QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: |
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||
Smaller reporting company | Emerging growth company | ||||||
Page | |
June 30, 2019 | September 30, 2018 | June 30, 2018 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||
Accounts receivable (less allowances for doubtful accounts of $14,857, $12,825 and $15,127, respectively) | ||||||||||||
Accounts receivable — related parties | ||||||||||||
Inventories | ||||||||||||
Derivative instruments | ||||||||||||
Prepaid expenses and other current assets | ||||||||||||
Total current assets | ||||||||||||
Property, plant and equipment (less accumulated depreciation of $1,217,159, $1,151,726 and $1,162,119, respectively) | ||||||||||||
Goodwill | ||||||||||||
Intangible assets, net | ||||||||||||
Derivative instruments | ||||||||||||
Other assets | ||||||||||||
Total assets | $ | $ | $ | |||||||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $ | $ | $ | |||||||||
Short-term borrowings | ||||||||||||
Accounts payable — trade | ||||||||||||
Accounts payable — related parties | ||||||||||||
Customer deposits and advances | ||||||||||||
Derivative instruments | ||||||||||||
Other current liabilities | ||||||||||||
Total current liabilities | ||||||||||||
Long-term debt | ||||||||||||
Other noncurrent liabilities | ||||||||||||
Total liabilities | ||||||||||||
Commitments and contingencies (Note 6) | ||||||||||||
Partners’ capital: | ||||||||||||
AmeriGas Partners, L.P. partners’ capital: | ||||||||||||
Common unitholders (units issued — 92,999,704, 92,977,072 and 92,977,072, respectively) | ||||||||||||
General partner | ||||||||||||
Total AmeriGas Partners, L.P. partners’ capital | ||||||||||||
Noncontrolling interest | ||||||||||||
Total partners’ capital | ||||||||||||
Total liabilities and partners’ capital | $ | $ | $ | |||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues: | ||||||||||||||||
Propane | $ | $ | $ | $ | ||||||||||||
Other | ||||||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales — propane (excluding depreciation and amortization shown below) | ||||||||||||||||
Cost of sales — other (excluding depreciation and amortization shown below) | ||||||||||||||||
Operating and administrative expenses | ||||||||||||||||
Impairment of tradenames and trademarks | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||
Other operating income, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Operating (loss) income | ( | ) | ( | ) | ||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
(Loss) income before income taxes | ( | ) | ( | ) | ||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net (loss) income including noncontrolling interest | ( | ) | ( | ) | ||||||||||||
Add net loss (deduct net income) attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||||||
Net (loss) income attributable to AmeriGas Partners, L.P. | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
General partner’s interest in net (loss) income attributable to AmeriGas Partners, L.P. | $ | $ | $ | $ | ||||||||||||
Limited partners’ interest in net (loss) income attributable to AmeriGas Partners, L.P. | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
(Loss) income per limited partner unit (see Note 2): | ||||||||||||||||
Basic | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
Diluted | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
Weighted-average limited partner units outstanding (thousands): | ||||||||||||||||
Basic | ||||||||||||||||
Diluted | ||||||||||||||||
Nine Months Ended June 30, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income including noncontrolling interest | $ | $ | |||||
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Provision for uncollectible accounts | |||||||
Change in unrealized gains and losses on derivatives instruments | |||||||
Impairment of tradenames and trademarks | |||||||
Other, net | |||||||
Net change in: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Inventories | |||||||
Accounts payable | ( | ) | ( | ) | |||
Derivative instruments collateral deposits paid | ( | ) | ( | ) | |||
Other current assets | |||||||
Other current liabilities | ( | ) | ( | ) | |||
Net cash provided by operating activities | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Expenditures for property, plant and equipment | ( | ) | ( | ) | |||
Proceeds from disposals of assets | |||||||
Acquisitions of businesses, net of cash acquired | ( | ) | |||||
Net cash used by investing activities | ( | ) | ( | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Distributions | ( | ) | ( | ) | |||
Noncontrolling interest activity | ( | ) | ( | ) | |||
Increase in short-term borrowings | |||||||
Repayment of long-term debt | ( | ) | ( | ) | |||
Capital contributions from General Partner | |||||||
Other | ( | ) | ( | ) | |||
Net cash used by financing activities | ( | ) | ( | ) | |||
Cash and cash equivalents decrease | $ | ( | ) | $ | ( | ) | |
CASH AND CASH EQUIVALENTS | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents decrease | $ | ( | ) | $ | ( | ) | |
For the three months ended June 30, 2019: | Number of Common Units | Common unitholders | General partner | Total AmeriGas Partners, L.P. partners’ capital | Noncontrolling interest | Total partners’ capital | |||||||||||||||||
Balance March 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||
Net (loss) income including noncontrolling interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Distributions | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Unit-based compensation expense | |||||||||||||||||||||||
Common Units issued in connection with employee and director plans, net of tax withheld | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance June 30, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||
For the three months ended June 30, 2018: | Number of Common Units | Common unitholders | General partner | Total AmeriGas Partners, L.P. partners’ capital | Noncontrolling interest | Total partners’ capital | |||||||||||||||||
Balance March 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||||||||
Net (loss) income including noncontrolling interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Distributions | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Unit-based compensation expense | |||||||||||||||||||||||
Common Units issued in connection with employee and director plans, net of tax withheld | |||||||||||||||||||||||
Balance June 30, 2018 | $ | $ | $ | $ | $ | ||||||||||||||||||
For the nine months ended June 30, 2019: | Number of Common Units | Common unitholders | General partner | Total AmeriGas Partners, L.P. partners’ capital | Noncontrolling interest | Total partners’ capital | |||||||||||||||||
Balance September 30, 2018 | $ | $ | $ | $ | $ | ||||||||||||||||||
Net income including noncontrolling interest | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Unit-based compensation expense | |||||||||||||||||||||||
Common Units issued in connection with employee and director plans, net of tax withheld | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance June 30, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||
For the nine months ended June 30, 2018: | Number of Common Units | Common unitholders | General partner | Total AmeriGas Partners, L.P. partners’ capital | Noncontrolling interest | Total partners’ capital | |||||||||||||||||
Balance September 30, 2017 | $ | $ | $ | $ | $ | ||||||||||||||||||
Net income including noncontrolling interest | |||||||||||||||||||||||
Distributions | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Unit-based compensation expense | |||||||||||||||||||||||
Common Units issued in connection with employee and director plans, net of tax withheld | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Balance June 30, 2018 | $ | $ | $ | $ | $ | ||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net (loss) income attributable to AmeriGas Partners, L.P. | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
Adjust for general partner share and theoretical distributions of net (loss) income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Common Unitholders’ interest in net (loss) income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||
Weighted average Common Units outstanding — basic (thousands) | ||||||||||||||||
Potentially dilutive Common Units (thousands) | ||||||||||||||||
Weighted average Common Units outstanding — diluted (thousands) | ||||||||||||||||
Three Months Ended June 30, 2019 | Nine Months Ended June 30, 2019 | |||||||
Revenues from contracts with customers: | ||||||||
Propane: | ||||||||
Retail | $ | $ | ||||||
Wholesale | ||||||||
Other | ||||||||
Total revenues from contracts with customers | ||||||||
Other revenues (a) | ||||||||
Total revenues | $ | $ | ||||||
(a) | Primarily represents revenues from tank rentals that are not within the scope of ASC 606 and accounted for in accordance with other GAAP. |
June 30, 2019 | September 30, 2018 | June 30, 2018 | ||||||||||
Goodwill (not subject to amortization) | $ | $ | $ | |||||||||
Intangible assets, net (definite-lived): | ||||||||||||
Customer relationships and noncompete agreements | $ | $ | $ | |||||||||
Trademarks and tradenames | ||||||||||||
Accumulated amortization | ( | ) | ( | ) | ( | ) | ||||||
Intangible assets, net (definite-lived) | $ | $ | $ | |||||||||
Asset (Liability) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
June 30, 2019: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
September 30, 2018: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
June 30, 2018: | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity contracts | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity contracts | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
June 30, 2019 | September 30, 2018 | June 30, 2018 | |||||||||
Carrying amount | $ | $ | $ | ||||||||
Estimated fair value | $ | $ | $ | ||||||||
June 30, 2019 | September 30, 2018 | June 30, 2018 | ||||||||||
Derivative assets not designated as hedging instruments: | ||||||||||||
Commodity contracts | $ | $ | $ | |||||||||
Total derivative assets — gross | ||||||||||||
Gross amounts offset in the balance sheet | ( | ) | ( | ) | ( | ) | ||||||
Cash collateral received | ( | ) | ||||||||||
Total derivative assets — net | $ | $ | $ | |||||||||
Derivative liabilities not designated as hedging instruments: | ||||||||||||
Commodity contracts | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Total derivative liabilities — gross | ( | ) | ( | ) | ( | ) | ||||||
Gross amounts offset in the balance sheet | ||||||||||||
Cash collateral pledged | ||||||||||||
Total derivative liabilities — net (a) | $ | ( | ) | $ | $ | |||||||
(a) | Derivative liabilities with maturities greater than one year are recorded in “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheets. |
Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | |||||||||
Three Months Ended June 30, | 2019 | 2018 | ||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||
Commodity contracts | $ | ( | ) | $ | Cost of sales — propane | |||||
Gain (Loss) Recognized in Income | Location of Gain (Loss) Recognized in Income | |||||||||
Nine Months Ended June 30, | 2019 | 2018 | ||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||
Commodity contracts | $ | ( | ) | $ | Cost of sales — propane | |||||
(Dollars in millions) | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Adjusted total margin: | ||||||||||||||||
Total revenues | $ | 478.7 | $ | 528.4 | $ | 2,270.5 | $ | 2,356.0 | ||||||||
Cost of sales — propane | (192.2 | ) | (199.7 | ) | (1,027.4 | ) | (1,039.6 | ) | ||||||||
Cost of sales — other (a) | (21.5 | ) | (24.4 | ) | (61.4 | ) | (64.8 | ) | ||||||||
Total margin | 265.0 | 304.3 | 1,181.7 | 1,251.6 | ||||||||||||
Add net losses (subtract net gains) on commodity derivative instruments not associated with current-period transactions (a) | 3.5 | (20.3 | ) | 64.8 | 10.2 | |||||||||||
Adjusted total margin | $ | 268.5 | $ | 284.0 | $ | 1,246.5 | $ | 1,261.8 | ||||||||
Adjusted operating income (loss): | ||||||||||||||||
Operating (loss) income | $ | (6.8 | ) | $ | (33.7 | ) | $ | 346.0 | $ | 350.9 | ||||||
Add net losses (subtract net gains) on commodity derivative instruments not associated with current-period transactions (a) | 3.4 | (20.3 | ) | 64.8 | 10.1 | |||||||||||
Impairment of Heritage tradenames and trademarks | — | 75.0 | — | 75.0 | ||||||||||||
Merger expenses | 1.8 | — | 2.7 | — | ||||||||||||
Adjusted operating (loss) income | $ | (1.6 | ) | $ | 21.0 | $ | 413.5 | $ | 436.0 | |||||||
Adjusted net income (loss) attributable to AmeriGas Partners: | ||||||||||||||||
Net (loss) income attributable to AmeriGas Partners | $ | (49.0 | ) | $ | (74.4 | ) | $ | 214.7 | $ | 221.8 | ||||||
Add net losses (subtract net gains) on commodity derivative instruments not associated with current-period transactions | 3.5 | (20.3 | ) | 64.8 | 10.1 | |||||||||||
Impairment of Heritage tradenames and trademarks | — | 75.0 | — | 75.0 | ||||||||||||
Merger expenses | 1.8 | — | 2.7 | — | ||||||||||||
Noncontrolling interest in net gains and losses on commodity derivative instruments and merger expenses (a) | (0.1 | ) | (0.5 | ) | (0.7 | ) | (0.8 | ) | ||||||||
Adjusted net (loss) income attributable to AmeriGas Partners | $ | (43.8 | ) | $ | (20.2 | ) | $ | 281.5 | $ | 306.1 | ||||||
EBITDA and Adjusted EBITDA: | ||||||||||||||||
Net (loss) income attributable to AmeriGas Partners | $ | (49.0 | ) | $ | (74.4 | ) | $ | 214.7 | $ | 221.8 | ||||||
Income tax expense (a) | 0.7 | 0.7 | 1.7 | 3.7 | ||||||||||||
Interest expense | 41.6 | 40.4 | 126.2 | 122.0 | ||||||||||||
Depreciation and amortization | 44.0 | 46.4 | 134.0 | 139.0 | ||||||||||||
EBITDA | 37.3 | 13.1 | 476.6 | 486.5 | ||||||||||||
Add net losses (subtract net gains) on commodity derivative instruments not associated with current-period transactions | 3.5 | (20.3 | ) | 64.8 | 10.1 | |||||||||||
Impairment of Heritage tradenames and trademarks | — | 75.0 | — | 75.0 | ||||||||||||
Merger expenses | 1.8 | — | 2.7 | — | ||||||||||||
Noncontrolling interest in net gains and losses on commodity derivative instruments and merger expenses (a) | (0.1 | ) | (0.6 | ) | (0.6 | ) | (0.8 | ) | ||||||||
Adjusted EBITDA | $ | 42.5 | $ | 67.2 | $ | 543.5 | $ | 570.8 | ||||||||
(a) | Certain amounts include the impact of rounding. |
Three Months Ended June 30, | 2019 | 2018 | Increase (Decrease) | ||||||||||||
(Dollars and gallons in millions) | |||||||||||||||
Gallons sold: | |||||||||||||||
Retail | 188.5 | 202.0 | (13.5 | ) | (6.7 | )% | |||||||||
Wholesale | 12.3 | 12.1 | 0.2 | 1.7 | % | ||||||||||
200.8 | 214.1 | (13.3 | ) | (6.2 | )% | ||||||||||
Revenues: | |||||||||||||||
Retail propane | $ | 405.9 | $ | 450.5 | $ | (44.6 | ) | (9.9 | )% | ||||||
Wholesale propane | 8.7 | 11.4 | (2.7 | ) | (23.7 | )% | |||||||||
Other | 64.1 | 66.5 | (2.4 | ) | (3.6 | )% | |||||||||
$ | 478.7 | $ | 528.4 | $ | (49.7 | ) | (9.4 | )% | |||||||
Total margin (a) | $ | 265.0 | $ | 304.3 | $ | (39.3 | ) | (12.9 | )% | ||||||
Operating and administrative expenses (b) | $ | 234.4 | $ | 222.4 | $ | 12.0 | 5.4 | % | |||||||
Impairment of Heritage tradenames and trademarks (c) | $ | — | $ | 75.0 | $ | (75.0 | ) | N.M. | |||||||
Operating loss | $ | (6.8 | ) | $ | (33.7 | ) | $ | (26.9 | ) | (79.8 | )% | ||||
Net loss attributable to AmeriGas Partners | $ | (49.0 | ) | $ | (74.4 | ) | $ | (25.4 | ) | (34.1 | )% | ||||
Non-GAAP financial measures (d): | |||||||||||||||
Adjusted total margin | $ | 268.5 | $ | 284.0 | $ | (15.5 | ) | (5.5 | )% | ||||||
EBITDA | $ | 37.3 | $ | 13.1 | $ | 24.2 | 184.7 | % | |||||||
Adjusted EBITDA | $ | 42.5 | $ | 67.2 | $ | (24.7 | ) | (36.8 | )% | ||||||
Adjusted operating (loss) income | $ | (1.6 | ) | $ | 21.0 | $ | (22.6 | ) | (107.6 | )% | |||||
Adjusted net loss attributable to AmeriGas Partners | $ | (43.8 | ) | $ | (20.2 | ) | $ | 23.6 | 116.8 | % | |||||
Heating degree days — % colder (warmer) than normal (e) | 0.0 | % | 9.6 | % | — | — | |||||||||
(a) | Total margin represents total revenues less “Cost of sales — propane” and “Cost of sales — other.” Total margin for the 2019 and 2018 three-month periods includes the impact of changes in unrealized (losses) gains of $(3.5) million and $20.3 million, respectively, on commodity derivative instruments not associated with current-period transactions. |
(b) | Operating and administrative expenses in the 2019 three-month period include $1.8 million of expenses associated with the Proposed Merger and $5.0 million of expenses to correct vehicle lease expense associated with prior periods. |
(c) | The 2018 three-month period includes the impact of a $75.0 million impairment charge associated with the plan to discontinue the use of certain tradenames and trademarks. |
(d) | These financial measures are non-GAAP financial measures and are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not a substitute for, the comparable GAAP measures. See section “Non-GAAP Financial Measures” above. |
(e) | Deviation from average heating degree days for the 15-year period 2002-2016 based upon national weather statistics provided by NOAA for 344 Geo Regions in the United States, excluding Alaska and Hawaii. |
Nine Months Ended June 30, | 2019 | 2018 | Increase (Decrease) | ||||||||||||
(Dollars and gallons in millions) | |||||||||||||||
Gallons sold: | |||||||||||||||
Retail | 882.4 | 905.5 | (23.1 | ) | (2.6 | )% | |||||||||
Wholesale | 62.5 | 49.1 | 13.4 | 27.3 | % | ||||||||||
944.9 | 954.6 | (9.7 | ) | (1.0 | )% | ||||||||||
Revenues: | |||||||||||||||
Retail propane | $ | 2,002.4 | $ | 2,089.7 | $ | (87.3 | ) | (4.2 | )% | ||||||
Wholesale propane | 55.0 | 51.5 | 3.5 | 6.8 | % | ||||||||||
Other | 213.1 | 214.8 | (1.7 | ) | (0.8 | )% | |||||||||
$ | 2,270.5 | $ | 2,356.0 | $ | (85.5 | ) | (3.6 | )% | |||||||
Total margin (a) | $ | 1,181.7 | $ | 1,251.6 | $ | (69.9 | ) | (5.6 | )% | ||||||
Operating and administrative expenses (b) | $ | 719.5 | $ | 704.1 | $ | 15.4 | 2.2 | % | |||||||
Impairment of Heritage tradenames and trademarks (c) | $ | — | $ | 75.0 | $ | (75.0 | ) | N.M. | |||||||
Operating income | $ | 346.0 | $ | 350.9 | $ | (4.9 | ) | (1.4 | )% | ||||||
Net income attributable to AmeriGas Partners | $ | 214.7 | $ | 221.8 | $ | (7.1 | ) | (3.2 | )% | ||||||
Non-GAAP financial measures (d): | |||||||||||||||
Adjusted total margin | $ | 1,246.5 | $ | 1,261.8 | $ | (15.3 | ) | (1.2 | )% | ||||||
EBITDA | $ | 476.6 | $ | 486.5 | $ | (9.9 | ) | (2.0 | )% | ||||||
Adjusted EBITDA | $ | 543.5 | $ | 570.8 | $ | (27.3 | ) | (4.8 | )% | ||||||
Adjusted operating income | $ | 413.5 | $ | 436.0 | $ | (22.5 | ) | (5.2 | )% | ||||||
Adjusted net income attributable to AmeriGas Partners | $ | 281.5 | $ | 306.1 | $ | (24.6 | ) | (8.0 | )% | ||||||
Heating degree days — % colder than normal (e) | 4.0 | % | 0.4 | % | — | — | |||||||||
(a) | Total margin represents total revenues less “Cost of sales — propane” and “Cost of sales — other.” Total margin for the 2019 and 2018 nine-month periods include the impact of net unrealized losses of $64.8 million and $10.1 million, respectively, on commodity derivative instruments not associated with current-period transactions. |
(b) | Operating and administrative expenses in the 2019 nine-month period include $2.7 million of expenses associated with the Proposed Merger and $5.0 million of expenses to correct vehicle lease expense associated with prior periods. |
(c) | The 2018 nine-month period includes the impact of a $75.0 million impairment charge associated with the plan to discontinue the use of certain tradenames and trademarks. |
(d) | These financial measures are non-GAAP financial measures and are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not a substitute for, the comparable GAAP measures. See section “Non-GAAP Financial Measures” above. |
(e) | Deviation from average heating degree days for the 15-year period 2002-2016 based upon national weather statistics provided by NOAA for 344 Geo Regions in the United States, excluding Alaska and Hawaii. |
31.2 | |||||
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31.1 | ||
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101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
AMERIGAS PARTNERS, L.P. | |||
(Registrant) | |||
By: | AmeriGas Propane, Inc. | ||
as General Partner | |||
Date: | August 6, 2019 | By: | /s/ Ann P. Kelly |
Ann P. Kelly | |||
Chief Financial Officer | |||
Date: | August 6, 2019 | By: | /s/ Craig M. Dadamo |
Craig M. Dadamo | |||
Controller and Chief Accounting Officer | |||
1. | I have reviewed this periodic report on Form 10-Q of AmeriGas Partners, L.P; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Hugh J. Gallagher |
Hugh J. Gallagher |
President and Chief Executive Officer of AmeriGas Propane, Inc. |
1. | I have reviewed this periodic report on Form 10-Q of AmeriGas Partners, L.P; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Ann P. Kelly |
Ann P. Kelly |
Chief Financial Officer |
(1) | The Company’s periodic report on Form 10-Q for the period ended June 30, 2019 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
CHIEF EXECUTIVE OFFICER | CHIEF FINANCIAL OFFICER | |||
/s/ Hugh J. Gallagher | /s/ Ann P. Kelly | |||
Hugh J. Gallagher | Ann P. Kelly | |||
Date: | August 6, 2019 | Date: | August 6, 2019 | |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Statement of Financial Position [Abstract] | |||
| Accounts receivable, allowances for doubtful accounts | $ 14,857 | $ 12,825 | $ 15,127 |
| Property, plant and equipment, accumulated depreciation and amortization | $ 1,217,159 | $ 1,151,726 | $ 1,162,119 |
| Common unitholders, units issued (in shares) | 92,999,704 | 92,977,072 | 92,977,072 |
Nature of Operations |
9 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Nature of Operations | Note 1 — Nature of Operations AmeriGas Partners is a publicly traded limited partnership that conducts a national propane distribution business through its principal operating subsidiary, AmeriGas OLP. AmeriGas Partners and AmeriGas OLP are Delaware limited partnerships. AmeriGas Partners, AmeriGas OLP and all of their subsidiaries are collectively referred to herein as the Partnership. AmeriGas OLP is engaged in the distribution of propane and related equipment and supplies. AmeriGas OLP comprises the largest retail propane distribution business in the United States serving residential, commercial, industrial, motor fuel and agricultural customers in all 50 states. At June 30, 2019, the General Partner, an indirect wholly owned subsidiary of UGI, held a 1% general partner interest in AmeriGas Partners and a 1.01% general partner interest in AmeriGas OLP. The General Partner also owns AmeriGas Partners Common Units. The remaining Common Units outstanding represents publicly held Common Units. AmeriGas Partners holds a 98.99% limited partner interest in AmeriGas OLP. AmeriGas Partners and AmeriGas OLP have no employees. Employees of the General Partner conduct, direct and manage our operations. The General Partner is reimbursed monthly for all direct and indirect expenses it incurs on our behalf (see Note 9). On April 1, 2019, we entered into the Merger Agreement, pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as an indirect, wholly owned subsidiary of UGI. If the Merger Agreement is consummated, UGI will obtain full ownership of AmeriGas Partners by acquiring all of the outstanding Common Units not already held by the General Partner. Consummation of the Merger Agreement is subject to customary conditions as well as the approval of a majority of the outstanding Common Units including the Common Units held by the General Partner. Upon completion of the Proposed Merger, Common Units will no longer be publicly traded. Subject to the satisfaction or waiver of certain conditions, including the approval of the Merger Agreement by AmeriGas Partners’ unitholders at the Special Meeting to be held on August 21, 2019, the Proposed Merger is expected to close in the fourth quarter of Fiscal 2019. See Note 10 for further information on the Proposed Merger.
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Summary of Significant Accounting Policies |
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| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the SEC. They include all adjustments which we consider necessary for a fair statement of the results for the interim periods presented. Such adjustments consist only of normal recurring items unless otherwise disclosed. The September 30, 2018, Condensed Consolidated Balance Sheet was derived from audited financial statements but does not include all footnote disclosures from the annual financial statements. These financial statements should be read in conjunction with the Partnership’s 2018 Annual Report. Weather significantly impacts demand for propane and profitability because many customers use propane for heating purposes. Due to the seasonal nature of the Partnership’s propane business, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. Principles of Consolidation. The consolidated financial statements include the accounts of AmeriGas Partners, its majority-owned subsidiary AmeriGas OLP, and its 100%-owned finance subsidiaries AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp., and AmeriGas Finance LLC. AmeriGas Partners and AmeriGas OLP are under the common control of the General Partner. The General Partner of AmeriGas OLP, which is also the General Partner of AmeriGas Partners, makes all decisions for AmeriGas OLP; limited partners of AmeriGas OLP do not have the ability to remove the General Partner or participate in the decision-making for AmeriGas OLP. The accounts of AmeriGas OLP are included based upon the determination that AmeriGas Partners has a controlling financial interest in and is the primary beneficiary of AmeriGas OLP. We eliminate intercompany accounts and transactions when we consolidate. Revenue Recognition. Effective October 1, 2018, the Partnership adopted ASU No. 2014-09, “Revenue from Contracts with Customers,” which, as amended, is included in ASC 606. This new accounting guidance supersedes previous revenue recognition requirements in ASC 605. ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Partnership adopted this new accounting guidance using the modified retrospective transition method to those contracts which were not completed as of October 1, 2018. Periods prior to October 1, 2018, have not been restated and continue to be reported in accordance with ASC 605. Upon adoption, there were no cumulative effect adjustments made to the October 1, 2018, partners’ capital balances. The adoption of ASC 606 did not, and is not expected to, have a material impact on the amount or timing of our revenue recognition and on our consolidated net income, cash flows or financial position. Certain revenues are not within the scope of ASC 606 such as revenue from leases, financial instruments, other revenues that are not from contracts with customers, and other contractual rights or obligations and we account for such revenues in accordance with other GAAP. Revenue-related taxes collected on behalf of customers and remitted to taxing authorities, principally sales and use taxes, are not included in revenues. The Partnership has elected to use the practical expedient to expense the costs to obtain contracts when incurred as such amounts are generally not material. See Note 4 for additional disclosures regarding the Partnership’s revenue from contracts with customers. Allocation of Net Income (Loss). Net income (loss) attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its IDRs under the Partnership Agreement. Income (Loss) Per Unit. Income (loss) per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income (loss) per unit for MLPs when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership). The following table sets forth reconciliations of the numerators and denominators of the basic and diluted income per limited partner unit computations:
There was no dilutive effect based upon the computation of income (loss) per limited partner unit in accordance with the two-class method for the three and nine months ended June 30, 2019 and 2018. Potentially dilutive Common Units included in the diluted limited partner units outstanding computation reflect the effects of restricted Common Unit awards granted under the General Partner’s incentive compensation plans. Derivative Instruments. Derivative instruments are reported on the Condensed Consolidated Balance Sheets at their fair values, unless the NPNS exception is elected. The accounting for changes in fair value depends upon the purpose of the derivative instrument and whether it qualifies and is designated as a hedge for accounting purposes. We do not currently have derivative instruments that are designated and qualify as cash flow hedges. Changes in the fair values of our commodity derivative instruments are reflected in “Cost of sales — propane” on the Condensed Consolidated Statements of Operations. Cash flows from commodity derivative instruments are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. For a more detailed description of the derivative instruments we use, our accounting for derivatives, our objectives for using them and other information, see Note 8. Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and costs. These estimates are based on management’s knowledge of current events, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may be different from these estimates and assumptions. Correction of Prior Period Errors. During the three and nine months ended June 30, 2019, the Partnership determined that it had not properly recorded expenses associated with certain vehicle lease arrangements. The Partnership evaluated the impact of the error on prior periods and determined that the effect was not material to the financial statements for the three and nine months ended June 30, 2019, or any prior period financial statements, and recorded the cumulative effect of the error in accounting for certain vehicle lease arrangements as of April 1, 2019. The correction of the error increased “Operating and administrative expenses” for the three months ended June 30, 2019, by $5,025 substantially all of which relates to periods prior to Fiscal 2019. |
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Accounting Changes |
9 Months Ended |
|---|---|
Jun. 30, 2019 | |
| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
| Accounting Changes | Note 3 — Accounting Changes New Accounting Standards Adopted Effective October 1, 2018 Revenue Recognition. Effective October 1, 2018, the Partnership adopted new accounting guidance regarding revenue recognition. See Notes 2 and 4 for a detailed description of the impact of the new guidance and related disclosures. Cloud Computing Implementation Costs. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The new guidance requires a customer in a cloud computing arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. These deferred implementation costs are expensed over the fixed, noncancelable term of the service arrangement plus any reasonably certain renewal periods. The new guidance also requires the entity to present the expense related to the capitalized implementation costs in the same income statement line as the hosting service fees; to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments for hosting service fees; and to present the capitalized implementation costs in the balance sheet in the same line item in which prepaid hosting service fees are presented. The new guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We adopted this ASU effective October 1, 2018, and applied the guidance prospectively to all implementation costs associated with cloud computing arrangements that are service contracts incurred beginning October 1, 2018. The adoption of the new guidance did not have a material impact on our results of operations for the three and nine months ended June 30, 2019. Accounting Standards Not Yet Adopted Fair Value Measurements Disclosures. In August 2018, the FASB issued ASU No. 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in this ASU are effective for annual periods beginning October 1, 2020 (Fiscal 2021). The guidance regarding removing and modifying disclosures will be adopted on a retrospective basis and the guidance regarding new disclosures will be adopted on a prospective basis. Early adoption is permitted. The Partnership expects to adopt the new guidance in the fourth quarter of Fiscal 2019. The adoption of the new guidance is not expected to have a material impact on the Partnership’s financial statements. Derivatives and Hedging. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The amendments in this ASU are effective for the Partnership for interim and annual periods beginning October 1, 2019 (Fiscal 2020). Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required prospectively. The Partnership expects to adopt the new guidance in the first quarter of Fiscal 2020. The adoption of the new guidance is not expected to have a material impact on the Partnership’s financial statements. Credit Losses. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU requires entities to estimate lifetime expected credit losses for financial instruments not measured at fair value through net income, including trade and other receivables, net investments in leases, financial receivables, debt securities, and other financial instruments, which may result in earlier recognition of credit losses. Further, the new current expected credit loss model may affect how entities estimate their allowance for loss for receivables that are current with respect to their payment terms. ASU 2016-13 is effective for the Partnership for interim and annual periods beginning October 1, 2020 (Fiscal 2021). Early adoption is permitted. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the period in which the new guidance will be adopted. Leases. In February 2016, the FASB issued ASU No. 2016-02, "Leases." This ASU, as subsequently updated, amends existing guidance to require entities that lease assets to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows from leases. The amendments in this ASU are effective for the Partnership for interim and annual periods beginning October 1, 2019 (Fiscal 2020). Early adoption is permitted. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements unless an entity chooses the transition option in ASU 2018-11, “Leases: Targeted Improvements” which, among other things, provides entities with a transition option to recognize the cumulative-effect adjustment from the modified retrospective application to the opening balance of retained earnings in the period of adoption. We will adopt ASU No. 2016-02, as updated, effective October 1, 2019 and expect to elect the transition option which would allow the Partnership to maintain historical presentation for periods before October 1, 2019. The Partnership has completed a preliminary assessment for evaluating the impact of the guidance and anticipates that its adoption will result in a significant amount of right-of-use assets and lease liabilities for leases in effect at the adoption date. The Partnership has begun implementation activities including accumulating contracts and lease data in formats compatible with a new lease management system that will assist with the initial adoption and future reporting required by the standard.
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Revenue From Contracts With Customers |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contracts with Customers | Note 4 — Revenue from Contracts with Customers We recognize revenue when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The Partnership generally has the right to consideration from a customer in an amount that corresponds directly with the value to the customer for our performance completed to date. As such, we elected to recognize revenue in the amount to which we have a right to invoice. We do not have a significant financing component in our contracts because we receive payment shortly before, at, or shortly after the transfer of control of the good or service. Because the period between the time the performance obligation is satisfied and payment received is one year or less, the Partnership has elected to apply the significant financing component practical expedient and no amount of consideration has been allocated as a financing component. The Partnership records revenue principally from the sale of propane to retail and wholesale customers. The primary performance obligation associated with the sale of propane is the delivery of propane to (1) the customer’s point of delivery for retail customers and (2) the customer’s specified location where propane is picked up by wholesale customers, at which point control of the propane is transferred to the customer, the performance obligation is satisfied, and the associated revenue is recognized. For contracts with retail customers that consume propane from a metered tank, the Partnership recognizes revenue as the propane is consumed, at which point we have the right to invoice, and generally invoice monthly based on consumption. Contracts with customers comprise different types of contracts with varying length terms, fixed or variable prices, and fixed or variable quantities. Contracts with our residential customers, which comprise a substantial number of our customer contracts, are generally one year or less. Customer contracts for the sale of propane include fixed-price, fixed-quantity contracts under which propane is provided to a customer at a fixed price and a fixed volume, and contracts that provide for the sale of propane at market prices at date of delivery with no fixed volumes. The Partnership offers contracts that permit customers to lock in a fixed price for their volumes for a fee and also provide customers with the option to pre-buy a fixed amount of propane at a fixed price. Amounts received under pre-buy arrangements are recorded as a contract liability when received and recorded as revenue when propane is delivered and control is transferred to the customer. Fees associated with fixed-price contracts are recorded as contract liabilities and recorded ratably over the contract period. The Partnership also distributes propane to customers in portable cylinders. Under certain contracts, filled cylinders are delivered, and control is transferred, to a reseller. In such instances, the reseller is our customer and we record revenue upon delivery to the reseller. Under other contracts, filled cylinders are delivered to a reseller, but the Partnership retains control of the cylinders. In such instances, we record revenue at the time the reseller transfers control of the cylinder to the customer. Certain retail propane customers receive credits which we account for as variable consideration. We estimate these credits based upon past practices and historical customer experience and we reduce our revenues recognized for these credits. Other revenues from contracts with customers are generated primarily from certain fees the Partnership charges associated with the delivery of propane including hazmat safety compliance, inspection, metering, installation, fuel recovery and certain other services. Revenues from fees are typically recorded when the propane is delivered to the customer or the associated service is completed. Other revenues from contracts with customers are also generated from the Partnership’s parts and service business. The performance obligations of this business include installation and repair services. The performance obligations under these contracts are satisfied, and revenue is recognized, as control of the product is transferred or the services are rendered. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers or cash receipts. Contract assets represent the Partnership’s right to consideration after the performance obligations have been satisfied when such right is conditioned on something other than the passage of time. Contract assets were not material at June 30, 2019. Substantially all of the Partnership’s receivables are unconditional rights to consideration and are included in “Accounts receivable” on the Condensed Consolidated Balance Sheets. Amounts billed are generally due within the following month. Contract liabilities arise when payment from a customer is received before the performance obligations have been satisfied and represent the Partnership’s obligations to transfer goods or services to a customer for which the Partnership has received consideration from the customer. The balances of contract liabilities were $54,836 and $93,393 at June 30, 2019 and October 1, 2018, respectively, and are included in “Customer deposits and advances” and “Other current liabilities” on the Condensed Consolidated Balance Sheets. Revenue recognized for the nine months ended June 30, 2019, from the amount included in contract liabilities at October 1, 2018 was $74,154. Revenue Disaggregation The following table presents our disaggregated revenues for the three and nine months ended June 30, 2019:
Remaining Performance Obligations The Partnership has elected to use practical expedients as allowed in ASC 606 to exclude disclosures related to the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of the end of the reporting period because these contracts have an initial expected term of one year or less or we have a right to bill the customer in an amount that corresponds directly with the value of services provided to the customer to date.
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Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | Note 5 — Goodwill and Intangible Assets The Partnership’s goodwill and intangible assets comprise the following:
Amortization expense of intangible assets was $9,840 and $10,388 for the three months ended June 30, 2019 and 2018, respectively. Amortization expense of intangible assets was $30,085 and $29,568 for the nine months ended June 30, 2019 and 2018, respectively. No amortization expense is included in cost of sales on the Condensed Consolidated Statements of Operations. The estimated aggregate amortization expense of intangible assets for the remainder of Fiscal 2019 and the next four fiscal years is as follows: remainder of Fiscal 2019 — $10,059; Fiscal 2020 — $39,152; Fiscal 2021 — $35,914; Fiscal 2022 — $32,963; Fiscal 2023 — $31,627. In April 2018, a plan to discontinue the use of indefinite-lived tradenames and trademarks, primarily those associated with the Partnership’s January 2012 acquisition of Heritage Propane, was presented to the Partnership’s senior management. After considering the merits of the plan, the Partnership’s senior management approved a plan to discontinue the use of these tradenames and trademarks over a period of approximately three years. As a result, during the three months ended June 30, 2018, the Partnership determined that these tradenames and trademarks no longer had indefinite lives and, in accordance with GAAP associated with intangible assets, adjusted the carrying amounts of these tradenames and trademarks to their estimated fair values of approximately $7,944. During the three months ended June 30, 2018, the Partnership recorded a non-cash impairment charge of $75,000, which amount is reflected in “Impairment of tradenames and trademarks” on the Condensed Consolidated Statements of Operations, and is amortizing the remaining fair value of these tradenames and trademarks of $7,944 over their estimated period of benefit of three years.
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Commitments and Contingencies |
9 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Note 6 — Commitments and Contingencies Contingencies Saranac Lake Environmental Matter. In 2008, the NYDEC notified AmeriGas OLP that the NYDEC had placed property purportedly owned by AmeriGas OLP in Saranac Lake, New York on the New York State Registry of Inactive Hazardous Waste Disposal Sites. A site characterization study performed by the NYDEC disclosed contamination related to a former MGP. AmeriGas OLP responded to the NYDEC in 2009 to dispute the contention it was a PRP as it did not operate the MGP and appeared to only own a portion of the site. In 2017, the NYDEC communicated to AmeriGas OLP that the NYDEC had previously issued three RODs related to remediation of the site totaling approximately $27,700 and requested additional information regarding AmeriGas OLP’s purported ownership. AmeriGas renewed its challenge to designation as a PRP and identified potential defenses. The NYDEC subsequently identified a third party PRP with respect to the site. The NYDEC commenced implementation of the remediation plan in the spring of 2018. Based on our evaluation of the available information, the Partnership accrued an undiscounted environmental remediation liability of $7,545 related to the site during the third quarter of Fiscal 2017. Our share of the actual remediation costs could be significantly more or less than the accrued amount. Purported Class Action Lawsuits. Between May and October of 2014, purported class action lawsuits were filed in multiple jurisdictions against the Partnership/UGI and a competitor by certain of their direct and indirect customers. The class action lawsuits allege, among other things, that the Partnership and its competitor colluded, beginning in 2008, to reduce the fill level of portable propane cylinders from 17 pounds to 15 pounds and combined to persuade their common customer, Walmart Stores, Inc., to accept that fill reduction, resulting in increased cylinder costs to retailers and end-user customers in violation of federal and certain state antitrust laws. The claims seek treble damages, injunctive relief, attorneys’ fees and costs on behalf of the putative classes. On October 16, 2014, the United States Judicial Panel on Multidistrict Litigation transferred all of these purported class action cases to the Western Missouri District Court. As the result of rulings on a series of procedural filings, including petitions filed with the Eighth Circuit and the U.S. Supreme Court, both the federal and state law claims of the direct customer plaintiffs and the state law claims of the indirect customer plaintiffs were remanded to the Western Missouri District Court. The decision of the Western Missouri District Court to dismiss the federal antitrust claims of the indirect customer plaintiffs was upheld by the Eighth Circuit. On April 15, 2019, the Western Missouri District Court ruled that it has jurisdiction over the indirect purchasers’ state law claims and that the indirect customer plaintiffs have standing to pursue those claims. Although we cannot predict the final results of these pending claims and legal actions, we believe, after consultation with counsel, that the final outcome of these matters will not have a material effect on our financial statements. Proposed Merger Lawsuits. In connection with the Proposed Merger (see Note 10), on June 5, 2019, a single AmeriGas Partners unitholder filed a class action complaint in the United States District Court for the District of Delaware. On July 9, 2019, a second AmeriGas Partners unitholder filed a complaint in the United States District Court for the Eastern District of Pennsylvania. The complaints generally allege that the May 6, 2019 registration statement filed with the SEC in connection with the Proposed Merger included materially incomplete and/or misleading information in violation of the federal securities laws. The complaints request, among other things, that the respective courts enjoin the parties from proceeding with the Proposed Merger or rescind the Proposed Merger if it does close. Both plaintiffs seek an award of attorneys’ fees and costs. AmeriGas Partners has not yet answered or responded to the complaints. Although we cannot predict the final results of these pending claims and legal actions, we believe, after consultation with counsel, that the final outcome of these matters will not have a material effect on our financial statements. In addition to the matters described above, there are other pending claims and legal actions arising in the normal course of our businesses. Although we cannot predict the final results of these pending claims and legal actions, we believe, after consultation with counsel, that the final outcome of these matters will not have a material effect on our financial statements.
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Note 7 — Fair Value Measurements Recurring Fair Value Measurements - Derivative Instruments The following table presents, on a gross basis, our derivative assets and liabilities, including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy:
The fair values of our non-exchange traded commodity derivative contracts included in Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. Other Financial Instruments The carrying amounts of other financial instruments included in current assets and current liabilities (except for current maturities of long-term debt) approximate their fair values because of their short-term nature. We estimate the fair value of long-term debt by using current market rates and by discounting future cash flows using rates available for similar type debt (Level 2). The carrying amount and estimated fair value of our long-term debt (including current maturities but excluding unamortized debt issuance costs) at June 30, 2019, September 30, 2018 and June 30, 2018 were as follows:
Financial instruments other than derivative instruments, such as short-term investments and trade accounts receivable, could expose us to concentrations of credit risk. We limit credit risk from short-term investments by investing only in investment-grade commercial paper, money market mutual funds, securities guaranteed by the U.S. Government or its agencies and FDIC insured bank deposits. The credit risk arising from concentrations of trade accounts receivable is limited because we have a large customer base that extends across many different U.S. markets.
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Derivative Instruments and Hedging Activities |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities | Note 8 — Derivative Instruments and Hedging Activities The Partnership is exposed to certain market risks associated with its ongoing business operations. Management uses derivative financial and commodity instruments, among other things, to manage these risks. The primary risk managed by derivative instruments is commodity price risk. Although we use derivative financial and commodity instruments to reduce market risk associated with forecasted transactions, we do not use derivative financial and commodity instruments for speculative or trading purposes. The use of derivative instruments is controlled by our risk management and credit policies which govern, among other things, the derivative instruments the Partnership can use, counterparty credit limits and contract authorization limits. Although our commodity derivative instruments extend over a number of years, a significant portion of our commodity derivative instruments economically hedge commodity price risk during the next twelve months. Commodity Price Risk In order to manage market risk associated with the Partnership’s fixed-price programs, the Partnership uses over-the-counter derivative commodity instruments, principally price swap contracts, to reduce propane price volatility associated with a portion of forecasted propane purchases. In addition, the Partnership from time to time enters into price swap agreements to reduce the effects of short term commodity price volatility. At June 30, 2019, September 30, 2018 and June 30, 2018, total volumes associated with propane commodity derivatives totaled 399.5 million gallons, 244.8 million gallons and 226.6 million gallons, respectively. At June 30, 2019, the maximum period over which we are economically hedging propane market price risk is 27 months. Derivative Instruments Credit Risk The Partnership is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Our counterparties principally comprise major energy companies and major U.S. financial institutions. We maintain credit policies with regard to our counterparties that we believe reduce overall credit risk. These policies include evaluating and monitoring our counterparties’ financial condition, including their credit ratings, and entering into agreements with counterparties that govern credit limits. Certain of these agreements call for the posting of collateral by the counterparty or by the Partnership in the forms of letters of credit, parental guarantees or cash. Although we have concentrations of credit risk associated with derivative instruments held by certain derivative instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative instruments, we would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was not material at June 30, 2019. Certain of our derivative contracts have credit-risk-related contingent features that may require the posting of additional collateral in the event of a downgrade in the Partnership’s debt rating. At June 30, 2019, if the credit-risk-related contingent features were triggered, the amount of collateral required to be posted would not be material. Offsetting Derivative Assets and Liabilities Derivative assets and liabilities are presented net by counterparty on the Consolidated Balance Sheets if the right of offset exists. Our derivative instruments comprise over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of offset through master netting arrangements and contract default provisions. In addition, the contracts are subject to conditional rights of offset through counterparty nonperformance, insolvency, or other conditions. In general, most of our over-the-counter transactions are subject to collateral requirements. Types of collateral generally include cash or letters of credit. Cash collateral paid by us to our over-the-counter derivative counterparties, if any, is reflected in the table below to offset derivative liabilities. Cash collateral received by us from our over-the-counter derivative counterparties, if any, is reflected in the table below to offset derivative assets. Certain other accounts receivable and accounts payable balances recognized on the Consolidated Balance Sheets with our derivative counterparties are not included in the table below but could reduce our net exposure to such counterparties because such balances are subject to master netting or similar arrangements. Fair Value of Derivative Instruments The following table presents our derivative assets and liabilities by type, as well as the effects of offsetting:
Effects of Derivative Instruments The following table provides information on the effects of derivative instruments on the Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2019 and 2018:
We are also a party to a number of contracts that have elements of a derivative instrument. These contracts include, among others, binding purchase orders, contracts that provide for the purchase and delivery of propane and service contracts that require the counterparty to provide commodity storage or transportation service to meet our normal sales commitments. Although certain of these contracts have the requisite elements of a derivative instrument, these contracts qualify for NPNS accounting under GAAP because they provide for the delivery of products or services in quantities that are expected to be used in the normal course of operating our business and the price in the contract is based on an underlying that is directly associated with the price of the product or service being purchased or sold.
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Related Party Transactions |
9 Months Ended |
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Jun. 30, 2019 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 9 — Related Party Transactions Pursuant to the Partnership Agreement and a management services agreement, the General Partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of the Partnership. These costs, which totaled $137,069 and $134,986 for the three months ended June 30, 2019 and 2018, respectively, and $446,034 and $439,386 for the nine months ended June 30, 2019 and 2018, respectively, include employee compensation and benefit expenses of employees of the General Partner and general and administrative expenses. UGI provides certain financial and administrative services to the General Partner. UGI bills the General Partner monthly for all direct and indirect corporate expenses incurred in connection with providing these services and the General Partner is reimbursed by the Partnership for these expenses. The allocation of indirect UGI corporate expenses to the Partnership utilizes a weighted, three-component formula based on the relative percentage of the Partnership’s revenues, operating expenses and net assets employed to the total of such items for all UGI operating subsidiaries for which general and administrative services are provided. The General Partner believes that this allocation method is reasonable and equitable to the Partnership. Such corporate expenses totaled $3,493 and $4,979 for the three months ended June 30, 2019 and 2018, respectively, and $12,473 and $12,997 for the nine months ended June 30, 2019 and 2018, respectively. In addition, UGI and certain of its subsidiaries provide office space, stop loss medical coverage and automobile liability insurance to the Partnership. The costs incurred related to these items during the three and nine months ended June 30, 2019 and 2018, were not material. From time to time, AmeriGas OLP purchases propane on an as needed basis from Energy Services. The price of the purchases is generally based on market price at the time of purchase. Purchases of propane by AmeriGas OLP from Energy Services during the three and nine months ended June 30, 2019 and 2018 were not material. In addition, the AmeriGas OLP sells propane to affiliates of UGI. Sales of propane to affiliates of UGI during three and nine months ended June 30, 2019 and 2018 were not material. UGI Standby Commitment to Purchase AmeriGas Partners Class B Common Units On November 7, 2017, AmeriGas Partners entered into a Standby Equity Commitment Agreement with the General Partner and UGI. Under the terms of the Standby Equity Commitment Agreement, upon the request of AmeriGas Partners from time to time, in each instance only with prior approval by the General Partner Audit Committee, which would be made in its sole and absolute discretion, UGI committed to make up to $225,000 of capital contributions to the Partnership through July 1, 2019. Under the terms of the Commitment Agreement, the last date on which AmeriGas Partners could have requested a capital contribution, without the consent of UGI, was May 17, 2019. AmeriGas Partners did not request, and UGI did not make, any capital contributions under the Commitment Agreement and the agreement has now terminated in accordance with its terms.
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Proposed Merger |
9 Months Ended |
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Jun. 30, 2019 | |
| Business Combinations [Abstract] | |
| Proposed Merger | Note 10 — Proposed Merger On April 1, 2019, we entered into the Merger Agreement, pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as an indirect, wholly owned subsidiary of UGI. Under the terms of the Merger Agreement, at the effective time of the Proposed Merger, each outstanding Common Unit other than Common Units owned by UGI and its subsidiaries, including the General Partner, will be converted into the right to receive, at the election of each holder of such Common Units, one of the following forms of merger consideration: (i)0.6378 shares of UGI common stock; (ii)$7.63 in cash, without interest, and 0.500 shares of UGI common stock; or (iii)$35.325 in cash, without interest. The merger consideration is subject to proration designed to ensure that the total number of shares of UGI common stock issuable as merger consideration will equal approximately 34.6 million shares, and the amount of cash consideration paid will equal approximately $530,000. Also, at the effective time of the Proposed Merger, the General Partner’s 1% economic general partner interest in AmeriGas Partners, which includes its incentive distribution rights, will convert into (i) 10,615,711 Common Units, which will remain outstanding as partnership interests in AmeriGas Partners, and (ii) a non-economic general partner interest in AmeriGas Partners. Pursuant to the Merger Agreement, until such time as the Proposed Merger becomes effective, the General Partner will continue to declare and cause to be paid regular quarterly cash distributions on outstanding Common Units in accordance with the Partnership Agreement in an amount that will not be less than $0.95 per Common Unit. In addition, the Merger Agreement requires that the record date for the quarterly cash distribution related to the quarter immediately prior to the quarter in which the closing of the Proposed Merger occurs be designated so that such record date precedes the closing of the Proposed Merger so as to permit the payment of such quarterly distribution to the holders of the Common Units; provided that the AmeriGas Partners’ unitholders are not intended to receive, for any quarter, distributions both in respect of Common Units and also dividends in respect of shares of UGI common stock that they receive in exchange for such Common Units in the transaction. Completion of the Proposed Merger is subject to certain customary conditions, including, among others: (i) approval of the Merger Agreement by holders of a majority of the outstanding Common Units; (ii) there being no law or injunction prohibiting consummation of the transactions contemplated under the Merger Agreement; (iii) the effectiveness of a registration statement on Form S-4 relating to the issuance of shares of UGI common stock pursuant to the Merger Agreement; (iv) approval for listing on the New York Stock Exchange of the shares of UGI common stock issuable pursuant to the Merger Agreement; (v) subject to specified materiality standards, the accuracy of certain representations and warranties of the other party; and (vi) compliance by the respective parties in all material respects with their respective covenants. UGI’s registration statement on Form S-4 relating to the Proposed Merger became effective July 12, 2019. Pursuant to a Support Agreement, the General Partner has agreed to vote all Partnership Common Units that it or its affiliates beneficially own as of the record date of the Special Meeting in favor of the Merger Agreement and the Proposed Merger. The Merger Agreement provides for certain termination rights for both UGI and the Partnership which, under certain circumstances, would require the Partnership to pay UGI a termination fee of $20,000 and/or reimburse UGI for expenses in an amount not to exceed $5,000 or require UGI to reimburse the Partnership for expenses not to exceed $5,000. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Jun. 30, 2019 | |
| Accounting Policies [Abstract] | |
| Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of AmeriGas Partners, its majority-owned subsidiary AmeriGas OLP, and its 100%-owned finance subsidiaries AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp., and AmeriGas Finance LLC. AmeriGas Partners and AmeriGas OLP are under the common control of the General Partner. The General Partner of AmeriGas OLP, which is also the General Partner of AmeriGas Partners, makes all decisions for AmeriGas OLP; limited partners of AmeriGas OLP do not have the ability to remove the General Partner or participate in the decision-making for AmeriGas OLP. The accounts of AmeriGas OLP are included based upon the determination that AmeriGas Partners has a controlling financial interest in and is the primary beneficiary of AmeriGas OLP. We eliminate intercompany accounts and transactions when we consolidate.
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| Revenue Recognition | Revenue Recognition. Effective October 1, 2018, the Partnership adopted ASU No. 2014-09, “Revenue from Contracts with Customers,” which, as amended, is included in ASC 606. This new accounting guidance supersedes previous revenue recognition requirements in ASC 605. ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Partnership adopted this new accounting guidance using the modified retrospective transition method to those contracts which were not completed as of October 1, 2018. Periods prior to October 1, 2018, have not been restated and continue to be reported in accordance with ASC 605. Upon adoption, there were no cumulative effect adjustments made to the October 1, 2018, partners’ capital balances. The adoption of ASC 606 did not, and is not expected to, have a material impact on the amount or timing of our revenue recognition and on our consolidated net income, cash flows or financial position. Certain revenues are not within the scope of ASC 606 such as revenue from leases, financial instruments, other revenues that are not from contracts with customers, and other contractual rights or obligations and we account for such revenues in accordance with other GAAP. Revenue-related taxes collected on behalf of customers and remitted to taxing authorities, principally sales and use taxes, are not included in revenues. The Partnership has elected to use the practical expedient to expense the costs to obtain contracts when incurred as such amounts are generally not material.
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| Allocation of Net Income (Loss) | Allocation of Net Income (Loss). Net income (loss) attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its IDRs under the Partnership Agreement.
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| Income (Loss) Per Unit | Income (Loss) Per Unit. Income (loss) per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income (loss) per unit for MLPs when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership). |
| Derivative Instruments | Derivative Instruments. Derivative instruments are reported on the Condensed Consolidated Balance Sheets at their fair values, unless the NPNS exception is elected. The accounting for changes in fair value depends upon the purpose of the derivative instrument and whether it qualifies and is designated as a hedge for accounting purposes. We do not currently have derivative instruments that are designated and qualify as cash flow hedges. Changes in the fair values of our commodity derivative instruments are reflected in “Cost of sales — propane” on the Condensed Consolidated Statements of Operations. Cash flows from commodity derivative instruments are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.
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| Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and costs. These estimates are based on management’s knowledge of current events, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may be different from these estimates and assumptions.
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| Reclassifications | Reclassifications. Certain prior-period amounts have been reclassified to conform to the current-period presentation. |
| New Accounting Standards Adopted Effective October 1, 2018 and Accounting Standards Not Yet Adopted | New Accounting Standards Adopted Effective October 1, 2018 Revenue Recognition. Effective October 1, 2018, the Partnership adopted new accounting guidance regarding revenue recognition. See Notes 2 and 4 for a detailed description of the impact of the new guidance and related disclosures. Cloud Computing Implementation Costs. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The new guidance requires a customer in a cloud computing arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. These deferred implementation costs are expensed over the fixed, noncancelable term of the service arrangement plus any reasonably certain renewal periods. The new guidance also requires the entity to present the expense related to the capitalized implementation costs in the same income statement line as the hosting service fees; to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments for hosting service fees; and to present the capitalized implementation costs in the balance sheet in the same line item in which prepaid hosting service fees are presented. The new guidance can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We adopted this ASU effective October 1, 2018, and applied the guidance prospectively to all implementation costs associated with cloud computing arrangements that are service contracts incurred beginning October 1, 2018. The adoption of the new guidance did not have a material impact on our results of operations for the three and nine months ended June 30, 2019. Accounting Standards Not Yet Adopted Fair Value Measurements Disclosures. In August 2018, the FASB issued ASU No. 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in this ASU are effective for annual periods beginning October 1, 2020 (Fiscal 2021). The guidance regarding removing and modifying disclosures will be adopted on a retrospective basis and the guidance regarding new disclosures will be adopted on a prospective basis. Early adoption is permitted. The Partnership expects to adopt the new guidance in the fourth quarter of Fiscal 2019. The adoption of the new guidance is not expected to have a material impact on the Partnership’s financial statements. Derivatives and Hedging. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The amendments in this ASU are effective for the Partnership for interim and annual periods beginning October 1, 2019 (Fiscal 2020). Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required prospectively. The Partnership expects to adopt the new guidance in the first quarter of Fiscal 2020. The adoption of the new guidance is not expected to have a material impact on the Partnership’s financial statements. Credit Losses. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU requires entities to estimate lifetime expected credit losses for financial instruments not measured at fair value through net income, including trade and other receivables, net investments in leases, financial receivables, debt securities, and other financial instruments, which may result in earlier recognition of credit losses. Further, the new current expected credit loss model may affect how entities estimate their allowance for loss for receivables that are current with respect to their payment terms. ASU 2016-13 is effective for the Partnership for interim and annual periods beginning October 1, 2020 (Fiscal 2021). Early adoption is permitted. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the period in which the new guidance will be adopted. Leases. In February 2016, the FASB issued ASU No. 2016-02, "Leases." This ASU, as subsequently updated, amends existing guidance to require entities that lease assets to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows from leases. The amendments in this ASU are effective for the Partnership for interim and annual periods beginning October 1, 2019 (Fiscal 2020). Early adoption is permitted. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements unless an entity chooses the transition option in ASU 2018-11, “Leases: Targeted Improvements” which, among other things, provides entities with a transition option to recognize the cumulative-effect adjustment from the modified retrospective application to the opening balance of retained earnings in the period of adoption. We will adopt ASU No. 2016-02, as updated, effective October 1, 2019 and expect to elect the transition option which would allow the Partnership to maintain historical presentation for periods before October 1, 2019. The Partnership has completed a preliminary assessment for evaluating the impact of the guidance and anticipates that its adoption will result in a significant amount of right-of-use assets and lease liabilities for leases in effect at the adoption date. The Partnership has begun implementation activities including accumulating contracts and lease data in formats compatible with a new lease management system that will assist with the initial adoption and future reporting required by the standard.
|
Summary of Significant Accounting Policies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income Per Limited Partner Unit | The following table sets forth reconciliations of the numerators and denominators of the basic and diluted income per limited partner unit computations:
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Revenue From Contracts With Customers (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | The following table presents our disaggregated revenues for the three and nine months ended June 30, 2019:
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Goodwill and Intangible Assets | The Partnership’s goodwill and intangible assets comprise the following:
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Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Assets and Financial Liabilities at Fair Value on a Recurring Basis | The following table presents, on a gross basis, our derivative assets and liabilities, including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy:
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| Carrying Amount and Estimated Fair Value of Long-term Debt | The carrying amount and estimated fair value of our long-term debt (including current maturities but excluding unamortized debt issuance costs) at June 30, 2019, September 30, 2018 and June 30, 2018 were as follows:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Fair Value of Derivative Assets and Liabilities | The following table presents our derivative assets and liabilities by type, as well as the effects of offsetting:
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| Components of Derivative Instruments Gain (Loss) In Statement of Operations | The following table provides information on the effects of derivative instruments on the Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2019 and 2018:
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Summary of Significant Accounting Policies - Principles of Consolidation (Details) |
Jun. 30, 2019 |
|---|---|
| AmeriGas Finance Corp., AP Eagle Finance Corp, AmeriGas Finance LLC, And AmeriGas Eagle Finance Corp | |
| Investment | |
| Ownership interest percentage | 100.00% |
Summary of Significant Accounting Policies - Allocation of Net Income (Loss) (Details) |
9 Months Ended |
|---|---|
Jun. 30, 2019 | |
| AmeriGas Propane Inc Partnership Interest in AmeriGas Partners | |
| Investment | |
| General partners ownership interest (as a percent) | 1.00% |
Summary of Significant Accounting Policies - Schedule of Income Per Limited Partner Unit (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Accounting Policies [Abstract] | ||||
| Net (loss) income attributable to AmeriGas Partners, L.P. | $ (48,957) | $ (74,396) | $ 214,663 | $ 221,849 |
| Adjust for general partner share and theoretical distributions of net (loss) income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs | (10,844) | (10,587) | (36,170) | (36,215) |
| Common Unitholders’ interest in net (loss) income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs | $ (59,801) | $ (84,983) | $ 178,493 | $ 185,634 |
| Weighted average Common Units outstanding—basic (in shares) | 93,098 | 93,042 | 93,077 | 93,031 |
| Potentially dilutive Common Units (in shares) | 0 | 0 | 44 | 51 |
| Weighted average Common Units outstanding—diluted (in shares) | 93,098 | 93,042 | 93,121 | 93,082 |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
| Operating and administrative expenses | $ 234,429 | $ 222,358 | $ 719,497 | $ 704,146 |
| Dilutive effect of theoretical distributions of net income on earnings (in usd per share) | $ 0 | $ 0 | $ 0 | $ 0 |
| Lease Arrangement Expense Correction | ||||
| Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
| Operating and administrative expenses | $ 5,025 | |||
Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Oct. 01, 2018 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Revenue, performance obligation, description of timing | one year or less | |
| Contract with customer, liability | $ 54,836 | $ 93,393 |
| Contract with customer, liability, revenue recognized | $ 74,154 |
Revenue From Contracts With Customers - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | $ 462,837 | $ 2,223,340 | ||
| Other revenues | 15,897 | 47,198 | ||
| Revenues | 478,734 | $ 528,403 | 2,270,538 | $ 2,356,031 |
| Retail | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 405,817 | 2,002,361 | ||
| Wholesale | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 8,785 | 55,034 | ||
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenues | 48,235 | 165,945 | ||
| Other revenues | $ 64,132 | $ 66,528 | $ 213,143 | $ 214,903 |
Goodwill and Intangible Assets - Components of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |||
| Goodwill (not subject to amortization) | $ 2,003,671 | $ 2,003,671 | $ 2,006,139 |
| Intangible assets, net (definite-lived): | |||
| Customer relationships and noncompete agreements | 496,901 | 497,373 | 499,579 |
| Trademarks and tradenames | 7,944 | 7,944 | 7,944 |
| Accumulated amortization | (255,322) | (225,709) | (217,500) |
| Intangible assets, net (definite-lived) | $ 249,523 | $ 279,608 | $ 290,023 |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Sep. 30, 2018 |
|
| Finite-Lived Intangible Assets | |||||
| Amortization of intangible assets | $ 9,840,000 | $ 10,388,000 | $ 30,085,000 | $ 29,568,000 | |
| Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||||
| Remainder fiscal 2019 | 10,059,000 | 10,059,000 | |||
| Fiscal 2020 | 39,152,000 | 39,152,000 | |||
| Fiscal 2021 | 35,914,000 | 35,914,000 | |||
| Fiscal 2022 | 32,963,000 | 32,963,000 | |||
| Fiscal 2023 | 31,627,000 | 31,627,000 | |||
| Trademarks and tradenames | 7,944,000 | 7,944,000 | 7,944,000 | 7,944,000 | $ 7,944,000 |
| Impairment of tradenames and trademarks | 0 | 75,000,000 | 0 | 75,000,000 | |
| Cost of Sales | |||||
| Finite-Lived Intangible Assets | |||||
| Amortization of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | |
| Trademarks and Trade Names | |||||
| Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||||
| Useful life | 3 years | ||||
Commitments and Contingencies (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |
|---|---|---|---|
|
Jun. 30, 2019
lb
|
Sep. 30, 2017
USD ($)
record_of_decision
|
Jun. 30, 2017
USD ($)
|
|
| FTC Cylinder Investigation | |||
| Loss Contingencies | |||
| Amount of propane in cylinders before reduction (in pounds) | lb | 17 | ||
| Amount of propane in cylinders after reduction (in pounds) | lb | 15 | ||
| AmeriGas OLP | DEC Remediation Plan | Saranac Lake, New York | |||
| Loss Contingencies | |||
| Number of RODS | record_of_decision | 3 | ||
| Estimated remediation plan cost | $ | $ 27,700 | ||
| Liability accrued for potential remediation costs | $ | $ 7,545 |
Fair Value Measurements - Financial Assets and Financial Liabilities at Fair Value On a Recurring Basis (Details) - Fair Value, Measurements, Recurring - Propane Contracts - USD ($) $ in Thousands |
Jun. 30, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Assets: | |||
| Commodity contracts | $ 7,428 | $ 52,529 | $ 30,086 |
| Liabilities: | |||
| Commodity contracts | (19,995) | (251) | (420) |
| Level 1 | |||
| Assets: | |||
| Commodity contracts | 0 | 0 | 0 |
| Liabilities: | |||
| Commodity contracts | 0 | 0 | 0 |
| Level 2 | |||
| Assets: | |||
| Commodity contracts | 7,428 | 52,529 | 30,086 |
| Liabilities: | |||
| Commodity contracts | (19,995) | (251) | (420) |
| Level 3 | |||
| Assets: | |||
| Commodity contracts | 0 | 0 | 0 |
| Liabilities: | |||
| Commodity contracts | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
|---|---|---|---|
| Carrying amount | |||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
| Long-term debt | $ 2,593,504 | $ 2,597,131 | $ 2,602,827 |
| Estimated fair value | |||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
| Long-term debt | $ 2,724,645 | $ 2,562,206 | $ 2,519,411 |
Derivative Instruments and Hedging Activities - Narrative (Details) - gal gal in Millions |
9 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Sep. 30, 2018 |
Jun. 30, 2018 |
|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
| Volume of commodity derivative (in gallons) | 399.5 | 244.8 | 226.6 |
| Maximum period of price risk cash flow hedging (in months) | 27 months |
Derivative Instruments and Hedging Activities - Components of Derivative Instruments Gain Loss in Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
| Not Designated as Hedging Instrument | Commodity contracts | Cost of sales — propane | ||||
| Derivative Instruments, Gain (Loss) | ||||
| Gain (Loss) Recognized in Income | $ (13,466) | $ 28,545 | $ (91,971) | $ 30,544 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 20 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jul. 01, 2019 |
|
| General Partner | Reimbursed Expenses or Payments | |||||
| Related Party Transaction | |||||
| Related party costs and expenses | $ 137,069 | $ 134,986 | $ 446,034 | $ 439,386 | |
| General Partner | UGI Corp | General and Administrative Services | |||||
| Related Party Transaction | |||||
| Related party costs and expenses | 3,493 | 4,979 | 12,473 | 12,997 | |
| General Partner | UGI Corp | UGI Corp Office Insurance Reimbursement | |||||
| Related Party Transaction | |||||
| Related party costs and expenses | 0 | 0 | 0 | $ 0 | |
| Affiliated Entity | Energy Services | Propane Purchases | |||||
| Related Party Transaction | |||||
| Related party costs and expenses | $ 0 | $ 0 | $ 0 | ||
| Forecast | |||||
| Related Party Transaction | |||||
| General Partner contribution to AmeriGas Propane, L.P. | $ 225,000 | ||||