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Segment Information
 3 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
Note 14 — Segment Information

Our operations comprise four reportable segments generally based upon products sold, geographic location and regulatory environment. As more fully described below, effective October 1, 2016, our former Energy Services and Electric Generation reportable segments were combined into one reportable segment called “Midstream & Marketing,” and our former UGI France and Flaga & Other reportable segments were combined into one reportable segment called “UGI International.” Our reportable segments comprise: (1) AmeriGas Propane; (2) UGI International; (3) Midstream & Marketing; and (4) UGI Utilities.

As a result of changes in the composition of information reported to our chief operating decision maker (“CODM”), effective October 1, 2016, we combined our UGI France reportable segment with our Flaga & Other reportable segment, collectively referred to as “UGI International.” Also, as a result of changes in the composition of information reported to our CODM, effective October 1, 2016, we combined our Energy Services reportable segment with our Electric Generation reportable segment, collectively referred to as “Midstream & Marketing.” In accordance with GAAP, prior-period amounts 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 2016 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 the effects of gains and losses on commodity derivative instruments not associated with current-period transactions and other gains and losses that competitors do not necessarily have (“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 and certain foreign currency derivative instruments not associated with current-period transactions. Net gains and losses on commodity and certain foreign currency 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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December 31, 2016
 
Total
 
Eliminations
 
AmeriGas
Propane
 
UGI International
 
Midstream & Marketing
 
UGI
Utilities
 
Corporate
& Other (b)
Revenues
 
$
1,679.5

 
$
(68.5
)
(c)
$
677.2

 
$
539.1

 
$
269.8

 
$
261.4

 
$
0.5

Cost of sales
 
$
647.4

 
$
(67.7
)
(c)
$
260.7

 
$
258.0

 
$
191.8

 
$
109.5

 
$
(104.9
)
Segment profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
$
466.2

 
$
0.1

 
$
141.9

 
$
88.9

 
$
49.7

 
$
82.2

 
$
103.4

Loss from equity investees
 
(0.2
)
 
—

 
—

 
(0.2
)
 
—

 
—

 
—

Gains on foreign currency contracts, net
 
1.3

 
—

 
—

 
0.1

 
—

 
—

 
1.2

Loss on extinguishment of debt
 
(33.2
)
 
—

 
(33.2
)
 
—

 
—

 
—

 
—

Interest expense
 
(55.4
)
 
—

 
(40.0
)
 
(4.8
)
 
(0.6
)
 
(10.0
)
 
—

Income before income taxes
 
$
378.7

 
$
0.1

 
$
68.7

 
$
84.0

 
$
49.1

 
$
72.2

 
$
104.6

Partnership Adjusted EBITDA (a)
 

 
 
 
$
185.1

 
 
 
 
 
 
 
 
Noncontrolling interests’ net income
 
$
60.2

 
$
—

 
$
41.2

 
$
0.2

 
$
—

 
$
—

 
$
18.8

Depreciation and amortization
 
$
98.1

 
$
—

 
$
44.6

 
$
27.9

 
$
8.0

 
$
17.4

 
$
0.2

Capital expenditures (including the effects of accruals)
 
$
173.6

 
$
—

 
$
26.4

 
$
21.5

 
$
61.5

 
$
64.1

 
$
0.1

As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
11,300.5

 
$
(107.9
)
 
$
4,217.9

 
$
2,853.4

 
$
1,178.4

 
$
2,898.5

 
$
260.2

Short-term borrowings
 
$
234.4

 
$
—

 
$
77.5

 
$
3.5

 
$
55.0

 
$
98.4

 
$
—

Goodwill
 
$
2,935.8

 
$
—

 
$
1,978.5

 
$
763.7

 
$
11.5

 
$
182.1

 
$
—

Three Months Ended
December 31, 2015 (d)
 
Total
 
Eliminations
 
AmeriGas
Propane
 
UGI International
 
Midstream & Marketing
 
UGI
Utilities
 
Corporate
& Other (b)
Revenues
 
$
1,606.6

 
$
(42.7
)
(c)
$
644.1

 
$
578.2

 
$
226.9

 
$
198.0

 
$
2.1

Cost of sales
 
$
734.0

 
$
(41.8
)
(c)
$
243.2

 
$
302.8

 
$
154.5

 
$
75.4

 
$
(0.1
)
Segment profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
305.5

 
$
0.1

 
$
129.6

 
$
85.1

 
$
42.9

 
$
48.3

 
$
(0.5
)
Loss from equity investees
 
(0.1
)
 
—

 
—

 
(0.1
)
 
—

 
—

 
—

Interest expense
 
(57.9
)
 
—

 
(41.0
)
 
(6.5
)
 
(0.8
)
 
(9.5
)
 
(0.1
)
Income (loss) before income taxes
 
$
247.5

 
$
0.1

 
$
88.6

 
$
78.5

 
$
42.1

 
$
38.8

 
$
(0.6
)
Partnership EBITDA (a)
 
 
 
 
 
$
177.7

 
 
 
 
 
 
 
 
Noncontrolling interests’ net income (loss)
 
$
53.3

 
$
—

 
$
57.3

 
$
0.1

 
$
—

 
$
—

 
$
(4.1
)
Depreciation and amortization
 
$
100.6

 
$
—

 
$
49.2

 
$
27.2

 
$
7.4

 
$
16.7

 
$
0.1

Capital expenditures (including the effects of accruals)
 
$
132.9

 
$
—

 
$
28.0

 
$
21.0

 
$
22.4

 
$
61.5

 
$
—

As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
10,749.7

 
$
(106.2
)
 
$
4,222.1

 
$
2,905.8

 
$
1,000.0

 
$
2,604.2

 
$
123.8

Short-term borrowings
 
$
456.8

 
$
—

 
$
182.0

 
$
1.1

 
$
56.0

 
$
217.7

 
$
—

Goodwill
 
$
2,965.1

 
$
—

 
$
1,971.3

 
$
800.2

 
$
11.5

 
$
182.1

 
$
—


(a)
The following table provides a reconciliation of Partnership Adjusted EBITDA to AmeriGas Propane income before income taxes:
 
 
Three Months Ended
December 31,
 
 
2016
 
2015
Partnership Adjusted EBITDA
 
$
185.1

 
$
177.7

Depreciation and amortization
 
(44.6
)
 
(49.2
)
Interest expense
 
(40.0
)
 
(41.0
)
Loss on extinguishment of debt
 
(33.2
)
 
—

Noncontrolling interest (i)
 
1.4

 
1.1

Income before income taxes
 
$
68.7

 
$
88.6

(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 UGI’s corporate headquarters facility, and (2) UGI’s unallocated corporate and general expenses and interest income. In addition, Corporate & Other results also include the effects of net pre-tax gains on commodity and certain foreign currency derivative instruments not associated with current-period transactions (including such amounts attributable to noncontrolling interests) totaling $105.5 and $1.1 during the three months ended December 31, 2016 and 2015, respectively. Corporate & Other assets principally comprise cash and cash equivalents 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)
Restated to reflect (1) the current-year changes in the presentation of our UGI International and Midstream & Marketing reportable segments and (2) the adoption of new accounting guidance related to debt issuance costs (see Note 2).