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 UGI France (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.”

AmeriGas Propane derives its revenues principally from the sale of propane and related equipment and supplies to retail customers in all 50 states. UGI France derives its revenues principally from the distribution of LPG to retail customers in France and, to a lesser extent, the sale of LPG to retail customers in Belgium, the Netherlands and Luxembourg, and the marketing of natural gas in France and Belgium. Flaga & Other revenues are derived principally from the distribution of LPG to customers in northern, central and eastern Europe and the United Kingdom. Gas Utility’s revenues are derived principally from the sale and distribution of natural gas to customers in eastern, northeastern and central Pennsylvania. Energy Services revenues are derived from the sale of natural gas and, to a lesser extent, electricity, LPG and fuel oil as well as revenues and fees from storage, pipeline transportation, natural gas production and other energy services provided to customers located primarily in the Mid-Atlantic region of the United States. Electric Generation revenues are derived principally from the sale of electricity through PJM, a regional electricity transmission organization in the eastern U.S.

The accounting policies of our reportable segments are the same as those described in Note 2. We evaluate AmeriGas Propane’s performance principally based upon the Partnership’s earnings before interest expense, income taxes, depreciation and amortization as adjusted for net gains and losses on commodity derivative instruments not associated with current-period transactions (“Partnership Adjusted EBITDA”). Although we use Partnership Adjusted 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 Adjusted 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 as adjusted for gains and losses on commodity derivative instruments not associated with current-period transactions. Net gains and losses on commodity derivative instruments not associated with current-period transactions are reflected in Corporate & Other because the Company’s chief operating decision maker does not consider such items when evaluating the financial performance of our reportable segments.

No single customer represents more than ten percent of our consolidated revenues. In addition, all of our reportable segments’ revenues, other than those of UGI International, are derived from sources within the United States, and all of our reportable segments’ long-lived assets, other than those of UGI International, are located in the United States.



														Midstream & Marketing					UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		UGI France				Flaga & Other			Corporate & Other (b)
2015
Revenues	$	6,691.1		$	(232.6	)	(c)	$	2,885.3		$	933.1		$	1,041.8		$	75.9	$	1,122.2			$	686.3		$	179.1
Cost of sales	$	3,736.5		$	(228.8	)	(c)	$	1,340.0		$	448.6		$	800.9		$	32.2	$	628.0			$	492.0		$	223.6
Operating income (loss)	$	834.9		$	(0.9	)		$	427.6		$	226.5		$	171.8		$	13.0	$	75.9			$	36.9		$	(115.9	)
Loss from equity investees	(1.2		)	—				—			—			—			—		(1.2		)		—			—
Interest expense	(241.9		)	—				(162.8		)	(39.1		)	(2.1		)	—		(31.6		)	(d)	(3.6		)	(2.7		)
Income (loss) before income taxes	$	591.8		$	(0.9	)		$	264.8		$	187.4		$	169.7		$	13.0	$	43.1			$	33.3		$	(118.6	)
Net income (loss) attributable to UGI	$	281.0		$	(0.6	)		$	61.0		$	115.8		$	99.3		$	9.6	$	27.5			$	25.2		$	(56.8	)
Depreciation and amortization	$	374.1		$	—			$	194.9		$	59.0		$	14.6		$	12.5	$	63.7			$	23.2		$	6.2
Noncontrolling interests’ net income (loss)	$	133.0		$	—			$	167.9		$	—		$	—		$	—	$	—			$	(0.1	)	$	(34.8	)
Partnership Adjusted EBITDA (a)								$	619.2



														Midstream & Marketing					UGI International
	Total			Elim- inations				AmeriGas Propane			Gas Utility			Energy Services			Electric Generation		UGI France			Flaga & Other			Corporate & Other (b)
Total assets	$	10,546.6		$	(90.4	)		$	4,150.0		$	2,362.4		$	664.3		$	282.0	$	2,340.4		$	529.1		$	308.8
Short-term borrowings	$	189.9		$	—			$	68.1		$	71.7		$	49.5		$	—	$	0.1		$	0.5		$	—
Capital expenditures	$	475.4		$	—			$	102.0		$	189.7		$	71.5		$	16.7	$	65.0		$	22.5		$	8.0
Investments in equity investees	$	16.2		$	—			$	—		$	—		$	6.4		$	—	$	6.0		$	3.8		$	—
Goodwill	$	2,953.4		$	—			$	1,956.0		$	182.1		$	5.6		$	—	$	721.4		$	82.3		$	6.0

2014
Revenues	$	8,277.3		$	(321.3	)	(c)	$	3,712.9		$	977.3		$	1,305.5		$	85.1	$	1,295.5		$	1,026.9		$	195.4
Cost of sales	$	5,175.7		$	(317.7	)	(c)	$	2,107.1		$	496.8		$	1,058.8		$	39.6	$	848.1		$	809.9		$	133.1
Operating income (loss)	$	1,005.6		$	0.2			$	472.0		$	236.2		$	180.5		$	18.1	$	79.1		$	38.4		$	(18.9	)
Loss from equity investees	(0.1		)	—				—			—			—			—		(0.1		)	—			—
Interest expense	(237.7		)	—				(165.6		)	(36.6		)	(2.9		)	—		(25.1		)	(4.9		)	(2.6		)
Income (loss) before income taxes	767.8			0.2				306.4			199.6			177.6			18.1		53.9			33.5			(21.5		)
Net income (loss) attributable to UGI	$	337.2		$	—			$	63.0		$	118.8		$	105.2		$	12.6	$	20.6		$	27.7		$	(10.7	)
Depreciation and amortization	$	362.9		$	—			$	197.2		$	54.8		$	12.3		$	10.7	$	54.5		$	27.1		$	6.3
Noncontrolling interests’ net income (loss)	$	195.4		$	—			$	195.8		$	—		$	—		$	—	$	(0.4	)	$	—		$	—
Partnership Adjusted EBITDA (a)								$	664.8
Total assets	$	10,093.0		$	(86.5	)		$	4,377.0		$	2,214.1		$	569.0		$	277.7	$	1,659.1		$	643.6		$	439.0
Short-term borrowings	$	210.8		$	—			$	109.0		$	86.3		$	7.5		$	—	$	—		$	8.0		$	—
Capital expenditures	$	436.4		$	—			$	113.9		$	156.4		$	67.8		$	15.6	$	50.2		$	23.0		$	9.5
Investments in equity investees	$	0.6		$	—			$	—		$	—		$	—		$	—	$	—		$	0.6		$	—
Goodwill	$	2,833.4		$	—			$	1,945.1		$	182.1		$	5.6		$	—	$	601.2		$	92.4		$	7.0

2013
Revenues	$	7,194.7		$	(223.8	)	(c)	$	3,168.8		$	839.0		$	969.4		$	71.4	$	1,322.6		$	856.6		$	190.7
Cost of sales	$	4,324.4		$	(217.5	)	(c)	$	1,657.2		$	407.2		$	836.9		$	39.9	$	845.0		$	653.4		$	102.3
Operating income	$	831.1		$	(1.1	)		$	394.4		$	196.5		$	82.5		$	7.5	$	111.4		$	35.6		$	4.3
Loss from equity investees	(0.4		)	—				—			—			—			—		(0.4		)	—			—
Interest expense	(240.3		)	—				(166.6		)	(37.4		)	(3.2		)	—		(25.3		)	(5.1		)	(2.7		)
Income before income taxes	$	590.4		$	(1.1	)		$	227.8		$	159.1		$	79.3		$	7.5	$	85.7		$	30.5		$	1.6
Net income attributable to UGI	$	278.1		$	(0.6	)		$	47.5		$	94.3		$	46.3		$	6.2	$	57.2		$	25.5		$	1.7
Depreciation and amortization	$	363.1		$	—			$	205.9		$	51.7		$	7.6		$	10.0	$	57.6		$	24.1		$	6.2
Noncontrolling interests’ net income (loss)	$	149.5		$	—			$	149.6		$	—		$	—		$	—	$	(0.2	)	$	0.1		$	—
Partnership Adjusted EBITDA (a)								$	596.5
Total assets	$	10,008.8		$	(100.3	)		$	4,429.3		$	2,069.0		$	501.2		$	269.7	$	1,784.4		$	667.1		$	388.4
Short-term borrowings	$	227.9		$	—			$	116.9		$	17.5		$	87.0		$	—	$	—		$	6.5		$	—
Capital expenditures	$	488.0		$	(1.1	)		$	111.1		$	144.4		$	133.8		$	22.6	$	53.4		$	17.4		$	6.4
Investments in equity investees	$	0.3		$	—			$	—		$	—		$	—		$	—	$	—		$	0.3		$	—
Goodwill	$	2,873.7		$	—			$	1,941.0		$	182.1		$	2.8		$	—	$	643.7		$	97.1		$	7.0


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



	2015			2014			2013
Partnership Adjusted EBITDA	$	619.2		$	664.8		$	596.5
Depreciation and amortization	(194.9		)	(197.2		)	(205.9		)
Noncontrolling interests (i)	3.3			4.4			3.8
Operating income	$	427.6		$	472.0		$	394.4


(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 expenses of UGI’s captive general liability insurance company, and (4) 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 $(119.1), $(18.0) and $7.4 in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Corporate & Other assets principally comprise cash, short-term investments, the assets of Electric Utility and HVAC. Through March 2014, Corporate & Other also had an intercompany loan. The intercompany loan interest is removed in the segment presentation.


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


(d)	Includes pre-tax loss of $10.3 associated with an early extinguishment of debt (see Note 6).