Segment Information

Our operations comprise six reportable segments generally based upon products sold, geographic location and regulatory environment. Our reportable segments comprise: (1) AmeriGas Propane; (2) an international LPG segment comprising Antargaz; (3) an international LPG segment principally comprising Flaga and AvantiGas; (4) Gas Utility; (5) Energy Services; and (6) Electric Generation. We refer to both international segments together as “UGI International” and Energy Services and Electric Generation together as “Midstream & Marketing.”

The accounting policies of our reportable segments are the same as those described in Note 2, “Significant Accounting Policies” in the Company’s 2013 Annual Financial Statements and Notes. We evaluate AmeriGas Propane’s performance principally based upon the Partnership’s earnings before interest expense, income taxes, depreciation and amortization (“Partnership EBITDA”). Although we use Partnership EBITDA to evaluate AmeriGas Propane’s profitability, it should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations) and is not a measure of performance or financial condition under GAAP. Our definition of Partnership EBITDA may be different from that used by other companies. We evaluate the performance of our other reportable segments principally based upon their income before income taxes.

Three Months Ended June 30, 2014:



														Midstream & Marketing					UGI International
	Total			Eliminations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		Antargaz			Flaga & Other			Corporate & Other (b)
Revenues	$	1,486.7		$	(50.8	)	(c)	$	613.2		$	128.3		$	248.3		$	20.5	$	249.2		$	232.3		$	45.7
Cost of sales	$	926.5		$	(49.6	)	(c)	$	340.8		$	49.2		$	209.2		$	10.5	$	164.1		$	180.7		$	21.6
Segment profit:
Operating income (loss)	$	62.7		$	(0.1	)		$	7.2		$	17.1		$	23.5		$	2.6	$	(1.4	)	$	8.2		$	5.6
Loss from equity investees	(0.1		)	—				—			—			—			—		(0.1		)	—			—
Interest expense	(60.1		)	—				(41.4		)	(9.8		)	(0.5		)	—		(6.3		)	(1.4		)	(0.7		)
Income (loss) before income taxes	$	2.5		$	(0.1	)		$	(34.2	)	$	7.3		$	23.0		$	2.6	$	(7.8	)	$	6.8		$	4.9
Partnership EBITDA (a)	$	52.2						$	55.0																$	(2.8	)
Noncontrolling interests’ net (loss)	$	(33.3	)	$	—			$	(31.0	)	$	—		$	—		$	—	$	(0.3	)	$	—		$	(2.0	)
Depreciation and amortization	$	90.0		$	—			$	47.8		$	13.7		$	3.3		$	2.7	$	14.6		$	6.2		$	1.7
Capital expenditures	$	102.4		$	1.2			$	29.3		$	35.9		$	11.2		$	1.9	$	15.6		$	4.8		$	2.5
Total assets (at period end)	$	10,077.7		$	(112.8	)		$	4,345.8		$	2,147.4		$	542.7		$	279.1	$	1,784.2		$	650.6		$	440.7
Bank loans (at period end)	$	96.5		$	—			$	92.5		$	—		$	—		$	—	$	—		$	4.0		$	—
Goodwill (at period end)	$	2,885.1		$	—			$	1,939.0		$	182.1		$	5.6		$	—	$	651.7		$	99.7		$	7.0

Three Months Ended June 30, 2013:



														Midstream & Marketing					UGI International
	Total			Eliminations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		Antargaz			Flaga & Other			Corporate & Other (b)
Revenues	$	1,374.3		$	(61.5	)	(c)	$	581.7		$	126.7		$	233.0		$	16.3	$	249.3		$	182.5		$	46.3
Cost of sales	$	836.8		$	(60.1	)	(c)	$	305.7		$	52.4		$	214.9		$	8.5	$	148.7		$	134.8		$	31.9
Segment profit:
Operating income (loss)	$	41.5		$	(0.2	)		$	3.8		$	14.2		$	6.4		$	0.6	$	14.6		$	6.5		$	(4.4	)
Income from equity investees	—			—				—			—			—			—		—			—			—
Interest expense	(59.2		)	—				(41.2		)	(9.2		)	(0.6		)	—		(6.2		)	(1.2		)	(0.8		)
(Loss) income before income taxes	$	(17.7	)	$	(0.2	)		$	(37.4	)	$	5.0		$	5.8		$	0.6	$	8.4		$	5.3		$	(5.2	)
Partnership EBITDA (a)								$	56.3
Noncontrolling interests’ net (loss) income	$	(31.9	)	$	—			$	(31.7	)	$	—		$	—		$	—	$	(0.3	)	$	0.1		$	—
Depreciation and amortization	$	91.8		$	(0.1	)		$	52.4		$	13.1		$	2.1		$	2.6	$	14.0		$	6.1		$	1.6
Capital expenditures	$	107.6		$	(0.1	)		$	26.3		$	37.3		$	22.0		$	4.4	$	11.7		$	4.0		$	2.0
Total assets (at period end)	$	9,806.8		$	(95.9	)		$	4,386.8		$	2,143.7		$	437.0		$	267.2	$	1,771.7		$	543.1		$	353.2
Bank loans (at period end)	$	135.9		$	—			$	80.0		$	—		$	45.5		$	—	$	—		$	10.4		$	—
Goodwill (at period end)	$	2,834.0		$	—			$	1,929.2		$	182.1		$	2.8		$	—	$	619.2		$	93.7		$	7.0


(a)	The following table provides a reconciliation of Partnership EBITDA to AmeriGas Propane operating income:



Three Months Ended June 30,	2014			2013
Partnership EBITDA	$	55.0		$	56.3
Depreciation and amortization	(47.8		)	(52.4		)
Noncontrolling interests (i)	—			(0.1		)
Operating income	$	7.2		$	3.8


(i)	Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.

(b)

Corporate & Other results principally comprise (1) Electric Utility, (2) Enterprises’ heating, ventilation, air-conditioning, refrigeration and electrical contracting businesses (“HVAC”), (3) net gains and losses on Midstream & Marketing’s commodity derivative instruments, and net gains and losses on AmeriGas Propane’s commodity derivative instruments entered into beginning April 1, 2014, that are not associated with current period transactions, (4) net expenses of UGI’s captive general liability insurance company, and (5) UGI Corporation’s unallocated corporate and general expenses and interest income. Corporate & Other assets principally comprise cash, short-term investments, the assets of Electric Utility and HVAC, and an intercompany loan. The intercompany loan and associated interest is removed in the segment presentation.


(c)	Principally represents the elimination of intersegment transactions among Midstream & Marketing, Gas Utility and AmeriGas Propane.

Nine Months Ended June 30, 2014:



														Midstream & Marketing					UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		Antargaz			Flaga & Other			Corporate & Other (b)
Revenues	$	6,965.9		$	(281.0	)	(c)	$	3,152.7		$	880.0		$	1,109.9		$	66.4	$	1,086.5		$	802.8		$	148.6
Cost of sales	$	4,357.7		$	(278.0	)	(c)	$	1,809.0		$	463.5		$	894.2		$	30.5	$	713.3		$	635.1		$	90.1
Segment profit:
Operating income (loss)	$	1,015.0		$	—			$	471.7		$	233.7		$	166.8		$	16.9	$	94.7		$	32.8		$	(1.6	)
Loss from equity investees	(0.1		)	—				—			—			—			—		(0.1		)	—			—
Interest expense	(178.9		)	—				(125.0		)	(26.6		)	(2.5		)	—		(19.1		)	(3.8		)	(1.9		)
Income (loss) before income taxes	$	836.0		$	—			$	346.7		$	207.1		$	164.3		$	16.9	$	75.5		$	29.0		$	(3.5	)
Partnership EBITDA (a)	$	613.7						$	616.5																$	(2.8	)
Noncontrolling interests’ net income (loss)	$	235.6		$	—			$	237.6		$	—		$	—		$	—	$	—		$	—		$	(2.0	)
Depreciation and amortization	$	271.7		$	(0.1	)		$	149.3		$	40.7		$	9.1		$	8.0	$	39.9		$	20.0		$	4.8
Capital expenditures	$	290.5		$	—			$	80.3		$	98.8		$	41.3		$	13.0	$	36.7		$	13.6		$	6.8
Total assets (at period end)	$	10,077.7		$	(112.8	)		$	4,345.8		$	2,147.4		$	542.7		$	279.1	$	1,784.2		$	650.6		$	440.7
Bank loans (at period end)	$	96.5		$	—			$	92.5		$	—		$	—		$	—	$	—		$	4.0		$	—
Goodwill (at period end)	$	2,885.1		$	—			$	1,939.0		$	182.1		$	5.6		$	—	$	651.7		$	99.7		$	7.0

Nine Months Ended June 30, 2013:



														Midstream & Marketing					UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		Antargaz			Flaga & Other			Corporate & Other (b)
Revenues	$	5,935.7		$	(181.1	)	(c)	$	2,636.9		$	743.6		$	764.8		$	48.7	$	1,121.2		$	659.0		$	142.6
Cost of sales	$	3,539.0		$	(176.2	)	(c)	$	1,367.4		$	372.7		$	650.5		$	29.0	$	714.4		$	507.1		$	74.1
Segment profit:
Operating income	$	843.4		$	(1.1	)		$	407.5		$	189.7		$	76.5		$	1.4	$	129.9		$	30.6		$	8.9
Income from equity investees	0.1			—				—			—			—			—		0.1			—			—
Interest expense	(180.8		)	—				(125.4		)	(28.1		)	(2.4		)	—		(19.0		)	(3.8		)	(2.1		)
Income before income taxes	$	662.7		$	(1.1	)		$	282.1		$	161.6		$	74.1		$	1.4	$	111.0		$	26.8		$	6.8
Partnership EBITDA (a)								$	557.1
Noncontrolling interests’ net income	$	194.4		$	—			$	194.2		$	—		$	—		$	—	$	0.1		$	0.1		$	—
Depreciation and amortization	$	269.2		$	(0.1	)		$	153.4		$	38.4		$	5.6		$	7.5	$	42.3		$	17.4		$	4.7
Capital expenditures	$	292.5		$	(1.1	)		$	80.7		$	90.2		$	54.8		$	15.4	$	37.1		$	10.3		$	5.1
Total assets (at period end)	$	9,806.8		$	(95.9	)		$	4,386.8		$	2,143.7		$	437.0		$	267.2	$	1,771.7		$	543.1		$	353.2
Bank loans (at period end)	$	135.9		$	—			$	80.0		$	—		$	45.5		$	—	$	—		$	10.4		$	—
Goodwill (at period end)	$	2,834.0		$	—			$	1,929.2		$	182.1		$	2.8		$	—	$	619.2		$	93.7		$	7.0


(a)	The following table provides a reconciliation of Partnership EBITDA to AmeriGas Propane operating income:



Nine Months Ended June 30,	2014			2013
Partnership EBITDA	$	616.5		$	557.1
Depreciation and amortization	(149.3		)	(153.4		)
Noncontrolling interests (i)	4.5			3.8
Operating income	$	471.7		$	407.5


(i)	Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.

(b)


(c)	Principally represents the elimination of intersegment transactions among Midstream & Marketing, Gas Utility and AmeriGas Propane.