AMERIGAS PARTNERS LP, 10-Q filed on 2/7/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Dec. 31, 2013
Jan. 31, 2014
Entity Information [Line Items]
 
 
Entity Registrant Name
AMERIGAS PARTNERS LP 
 
Entity Central Index Key
0000932628 
 
Document Type
10-Q 
 
Document Period End Date
Dec. 31, 2013 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q1 
 
Current Fiscal Year End Date
--09-30 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
92,859,593 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Current assets:
 
 
 
Cash and cash equivalents
$ 30,303 
$ 12,635 
$ 117,630 
Accounts receivable (less allowances for doubtful accounts of $22,099, $18,552 and $20,020, respectively)
515,852 
290,701 
377,581 
Accounts receivable - related parties
1,355 
1,509 
1,594 
Inventories
184,141 
158,928 
174,410 
Derivative financial instruments
37,244 
18,036 
1,043 
Prepaid expenses and other current assets
16,069 
18,883 
23,048 
Total current assets
784,964 
500,692 
695,306 
Property, plant and equipment (less accumulated depreciation and amortization of $1,271,228, $1,231,688 and $1,113,802, respectively)
1,417,768 
1,437,514 
1,485,710 
Goodwill
1,934,435 
1,933,929 
1,914,827 
Intangible assets, net
487,445 
496,328 
526,153 
Other assets
40,643 
41,383 
43,779 
Total assets
4,665,255 
4,409,846 
4,665,775 
Current liabilities:
 
 
 
Current maturities of long-term debt
12,084 
12,014 
28,347 
Bank loans
208,800 
116,900 
177,200 
Accounts payable - trade
303,973 
170,705 
232,584 
Accounts payable - related parties
2,063 
1,071 
910 
Customer deposits and advances
107,463 
128,122 
143,687 
Derivative financial instruments
0 
135 
28,284 
Other current liabilities
163,341 
188,027 
172,865 
Total current liabilities
797,724 
616,974 
783,877 
Long-term debt
2,286,859 
2,288,097 
2,294,704 
Other noncurrent liabilities
84,124 
80,638 
85,911 
Total liabilities
3,168,707 
2,985,709 
3,164,492 
Commitments and contingencies (note 6)
   
   
   
AmeriGas Partners, L.P. partners' capital:
 
 
 
Common unitholders (units issued - 92,830,791, 92,824,539 and 92,812,417, respectively)
1,404,834 
1,354,187 
1,473,774 
General partner
16,439 
15,930 
17,156 
Total AmeriGas Partners, L.P. partners’ capital
35,766 
14,986 
(29,185)
Total AmeriGas Partners, L. P. partners' capital
1,457,039 
1,385,103 
1,461,745 
Noncontrolling interest
39,509 
39,034 
39,538 
Total partners' capital
1,496,548 
1,424,137 
1,501,283 
Total liabilities and partners' capital
$ 4,665,255 
$ 4,409,846 
$ 4,665,775 
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Allowances for doubtful accounts
$ 22,099 
$ 18,552 
$ 20,020 
Depreciation and amortization on property, plant and equipment
$ 1,271,228 
$ 1,231,688 
$ 1,113,802 
Common units, issued (in units)
92,830,791 
92,824,539 
92,812,417 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Revenues:
 
 
Propane
$ 970,302 
$ 797,059 
Other
75,524 
79,588 
Total, Revenues
1,045,826 
876,647 
Costs and expenses:
 
 
Cost of sales - propane (excluding depreciation shown below)
562,448 
429,563 
Cost of sales - other (excluding depreciation shown below)
20,259 
22,521 
Operating and administrative expenses
237,548 
243,517 
Depreciation
41,503 
38,323 
Amortization
10,819 
11,028 
Other income, net
(6,444)
(8,171)
Total, costs and expenses
866,133 
736,781 
Operating income
179,693 
139,866 
Interest expense
(41,590)
(41,196)
Income before income taxes
138,103 
98,670 
Income tax expense
(1,431)
(627)
Net income
136,672 
98,043 
Deduct net income attributable to noncontrolling interest
(1,774)
(1,378)
Net income attributable to AmeriGas Partners, L.P.
134,898 
96,665 
General partner’s interest in net income attributable to AmeriGas Partners, L.P.
6,740 
5,219 
Limited partners’ interest in net income attributable to AmeriGas Partners, L.P.
$ 128,158 
$ 91,446 
Income per limited partner unit - basic and diluted:
 
 
Basic (in dollars per unit)
1.14 
0.93 
Diluted (in dollars per unit)
1.14 
0.93 
Average limited partner units outstanding (thousands):
 
 
Basic (in units)
92,847 
92,820 
Diluted (in units)
92,943 
92,902 
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Net income
$ 136,672 
$ 98,043 
Net gains (losses) on derivative instruments
34,242 
(2,693)
Reclassifications of net (gains) losses on derivative instruments
(13,273)
17,224 
Other comprehensive income
20,969 
14,531 
Total comprehensive income
157,641 
112,574 
Deduct comprehensive income attributable to noncontrolling interest
(1,963)
(1,525)
Comprehensive income attributable to AmeriGas Partners, L.P.
$ 155,678 
$ 111,049 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
Net income
$ 136,672 
$ 98,043 
Adjustments to reconcile net income to net cash from operating activities
 
 
Depreciation and amortization
52,322 
49,351 
Provision for uncollectible accounts
5,318 
4,091 
Other, net
1,056 
(156)
Net change in:
 
 
Accounts receivable
(230,231)
(115,620)
Inventories
(25,153)
(10,664)
Accounts payable
134,259 
61,057 
Other current assets
2,814 
(3,532)
Other current liabilities
(41,777)
(42,084)
Net cash provided by operating activities
35,280 
40,486 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
Expenditures for property, plant and equipment
(23,269)
(26,489)
Proceeds from disposals of assets
2,321 
1,793 
Acquisitions of businesses, net of cash acquired
(1,442)
0 
Net cash used by investing activities
(22,390)
(24,696)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
Distributions
(84,208)
(79,293)
Noncontrolling interest activity
(1,488)
(1,439)
Increase in bank loans
91,900 
127,300 
Repayments of long-term debt
(1,621)
(4,855)
Proceeds associated with equity-based compensation plans, net of tax withheld
193 
18 
Capital contributions from General Partner
2 
7 
Net cash provided by financing activities
4,778 
41,738 
Cash and cash equivalents increase
17,668 
57,528 
CASH AND CASH EQUIVALENTS:
 
 
End of period
30,303 
117,630 
Beginning of period
12,635 
60,102 
Increase
$ 17,668 
$ 57,528 
Condensed Consolidated Statements of Partner's Capital (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Beginning Balance
$ 1,424,137 
$ 1,468,560 
Net income
136,672 
98,043 
Net gains (losses) on derivative instruments
34,242 
(2,693)
Reclassifications of net (gains) losses on derivative instruments
(13,273)
17,224 
Distributions
(85,696)
(80,732)
Unit-based compensation expense
(590)
(856)
Common Units issued in connection with incentive compensation plans, net of tax withheld
(124)
25 
Ending Balance
1,496,548 
1,501,283 
Noncontrolling interest
 
 
Beginning Balance
39,034 
39,452 
Net income
1,774 
1,378 
Net gains (losses) on derivative instruments
323 
(27)
Reclassifications of net (gains) losses on derivative instruments
(134)
174 
Distributions
(1,488)
(1,439)
Ending Balance
39,509 
39,538 
Total AmeriGas Partners, L.P. partners' capital
 
 
Beginning Balance
1,385,103 
1,429,108 
Net income
134,898 
96,665 
Net gains (losses) on derivative instruments
33,919 
(2,666)
Reclassifications of net (gains) losses on derivative instruments
(13,139)
17,050 
Distributions
(84,208)
(79,293)
Unit-based compensation expense
(590)
(856)
Common Units issued in connection with incentive compensation plans, net of tax withheld
(124)
25 
Ending Balance
1,457,039 
1,461,745 
Limited Partner [Member]
 
 
Beginning Balance
1,354,187 
1,455,702 
Beginning Balance (in units)
92,824,539 
92,801,347 
Net income
128,158 
91,446 
Distributions
(77,975)
(74,248)
Unit-based compensation expense
(590)
(856)
Common Units issued in connection with incentive compensation plans, net of tax withheld
(126)
18 
Common Units issued in connection with incentive compensation plans, net of tax withheld (in units)
6,252 
11,070 
Ending Balance
1,404,834 
1,473,774 
Ending Balance (in units)
92,830,791 
92,812,417 
General partner
 
 
Beginning Balance
15,930 
16,975 
Net income
6,740 
5,219 
Distributions
(6,233)
(5,045)
Common Units issued in connection with incentive compensation plans, net of tax withheld
2 
7 
Ending Balance
16,439 
17,156 
Accumulated other comprehensive income (loss)
 
 
Beginning Balance
14,986 
(43,569)
Net gains (losses) on derivative instruments
33,919 
(2,666)
Reclassifications of net (gains) losses on derivative instruments
(13,139)
(17,050)
Ending Balance
$ 35,766 
$ (29,185)
Nature of Operations
Nature of Operations
Nature of Operations

AmeriGas Partners, L.P. (“AmeriGas Partners”) is a publicly traded limited partnership that conducts a national propane distribution business through its principal operating subsidiary AmeriGas Propane, L.P. (“AmeriGas OLP”) and prior to its merger with AmeriGas OLP on July 1, 2013 (the “Merger”), AmeriGas OLP’s principal operating subsidiary Heritage Operating, L.P. (“HOLP”). AmeriGas OLP after the Merger, and AmeriGas OLP and HOLP prior to the Merger, are referred to herein as the “Operating Partnership.” AmeriGas Partners and AmeriGas OLP are Delaware limited partnerships. AmeriGas Partners, the Operating Partnership and its subsidiaries are collectively referred to herein as the “Partnership” or “we.” The Operating Partnership is engaged in the distribution of propane and related equipment and supplies. The Operating Partnership comprises the largest retail propane distribution business in the United States serving residential, commercial, industrial, motor fuel and agricultural customers in all 50 states.
At December 31, 2013, AmeriGas Propane, Inc. (the “General Partner”), an indirect wholly owned subsidiary of UGI Corporation (“UGI”), held a 1% general partner interest in AmeriGas Partners and a 1.01% general partner interest in AmeriGas OLP. The General Partner and its wholly owned subsidiary Petrolane Incorporated (“Petrolane,” a predecessor company of the Partnership) also owned 23,756,882 AmeriGas Partners Common Units (“Common Units”). The remaining Common Units outstanding at December 31, 2013 comprise 69,073,909 publicly held Common Units of which 22,067,362 Common Units are held by a subsidiary of Energy Transfer Partners, L.P. (“ETP”) as a result of the January 12, 2012, acquisition of substantially all of ETP’s propane operations (the “Heritage Acquisition”). The Common Units represent limited partner interests in AmeriGas Partners. AmeriGas Partners holds a 98.99% limited partner interest in AmeriGas OLP. In January 2014, ETP sold 9,200,000 of the Common Units it held in an underwritten public offering, pursuant to its registration rights in its unitholder agreement. AmeriGas Partners did not receive any proceeds from the sale of the Common Units by ETP.
AmeriGas Partners and the Operating Partnership have no employees. Employees of the General Partner conduct, direct and manage our operations. Prior to the Merger, the General Partner provided management and administrative services to Heritage Operating GP, LLC (“HOLP GP”), the general partner of HOLP, under a management services agreement. The General Partner is reimbursed monthly for all direct and indirect expenses it incurs on our behalf (see Note 5).
Significant Accounting Policies
Significant Accounting Policies


The condensed consolidated financial statements include the accounts of AmeriGas Partners and its majority-owned subsidiaries principally comprising AmeriGas OLP and, prior to the Merger, HOLP. We eliminate all significant intercompany accounts and transactions when we consolidate. We account for the General Partner’s 1.01% interest in AmeriGas OLP as noncontrolling interest in the condensed consolidated financial statements.
AmeriGas Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC are 100%-owned finance subsidiaries of AmeriGas Partners. Their sole purpose is to serve as issuers or co-obligors for debt securities issued or guaranteed by AmeriGas Partners. The 6.75% and 7.00% Senior Notes are fully and unconditionally guaranteed on a senior secured basis by AmeriGas Partners.
 
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). They include all adjustments which we consider necessary for a fair statement of the results for the interim periods presented. Such adjustments consisted only of normal recurring items unless otherwise disclosed. The September 30, 2013, condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).

These financial statements should be read in conjunction with the financial statements and related notes included in our Annual Report on Form 10-K for the year ended September 30, 2013 (“Partnership’s 2013 Annual Financial Statements and Notes”). Weather significantly impacts demand for propane and profitability because many customers use propane for heating purposes. Due to the seasonal nature of the Partnership’s propane business, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.
Allocation of Net Income Attributable to AmeriGas Partners. Net income attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its incentive distribution rights (“IDRs”) under the Fourth Amended and Restated Agreement of Limited Partnership of AmeriGas Partners, as amended (“Partnership Agreement”).
Net Income Per Unit. Income per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income per unit for master limited partnerships (“MLPs”) when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership).
 
The following table sets forth the numerators and denominators of the basic and diluted income per limited partner unit computations:
 
 
 
Three Months Ended
December 31,
 
 
2013
 
2012
Common Unitholders’ interest in net income attributable to AmeriGas Partners under the two-class method for MLPs
 
$
105,560

 
$
86,241

Weighted average Common Units outstanding—basic (thousands)
 
92,847

 
92,820

Potentially dilutive Common Units (thousands)
 
96

 
82

Weighted average Common Units outstanding—diluted (thousands)
 
92,943

 
92,902


Theoretical distributions of net income attributable to AmeriGas Partners, L.P. in accordance with the two-class method for the three months ended December 31, 2013 and 2012, resulted in an increased allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner in the computation of income per limited partner unit which had the effect of decreasing earnings per limited partner unit by $0.24 and $0.06, respectively.
Potentially dilutive Common Units included in the diluted limited partner units outstanding computation reflect the effects of restricted Common Unit awards granted under the General Partner’s incentive compensation plans.
Comprehensive Income. Comprehensive income comprises net income and other comprehensive income. Other comprehensive income principally results from gains and losses on derivative instruments qualifying as cash flow hedges, net of reclassifications to net income. For information regarding the amounts and line items on the Condensed Consolidated Statements of Operations associated with reclassification from accumulated other comprehensive income (“AOCI”), see Note 8.
Reclassifications. Certain prior period amounts have been reclassified to conform to current period presentation.
Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and costs. These estimates are based on management’s knowledge of current events, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may be different from these estimates and assumptions.
Accounting Changes
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
Accounting Changes

Adoption of New Accounting Standards

Disclosures about Reclassifications Out of Accumulated Other Comprehensive Income. During the three months ended December 31, 2013, the Partnership adopted new accounting guidance regarding disclosures for items reclassified out of AOCI. The disclosures required by the new accounting guidance are included in the notes to the condensed consolidated financial statements. The new disclosures are applied prospectively. As this guidance only affects disclosure requirements, the adoption of this guidance did not impact our results of operations, cash flows or financial position.
Disclosures about Offsetting Assets and Liabilities. During the three months ended December 31, 2013, the Partnership adopted new accounting guidance requiring entities to disclose both gross and net information about recognized derivative instruments that are offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the balance sheet. The new disclosures are applied retroactively for all periods presented. The required disclosures are included in Note 7 to the condensed consolidated financial statements. As this guidance only affects disclosure requirements, the adoption of this guidance did not impact our results of operations, cash flows or financial position.
Goodwill and Intangible Assets
Goodwill and Intangible Assets


The Partnership’s goodwill and intangible assets comprise the following:
 
 
 
December 31,
2013
 
September 30,
2013
 
December 31,
2012
Goodwill (not subject to amortization)
 
$
1,934,435

 
$
1,933,929

 
$
1,914,827

Intangible assets:
 
 
 
 
 
 
Customer relationships and noncompete agreements
 
$
513,412

 
$
512,665

 
$
505,367

Trademarks and tradenames (not subject to amortization)
 
82,944

 
82,944

 
91,100

Gross carrying amount
 
596,356

 
595,609

 
596,467

Accumulated amortization
 
(108,911
)
 
(99,281
)
 
(70,314
)
Intangible assets, net
 
$
487,445

 
$
496,328

 
$
526,153


Amortization expense of intangible assets was $9,630 for the three months ended December 31, 2013 and $9,844 for the three months ended December 31, 2012. No amortization is included in cost of sales in the Condensed Consolidated Statements of Operations. As of December 31, 2013, our expected aggregate amortization expense of intangible assets for the remainder of Fiscal 2014 and the next four fiscal years is as follows: remainder of Fiscal 2014 — $29,284; Fiscal 2015 — $37,309; Fiscal 2016 — $36,018; Fiscal 2017 — $33,853; Fiscal 2018 — $32,493.
Related Party Transactions
Related Party Transactions
Related Party Transactions
Pursuant to the Partnership Agreement and, prior to the Merger, a management services agreement among HOLP GP, HOLP and the General Partner, the General Partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on our behalf. These costs, which totaled $144,536 and $139,797 for the three months ended December 31, 2013 and 2012, respectively, include employee compensation and benefit expenses of employees of the General Partner and general and administrative expenses.
UGI provides certain financial and administrative services to the General Partner. UGI bills the General Partner monthly for all direct and indirect corporate expenses incurred in connection with providing these services and the General Partner is reimbursed by the Partnership for these expenses. The allocation of indirect UGI corporate expenses to the Partnership utilizes a weighted, three-component formula based on the relative percentage of the Partnership’s revenues, operating expenses and net assets employed to the total of such items for all UGI operating subsidiaries for which general and administrative services are provided. The General Partner believes that this allocation method is reasonable and equitable to the Partnership. Such corporate expenses totaled $3,494 and $3,892, during the three months ended December 31, 2013 and 2012, respectively. In addition, UGI and certain of its subsidiaries provide office space, stop loss medical coverage and automobile liability insurance to the Partnership. The costs related to these items totaled $1,131 and $1,564 for the three months ended December 31, 2013 and 2012, respectively.
From time to time, AmeriGas OLP purchases propane on an as needed basis from UGI Energy Services, Inc. (“Energy Services”). The prices for any such propane purchased are generally based on market price at the time of purchase. AmeriGas OLP purchased propane from Energy Services totaling $75 during the three months ended December 31, 2013 and purchased no amounts during the three months ended December 31, 2012.
In addition, the Partnership sells propane to affiliates of UGI. Such amounts were not material during the periods presented.
Commitments and Contingencies
Commitments and Contingencies

Environmental Matters

Saranac Lake. By letter dated March 6, 2008, the New York State Department of Environmental Conservation (“DEC”) notified AmeriGas OLP that DEC had placed property owned by the Partnership in Saranac Lake, New York, on its Registry of Inactive Hazardous Waste Disposal Sites. A site characterization study performed by DEC disclosed contamination related to former manufactured gas plant (“MGP”) operations on the site. DEC has classified the site as a significant threat to public health or environment with further action required. The Partnership has researched the history of the site and its ownership interest in the site. The Partnership has reviewed the preliminary site characterization study prepared by the DEC, the extent of the contamination, and the possible existence of other potentially responsible parties. The Partnership communicated the results of its research to DEC in January 2009. There have been no recent developments in this matter. Because of the preliminary nature of available environmental information, the ultimate amount or range of possible clean up costs cannot be reasonably estimated.

Claremont, New Hampshire and Chestertown, Maryland. In connection with the Heritage Acquisition on January 12, 2012, a predecessor of Titan Propane, LLC (“Titan LLC”), a former subsidiary acquired in the Heritage Acquisition, is purportedly the beneficial holder of title with respect to two former MGPs discussed below. The Contribution Agreement provides for indemnification from ETP for certain expenses associated with remediation of these sites. By letter dated September 30, 2010, the EPA notified Titan LLC that it may be a potentially responsible party (“PRP”) for cleanup costs associated with contamination at a former MGP in Claremont, New Hampshire. In June 2010, the Maryland Attorney General (“MAG”) identified Titan LLC as a PRP in connection with contamination at a former MGP in Chestertown, Maryland and requested that Titan LLC participate in characterization and remediation activities. Titan LLC has supplied the EPA and MAG with corporate and bankruptcy information for its predecessors to support its claim that it is not liable for any remediation costs at the sites. Because of the preliminary nature of available environmental information, the ultimate amount or range of possible clean up costs, if any, cannot be reasonably estimated.
Other Matters
Cylinder Investigation. On or about October 21, 2009, the General Partner received a notice that the Offices of the District Attorneys of Santa Clara, Sonoma, Ventura, San Joaquin and Fresno Counties and the City Attorney of San Diego (the “District Attorneys”) have commenced an investigation into AmeriGas OLP’s cylinder labeling and filling practices in California as a result of the Partnership’s decision in 2008 to reduce the volume of propane in cylinders it sells to consumers from 17 pounds to 15 pounds. At that time, the District Attorneys issued an administrative subpoena seeking documents and information relating to those practices. We have responded to the administrative subpoena. On or about July 20, 2011, the General Partner received a second subpoena from the District Attorneys. The subpoena sought additional information and documents regarding AmeriGas OLP’s cylinder exchange program. We responded to that subpoena. In connection with this matter, the District Attorneys have alleged potential violations of California’s antitrust and unfair competition laws, California’s slack-fill law, and California’s principal false advertising statute. On November 20, 2013, the District Attorneys filed a complaint against the General Partner and AmeriGas OLP and simultaneously filed a proposed stipulated final consent judgment (the “Judgment”) which was approved by the court on December 2, 2013 and resolved all claims against those defendants that were known to the District Attorneys as of that date. The Judgment requires the General Partner to pay a civil penalty and to certain injunctive relief including the posting of a consumer notice on all cylinder cages in California.  The notice informs consumers, among other things, of the reduction of propane in weight from 17 pounds to 15 pounds.  The Judgment will not have a material effect on our consolidated financial position, results of operations or cash flows.
Federal Trade Commission Investigation of Propane Grill Cylinder Filling Practices. On or about November 4, 2011, the General Partner received notice that the Federal Trade Commission (“FTC”) is conducting an antitrust and consumer protection investigation into certain practices of the Partnership which relate to the filling of portable propane cylinders. On February 2, 2012, the Partnership received a Civil Investigative Demand from the FTC that requested documents and information concerning, among other things, (i) the Partnership’s decision, in 2008, to reduce the volume of propane in cylinders it sells to consumers from 17 pound to 15 pounds and (ii) cross-filling, related service arrangements and communications regarding the foregoing with competitors. The Partnership responded to that subpoena and has continued to cooperate with the FTC’s requests for information. The Partnership believes it has good defenses to any claims that may result from this investigation. We are not able to assess the financial impact this investigation or any related claims may have on the Partnership.
Purported Class Action Lawsuit. In 2005, Samuel and Brenda Swiger (the “Swigers”) filed what purports to be a class action in the Circuit Court of Harrison County, West Virginia, against UGI, an insurance subsidiary of UGI, certain officers of UGI and the General Partner, and their insurance carriers and insurance adjusters. In this lawsuit, the Swigers are seeking compensatory and punitive damages on behalf of the putative class for alleged violations of the West Virginia Insurance Unfair Trade Practice Act, negligence, intentional misconduct, and civil conspiracy. The Court has not certified the class and, in October 2008, stayed the lawsuit pending resolution of a separate, but related class action lawsuit filed against AmeriGas OLP in Monongalia County, which was settled in Fiscal 2011. We believe we have good defenses to the claims in this action.
We cannot predict the final results of any of the environmental or other pending claims or legal actions described above. However, it is reasonably possible that some of them could be resolved unfavorably to us and result in losses in excess of recorded amounts. We are unable to estimate any possible losses in excess of recorded amounts. Although we currently believe, after consultation with counsel, that damages or settlements in amounts in excess of recorded amounts, if any, recovered by the plaintiffs in such claims or actions will not have a material adverse effect on our financial position, damages or settlements could be material to our operating results or cash flows in future periods depending on the nature and timing of future developments with respect to these matters and the amounts of future operating results and cash flows. In addition to the matters described above, there are other pending claims and legal actions arising generally in the normal course of our businesses. We believe, after consultation with counsel, the final outcome of such other matters will not have a material effect on our consolidated financial position, results of operations or cash flows.
Fair Value Measurement
Fair Value Measurements


Derivative Financial Instruments
The following table presents our financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of December 31, 2013, September 30, 2013 and December 31, 2012:
 
 
 
Asset (Liability)
 
 
Quoted Prices
in Active
Markets for
Identical
Assets and
Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
December 31, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
38,695

 
$
—

 
$
38,695

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
—

 
$
—

 
$
—

September 30, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
18,252

 
$
—

 
$
18,252

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
(135
)
 
$
—

 
$
(135
)
December 31, 2012:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
3,108

 
$
—

 
$
3,108

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
(28,290
)
 
$
—

 
$
(28,290
)

 
The fair values of our non-exchange traded commodity derivative contracts included in Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. For commodity option contracts not traded on an exchange, we use a Black Scholes option pricing model that considers time value and volatility of the underlying commodity.
Other Financial Instruments
The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. At December 31, 2013, the carrying amount and estimated fair value of our long-term debt (including current maturities) were $2,298,943 and $2,486,570, respectively. At December 31, 2012, the carrying amount and estimated fair value of our long-term debt (including current maturities) were $2,323,051 and $2,541,466, respectively. We estimate the fair value of long-term debt by using current market prices and by discounting future cash flows using rates available for similar type debt (Level 2).
We have financial instruments such as short-term investments and trade accounts receivable which could expose us to concentrations of credit risk. We limit our credit risk from short-term investments by investing only in investment-grade commercial paper and U.S. Government securities. The credit risk from trade accounts receivable is limited because we have a large customer base which extends across many different U.S. markets.



Disclosures about Offsetting Derivative Assets and Liabilities

Derivative assets and liabilities are presented net by counterparty on our Condensed Consolidated Balance Sheets. Our derivative financial instruments principally comprise propane over-the-counter swap and option contracts. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of offset through master netting arrangements and contract default provisions. In addition, contracts may be subject to conditional rights of offset through counterparty nonperformance, insolvency, or other conditions.
In general, most of our over-the-counter transactions are subject to collateral requirements. Any cash collateral paid by us to our derivative counterparties is reflected in the table below to offset derivative liabilities. Any cash collateral received by us from our counterparties is reflected in the table below to offset derivative assets. Certain other accounts receivable and accounts payable balances recognized on our Condensed Consolidated Balance Sheets with our derivative counterparties are not included in the tables below but would reduce our net exposure to such counterparties because they are subject to master netting or similar arrangements.

 
 
 
 
 
Gross Amounts Not Offset in the Balance Sheet
 
 
 
Gross Amount Recognized
Gross Amount Offset in the Balance Sheet
Net Amounts Presented in the Balance Sheet
 
Financial Instruments
Cash Collateral
 
Net Amount
December 31, 2013:
 
 
 
 
 
 
 
 
Derivative assets
$
39,512

$
(817
)
$
38,695

 
$
—

$
—

 
$
38,695

Derivative liabilities
$
(817
)
$
817

$
—

 
$
—

$
—

 
$
—

 
 
 
 
 
 
 
 
 
September 30, 2013:
 
 
 
 
 
 
 
 
Derivative assets
$
19,621

$
(1,369
)
$
18,252

 
$
—

$
—

 
$
18,252

Derivative liabilities
$
(1,504
)
$
1,369

$
(135
)
 
$
—

$
—

 
$
(135
)
 
 
 
 
 
 
 
 
 
December 31, 2012:
 
 
 
 
 
 
 
 
Derivative assets
$
6,646

$
(3,538
)
$
3,108

 
$
—

$
—

 
$
3,108

Derivative liabilities
$
(31,828
)
$
3,538

$
(28,290
)
 
$
—

$
4,747

 
$
(23,543
)
 
 
 
 
 
 
 
 
 
Disclosures about Derivative Instruments and Hedging Activities
Disclosures About Derivative Instruments and Hedging Activities
Disclosures about Derivative Instruments and Hedging Activities

The Partnership is exposed to certain market risks related to its ongoing business operations. Management uses derivative financial and commodity instruments, among other things, to manage these risks. The primary risk currently managed by derivative instruments is commodity price risk for propane. Although we use derivative financial and commodity instruments to reduce market risk associated with forecasted transactions, we do not use derivative financial and commodity instruments for speculative or trading purposes. The use of derivative instruments is controlled by our risk management and credit policies which govern, among other things, the derivative instruments the Partnership can use, counterparty credit limits and contract authorization limits. Because a substantial portion of our derivative instruments generally qualify as hedges under GAAP, we expect that changes in the fair value of derivative instruments used to manage commodity or interest rate market risk would be substantially offset by gains or losses on the associated anticipated transactions.
Commodity Price Risk
In order to manage market risk associated with the Partnership’s fixed-price programs which permit customers to lock in the prices they pay for propane principally during the months of October through March, the Partnership uses over-the-counter derivative commodity instruments, principally price swap and option contracts. At December 31, 2013 and 2012, there were 167.1 million gallons and 200.3 million gallons, respectively, of propane hedged with over-the-counter price swap and option contracts that qualify for hedge accounting treatment. At December 31, 2013, the maximum period over which we are hedging propane market price risk is 21 months with a weighted average of 6 months. In addition, the Partnership from time to time enters into price swap and option agreements to reduce short-term commodity price volatility which are generally not designated as hedges for accounting purposes.
We account for a significant portion of our commodity price risk contracts as cash flow hedges. Changes in the fair values of contracts qualifying for cash flow hedge accounting are recorded in AOCI and noncontrolling interest, to the extent effective in offsetting changes in the underlying commodity price risk, until earnings are affected by the hedged item. At December 31, 2013, the amount of net gains associated with commodity price risk hedges expected to be reclassified into earnings during the next twelve months based upon current fair values is $34,762.
Derivative Financial Instruments Credit Risk
The Partnership is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Our counterparties principally consist of major energy companies and major U.S. financial institutions. We maintain credit policies with regard to our counterparties that we believe reduce overall credit risk. These policies include evaluating and monitoring our counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by the Partnership in the forms of letters of credit, parental guarantees or cash. Although we have concentrations of credit risk associated with derivative financial instruments held by certain derivative financial instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative financial instruments, we would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was not material at December 31, 2013. Certain of our derivative contracts have credit-risk-related contingent features that may require the posting of additional collateral in the event of a downgrade in the Partnership’s debt rating. At December 31, 2013, if the credit-risk-related contingent features were triggered, the amount of collateral required to be posted would not be material.

The following table provides information regarding the fair values and balance sheet locations of our derivative assets and liabilities existing as of December 31, 2013 and 2012:
 
 
 
Derivative Assets
 
Derivative (Liabilities)
 
 
Balance Sheet
Location
 
Fair Value

 
Balance Sheet
Location
 
Fair Value

 
 
 
2013
 
2012
 
 
2013
 
2012
Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
Derivative financial instruments and other assets
 
$
32,028

 
$
3,108

 
Derivative financial instruments and other noncurrent liabilities
 
$
—

 
$
(28,290
)
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
Derivative financial instruments 
 
6,667

 
—

 
Derivative financial instruments
 
—

 
—

Total Derivatives
 
 
 
$
38,695

 
$
3,108

 

 
$
—

 
$
(28,290
)

The following table provides information on the effects of derivative instruments on the Condensed Consolidated Statements of Operations and changes in AOCI and noncontrolling interest for the three months ended December 31, 2013 and 2012:
Three Months Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) Recognized in
AOCI  and Noncontrolling
Interest
 
Gain (Loss) Reclassified  from
AOCI and Noncontrolling
Interest into Income
 
Location of Gain  (Loss)
Reclassified from
AOCI and Noncontrolling
Interest into Income
 
 
2013
 
2012
 
2013
 
2012
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
$
34,242

 
$
(2,693
)
 
$
13,273

 
$
(17,224
)
 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss)
 
 
 
 
 
Location of Gain  (Loss)
Recognized in Income
 
 
Recognized in Income
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments:
 
2013
 
2012
 
 
 
 
 
 
Propane contracts
 
$
6,930

 
$
—

 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
The amounts of derivative gains or losses representing ineffectiveness were not material for the three months ended December 31, 2013 and 2012.

We are also a party to a number of contracts that have elements of a derivative instrument. These contracts include, among others, binding purchase orders and contracts which provide for the purchase and delivery of propane and service contracts that require the counterparty to provide commodity storage or transportation service to meet our normal sales commitments. Although many of these contracts have the requisite elements of a derivative instrument, these contracts qualify for normal purchase and normal sales exception accounting under GAAP because they provide for the delivery of products or services in quantities that are expected to be used in the normal course of operating our business and the price in the contract is based on an underlying that is directly associated with the price of the product or service being purchased or sold.
Error in Method of Accounting For Certain Customer Credits (Notes)
Accounting Changes and Error Corrections [Text Block]


During the three months ended March 31, 2013, the Partnership identified an error in its accounting for certain customer credits. The Partnership determined that the recording of propane revenues did not appropriately consider the effects of certain customer credits which were recorded when issued in a subsequent period. As a result, the Partnership changed its accounting for customer credits to record an estimate of such credits at the time propane revenues are recorded. Such estimate considers the Partnership’s history of providing credits, propane revenue activity and other factors. During the three months ended March 31, 2013, the Partnership evaluated the impact of the error on prior periods and determined that the effect was not material to any prior period financial statement and recorded the cumulative effect of the error in accounting for customer credits as of January 1, 2013. If the Partnership had corrected the error in its accounting for customer credits and recorded the estimate of credits in all of the periods prior to January 1, 2013, the effect of the change on the three months ended December 31, 2012 would have decreased net income attributable to AmeriGas Partners, L.P. by approximately $2,745 and decreased accounts receivable by $7,038.
Significant Accounting Policies (Policies)
Allocation of Net Income Attributable to AmeriGas Partners 
Allocation of Net Income Attributable to AmeriGas Partners. Net income attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its incentive distribution rights (“IDRs”) under the Fourth Amended and Restated Agreement of Limited Partnership of AmeriGas Partners, as amended (“Partnership Agreement”).
Net Income Per Unit 
Net Income Per Unit. Income per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income per unit for master limited partnerships (“MLPs”) when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership).
 
The following table sets forth the numerators and denominators of the basic and diluted income per limited partner unit computations:
 
 
 
Three Months Ended
December 31,
 
 
2013
 
2012
Common Unitholders’ interest in net income attributable to AmeriGas Partners under the two-class method for MLPs
 
$
105,560

 
$
86,241

Weighted average Common Units outstanding—basic (thousands)
 
92,847

 
92,820

Potentially dilutive Common Units (thousands)
 
96

 
82

Weighted average Common Units outstanding—diluted (thousands)
 
92,943

 
92,902


Theoretical distributions of net income attributable to AmeriGas Partners, L.P. in accordance with the two-class method for the three months ended December 31, 2013 and 2012, resulted in an increased allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner in the computation of income per limited partner unit which had the effect of decreasing earnings per limited partner unit by $0.24 and $0.06, respectively.
Potentially dilutive Common Units included in the diluted limited partner units outstanding computation reflect the effects of restricted Common Unit awards granted under the General Partner’s incentive compensation plans.
Use of Estimates 
Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and costs. These estimates are based on management’s knowledge of current events, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may be different from these estimates and assumptions.
Significant Accounting Policies (Tables)
Income per limited partner unit
The following table sets forth the numerators and denominators of the basic and diluted income per limited partner unit computations:
 
 
 
Three Months Ended
December 31,
 
 
2013
 
2012
Common Unitholders’ interest in net income attributable to AmeriGas Partners under the two-class method for MLPs
 
$
105,560

 
$
86,241

Weighted average Common Units outstanding—basic (thousands)
 
92,847

 
92,820

Potentially dilutive Common Units (thousands)
 
96

 
82

Weighted average Common Units outstanding—diluted (thousands)
 
92,943

 
92,902

Goodwill and Intangible Assets (Tables)
Components of Intangible Assets
The Partnership’s goodwill and intangible assets comprise the following:
 
 
 
December 31,
2013
 
September 30,
2013
 
December 31,
2012
Goodwill (not subject to amortization)
 
$
1,934,435

 
$
1,933,929

 
$
1,914,827

Intangible assets:
 
 
 
 
 
 
Customer relationships and noncompete agreements
 
$
513,412

 
$
512,665

 
$
505,367

Trademarks and tradenames (not subject to amortization)
 
82,944

 
82,944

 
91,100

Gross carrying amount
 
596,356

 
595,609

 
596,467

Accumulated amortization
 
(108,911
)
 
(99,281
)
 
(70,314
)
Intangible assets, net
 
$
487,445

 
$
496,328

 
$
526,153

Fair Value Measurement (Tables)
Fair Value, by Balance Sheet Grouping [Table Text Block] 
 
 
 
 
 
Gross Amounts Not Offset in the Balance Sheet
 
 
 
Gross Amount Recognized
Gross Amount Offset in the Balance Sheet
Net Amounts Presented in the Balance Sheet
 
Financial Instruments
Cash Collateral
 
Net Amount
December 31, 2013:
 
 
 
 
 
 
 
 
Derivative assets
$
39,512

$
(817
)
$
38,695

 
$
—

$
—

 
$
38,695

Derivative liabilities
$
(817
)
$
817

$
—

 
$
—

$
—

 
$
—

 
 
 
 
 
 
 
 
 
September 30, 2013:
 
 
 
 
 
 
 
 
Derivative assets
$
19,621

$
(1,369
)
$
18,252

 
$
—

$
—

 
$
18,252

Derivative liabilities
$
(1,504
)
$
1,369

$
(135
)
 
$
—

$
—

 
$
(135
)
 
 
 
 
 
 
 
 
 
December 31, 2012:
 
 
 
 
 
 
 
 
Derivative assets
$
6,646

$
(3,538
)
$
3,108

 
$
—

$
—

 
$
3,108

Derivative liabilities
$
(31,828
)
$
3,538

$
(28,290
)
 
$
—

$
4,747

 
$
(23,543
)
 
 
 
 
 
 
 
 
 
Financial assets and financial liabilities at fair value on a recurring basis 
The following table presents our financial assets and financial liabilities that are measured at fair value on a recurring basis for each of the fair value hierarchy levels, including both current and noncurrent portions, as of December 31, 2013, September 30, 2013 and December 31, 2012:
 
 
 
Asset (Liability)
 
 
Quoted Prices
in Active
Markets for
Identical
Assets and
Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
December 31, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
38,695

 
$
—

 
$
38,695

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
—

 
$
—

 
$
—

September 30, 2013:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
18,252

 
$
—

 
$
18,252

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
(135
)
 
$
—

 
$
(135
)
December 31, 2012:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
3,108

 
$
—

 
$
3,108

Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
$
—

 
$
(28,290
)
 
$
—

 
$
(28,290
)
Disclosures About Derivative Instruments and Hedging Activities (Tables)
Components of Fair Value of Derivative Assets and Liabilities 
The following table provides information regarding the fair values and balance sheet locations of our derivative assets and liabilities existing as of December 31, 2013 and 2012:
 
 
 
Derivative Assets
 
Derivative (Liabilities)
 
 
Balance Sheet
Location
 
Fair Value

 
Balance Sheet
Location
 
Fair Value

 
 
 
2013
 
2012
 
 
2013
 
2012
Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
Derivative financial instruments and other assets
 
$
32,028

 
$
3,108

 
Derivative financial instruments and other noncurrent liabilities
 
$
—

 
$
(28,290
)
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
Derivative financial instruments 
 
6,667

 
—

 
Derivative financial instruments
 
—

 
—

Total Derivatives
 
 
 
$
38,695

 
$
3,108

 

 
$
—

 
$
(28,290
)
Components of Derivative Instruments Gain Loss In Statement of Operations 
The following table provides information on the effects of derivative instruments on the Condensed Consolidated Statements of Operations and changes in AOCI and noncontrolling interest for the three months ended December 31, 2013 and 2012:
Three Months Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) Recognized in
AOCI  and Noncontrolling
Interest
 
Gain (Loss) Reclassified  from
AOCI and Noncontrolling
Interest into Income
 
Location of Gain  (Loss)
Reclassified from
AOCI and Noncontrolling
Interest into Income
 
 
2013
 
2012
 
2013
 
2012
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
Propane contracts
 
$
34,242

 
$
(2,693
)
 
$
13,273

 
$
(17,224
)
 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss)
 
 
 
 
 
Location of Gain  (Loss)
Recognized in Income
 
 
Recognized in Income
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments:
 
2013
 
2012
 
 
 
 
 
 
Propane contracts
 
$
6,930

 
$
—

 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
Nature of Operations (Details Textual)
3 Months Ended
Dec. 31, 2013
States
Employee
Nature of Operations (Textual) [Abstract]
 
Common Units held by ETP
22,067,362 
Nature of Operations (Additional Textual) [Abstract]
 
Number of states in which the company has market share (in states)
50 
Common units held by the general partner and its wholly owned subsidiary Petrolane Incorporated
23,756,882 
Common Units held by public
69,073,909 
Limited partner interest held by AmeriGas Partners in AmeriGas OLP (as a percent)
98.99% 
Units Issued in Secondary Offering
9,200,000 
Employees of the AmeriGas Partners and the Operating Partnerships (in employees)
0 
AmeriGas Propane Inc Partnership Interest In AmeriGas Partners [Member]
 
Nature of Operations (Textual) [Abstract]
 
General Partners Ownership Interest (as a percent)
1.00% 
AmeriGas Propane Inc Partnership Interest In AmeriGas OLP [Member]
 
Nature of Operations (Textual) [Abstract]
 
General Partners Ownership Interest (as a percent)
1.01% 
Significant Accounting Policies (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Income per limited partner unit
 
 
Common Unitholders' interest in net income attributable to AmeriGas Partners under the two-class method for MLPs (in dollars)
$ 105,560 
$ 86,241 
Weighted average Common units outstanding - basic (thousands)
92,847 
92,820 
Potentially dilutive Common Units (thousands)
96 
82 
Weighted average Common Units outstanding - diluted (thousands)
92,943 
92,902 
Significant Accounting Policies (Details Textual)
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Significant Accounting Policies (Textual) [Abstract]
 
 
Theoretical distributions of net income on earnings (in dollars per unit)
$ 0.24 
$ 0.06 
AmeriGas Propane Inc Partnership Interest in AmeriGas OLP [Member]
 
 
General Partner Interest [Line Items]
 
 
General Partners Ownership Interest (as a percent)
1.01% 
 
AmeriGas Propane Inc Partnership Interest In AmeriGas Partners [Member]
 
 
General Partner Interest [Line Items]
 
 
General Partner Interest Percentage
1.00% 
 
General Partners Ownership Interest (as a percent)
1.00% 
 
AmeriGas Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC [Member]
 
 
Significant Accounting Policies (Textual) [Abstract]
 
 
Ownership Percentage of Finance Subsidiaries
100.00% 
 
Amerigas Partners Senior Notes Due 2020 [Member]
 
 
Significant Accounting Policies (Textual) [Abstract]
 
 
Debt Instrument, Interest Rate, Stated Percentage
6.75% 
 
Amerigas Partners Senior Notes Due 2022 [Member]
 
 
Significant Accounting Policies (Textual) [Abstract]
 
 
Debt Instrument, Interest Rate, Stated Percentage
7.00% 
 
Goodwill And Intangible Assets (Details Textual) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Sep. 30, 2013
Finite-Lived Intangible Assets And Indefinite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill (not subject to amortization)
$ 1,934,435 
$ 1,914,827 
$ 1,933,929 
Customer relationships and noncompete agreements
513,412 
505,367 
512,665 
Trademarks and tradenames (not subject to amortization)
82,944 
91,100 
82,944 
Gross carrying amount
596,356 
596,467 
595,609 
Accumulated amortization
(108,911)
(70,314)
(99,281)
Intangible assets, net
487,445 
526,153 
496,328 
Intangible Assets (Textual) [Abstract]
 
 
 
Amortization of Intangible Assets
9,630 
9,844 
 
Remainder of Fiscal 2013
29,284 
 
 
2014
37,309 
 
 
2015
36,018 
 
 
2016
33,853 
 
 
2017
$ 32,493 
 
 
Related Party Transactions (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
General Partner Expense [Member]
 
 
Related Party Transactions (Textual)
 
 
Costs and Expenses, Related Party
$ 144,536 
$ 139,797 
UGI Corp Expense Reimbursement [Member]
 
 
Related Party Transactions (Textual)
 
 
Costs and Expenses, Related Party
3,494 
3,892 
UGI Corp Office Insurance Reimbursement [Member]
 
 
Related Party Transactions (Textual)
 
 
Costs and Expenses, Related Party
1,131 
1,564 
Energy Services Propane Purchases [Member]
 
 
Related Party Transactions (Textual)
 
 
Costs and Expenses, Related Party
$ 75 
$ 0 
Commitments and Contingencies (Details)
3 Months Ended
Dec. 31, 2013
lb
CA cylinder investigation [Member]
 
Loss Contingencies [Line Items]
 
Amount of propane in cylinders before reduction (in pounds)
17 
Amount of propane in cylinders after reduction (in pounds)
15 
FTC Investigation [Member]
 
Loss Contingencies [Line Items]
 
Amount of propane in cylinders before reduction (in pounds)
17 
Amount of propane in cylinders after reduction (in pounds)
15 
Fair Value Measurement (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Assets:
 
 
 
Derivative Assets
$ 38,695 
$ 18,252 
$ 3,108 
Commodity Contract [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
Assets:
 
 
 
Derivative Assets
38,695 
18,252 
3,108 
Liabilities:
 
 
 
Derivative liabilities
   
(135)
(28,290)
Commodity Contract [Member] |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
Assets:
 
 
 
Derivative Assets
   
   
   
Liabilities:
 
 
 
Derivative liabilities
   
   
   
Commodity Contract [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
Assets:
 
 
 
Derivative Assets
38,695 
18,252 
3,108 
Liabilities:
 
 
 
Derivative liabilities
   
(135)
(28,290)
Commodity Contract [Member] |
Unobservable Inputs (Level 3) [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
 
Assets:
 
 
 
Derivative Assets
   
   
   
Liabilities:
 
 
 
Derivative liabilities
   
   
   
Fair Value Measurement (Details Textual) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Derivative Asset, Fair Value, Gross Asset
$ 39,512 
$ 19,621 
$ 6,646 
 
Derivative Asset, Offset Amount
(817)
(1,369)
(3,538)
 
Derivative Assets
38,695 
18,252 
3,108 
 
Derivative Asset, Fair Value, Gross Liability
0 
0 
0 
 
Derivative, Collateral, Right to Reclaim Cash
0 
0 
0 
 
Derivative Assets Net Presentation
38,695 
18,252 
3,108 
 
Derivative Liability, Fair Value, Gross Liability
(817)
(1,504)
(31,828)
 
Derivative Liability, Offset Amount
817 
1,369 
3,538 
 
Derivative Liabilities
0 
(135)
(28,290)
 
Derivative Liability, Fair Value, Gross Asset
0 
0 
0 
 
Derivative, Collateral, Obligation to Return Cash
0 
0 
4,747 
 
Derivative Liability Net Presentation
0 
(135)
(23,543)
 
Fair Value Measurement (Textual) [Abstract]
 
 
 
 
Carrying amount of long-term debt
2,298,943 
 
 
2,323,051 
Estimated fair value of long-term debt
$ 2,486,570 
 
 
$ 2,541,466 
Disclosures About Derivative Instruments and Hedging Activities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Sep. 30, 2013
Dec. 31, 2012
Derivative Liability, Fair Value
 
 
 
Derivative Liability, Fair Value
$ 0 
$ (135)
$ (28,290)
Derivative Assets
38,695 
18,252 
3,108 
Designated as Hedging Instrument [Member] |
Propane contracts [Member] |
Derivative Financial Instruments and Other Assets [Member]
 
 
 
Derivative Liability, Fair Value
 
 
 
Derivative Assets
32,028 
 
3,108 
Designated as Hedging Instrument [Member] |
Propane contracts [Member] |
Derivative Financial Instruments and Other Non Current Liabilities [Member]
 
 
 
Derivative Liability, Fair Value
 
 
 
Derivative Liability, Fair Value
0 
 
(28,290)
Not Designated as Hedging Instrument [Member] |
Propane contracts [Member] |
Derivative financial instruments [Member]
 
 
 
Derivative Liability, Fair Value
 
 
 
Derivative Liability, Fair Value
0 
 
0 
Derivative Assets
$ 6,667 
 
$ 0 
Disclosures About Derivative Instruments and Hedging Activities (Details 1) (Propane contracts [Member], Cost of sales [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Designated as Hedging Instrument [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain (Loss) Recognized in AOCI and Noncontrolling Interest
$ 34,242 
$ (2,693)
Gain (Loss) Reclassified from AOCI and Noncontrolling Interest into Income
13,273 
(17,224)
Not Designated as Hedging Instrument [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
$ 6,930 
$ 0 
Disclosures About Derivative Instruments and Hedging Activities (Details Textual) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2013
gal
Dec. 31, 2012
gal
Disclosures About Derivative Instruments, Hedging Activities and Financial Instruments (Textual) [Abstract]
 
 
Maximum Length of Time Hedged in Price Risk Cash Flow Hedge (in months)
21 months 
 
Weighted Average Length of Time Hedge in Price Risk Cash Flow Hedge (in months)
6 months 
 
Derivative, Nonmonetary Notional Amount
167,100,000 
200,300,000 
Net losses associated with commodity price risk hedges expected to be reclassified into earnings during the next twelve months
$ 34,762 
 
Error in Method of Accounting For Certain Customer Credits (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Dec. 31, 2012
Impact on revenues and accounts receivable [Member]
 
Error Correction [Line Items]
 
Quantifying Misstatement in Current Year Financial Statements, Amount
$ 7,038 
Impact on net income attributable to AmeriGas Partners, L.P. [Member]
 
Error Correction [Line Items]
 
Quantifying Misstatement in Current Year Financial Statements, Amount
$ 2,745