Employee Retirement Plans (Tables)

12 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

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, 2022 and 2021. 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
	2022		2021
Change in benefit obligations:
Benefit obligations — beginning of year	$	870	$	782
Service cost	16		12
Interest cost	26		22
Actuarial gain	(240)		(30)
Plan amendments	1		2
Acquisitions	—		114
Foreign currency	(6)		(1)
Benefits paid	(34)		(31)

	Pension Benefits
	2022		2021
Benefit obligations — end of year (a)	$	633	$	870
Change in plan assets:
Fair value of plan assets — beginning of year	$	736	$	585
Actual (loss) gain on plan assets	(173)		75
Foreign currency	(3)		—
Employer contributions	15		14
Acquisitions	—		92
Benefits paid	(34)		(30)
Fair value of plan assets — end of year	$	541	$	736
Funded status of the plans — end of year (b)	$	(92)	$	(134)
Amounts recorded in UGI Corporation stockholders’ equity (pre-tax):
Prior service cost	$	3	$	3
Net actuarial (gain) loss	(17)		13
Total	$	(14)	$	16
Amounts recorded in regulatory assets and liabilities (pre-tax):
Net actuarial loss	114		108
Total	$	114	$	108

(a) The ABO for the U.S. Pension Plans was $570 and $756 as of September 30, 2022 and 2021, respectively.

(b) Amounts are reflected in “Other noncurrent liabilities” and “Other assets” on the Consolidated Balance Sheets. Amounts reflected in “Other assets” are not material.

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
	2022		2021		2020
Weighted-average assumptions:
Discount rate – benefit obligations	5.70	%	3.13	%	2.90	%
Discount rate – benefit cost	3.13	%	2.90	%	3.30	%
Expected return on plan assets	7.10	%	7.10	%	7.20	%
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
	2022		2021		2020
Service cost	$	16	$	12	$	11
Interest cost	26		22		23
Expected return on assets	(50)		(40)		(38)
Curtailment gain	—		—		(1)
Amortization of:
Prior service cost	—		—		1
Actuarial loss	7		14		15
Net benefit (income) cost	$	(1)	$	8	$	11

Expected Payments for Pension Benefits and Other Postretirement Welfare Benefits

Expected payments for pension benefits are as follows:

	Pension Benefits
Fiscal 2023	$	37
Fiscal 2024	$	38
Fiscal 2025	$	40
Fiscal 2026	$	41
Fiscal 2027	$	43
Fiscal 2028 - 2032	$	229

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)
	2022		2021		2022		2021
Equity investments:
U.S. equities	26.5	%	22.2	%	24.7	%	25.3	%
Non-U.S. equities	20.9	%	21.7	%	20.9	%	21.4	%
Global equities (a)	13.8	%	16.0	%	13.1	%	13.1	%
Total	61.2	%	59.9	%	58.7	%	59.8	%
Fixed income funds & cash equivalents	35.5	%	36.4	%	35.0	%	34.4	%
Alternative investments	3.3	%	3.7	%	6.3	%	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, 2022 and 2021 are as follows:

	2022		2021
U.S. Pension Plans:
Domestic equity investments:
UGI Corporation Common Stock	$	26	$	35
Total domestic equity investments (a)	26		35
Common collective trust funds:
U.S. equity index investments	113		124
Non-U.S. equity index investments	110		155
Global equity index investments	72		115
Bond index investments	177		254
Cash equivalents	10		7
Total common collective trust funds (b)	482		655
Alternative investments (b)	17		27
Total	$	525	$	717

(a) Level 1 investments within the fair value hierarchy.

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