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Employee Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2021

Change in Pension Benefits and Other Postretirement Benefits Obligations

The following table provides a reconciliation of the PBOs of our pension plans (the U.S. Pension Plans and the UGI International pension plans), plan assets, and the related funded status of our pension plans as of September 30, 2021 and 2020. ABO is the present value of benefits earned to date with benefits based upon current compensation levels. PBO is ABO increased to reflect estimated future compensation.


	Pension Benefits
	2021		2020
Change in benefit obligations:
Benefit obligations — beginning of year	$	782	$	750
Service cost	12		11
Interest cost	22		23
Actuarial (gain) loss	(30)		27
Plan amendments	2		—
Acquisitions	114		—
Curtailments	—		(2)

Foreign currency (gain) loss	(1)		3
Benefits paid	(31)		(30)
Benefit obligations — end of year (a)	$	870	$	782
Change in plan assets:


	Pension Benefits
	2021		2020
Fair value of plan assets — beginning of year	$	585	$	547
Actual gain on plan assets	75		53
Foreign currency	—		1
Employer contributions	14		13
Acquisitions	92		—

Benefits paid	(30)		(29)
Fair value of plan assets — end of year	$	736	$	585
Funded status of the plans — end of year (b)	$	(134)	$	(197)





Amounts recorded in UGI Corporation stockholders’ equity (pre-tax):
Prior service cost	$	3	$	1
Net actuarial loss	13		24
Total	$	16	$	25
Amounts recorded in regulatory assets and liabilities (pre-tax):

Net actuarial loss	108		174
Total	$	108	$	174

(a) The ABO for the U.S. Pension Plans was $756 and $687 as of September 30, 2021 and 2020, respectively.

(b) Amounts are reflected in “Other noncurrent liabilities” on the Consolidated Balance Sheets.

Actuarial Assumptions for U.S. Plans

The expected rate of return on assets assumption is based on current and expected asset allocations as well as historical and expected returns on various categories of plan assets (as further described below).


	Pension Plans
	2021		2020		2019
Weighted-average assumptions:
Discount rate – benefit obligations	3.13	%	2.90	%	3.30	%
Discount rate – benefit cost	2.90	%	3.30	%	4.40	%
Expected return on plan assets	7.10	%	7.20	%	7.30	%
Rate of increase in salary levels	3.25	%	3.25	%	3.25	%

Net Periodic Pension Cost

Net periodic pension cost includes the following components:


	Pension Benefits
	2021		2020		2019
Service cost	$	12	$	11	$	10
Interest cost	22		23		27
Expected return on assets	(40)		(38)		(36)
Curtailment gain	—		(1)		—

Amortization of:
Prior service cost	—		1		—
Actuarial loss	14		15		8


Net cost	$	8	$	11	$	9

Expected Payments for Pension Benefits and Other Postretirement Welfare Benefits

Expected payments for pension benefits are as follows:


	Pension Benefits
Fiscal 2022	$	36
Fiscal 2023	$	36
Fiscal 2024	$	41
Fiscal 2025	$	41
Fiscal 2026	$	43
Fiscal 2027 - 2031	$	230

Pension Plans

The targets and actual allocations for the U.S. Pension Plans’ trust assets at September 30 are as follows:


	Actual				Target Asset Allocation (b)
	2021		2020		2021		2020
Equity investments:
U.S. equities	22.2	%	26.5	%	25.3	%	29.0	%
Non-U.S. equities	21.7	%	25.0	%	21.4	%	24.5	%
Global equities (a)	16.0	%	12.3	%	13.1	%	11.5	%
Total	59.9	%	63.8	%	59.8	%	65.0	%
Fixed income funds & cash equivalents	36.4	%	36.2	%	34.4	%	35.0	%
Alternative investments	3.7	%	—	%	5.8	%	—	%
Total	100.0	%	100.0	%	100.0	%	100.0	%

(a) Comprises investment funds that consist of a mix of U.S. and Non-U.S. equity securities.

(b) There is a permitted range for the allocation of the trust assets for the U.S. Pension Plans, excluding the defined benefit pension plan for Mountaineer employees, which is 5% less than and greater than the target allocation.

Fair Value of U.S. Pension Plan and VEBA Trust Assets

The fair values of the U.S. Pension Plans trust assets by asset class as of September 30, 2021 and 2020 are as follows:


	2021		2020
U.S. Pension Plans:
Domestic equity investments:



UGI Corporation Common Stock	$	35	$	27
Total domestic equity investments (a)	35		27





Common collective trust funds:
U.S. equity index investments	124		123
Non-U.S. equity index investments	155		141
Global equity index investments	115		70
Bond index investments	254		200
Cash equivalents	7		5
Total common collective trust funds (b)	655		539
Alternative investments (b)	27		—
Total	$	717	$	566

(a) Level 1 investments within the fair value hierarchy

(b) Assets measured at NAV and therefore excluded from the fair value hierarchy.