Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6 — Goodwill and Intangible Assets

Goodwill and intangible assets comprise the following:



	March 31, 2018			September 30, 2017			March 31, 2017
Goodwill (not subject to amortization)	$	3,218.1		$	3,107.2		$	2,948.4
Intangible assets:
Customer relationships, noncompete agreements and other	$	867.0		$	817.8		$	764.3
Accumulated amortization	(376.2		)	(340.2		)	(342.4		)
Intangible assets, net (definite-lived)	490.8			477.6			421.9
Trademarks and tradenames (indefinite-lived)	136.3			134.1			129.1
Total intangible assets, net	$	627.1		$	611.7		$	551.0

The changes in goodwill and intangible assets are primarily due to acquisitions and the effects of currency translation. Amortization expense of intangible assets was $13.7 and $12.4 for the three months ended March 31, 2018 and 2017, respectively. Amortization expense of intangible assets was $28.5 and $24.9 for the six months ended March 31, 2018 and 2017, respectively. Amortization expense included in “Cost of sales” on the Condensed Consolidated Statements of Income was not material. The estimated aggregate amortization expense of intangible assets for the remainder of Fiscal 2018 and for the next four fiscal years is as follows: remainder of Fiscal 2018 — $28.3; Fiscal 2019 — $54.7; Fiscal 2020 — $53.3; Fiscal 2021 — $51.4; Fiscal 2022 — $49.7.

During the quarter ended March 31, 2018, the Partnership performed a formal business review of the current and planned use of its indefinite-lived tradenames and trademarks, primarily associated with its January 2012 acquisition of Heritage Propane. This review included obtaining an understanding of the costs and benefits of continuing to utilize these tradenames and trademarks in the operations of the Partnership’s business. At March 31, 2018, these indefinite-lived tradenames and trademarks had a carrying amount of $82.9.

In April 2018, a plan to discontinue the use of these tradenames and trademarks was presented to the Partnership’s senior management. After considering the merits of the plan, the Partnership’s senior management approved, and the General Partner’s Board of Directors endorsed, a plan to discontinue the use of these tradenames and trademarks which is expected to occur over a period of approximately four years. As a result, during the three months ending June 30, 2018, the Partnership will adjust the carrying amounts of these tradenames and trademarks to their fair values and will reclassify the remaining fair value of these tradenames and trademarks from indefinite-lived intangible assets to definite-lived intangible assets having a remaining estimated period of benefit of approximately four years. The Partnership estimates that it will record a pre-tax non-cash impairment charge of approximately $70 which will decrease net income attributable to UGI by approximately $13.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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