Segment Information

6 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

Segment Information

6. Segment Information

We have organized our business units into six reportable segments generally based upon products sold, geographic location (domestic or international) or regulatory environment. Our reportable segments are: (1) AmeriGas Propane; (2) an international LPG segment comprising Antargaz; (3) an international LPG segment comprising Flaga, our propane distribution business in the United Kingdom and our propane distribution business in China (“Flaga & Other”); (4) Gas Utility; (5) Electric Utility; and (6) Midstream & Marketing. We refer to both international segments collectively as “International Propane.”

The accounting policies of our reportable segments are the same as those described in Note 2, “Significant Accounting Policies” in the Company’s 2011 Annual Financial Statements and Notes. We evaluate AmeriGas Propane’s performance principally based upon the Partnership’s earnings before interest expense, income taxes, depreciation and amortization (“Partnership EBITDA”). Although we use Partnership 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 EBITDA may be different from that used by other companies. We evaluate the performance of our International Propane, Gas Utility, Electric Utility and Midstream & Marketing segments principally based upon their income before income taxes.

Three Months Ended March 31, 2012:

									Reportable Segments
																					International Propane
									AmeriGas			Gas			Electric			Midstream &						Flaga &			Corporate
	Total			Elims.					Propane			Utility			Utility			Marketing			Antargaz			Other (b)			& Other (c)
Revenues	$	2,427.5		$	(43.6	)	(d	)	$	1,155.6		$	319.5		$	25.9		$	269.0		$	445.3		$	236.4		$	19.4
Cost of sales	$	1,526.6		$	(42.4	)	(d	)	$	670.0		$	177.5		$	15.3		$	221.6		$	288.6		$	185.2		$	10.8
Segment profit:
Operating income (loss)	$	380.8		$	—				$	195.0		$	85.0		$	3.4		$	30.6		$	60.2		$	10.0		$	(3.4	)
Loss on extinguishment of debt		(13.4	)		—					(13.4	)		—			—			—			—			—			—
Interest expense		(65.3	)		—					(45.1	)		(10.1	)		(0.6	)		(1.3	)		(6.9	)		(1.2	)		(0.1	)
Income (loss) before income taxes	$	302.1		$	—				$	136.5		$	74.9		$	2.8		$	29.3		$	53.3		$	8.8		$	(3.5	)
Partnership EBITDA (a)									$	224.5
Noncontrolling interests’ net income	$	93.6		$	—				$	93.2		$	—		$	—		$	—		$	0.4		$	—		$	—
Depreciation and amortization	$	82.8		$	—				$	44.8		$	12.2		$	1.0		$	3.0		$	15.0		$	6.4		$	0.4
Capital expenditures	$	65.3		$	—				$	23.5		$	25.7		$	1.3		$	5.9		$	4.9		$	3.9		$	0.1
Total assets (at period end)	$	10,129.4		$	(84.4	)			$	4,823.8		$	2,038.5		$	155.4		$	643.1		$	1,843.3		$	548.4		$	161.3
Bank loans (at period end)	$	190.2		$	—				$	50.9		$	—		$	—		$	112.0		$	—		$	27.3		$	—
Goodwill (at period end)	$	2,795.2		$	—				$	1,881.3		$	182.1		$	—		$	2.8		$	638.5		$	83.5		$	7.0

Three Months Ended March 31, 2011:

									Reportable Segments
																					International Propane
									AmeriGas			Gas			Electric			Midstream &						Flaga &			Corporate
	Total			Elims.					Propane			Utility			Utility			Marketing			Antargaz			Other (b)			& Other (c)
Revenues	$	2,181.0		$	(92.8	)	(d	)	$	906.8		$	452.5		$	31.7		$	360.3		$	392.7		$	111.2		$	18.6
Cost of sales	$	1,423.9		$	(91.9	)	(d	)	$	564.8		$	288.6		$	20.2		$	305.4		$	244.1		$	82.1		$	10.6
Segment profit:
Operating income (loss)	$	357.0		$	0.1				$	154.6		$	100.9		$	3.0		$	40.8		$	60.5		$	1.3		$	(4.2	)
Loss from equity investees		(0.4	)		—					—			—			—			—			(0.4	)		—			—
Loss on extinguishment of debt		(18.8	)		—					(18.8	)		—			—			—			—			—			—
Interest expense		(34.3	)		—					(16.3	)		(10.2	)		(0.6	)		(0.7	)		(5.9	)		(0.4	)		(0.2	)
Income (loss) before income taxes	$	303.5		$	0.1				$	119.5		$	90.7		$	2.4		$	40.1		$	54.2		$	0.9		$	(4.4	)
Partnership EBITDA (a)									$	157.5
Noncontrolling interests’ net income	$	66.2		$	—				$	65.8		$	—		$	—		$	—		$	0.4		$	—		$	—
Depreciation and amortization	$	55.5		$	—				$	23.2		$	12.3		$	1.0		$	1.9		$	12.6		$	4.1		$	0.4
Capital expenditures	$	82.0		$	—				$	19.3		$	17.5		$	2.6		$	28.2		$	10.4		$	3.5		$	0.5
Total assets (at period end)	$	6,894.4		$	(89.3	)			$	1,908.7		$	2,045.2		$	158.3		$	574.5		$	1,757.7		$	380.8		$	158.5
Bank loans (at period end)	$	222.1		$	—				$	194.0		$	—		$	—		$	—		$	—		$	28.1		$	—
Goodwill (at period end)	$	1,588.4		$	—				$	693.9		$	180.1		$	—		$	2.8		$	626.6		$	78.0		$	7.0

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

Three Months Ended March 31,	2012			2011
Partnership EBITDA (ii)	$	224.5		$	157.5
Depreciation and amortization		(44.8	)		(23.2	)
Loss on extinguishment of debt		13.4			18.8
Noncontrolling interests (i)		1.9			1.5
Operating income	$	195.0		$	154.6

(i) Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.

(ii) Includes $13.4 loss and $18.8 loss, respectively, associated with extinguishments of Partnership debt.

(b) International Propane—Flaga & Other principally comprises Flaga’s retail distribution businesses, our propane distribution business in China and our propane distribution business in the United Kingdom.

(c) Corporate & Other results principally comprise UGI Enterprises’ heating, ventilation, air-conditioning, refrigeration and electrical contracting business (“HVAC/R”), net expenses of UGI’s captive general liability insurance company and UGI Corporation’s unallocated corporate and general expenses and interest income. Corporate & Other assets principally comprise cash, short-term investments, assets of HVAC/R and an intercompany loan. The intercompany loan and associated interest is removed in the segment presentation.

(d) Principally represents the elimination of intersegment transactions among Midstream & Marketing, Gas Utility and AmeriGas Propane.

Six Months Ended March 31, 2012:

									Reportable Segments
																					International Propane
									AmeriGas			Gas			Electric			Midstream &						Flaga &			Corporate
	Total			Elims.					Propane			Utility			Utility			Marketing			Antargaz			Other (b)			& Other (c)
Revenues	$	4,116.3		$	(96.9	)	(d	)	$	1,839.4		$	574.5		$	51.1		$	507.8		$	746.9		$	453.1		$	40.4
Cost of sales	$	2,628.4		$	(94.7	)	(d	)	$	1,113.8		$	319.2		$	30.5		$	420.4		$	464.3		$	353.3		$	21.6
Segment profit:
Operating income (loss)	$	569.1		$	—				$	255.1		$	146.2		$	6.6		$	54.5		$	97.5		$	14.4		$	(5.2	)
Loss from equity investees		(0.1	)		—					—			—			—			—			(0.1	)		—			—
Loss on extinguishment of debt		(13.4	)		—					(13.4	)		—			—			—			—			—			—
Interest expense		(101.3	)		—					(61.6	)		(20.2	)		(1.1	)		(2.4	)		(13.4	)		(2.2	)		(0.4	)
Income (loss) before income taxes	$	454.3		$	—				$	180.1		$	126.0		$	5.5		$	52.1		$	84.0		$	12.2		$	(5.6	)
Partnership EBITDA (a)									$	308.2
Noncontrolling interests’ net income	$	116.7		$	—				$	116.2		$	—		$	—		$	—		$	0.5		$	—		$	—
Depreciation and amortization	$	143.1		$	—				$	69.0		$	24.3		$	1.9		$	5.8		$	29.1		$	11.9		$	1.1
Capital expenditures	$	154.0		$	—				$	45.1		$	47.5		$	2.3		$	34.0		$	16.0		$	8.7		$	0.4
Total assets (at period end)	$	10,129.4		$	(84.4	)			$	4,823.8		$	2,038.5		$	155.4		$	643.1		$	1,843.3		$	548.4		$	161.3
Bank loans (at period end)	$	190.2		$	—				$	50.9		$	—		$	—		$	112.0		$	—		$	27.3		$	—
Goodwill (at period end)	$	2,795.2		$	—				$	1,881.3		$	182.1		$	—		$	2.8		$	638.5		$	83.5		$	7.0

Six Months Ended March 31, 2011:

									Reportable Segments
																					International Propane
									AmeriGas			Gas			Electric			Midstream &						Flaga &			Corporate
	Total			Elims.					Propane			Utility			Utility			Marketing			Antargaz			Other (b)			& Other (c)
Revenues	$	3,946.6		$	(132.9	)	(d	)	$	1,607.0		$	773.6		$	60.6		$	639.9		$	728.7		$	230.1		$	39.6
Cost of sales	$	2,586.5		$	(131.2	)	(d	)	$	1,000.1		$	483.5		$	38.8		$	545.5		$	458.7		$	169.2		$	21.9
Segment profit:
Operating income (loss)	$	609.3		$	0.2				$	246.2		$	176.0		$	6.6		$	68.3		$	112.4		$	3.4		$	(3.8	)
Loss from equity investees		(0.6	)		—					—			—			—			—			(0.6	)		—			—
Loss on extinguishment of debt		(18.8	)		—					(18.8	)		—			—			—			—			—			—
Interest expense		(67.6	)		—					(31.7	)		(20.3	)		(1.1	)		(1.4	)		(11.4	)		(1.3	)		(0.4	)
Income (loss) before income taxes	$	522.3		$	0.2				$	195.7		$	155.7		$	5.5		$	66.9		$	100.4		$	2.1		$	(4.2	)
Partnership EBITDA (a)									$	270.8
Noncontrolling interests’ net income	$	108.1		$	—				$	107.3		$	—		$	—		$	—		$	0.8		$	—		$	—
Depreciation and amortization	$	110.8		$	—				$	45.9		$	24.5		$	2.0		$	3.6		$	24.9		$	9.0		$	0.9
Capital expenditures	$	167.6		$	—				$	40.6		$	33.6		$	4.1		$	62.8		$	19.8		$	6.0		$	0.7
Total assets (at period end)	$	6,894.4		$	(89.3	)			$	1,908.7		$	2,045.2		$	158.3		$	574.5		$	1,757.7		$	380.8		$	158.5
Bank loans (at period end)	$	222.1		$	—				$	194.0		$	—		$	—		$	—		$	—		$	28.1		$	—
Goodwill (at period end)	$	1,588.4		$	—				$	693.9		$	180.1		$	—		$	2.8		$	626.6		$	78.0		$	7.0

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

Six Months Ended March 31,	2012			2011
Partnership EBITDA (ii)	$	308.2		$	270.8
Depreciation and amortization		(69.0	)		(45.9	)
Loss on extinguishment of debt		13.4			18.8
Noncontrolling interests (i)		2.5			2.5
Operating income	$	255.1		$	246.2

(i) Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.

(ii) Includes $13.4 loss and $18.8 loss, respectively, associated with extinguishments of Partnership debt.

(b) International Propane—Flaga & Other principally comprises Flaga’s retail distribution businesses, our propane distribution business in China and our propane distribution business in the United Kingdom.

(c) Corporate & Other results principally comprise UGI Enterprises’ heating, ventilation, air-conditioning, refrigeration and electrical contracting business (“HVAC/R”), net expenses of UGI’s captive general liability insurance company and UGI Corporation’s unallocated corporate and general expenses and interest income. Corporate & Other assets principally comprise cash, short-term investments, assets of HVAC/R and an intercompany loan. The intercompany loan and associated interest is removed in the segment presentation.

(d) Principally represents the elimination of intersegment transactions among Midstream & Marketing, Gas Utility and AmeriGas Propane.