Note 14 — Segment Information

Our operations comprise six reportable segments generally based upon products sold, geographic location and regulatory environment. As more fully described below, effective October 1, 2015, the composition of our UGI Utilities (formerly Gas Utility) and Energy Services reportable segments changed to include certain operating segments previously included in Corporate & Other. 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) UGI Utilities; (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.”

As a result of changes in the composition of information reported to our chief operating decision maker (“CODM”) associated with our regulated utility operations, effective October 1, 2015, we began including our Electric Utility operating segment with our Gas Utility reportable segment now referred to as “UGI Utilities.” Also, as a result of changes in segment management and reporting for HVAC, effective October 1, 2015, we began including HVAC operating segment within our Energy Services reportable segment. Previously, these two business units, neither of which met the quantitative threshold for presentation as a reportable segment under GAAP, were included within “Corporate & Other” in our segment information. In accordance with GAAP, prior-period amounts for these reportable segments have been restated to reflect these changes.

The accounting policies of our reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s 2015 Annual Report. 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 CODM does not consider such items when evaluating the financial performance of our reportable segments.



														Midstream & Marketing					UGI International
Three Months Ended March 31, 2016	Total			Elim- inations				AmeriGas Propane			UGI Utilities			Energy Services			Electric Generation		UGI France			Flaga & Other			Corporate & Other (b)
Revenues	$	1,972.1		$	(59.2	)	(c)	$	827.5		$	322.0		$	285.7		$	15.8	$	446.7		$	132.0		$	1.6
Cost of sales	$	776.9		$	(58.5	)	(c)	$	298.2		$	137.5		$	186.1		$	6.3	$	197.2		$	73.8		$	(63.7	)
Segment profit:
Operating income	$	615.4		$	—			$	250.4		$	114.5		$	76.1		$	1.7	$	94.6		$	16.9		$	61.2
Interest expense	(57.3		)	—				(40.8		)	(9.3		)	(0.5		)	—		(5.6		)	(0.9		)	(0.2		)
Income before income taxes	$	558.1		$	—			$	209.6		$	105.2		$	75.6		$	1.7	$	89.0		$	16.0		$	61.0
Partnership Adjusted EBITDA (a)								$	295.4
Noncontrolling interests’ net income	$	174.8		$	—			$	146.0		$	—		$	—		$	—	$	0.1		$	—		$	28.7
Depreciation and amortization	$	100.7		$	(0.1	)		$	47.4		$	17.0		$	4.3		$	3.4	$	23.3		$	5.0		$	0.4
Capital expenditures (including the effects of accruals)	$	114.5		$	—			$	27.8		$	48.1		$	15.2		$	1.1	$	17.3		$	5.0		$	—



														Midstream & Marketing					UGI International
Three Months Ended March 31, 2015 (d)	Total			Elim- inations				AmeriGas Propane			UGI Utilities			Energy Services			Electric Generation		UGI France			Flaga & Other			Corporate & Other (b)
Revenues	$	2,455.6		$	(114.7	)	(c)	$	1,100.3		$	500.6		$	424.1		$	24.8	$	347.2		$	172.9		$	0.4
Cost of sales	$	1,205.4		$	(114.0	)	(c)	$	505.2		$	278.3		$	305.5		$	9.4	$	200.3		$	123.3		$	(102.6	)
Segment profit:
Operating income	$	702.1		$	0.1			$	296.9		$	142.7		$	91.1		$	8.0	$	53.2		$	11.5		$	98.6
Loss from equity investees	(0.1		)	—				—			—			—			—		(0.1		)	—			—
Interest expense	(58.2		)	—				(41.1		)	(10.7		)	(0.5		)	—		(4.9		)	(0.9		)	(0.1		)
Income before income taxes	$	643.8		$	0.1			$	255.8		$	132.0		$	90.6		$	8.0	$	48.2		$	10.6		$	98.5
Partnership Adjusted EBITDA (a)								$	342.1
Noncontrolling interests’ net income (e)	$	235.7		$	—			$	180.9		$	—		$	—		$	—	$	0.3		$	—		$	54.5
Depreciation and amortization	$	88.0		$	(0.1	)		$	48.1		$	15.7		$	3.9		$	3.3	$	11.8		$	5.2		$	0.1
Capital expenditures (including the effects of accruals)	$	91.4		$	—			$	26.8		$	41.3		$	6.0		$	2.3	$	9.6		$	5.4		$	—



														Midstream & Marketing					UGI International
Six Months Ended March 31, 2016	Total			Elim- inations				AmeriGas Propane			UGI Utilities			Energy Services			Electric Generation		UGI France			Flaga & Other			Corporate & Other (b)
Revenues	$	3,578.7		$	(104.6	)	(c)	$	1,471.6		$	520.0		$	500.5		$	30.6	$	855.4		$	301.5		$	3.7
Cost of sales	$	1,510.9		$	(103.0	)	(c)	$	541.4		$	212.9		$	337.3		$	12.3	$	389.8		$	184.0		$	(63.8	)
Segment profit:
Operating income	$	920.9		$	0.1			$	380.0		$	162.8		$	117.4		$	3.3	$	163.3		$	33.3		$	60.7
Loss from equity investees	(0.1		)	—				—			—			—			—		(0.1		)	—			—
Interest expense	(115.2		)	—				(81.8		)	(18.8		)	(1.3		)	—		(11.2		)	(1.8		)	(0.3		)
Income before income taxes	$	805.6		$	0.1			$	298.2		$	144.0		$	116.1		$	3.3	$	152.0		$	31.5		$	60.4
Partnership Adjusted EBITDA (a)								$	473.1
Noncontrolling interests’ net income	$	228.1		$	—			$	203.3		$	—		$	—		$	—	$	0.2		$	—		$	24.6
Depreciation and amortization	$	201.3		$	(0.1	)		$	96.6		$	33.7		$	8.4		$	6.7	$	44.9		$	10.6		$	0.5
Capital expenditures (including the effects of accruals)	$	247.4		$	—			$	55.8		$	109.6		$	37.1		$	1.6	$	33.6		$	9.7		$	—
As of March 31, 2016
Total assets	$	10,955.4		$	(87.5	)		$	4,201.1		$	2,641.6		$	723.0		$	277.2	$	2,522.4		$	551.7		$	125.9
Short-term borrowings	$	227.1		$	—			$	65.3		$	155.0		$	4.0		$	—	$	1.6		$	1.2		$	—
Goodwill	$	2,998.6		$	—			$	1,971.3		$	182.1		$	11.5		$	—	$	734.5		$	99.2		$	—



														Midstream & Marketing					UGI International
Six Months Ended March 31, 2015 (d)	Total			Elim- inations				AmeriGas Propane			UGI Utilities			Energy Services			Electric Generation		UGI France			Flaga & Other			Corporate & Other (b)
Revenues	$	4,460.2		$	(182.4	)	(c)	$	1,989.1		$	787.9		$	738.2		$	41.3	$	685.1		$	397.5		$	3.5
Cost of sales	$	2,610.0		$	(181.0	)	(c)	$	967.6		$	421.4		$	550.1		$	17.4	$	409.6		$	295.9		$	129.0
Segment profit:
Operating income (loss)	$	785.4		$	0.1			$	436.6		$	218.3		$	137.4		$	7.3	$	91.6		$	26.6		$	(132.5	)
Loss from equity investees	(1.1		)	—				—			—			—			—		(1.1		)	—			—
Interest expense	(117.2		)	—				(82.1		)	(21.3		)	(1.1		)	—		(10.5		)	(1.9		)	(0.3		)
Income (loss) before income taxes	$	667.1		$	0.1			$	354.5		$	197.0		$	136.3		$	7.3	$	80.0		$	24.7		$	(132.8	)
Partnership EBITDA (a)								$	530.6
Noncontrolling interests’ net income (e)	$	201.8		$	—			$	247.7		$	—		$	—		$	—	$	0.4		$	—		$	(46.3	)
Depreciation and amortization	$	179.0		$	—			$	97.5		$	31.1		$	7.7		$	6.0	$	25.1		$	11.3		$	0.3
Capital expenditures (including the effects of accruals)	$	214.9		$	—			$	57.2		$	96.3		$	18.9		$	8.9	$	21.7		$	11.8		$	0.1
As of March 31, 2015
Total assets	$	10,182.7		$	(109.5	)		$	4,423.8		$	2,506.0		$	719.6		$	281.2	$	1,569.2		$	539.7		$	252.7
Short-term borrowings	$	89.9		$	—			$	55.0		$	30.5		$	—		$	—	$	0.1		$	4.3		$	—
Goodwill	$	2,731.2		$	—			$	1,949.7		$	182.1		$	11.8		$	—	$	510.9		$	76.7		$	—


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



	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
Partnership Adjusted EBITDA	$	295.4		$	342.1		$	473.1		$	530.6
Depreciation and amortization	(47.4		)	(48.1		)	(96.6		)	(97.5		)
Noncontrolling interests (i)	2.4			2.9			3.5			3.5
Operating income	$	250.4		$	296.9		$	380.0		$	436.6


(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 $64.0 and $102.2 during the three months ended March 31, 2016 and 2015, respectively, and $65.1 and $(127.5) during the six months ended March 31, 2016 and 2015, respectively. Corporate & Other assets principally comprise cash and short-term investments of UGI and its captive insurance company; UGI corporate headquarters’ assets; and our investment in a private equity partnership.


(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.


(e)	Amounts for AmeriGas Propane and Corporate & Other have been corrected to properly reflect gains and (losses) on commodity derivative instruments not associated with current period transactions.