | 7.7 | (30.5 | ) | (22.8 | ) | ||||||||||
Amounts reclassified from AOCI and noncontrolling interests: | ||||||||||||||||
Reclassification adjustments (pre-tax) | 1.0 | 3.6 | — | 4.6 | ||||||||||||
Reclassification adjustments tax benefit | (0.4 | ) | (1.5 | ) | — | (1.9 | ) | |||||||||
Reclassification adjustments (after-tax) | 0.6 | 2.1 | — | 2.7 | ||||||||||||
Other comprehensive income (loss) | 0.6 | 9.8 | (30.5 | ) | (20.1 | ) | ||||||||||
Add other comprehensive loss attributable to noncontrolling interests, principally in AmeriGas Partners | — | 1.2 | — | 1.2 | ||||||||||||
Other comprehensive income (loss) attributable to UGI | 0.6 | 11.0 | (30.5 | ) | (18.9 | ) | ||||||||||
AOCI - December 31, 2014 | $ | (20.0 | ) | $ | 1.7 | $ | (21.8 | ) | $ | (40.1 | ) |
(a) | See Note 2 relating to correction of prior period error in other comprehensive income. |
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Midstream & Marketing | UGI International | |||||||||||||||||||||||||||||||||||
Total | Elim- inations | AmeriGas Propane | UGI Utilities | Energy Services | Electric Generation | UGI France | Flaga & Other | Corporate & Other (b) | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,606.6 | $ | (45.4 | ) | (c) | $ | 644.1 | $ | 198.0 | $ | 214.8 | $ | 14.8 | $ | 408.7 | $ | 169.5 | $ | 2.1 | ||||||||||||||||
Cost of sales | $ | 734.0 | $ | (44.5 | ) | (c) | $ | 243.2 | $ | 75.4 | $ | 151.2 | $ | 6.0 | $ | 192.6 | $ | 110.2 | $ | (0.1 | ) | |||||||||||||||
Segment profit: | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 305.5 | $ | 0.1 | $ | 129.6 | $ | 48.3 | $ | 41.3 | $ | 1.6 | $ | 68.7 | $ | 16.4 | $ | (0.5 | ) | |||||||||||||||||
Loss from equity investees | (0.1 | ) | — | — | — | — | — | (0.1 | ) | — | — | |||||||||||||||||||||||||
Interest expense | (57.9 | ) | — | (41.0 | ) | (9.5 | ) | (0.8 | ) | — | (5.6 | ) | (0.9 | ) | (0.1 | ) | ||||||||||||||||||||
Income (loss) before income taxes | $ | 247.5 | $ | 0.1 | $ | 88.6 | $ | 38.8 | $ | 40.5 | $ | 1.6 | $ | 63.0 | $ | 15.5 | $ | (0.6 | ) | |||||||||||||||||
Partnership Adjusted EBITDA (a) | $ | 177.7 | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ net income | $ | 53.3 | $ | — | $ | 57.3 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (4.1 | ) | |||||||||||||||||
Depreciation and amortization | $ | 100.6 | $ | — | $ | 49.2 | $ | 16.7 | $ | 4.1 | $ | 3.3 | $ | 21.6 | $ | 5.6 | $ | 0.1 | ||||||||||||||||||
Capital expenditures | $ | 132.9 | $ | — | $ | 28.0 | $ | 61.5 | $ | 21.9 | $ | 0.5 | $ | 16.3 | $ | 4.7 | $ | — | ||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,780.4 | $ | (106.2 | ) | $ | 4,242.6 | $ | 2,606.3 | $ | 721.0 | $ | 279.0 | $ | 2,378.9 | $ | 534.8 | $ | 124.0 | |||||||||||||||||
Short-term borrowings | $ | 456.8 | $ | — | $ | 182.0 | $ | 217.7 | $ | 56.0 | $ | — | $ | 1.1 | $ | — | $ | — | ||||||||||||||||||
Goodwill | $ | 2,965.1 | $ | — | $ | 1,971.3 | $ | 182.1 | $ | 11.5 | $ | — | $ | 700.9 | $ | 99.3 | $ | — |
Midstream & Marketing | UGI International | |||||||||||||||||||||||||||||||||||
Total | Elim- inations | AmeriGas Propane | UGI Utilities | Energy Services | Electric Generation | UGI France | Flaga & Other | Corporate & Other (b) | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 (d) | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 2,004.6 | $ | (67.7 | ) | (c) | $ | 888.8 | $ | 287.3 | $ | 314.1 | $ | 16.5 | $ | 337.9 | $ | 224.6 | $ | 3.1 | ||||||||||||||||
Cost of sales | $ | 1,404.6 | $ | (67.0 | ) | (c) | $ | 462.4 | $ | 143.1 | $ | 244.6 | $ | 8.0 | $ | 209.3 | $ | 172.6 | $ | 231.6 | ||||||||||||||||
Segment profit: | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 83.3 | $ | — | $ | 139.7 | $ | 75.6 | $ | 46.3 | $ | (0.7 | ) | $ | 38.4 | $ | 15.1 | $ | (231.1 | ) | ||||||||||||||||
Loss from equity investees | (1.0 | ) | — | — | — | — | — | (1.0 | ) | — | — | |||||||||||||||||||||||||
Interest expense | (59.0 | ) | — | (41.0 | ) | (10.6 | ) | (0.6 | ) | — | (5.6 | ) | (1.0 | ) | (0.2 | ) | ||||||||||||||||||||
Income (loss) before income taxes | $ | 23.3 | $ | — | $ | 98.7 | $ | 65.0 | $ | 45.7 | $ | (0.7 | ) | $ | 31.8 | $ | 14.1 | $ | (231.3 | ) | ||||||||||||||||
Partnership EBITDA (a) | $ | 188.5 | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ net income (loss) | $ | (33.9 | ) | $ | — | $ | 66.8 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (100.8 | ) | ||||||||||||||||
Depreciation and amortization | $ | 91.0 | $ | — | $ | 49.4 | $ | 15.4 | $ | 3.8 | $ | 2.7 | $ | 13.3 | $ | 6.1 | $ | 0.3 | ||||||||||||||||||
Capital expenditures | $ | 123.5 | $ | — | $ | 30.4 | $ | 55.0 | $ | 12.9 | $ | 6.6 | $ | 12.1 | $ | 6.4 | $ | 0.1 | ||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,430.0 | $ | (92.7 | ) | $ | 4,491.0 | $ | 2,488.6 | $ | 728.8 | $ | 286.4 | $ | 1,671.5 | $ | 579.0 | $ | 277.4 | |||||||||||||||||
Short-term borrowings | $ | 458.5 | $ | — | $ | 253.0 | $ | 153.5 | $ | 43.0 | $ | — | $ | — | $ | 9.0 | $ | — | ||||||||||||||||||
Goodwill | $ | 2,806.8 | $ | — | $ | 1,949.6 | $ | 182.1 | $ | 11.8 | $ | — | $ | 575.9 | $ | 87.4 | $ | — |
(a) | The following table provides a reconciliation of Partnership Adjusted EBITDA to AmeriGas Propane operating income: |
Three Months Ended December 31, | ||||||||
2015 | 2014 | |||||||
Partnership Adjusted EBITDA | $ | 177.7 | $ | 188.5 | ||||
Depreciation and amortization | (49.2 | ) | (49.4 | ) | ||||
Noncontrolling interests (i) | 1.1 | 0.6 | ||||||
Operating income | $ | 129.6 | $ | 139.7 |
(i) | Principally represents the General Partner’s 1.01% interest in AmeriGas OLP. |
(b) | Corporate & Other results principally comprise (1) net expenses of UGI’s captive general liability insurance company, and (2) UGI Corporation’s unallocated corporate and general expenses and interest income. In addition, Corporate & Other results also include the effects of net pre-tax gains and (losses) on commodity derivative instruments not associated with current-period transactions totaling $1.1 and $(229.7) during the three months ended December 31, 2015 and 2014, respectively. Corporate & Other assets principally comprise cash and short-term investments. |
(c) | Represents the elimination of intersegment transactions principally among Midstream & Marketing, UGI Utilities and AmeriGas Propane. |
(d) | Certain amounts have been restated to reflect the current-year changes in our segment presentation as described above. |
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Assets acquired: | |||
Cash | $ | 86.8 | |
Accounts receivable (a) | 170.3 | ||
Prepaid expenses and other current assets | 11.0 | ||
Property, plant and equipment | 375.6 | ||
Intangible assets (b) | 91.3 | ||
Other assets | 21.4 | ||
Total assets acquired | $ | 756.4 | |
Liabilities assumed: | |||
Accounts payable | 109.2 | ||
Other current liabilities | 103.5 | ||
Deferred income taxes | 115.8 | ||
Other noncurrent liabilities | 117.5 | ||
Total liabilities assumed | $ | 446.0 | |
Goodwill | 186.2 | ||
Net consideration transferred (including working capital adjustments) | $ | 496.6 |
(a) | Approximates the gross contractual amounts of receivables acquired. |
(b) | Represents $79.3 of customer relationships and $12.0 of tradenames. |
Three Months Ended December 31, 2014 | |||||||
As Reported | Pro Forma Adjusted | ||||||
Revenues | $ | 2,004.6 | $ | 2,184.5 | |||
Net income attributable to UGI Corporation | $ | 34.1 | $ | 46.6 | |||
Earnings per common share attributable to UGI Corporation shareholders: | |||||||
Basic | $ | 0.20 | $ | 0.27 | |||
Diluted | $ | 0.19 | $ | 0.27 |
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Three Months Ended December 31, | ||||||
2015 | 2014 | |||||
Denominator (thousands of shares): | ||||||
Weighted-average common shares outstanding for basic computation | 172,862 | 172,945 | ||||
Incremental shares issuable for stock options and awards | 2,356 | 2,841 | ||||
Weighted-average common shares outstanding for diluted computation | 175,218 | 175,786 |
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Three Months Ended December 31, | ||||||
2015 | 2014 | |||||
Denominator (thousands of shares): | ||||||
Weighted-average common shares outstanding for basic computation | 172,862 | 172,945 | ||||
Incremental shares issuable for stock options and awards | 2,356 | 2,841 | ||||
Weighted-average common shares outstanding for diluted computation | 175,218 | 175,786 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Non-utility LPG and natural gas | $ | 148.6 | $ | 140.7 | $ | 260.4 | ||||||
Gas Utility natural gas | 35.9 | 37.5 | 72.4 | |||||||||
Materials, supplies and other | 62.3 | 61.7 | 58.2 | |||||||||
Total inventories | $ | 246.8 | $ | 239.9 | $ | 391.0 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Goodwill (not subject to amortization) | $ | 2,965.1 | $ | 2,953.4 | $ | 2,806.8 | ||||||
Intangible assets: | ||||||||||||
Customer relationships, noncompete agreements and other | $ | 764.6 | $ | 761.1 | $ | 709.3 | ||||||
Accumulated amortization | (292.2 | ) | (282.4 | ) | (271.9 | ) | ||||||
Intangible assets, net (definite-lived) | 472.4 | 478.7 | 437.4 | |||||||||
Trademarks and tradenames (indefinite-lived) | 130.0 | 131.4 | 126.3 | |||||||||
Total intangible assets, net | $ | 602.4 | $ | 610.1 | $ | 563.7 |
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December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Regulatory assets: | ||||||||||||
Income taxes recoverable | $ | 117.4 | $ | 115.9 | $ | 111.1 | ||||||
Underfunded pension and postretirement plans | 138.3 | 140.8 | 107.8 | |||||||||
Environmental costs | 17.6 | 20.0 | 14.7 | |||||||||
Deferred fuel and power costs | — | — | 16.7 | |||||||||
Removal costs, net | 22.3 | 21.2 | 17.6 | |||||||||
Other | 6.2 | 6.3 | 2.7 | |||||||||
Total regulatory assets | $ | 301.8 | $ | 304.2 | $ | 270.6 | ||||||
Regulatory liabilities (a): | ||||||||||||
Postretirement benefits | $ | 20.3 | $ | 20.0 | $ | 19.0 | ||||||
Deferred fuel and power refunds | 28.1 | 36.6 | — | |||||||||
State tax benefits—distribution system repairs | 13.7 | 13.3 | 10.3 | |||||||||
Other | 1.1 | 1.1 | 3.6 | |||||||||
Total regulatory liabilities | $ | 63.2 | $ | 71.0 | $ | 32.9 |
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Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 2.5 | $ | 2.4 | $ | 0.2 | $ | 0.2 | ||||||||
Interest cost | 6.6 | 6.3 | 0.2 | 0.2 | ||||||||||||
Expected return on assets | (8.0 | ) | (7.9 | ) | (0.2 | ) | (0.2 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service cost (benefit) | 0.1 | 0.1 | (0.1 | ) | (0.1 | ) | ||||||||||
Actuarial loss | 2.7 | 2.5 | — | — | ||||||||||||
Net benefit cost | 3.9 | 3.4 | 0.1 | 0.1 | ||||||||||||
Change in associated regulatory liabilities | — | — | 0.9 | 0.9 | ||||||||||||
Net expense | $ | 3.9 | $ | 3.4 | $ | 1.0 | $ | 1.0 |
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Asset (Liability) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
December 31, 2015: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 19.7 | $ | 10.8 | $ | — | $ | 30.5 | ||||||||
Foreign currency contracts | $ | — | $ | 25.4 | $ | — | $ | 25.4 | ||||||||
Interest rate contracts | $ | — | $ | 0.6 | $ | — | $ | 0.6 | ||||||||
Cross-currency swaps | $ | — | $ | 1.9 | $ | — | $ | 1.9 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (70.5 | ) | $ | (97.5 | ) | $ | — | $ | (168.0 | ) | |||||
Interest rate contracts | $ | — | $ | (9.8 | ) | $ | — | $ | (9.8 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 31.7 | $ | — | $ | — | $ | 31.7 | ||||||||
September 30, 2015: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 17.4 | $ | 11.6 | $ | — | $ | 29.0 | ||||||||
Foreign currency contracts | $ | — | $ | 29.1 | $ | — | $ | 29.1 | ||||||||
Cross-currency swaps | $ | — | $ | 0.4 | $ | — | $ | 0.4 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (70.0 | ) | $ | (99.0 | ) | $ | — | $ | (169.0 | ) | |||||
Foreign currency contracts | $ | — | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | ||||||
Interest rate contracts | $ | — | $ | (10.8 | ) | $ | — | $ | (10.8 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 30.3 | $ | — | $ | — | $ | 30.3 | ||||||||
December 31, 2014: | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | 14.1 | $ | 26.1 | $ | — | $ | 40.2 | ||||||||
Foreign currency contracts | $ | — | $ | 18.7 | $ | — | $ | 18.7 | ||||||||
Interest rate contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Cross-currency swaps | $ | — | $ | 4.3 | $ | — | $ | 4.3 | ||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | (69.4 | ) | $ | (228.5 | ) | $ | — | $ | (297.9 | ) | |||||
Interest rate contracts | $ | — | $ | (17.0 | ) | $ | — | $ | (17.0 | ) | ||||||
Non-qualified supplemental postretirement grantor trust investments (a) | $ | 31.4 | $ | — | $ | — | $ | 31.4 |
(a) | Consists primarily of mutual fund investments held in grantor trusts associated with non-qualified supplemental retirement plans. |
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December 31, 2015 | December 31, 2014 | |||||||
Derivative assets: | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Foreign currency contracts | $ | 25.4 | $ | 18.7 | ||||
Cross-currency contracts | 1.9 | 4.3 | ||||||
Interest rate contracts | 0.6 | 0.1 | ||||||
27.9 | 23.1 | |||||||
Derivatives subject to PGC and DS mechanisms: | ||||||||
Commodity contracts | 0.2 | 0.2 | ||||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | 30.3 | 40.0 | ||||||
Total derivative assets - gross | 58.4 | 63.3 | ||||||
Gross amounts offset in the balance sheet | (15.6 | ) | (27.5 | ) | ||||
Total derivative assets - net | $ | 42.8 | $ | 35.8 | ||||
Derivative liabilities: | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate contracts | $ | (9.8 | ) | $ | (17.0 | ) | ||
Derivatives subject to PGC and DS mechanisms: | ||||||||
Commodity contracts | (6.3 | ) | (9.4 | ) | ||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | (161.7 | ) | (288.5 | ) | ||||
Total derivative liabilities - gross | (177.8 | ) | (314.9 | ) | ||||
Gross amounts offset in the balance sheet | 15.6 | 27.5 | ||||||
Cash collateral pledged | 5.5 | 90.5 | ||||||
Total derivative liabilities - net | $ | (156.7 | ) | $ | (196.9 | ) |
Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified from AOCI and Noncontrolling Interests into Income | Location of Gain (Loss) Reclassified from AOCI and Noncontrolling Interests into Income | ||||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||
Commodity contracts | $ | — | $ | — | $ | — | $ | (2.4 | ) | Cost of sales | ||||||||
Foreign currency contracts | 5.4 | 8.7 | 9.1 | 2.7 | Cost of sales | |||||||||||||
Cross-currency contracts | — | 2.1 | — | — | Interest expense/other operating income, net | |||||||||||||
Interest rate contracts | 5.6 | 0.8 | (0.6 | ) | (3.9 | ) | Interest expense | |||||||||||
Total | $ | 11.0 | $ | 11.6 | $ | 8.5 | $ | (3.6 | ) | |||||||||
Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | |||||||||||||||||
Three Months Ended December 31, | 2015 | 2014 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Commodity contracts | $ | (46.2 | ) | $ | (292.5 | ) | Cost of sales | |||||||||||
Commodity contracts | 1.6 | 3.8 | Revenues | |||||||||||||||
Commodity contracts | (0.1 | ) | (0.5 | ) | Operating expenses/other operating income, net | |||||||||||||
Total | $ | (44.7 | ) | $ | (289.2 | ) |
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Three Months Ended December 31, 2015 | Postretirement Benefit Plans | Derivative Instruments | Foreign Currency | Total | ||||||||||||
AOCI - September 30, 2015 | $ | (20.4 | ) | $ | 11.2 | $ | (105.4 | ) | $ | (114.6 | ) | |||||
Other comprehensive income (loss) before reclassification adjustments (after-tax) | — | 6.8 | (30.2 | ) | (23.4 | ) | ||||||||||
Amounts reclassified from AOCI: | ||||||||||||||||
Reclassification adjustments (pre-tax) | 0.7 | (8.5 | ) | — | (7.8 | ) | ||||||||||
Reclassification adjustments tax expense | (0.3 | ) | 3.2 | — | 2.9 | |||||||||||
Reclassification adjustments (after-tax) | 0.4 | (5.3 | ) | — | (4.9 | ) | ||||||||||
Other comprehensive income (loss) attributable to UGI | 0.4 | 1.5 | (30.2 | ) | (28.3 | ) | ||||||||||
AOCI - December 31, 2015 | $ | (20.0 | ) | $ | 12.7 | $ | (135.6 | ) | $ | (142.9 | ) | |||||
Three Months Ended December 31, 2014 | Postretirement Benefit Plans | Derivative Instruments | Foreign Currency (a) | Total | ||||||||||||
AOCI - September 30, 2014 | $ | (20.6 | ) | $ | (9.3 | ) | $ | 8.7 | $ | (21.2 | ) | |||||
Other comprehensive income (loss) before reclassification adjustments (after-tax) | — | 7.7 | (30.5 | ) | (22.8 | ) | ||||||||||
Amounts reclassified from AOCI and noncontrolling interests: | ||||||||||||||||
Reclassification adjustments (pre-tax) | 1.0 | 3.6 | — | 4.6 | ||||||||||||
Reclassification adjustments tax benefit | (0.4 | ) | (1.5 | ) | — | (1.9 | ) | |||||||||
Reclassification adjustments (after-tax) | 0.6 | 2.1 | — | 2.7 | ||||||||||||
Other comprehensive income (loss) | 0.6 | 9.8 | (30.5 | ) | (20.1 | ) | ||||||||||
Add other comprehensive loss attributable to noncontrolling interests, principally in AmeriGas Partners | — | 1.2 | — | 1.2 | ||||||||||||
Other comprehensive income (loss) attributable to UGI | 0.6 | 11.0 | (30.5 | ) | (18.9 | ) | ||||||||||
AOCI - December 31, 2014 | $ | (20.0 | ) | $ | 1.7 | $ | (21.8 | ) | $ | (40.1 | ) |
(a) | See Note 2 relating to correction of prior period error in other comprehensive income. |
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Midstream & Marketing | UGI International | |||||||||||||||||||||||||||||||||||
Total | Elim- inations | AmeriGas Propane | UGI Utilities | Energy Services | Electric Generation | UGI France | Flaga & Other | Corporate & Other (b) | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 1,606.6 | $ | (45.4 | ) | (c) | $ | 644.1 | $ | 198.0 | $ | 214.8 | $ | 14.8 | $ | 408.7 | $ | 169.5 | $ | 2.1 | ||||||||||||||||
Cost of sales | $ | 734.0 | $ | (44.5 | ) | (c) | $ | 243.2 | $ | 75.4 | $ | 151.2 | $ | 6.0 | $ | 192.6 | $ | 110.2 | $ | (0.1 | ) | |||||||||||||||
Segment profit: | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 305.5 | $ | 0.1 | $ | 129.6 | $ | 48.3 | $ | 41.3 | $ | 1.6 | $ | 68.7 | $ | 16.4 | $ | (0.5 | ) | |||||||||||||||||
Loss from equity investees | (0.1 | ) | — | — | — | — | — | (0.1 | ) | — | — | |||||||||||||||||||||||||
Interest expense | (57.9 | ) | — | (41.0 | ) | (9.5 | ) | (0.8 | ) | — | (5.6 | ) | (0.9 | ) | (0.1 | ) | ||||||||||||||||||||
Income (loss) before income taxes | $ | 247.5 | $ | 0.1 | $ | 88.6 | $ | 38.8 | $ | 40.5 | $ | 1.6 | $ | 63.0 | $ | 15.5 | $ | (0.6 | ) | |||||||||||||||||
Partnership Adjusted EBITDA (a) | $ | 177.7 | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ net income | $ | 53.3 | $ | — | $ | 57.3 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (4.1 | ) | |||||||||||||||||
Depreciation and amortization | $ | 100.6 | $ | — | $ | 49.2 | $ | 16.7 | $ | 4.1 | $ | 3.3 | $ | 21.6 | $ | 5.6 | $ | 0.1 | ||||||||||||||||||
Capital expenditures | $ | 132.9 | $ | — | $ | 28.0 | $ | 61.5 | $ | 21.9 | $ | 0.5 | $ | 16.3 | $ | 4.7 | $ | — | ||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,780.4 | $ | (106.2 | ) | $ | 4,242.6 | $ | 2,606.3 | $ | 721.0 | $ | 279.0 | $ | 2,378.9 | $ | 534.8 | $ | 124.0 | |||||||||||||||||
Short-term borrowings | $ | 456.8 | $ | — | $ | 182.0 | $ | 217.7 | $ | 56.0 | $ | — | $ | 1.1 | $ | — | $ | — | ||||||||||||||||||
Goodwill | $ | 2,965.1 | $ | — | $ | 1,971.3 | $ | 182.1 | $ | 11.5 | $ | — | $ | 700.9 | $ | 99.3 | $ | — |
Midstream & Marketing | UGI International | |||||||||||||||||||||||||||||||||||
Total | Elim- inations | AmeriGas Propane | UGI Utilities | Energy Services | Electric Generation | UGI France | Flaga & Other | Corporate & Other (b) | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 (d) | ||||||||||||||||||||||||||||||||||||
Revenues | $ | 2,004.6 | $ | (67.7 | ) | (c) | $ | 888.8 | $ | 287.3 | $ | 314.1 | $ | 16.5 | $ | 337.9 | $ | 224.6 | $ | 3.1 | ||||||||||||||||
Cost of sales | $ | 1,404.6 | $ | (67.0 | ) | (c) | $ | 462.4 | $ | 143.1 | $ | 244.6 | $ | 8.0 | $ | 209.3 | $ | 172.6 | $ | 231.6 | ||||||||||||||||
Segment profit: | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 83.3 | $ | — | $ | 139.7 | $ | 75.6 | $ | 46.3 | $ | (0.7 | ) | $ | 38.4 | $ | 15.1 | $ | (231.1 | ) | ||||||||||||||||
Loss from equity investees | (1.0 | ) | — | — | — | — | — | (1.0 | ) | — | — | |||||||||||||||||||||||||
Interest expense | (59.0 | ) | — | (41.0 | ) | (10.6 | ) | (0.6 | ) | — | (5.6 | ) | (1.0 | ) | (0.2 | ) | ||||||||||||||||||||
Income (loss) before income taxes | $ | 23.3 | $ | — | $ | 98.7 | $ | 65.0 | $ | 45.7 | $ | (0.7 | ) | $ | 31.8 | $ | 14.1 | $ | (231.3 | ) | ||||||||||||||||
Partnership EBITDA (a) | $ | 188.5 | ||||||||||||||||||||||||||||||||||
Noncontrolling interests’ net income (loss) | $ | (33.9 | ) | $ | — | $ | 66.8 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (100.8 | ) | ||||||||||||||||
Depreciation and amortization | $ | 91.0 | $ | — | $ | 49.4 | $ | 15.4 | $ | 3.8 | $ | 2.7 | $ | 13.3 | $ | 6.1 | $ | 0.3 | ||||||||||||||||||
Capital expenditures | $ | 123.5 | $ | — | $ | 30.4 | $ | 55.0 | $ | 12.9 | $ | 6.6 | $ | 12.1 | $ | 6.4 | $ | 0.1 | ||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,430.0 | $ | (92.7 | ) | $ | 4,491.0 | $ | 2,488.6 | $ | 728.8 | $ | 286.4 | $ | 1,671.5 | $ | 579.0 | $ | 277.4 | |||||||||||||||||
Short-term borrowings | $ | 458.5 | $ | — | $ | 253.0 | $ | 153.5 | $ | 43.0 | $ | — | $ | — | $ | 9.0 | $ | — | ||||||||||||||||||
Goodwill | $ | 2,806.8 | $ | — | $ | 1,949.6 | $ | 182.1 | $ | 11.8 | $ | — | $ | 575.9 | $ | 87.4 | $ | — |
(a) | The following table provides a reconciliation of Partnership Adjusted EBITDA to AmeriGas Propane operating income: |
Three Months Ended December 31, | ||||||||
2015 | 2014 | |||||||
Partnership Adjusted EBITDA | $ | 177.7 | $ | 188.5 | ||||
Depreciation and amortization | (49.2 | ) | (49.4 | ) | ||||
Noncontrolling interests (i) | 1.1 | 0.6 | ||||||
Operating income | $ | 129.6 | $ | 139.7 |
(i) | Principally represents the General Partner’s 1.01% interest in AmeriGas OLP. |
(b) | Corporate & Other results principally comprise (1) net expenses of UGI’s captive general liability insurance company, and (2) UGI Corporation’s unallocated corporate and general expenses and interest income. In addition, Corporate & Other results also include the effects of net pre-tax gains and (losses) on commodity derivative instruments not associated with current-period transactions totaling $1.1 and $(229.7) during the three months ended December 31, 2015 and 2014, respectively. Corporate & Other assets principally comprise cash and short-term investments. |
(c) | Represents the elimination of intersegment transactions principally among Midstream & Marketing, UGI Utilities and AmeriGas Propane. |
(d) | Certain amounts have been restated to reflect the current-year changes in our segment presentation as described above. |
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Assets acquired: | |||
Cash | $ | 86.8 | |
Accounts receivable (a) | 170.3 | ||
Prepaid expenses and other current assets | 11.0 | ||
Property, plant and equipment | 375.6 | ||
Intangible assets (b) | 91.3 | ||
Other assets | 21.4 | ||
Total assets acquired | $ | 756.4 | |
Liabilities assumed: | |||
Accounts payable | 109.2 | ||
Other current liabilities | 103.5 | ||
Deferred income taxes | 115.8 | ||
Other noncurrent liabilities | 117.5 | ||
Total liabilities assumed | $ | 446.0 | |
Goodwill | 186.2 | ||
Net consideration transferred (including working capital adjustments) | $ | 496.6 |
(a) | Approximates the gross contractual amounts of receivables acquired. |
(b) | Represents $79.3 of customer relationships and $12.0 of tradenames. |
Three Months Ended December 31, 2014 | |||||||
As Reported | Pro Forma Adjusted | ||||||
Revenues | $ | 2,004.6 | $ | 2,184.5 | |||
Net income attributable to UGI Corporation | $ | 34.1 | $ | 46.6 | |||
Earnings per common share attributable to UGI Corporation shareholders: | |||||||
Basic | $ | 0.20 | $ | 0.27 | |||
Diluted | $ | 0.19 | $ | 0.27 |
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