Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-11071 | |
Entity Registrant Name | UGI CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2668356 | |
Entity Address, Address Line One | 460 North Gulph Road | |
Entity Address, City or Town | King of Prussia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19406 | |
City Area Code | 610 | |
Local Phone Number | 337-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 209,993,488 | |
Entity Central Index Key | 0000884614 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock, without par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | UGI | |
Security Exchange Name | NYSE | |
Corporate Units | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Corporate Units | |
Trading Symbol | UGIC | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 718 | $ 855 | $ 444 |
Restricted cash | 55 | 22 | 28 |
Accounts receivable (less allowances for doubtful accounts of $70, $53 and $52, respectively) | 1,690 | 880 | 1,183 |
Accrued utility revenues | 77 | 15 | 32 |
Income taxes receivable | 128 | 128 | 127 |
Inventories | 398 | 469 | 268 |
Derivative instruments | 877 | 665 | 127 |
Prepaid expenses and other current assets | 211 | 236 | 175 |
Total current assets | 4,154 | 3,270 | 2,384 |
Property, plant and equipment, (less accumulated depreciation of $4,117, $3,950 and $3,869, respectively) | 7,812 | 7,558 | 7,020 |
Goodwill | 3,722 | 3,770 | 3,524 |
Intangible assets, net | 545 | 583 | 640 |
Utility regulatory assets | 372 | 373 | 392 |
Derivative instruments | 340 | 338 | 61 |
Other assets | 832 | 831 | 924 |
Total assets | 17,777 | 16,723 | 14,945 |
Current liabilities: | |||
Current maturities of long-term debt | 130 | 110 | 51 |
Short-term borrowings | 447 | 367 | 340 |
Accounts payable | 915 | 837 | 627 |
Derivative instruments | 69 | 60 | 42 |
Other current liabilities | 938 | 923 | 832 |
Total current liabilities | 2,499 | 2,297 | 1,892 |
Long-term debt | 6,390 | 6,339 | 5,953 |
Deferred income taxes | 1,306 | 1,137 | 833 |
Derivative instruments | 40 | 38 | 46 |
Other noncurrent liabilities | 1,332 | 1,381 | 1,393 |
Total liabilities | 11,567 | 11,192 | 10,117 |
Commitments and contingencies (Note 9) | |||
UGI Corporation stockholders’ equity: | |||
Preferred stock, without par value (authorized – 5,000,000 shares; issued – 220,000, 220,000 and 0 Series A shares, respectively) | 161 | 213 | 0 |
UGI Common Stock, without par value (authorized — 450,000,000 shares; issued — 210,127,957, 209,843,296 and 209,636,619 shares, respectively) | 1,465 | 1,394 | 1,428 |
Retained earnings | 4,757 | 4,081 | 3,557 |
Accumulated other comprehensive loss | (178) | (140) | (126) |
Treasury stock, at cost | (5) | (26) | (40) |
Total UGI Corporation stockholders’ equity | 6,200 | 5,522 | 4,819 |
Noncontrolling interests | 10 | 9 | 9 |
Total equity | 6,210 | 5,531 | 4,828 |
Total liabilities and equity | $ 17,777 | $ 16,723 | $ 14,945 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 70 | $ 53 | $ 52 |
Accumulated depreciation | $ 4,117 | $ 3,950 | $ 3,869 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued (in shares) | 220,000 | 220,000 | 0 |
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | 450,000,000 |
Common Stock, shares issued (in shares) | 210,127,957 | 209,843,296 | 209,636,619 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,466 | $ 2,581 | $ 6,139 | $ 4,513 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization shown below) | 1,470 | 1,274 | 3,590 | 2,107 |
Operating and administrative expenses | 553 | 515 | 1,067 | 1,004 |
Depreciation and amortization | 128 | 126 | 257 | 250 |
Other operating income, net | (17) | (5) | (39) | (21) |
Costs and expenses | 2,134 | 1,910 | 4,875 | 3,340 |
Operating income | 1,332 | 671 | 1,264 | 1,173 |
Income from equity investees | 5 | 10 | 13 | 17 |
Loss on extinguishment of debt | 0 | 0 | (11) | 0 |
Other non-operating income (expense), net | 11 | 18 | 21 | (1) |
Interest expense | (82) | (78) | (163) | (156) |
Income before income taxes | 1,266 | 621 | 1,124 | 1,033 |
Income tax expense | (332) | (132) | (286) | (241) |
Net income including noncontrolling interests | 934 | 489 | 838 | 792 |
Deduct net income attributable to noncontrolling interests | (1) | 0 | (2) | 0 |
Net income attributable to UGI Corporation | $ 933 | $ 489 | $ 836 | $ 792 |
Earnings per common share attributable to UGI Corporation stockholders: | ||||
Basic (in USD per share) | $ 4.44 | $ 2.34 | $ 3.98 | $ 3.79 |
Diluted (in USD per share) | $ 4.32 | $ 2.33 | $ 3.87 | $ 3.77 |
Weighted-average common shares outstanding (thousands): | ||||
Basic (in shares) | 210,163 | 208,930 | 209,919 | 208,849 |
Diluted (in shares) | 215,928 | 210,092 | 215,936 | 209,863 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 934 | $ 489 | $ 838 | $ 792 |
Other comprehensive income (loss): | ||||
Net gains on derivative instruments (net of tax of $(12), $(2), $(14) and $(2), respectively) | 24 | 4 | 34 | 4 |
Reclassifications of net losses on derivative instruments (net of tax of $(1), $(2), $(3) and $(4), respectively) | 6 | 4 | 10 | 9 |
Foreign currency adjustments (net of tax of $(9), $(10), $(13) and $2, respectively) | (53) | (56) | (85) | 7 |
Benefit plans (net of tax of $0, $0, $(1) and $0, respectively) | 1 | 1 | 3 | 1 |
Other comprehensive (loss) income | (22) | (47) | (38) | 21 |
Comprehensive income including noncontrolling interests | 912 | 442 | 800 | 813 |
Deduct comprehensive income attributable to noncontrolling interests | (1) | 0 | (2) | 0 |
Comprehensive income attributable to UGI Corporation | $ 911 | $ 442 | $ 798 | $ 813 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (losses) gains on derivative instruments, tax | $ (12) | $ (2) | $ (14) | $ (2) |
Reclassifications of net losses on derivative instruments, tax | 1 | 2 | 3 | 4 |
Foreign currency adjustments, tax | (9) | (10) | (13) | 2 |
Benefit plans, tax | $ 0 | $ 0 | $ (1) | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income including noncontrolling interests | $ 838 | $ 792 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation and amortization | 257 | 250 |
Deferred income tax expense, net | 160 | 191 |
Provision for uncollectible accounts | 33 | 19 |
Changes in unrealized gains and losses on derivative instruments | (341) | (185) |
Loss on extinguishment of debt | 11 | 0 |
Income from equity investees | (13) | (17) |
Other, net | 15 | 32 |
Net change in: | ||
Accounts receivable and accrued utility revenues | (943) | (573) |
Income taxes receivable | 0 | (47) |
Inventories | 64 | (27) |
Utility deferred fuel and power costs, net of changes in unsettled derivatives | 0 | (6) |
Accounts payable | 106 | 181 |
Derivative instruments collateral deposits received | 138 | 44 |
Other current assets | 38 | (29) |
Other current liabilities | 37 | 21 |
Net cash provided by operating activities | 400 | 646 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (355) | (304) |
Acquisitions of businesses and assets, net of cash and restricted cash acquired | (188) | (12) |
Investments in equity method investees | (10) | (61) |
Other, net | 38 | 20 |
Net cash used by investing activities | (515) | (357) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends on UGI Common Stock | (145) | (138) |
Issuances of long-term debt, net of issuance costs | 644 | 30 |
Repayments of long-term debt and finance leases, including redemption premiums | (552) | (65) |
Increase (decrease) in short-term borrowings | 80 | (5) |
Receivables Facility net repayments | 0 | (2) |
Payments on Purchase Contracts | (8) | 0 |
Issuances of UGI Common Stock | 6 | 6 |
Net cash provided (used) by financing activities | 25 | (174) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14) | 0 |
Cash, cash equivalents and restricted cash (decrease) increase | (104) | 115 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash, cash equivalents and restricted cash at end of period | 773 | 472 |
Cash, cash equivalents and restricted cash at beginning of period | 877 | 357 |
Cash, cash equivalents and restricted cash (decrease) increase | $ (104) | $ 115 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Total UGI stockholders’ equity | Preferred stock, without par value | Common stock, without par value | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests |
Balance, beginning of period at Sep. 30, 2020 | $ 0 | $ 1,416 | $ 2,908 | $ (147) | $ (49) | $ 9 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 3 | |||||||
Equity-based compensation expense | 9 | |||||||
Losses on common stock transactions in connection with employee and director plans | (5) | |||||||
Net income attributable to UGI Corporation | $ 792 | 792 | ||||||
Cash dividends on UGI Common Stock ($0.345, $0.33, $0.69, and $0.66, respectively) | (138) | |||||||
Net gains on derivative instruments | 4 | 4 | ||||||
Reclassification of net losses on derivative instruments | 9 | 9 | ||||||
Benefit plans | 1 | 1 | ||||||
Foreign currency adjustments | 7 | 7 | ||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 10 | |||||||
Reacquired UGI Common Stock - employee and director plans | (1) | |||||||
Net income including noncontrolling interests | 792 | |||||||
Balance, end of period at Mar. 31, 2021 | 4,828 | $ 4,819 | 0 | 1,428 | 3,557 | (126) | (40) | 9 |
Balance, beginning of period at Dec. 31, 2020 | 0 | 1,419 | 3,139 | (79) | (42) | 9 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 2 | |||||||
Equity-based compensation expense | 7 | |||||||
Losses on common stock transactions in connection with employee and director plans | (2) | |||||||
Net income attributable to UGI Corporation | 489 | 489 | ||||||
Cash dividends on UGI Common Stock ($0.345, $0.33, $0.69, and $0.66, respectively) | (69) | |||||||
Net gains on derivative instruments | 4 | 4 | ||||||
Reclassification of net losses on derivative instruments | 4 | 4 | ||||||
Benefit plans | 1 | 1 | ||||||
Foreign currency adjustments | (56) | (56) | ||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 3 | |||||||
Reacquired UGI Common Stock - employee and director plans | (1) | |||||||
Net income including noncontrolling interests | 489 | |||||||
Balance, end of period at Mar. 31, 2021 | 4,828 | 4,819 | 0 | 1,428 | 3,557 | (126) | (40) | 9 |
Balance, beginning of period at Sep. 30, 2021 | 5,531 | 213 | 1,394 | 4,081 | (140) | (26) | 9 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Other | (52) | 53 | (1) | |||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 8 | |||||||
Equity-based compensation expense | 10 | |||||||
Losses on common stock transactions in connection with employee and director plans | (15) | |||||||
Net income attributable to UGI Corporation | 836 | 836 | ||||||
Cash dividends on UGI Common Stock ($0.345, $0.33, $0.69, and $0.66, respectively) | (145) | |||||||
Net gains on derivative instruments | 34 | 34 | ||||||
Reclassification of net losses on derivative instruments | 10 | 10 | ||||||
Benefit plans | 3 | 3 | ||||||
Foreign currency adjustments | (85) | (85) | ||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 30 | |||||||
Reacquired UGI Common Stock - employee and director plans | (9) | |||||||
Net income including noncontrolling interests | 838 | 2 | ||||||
Balance, end of period at Mar. 31, 2022 | 6,210 | 6,200 | 161 | 1,465 | 4,757 | (178) | (5) | 10 |
Balance, beginning of period at Dec. 31, 2021 | 214 | 1,402 | 3,908 | (156) | (19) | 10 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Other | (53) | 53 | (1) | |||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 3 | |||||||
Equity-based compensation expense | 7 | |||||||
Losses on common stock transactions in connection with employee and director plans | (11) | |||||||
Net income attributable to UGI Corporation | 933 | 933 | ||||||
Cash dividends on UGI Common Stock ($0.345, $0.33, $0.69, and $0.66, respectively) | (73) | |||||||
Net gains on derivative instruments | 24 | 24 | ||||||
Reclassification of net losses on derivative instruments | 6 | 6 | ||||||
Benefit plans | 1 | 1 | ||||||
Foreign currency adjustments | (53) | (53) | ||||||
Common Stock issued in connection with employee and director plans, net of tax withheld | 23 | |||||||
Reacquired UGI Common Stock - employee and director plans | (9) | |||||||
Net income including noncontrolling interests | 934 | 1 | ||||||
Balance, end of period at Mar. 31, 2022 | $ 6,210 | $ 6,200 | $ 161 | $ 1,465 | $ 4,757 | $ (178) | $ (5) | $ 10 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in dollars per share) | $ 0.345 | $ 0.33 | $ 0.69 | $ 0.66 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations UGI is a holding company that, through subsidiaries and affiliates, distributes, stores, transports and markets energy products and related services. In the United States, we own and operate (1) a retail propane marketing and distribution business; (2) natural gas and electric distribution utilities; and (3) energy marketing, midstream infrastructure, storage, natural gas gathering and processing, natural gas production, electricity generation and energy services businesses. In Europe, we market and distribute propane and other LPG and market other energy products and services. We conduct a domestic propane marketing and distribution business through AmeriGas Partners. AmeriGas Partners conducts a national propane distribution business through its principal operating subsidiary AmeriGas OLP. UGI International, through subsidiaries and affiliates, conducts (1) an LPG distribution business throughout much of Europe and (2) an energy marketing business in France, Belgium, the Netherlands and the United Kingdom. These businesses are conducted principally through our subsidiaries, UGI France, Flaga, AvantiGas, DVEP and UniverGas. Energy Services conducts, directly and through subsidiaries and affiliates, energy marketing, including RNG, midstream transmission, LNG storage, natural gas gathering and processing, natural gas and RNG production, electricity generation and energy services businesses primarily in the eastern region of the U.S., eastern Ohio, the panhandle of West Virginia and California. UGID owns electricity generation facilities principally located in Pennsylvania. Energy Services and its subsidiaries’ storage, LNG and portions of its midstream transmission operations are subject to regulation by the FERC. On September 1, 2021, UGI acquired Mountaineer, the largest natural gas distribution company in West Virginia for a purchase price of $540, which includes the assumption of approximately $140 principal amounts of long-term debt. Mountaineer serves more than 200,000 customers across 50 of the state’s 55 counties. Mountaineer is subject to regulation by the WVPSC. For additional information on the Mountaineer Acquisition, see Note 5. Upon the acquisition of Mountaineer, our Utilities segment includes UGI Utilities and Mountaintop Energy Holdings, LLC. UGI Utilities directly owns and operates PA Gas Utility, a natural gas distribution utility business in eastern and central Pennsylvania and in a portion of one Maryland county. PA Gas Utility is subject to regulation by the PAPUC, the FERC, and, with respect to a small service territory in one Maryland county, the MDPSC. UGI Utilities also owns and operates Electric Utility, an electric distribution utility located in northeastern Pennsylvania. Electric Utility is subject to regulation by the PAPUC and the FERC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
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 that we consider necessary for a fair statement of the results for the interim periods presented. Such adjustments consisted only of normal recurring items unless otherwise disclosed. The September 30, 2021, 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 financial statements and related notes included in the Company’s 2021 Annual Report. Due to the seasonal nature of our businesses, the results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. Restricted Cash. Restricted cash principally represents those cash balances in our commodity futures brokerage accounts that are restricted from withdrawal. The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the corresponding amounts reported on the Condensed Consolidated Statements of Cash Flows. March 31, March 31, Cash and cash equivalents $ 718 $ 444 Restricted cash 55 28 Cash, cash equivalents and restricted cash $ 773 $ 472 Earnings Per Common Share. Basic earnings per share attributable to UGI stockholders reflect the weighted-average number of common shares outstanding. Diluted earnings per share attributable to UGI stockholders include the effects of dilutive stock options, common stock awards and Equity Units. Shares used in computing basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Denominator (thousands of shares): Weighted-average common shares outstanding — basic 210,163 208,930 209,919 208,849 Incremental shares issuable for stock options, common stock awards and Equity Units (a) 5,765 1,162 6,017 1,014 Weighted-average common shares outstanding — diluted 215,928 210,092 215,936 209,863 (a) For the three and six months ended March 31, 2022 and 2021, there were 6,535 and 5,102 shares, respectively, associated with outstanding stock option awards that were not included in the computation of diluted earnings per share above because their effect was antidilutive. 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, whether it is subject to regulatory ratemaking mechanisms or if it qualifies and is designated as a hedge for accounting purposes. Certain of our derivative instruments qualify and are designated as cash flow hedges. For cash flow hedges, changes in the fair values of the derivative instruments are recorded in AOCI, to the extent effective at offsetting changes in the hedged item, until earnings are affected by the hedged item. We discontinue cash flow hedge accounting if occurrence of the forecasted transaction is determined to be no longer probable. Hedge accounting is also discontinued for derivatives that cease to be highly effective. We do not designate our commodity and certain foreign currency derivative instruments as hedges under GAAP. Changes in the fair values of these derivative instruments are reflected in net income. Gains and losses on substantially all of the commodity derivative instruments used by Utilities are included in regulatory assets or liabilities because it is probable such gains or losses will be recoverable from, or refundable to, customers. From time to time, we also enter into net investment hedges. Gains and losses on net investment hedges that relate to our foreign operations are included in the cumulative translation adjustment component in AOCI until such foreign net investment is substantially sold or liquidated. Cash flows from derivative instruments, other than certain cross-currency swaps and net investment hedges, if any, are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. Cash flows from the interest portion of our cross-currency hedges, if any, are included in cash flows from operating activities while cash flows from the currency portion of such hedges, if any, are included in cash flows from financing activities. Cash flows from net investment hedges, if any, are included in cash flows from investing 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 12. 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. Reclassifications. For purposes of comparability, certain prior-period amounts have been reclassified to conform to the current-period presentation. During the second quarter of Fiscal 2022, the Company reclassified certain amounts on the Consolidated Balance Sheet and Consolidated Statement of Changes in Equity related to the accounting for the Equity Units issued in May 2021. |
Accounting Changes
Accounting Changes | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Note 3 — Accounting Changes New Accounting Standard Adopted in Fiscal 2022 Income Taxes. Effective October 1, 2021, the Company adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” prospectively and retrospectively where deemed applicable. This ASU simplifies the accounting for income taxes by eliminating certain exceptions within the existing guidance for recognizing deferred taxes for equity method investments, performing intraperiod allocations and calculating income taxes in interim periods. Further, this ASU clarifies existing guidance related to, among other things, recognizing deferred taxes for goodwill and allocated taxes to members of a consolidated group. The adoption of the new guidance did not have a material impact on our consolidated financial statements. Accounting Standard Not Yet Adopted Debt and Derivatives and Hedging. In August 2020, the FASB issued ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40).” The amendments in this ASU affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, expands disclosure requirements for convertible instruments, and simplifies the related earnings per share guidance. This new guidance is effective for the Company for interim and annual periods beginning October 1, 2022 (Fiscal 2023). Early adoption is permitted. The amendments in this ASU may be adopted using the modified or full retrospective transition methods. The Company is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the transition method and the period in which the new guidance will be adopted. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 4 — Revenue from Contracts with Customers The Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. See Note 4 in the Company’s 2021 Annual Report for additional information on our revenues from contracts with customers. Revenue Disaggregation The following tables present our disaggregated revenues by reportable segment: Three Months Ended March 31, 2022 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 400 $ — $ — $ — $ — $ 400 $ — Commercial & Industrial 167 — — — — 167 — Large delivery service 54 — — — — 54 — Off-system sales and capacity releases 37 (40) — — — 77 — Other 7 — — — — 7 — Total Utility 665 (40) — — — 705 — Non-Utility: LPG: Retail 1,554 — 908 646 — — — Wholesale 154 — 68 86 — — — Energy Marketing 909 (81) — 466 524 — — Midstream: Pipeline 50 — — — 50 — — Peaking 23 (57) — — 80 — — Other 2 — — — 2 — — Electricity Generation 14 — — — 14 — — Other 71 — 54 17 — — — Total Non-Utility 2,777 (138) 1,030 1,215 670 — — Total revenues from contracts with customers 3,442 (178) 1,030 1,215 670 705 — Other revenues (b) 24 (1) 18 9 1 2 (5) Total revenues $ 3,466 $ (179) $ 1,048 $ 1,224 $ 671 $ 707 $ (5) Three Months Ended March 31, 2021 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 243 $ — $ — $ — $ — $ 243 $ — Commercial & Industrial 96 — — — — 96 — Large delivery service 44 — — — — 44 — Off-system sales and capacity releases 22 (25) — — — 47 — Other 7 — — — — 7 — Total Utility 412 (25) — — — 437 — Non-Utility: LPG: Retail 1,395 — 833 562 — — — Wholesale 99 — 38 61 — — — Energy Marketing 514 (39) — 186 367 — — Midstream: Pipeline 48 — — — 48 — — Peaking 9 (53) — — 62 — — Other 2 — — — 2 — — Electricity Generation 3 — — — 3 — — Other 70 — 54 16 — — — Total Non-Utility 2,140 (92) 925 825 482 — — Total revenues from contracts with customers 2,552 (117) 925 825 482 437 — Other revenues (b) 29 (1) 15 9 2 5 (1) Total revenues $ 2,581 $ (118) $ 940 $ 834 $ 484 $ 442 $ (1) Six Months Ended March 31, 2022 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 634 $ — $ — $ — $ — $ 634 $ — Commercial & Industrial 261 — — — — 261 — Large delivery service 97 — — — — 97 — Off-system sales and capacity releases 56 (62) — — — 118 — Other 12 (1) — — — 13 — Total Utility 1,060 (63) — — — 1,123 — Non-Utility: LPG: Retail 2,804 — 1,554 1,250 — — — Wholesale 294 — 124 170 — — — Energy Marketing 1,623 (136) — 799 960 — — Midstream: Pipeline 96 — — — 96 — — Peaking 29 (96) — — 125 — — Other 4 — — — 4 — — Electricity Generation 19 — — — 19 — — Other 149 — 112 37 — — — Total Non-Utility 5,018 (232) 1,790 2,256 1,204 — — Total revenues from contracts with customers 6,078 (295) 1,790 2,256 1,204 1,123 — Other revenues (b) 61 (2) 36 17 2 3 5 Total revenues $ 6,139 $ (297) $ 1,826 $ 2,273 $ 1,206 $ 1,126 $ 5 Six Months Ended March 31, 2021 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 408 $ — $ — $ — $ — $ 408 $ — Commercial & Industrial 156 — — — — 156 — Large delivery service 84 — — — — 84 — Off-system sales and capacity releases 37 (39) — — — 76 — Other 11 (1) — — — 12 — Total Utility 696 (40) — — — 736 — Non-Utility: LPG: Retail 2,450 — 1,405 1,045 — — — Wholesale 158 — 57 101 — — — Energy Marketing 894 (65) — 341 618 — — Midstream: Pipeline 93 — — — 93 — — Peaking 11 (89) — — 100 — — Other 4 — — — 4 — — Electricity Generation 7 — — — 7 — — Other 142 — 110 32 — — — Total Non-Utility 3,759 (154) 1,572 1,519 822 — — Total revenues from contracts with customers 4,455 (194) 1,572 1,519 822 736 — Other revenues (b) 58 (2) 34 15 3 6 2 Total revenues $ 4,513 $ (196) $ 1,606 $ 1,534 $ 825 $ 742 $ 2 (a) Includes intersegment revenues principally among Midstream & Marketing, Utilities and AmeriGas Propane. (b) Primarily represents revenues from tank rentals at AmeriGas Propane and UGI International, revenues from certain gathering assets at Midstream & Marketing, revenues from alternative revenue programs at UGI Utilities and gains and losses on commodity derivative instruments not associated with current-period transactions reflected in Corporate & Other, none of which are within the scope of ASC 606 and are accounted for in accordance with other GAAP. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers or cash receipts. Contract assets represent our 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 for all periods presented. Substantially all of our receivables are unconditional rights to consideration and are included in “Accounts receivable” and, in the case of Utilities, “Accrued utility revenues” 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 Company’s obligations to transfer goods or services to a customer for which we have received consideration. The balances of contract liabilities were $100, $149 and $93 at March 31, 2022, September 30, 2021 and March 31, 2021, respectively, and are included in “Other current liabilities” and “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheets. Revenues recognized for the six months ended March 31, 2022 and 2021, from the amounts included in contract liabilities at September 30, 2021 and 2020, were $112 and $131, respectively. Remaining Performance Obligations The Company excludes disclosures related to the aggregate amount of the transaction price allocated to certain 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. Certain contracts with customers at Midstream & Marketing and Utilities contain minimum future performance obligations through 2047 and 2053, respectively. At March 31, 2022, Midstream & Marketing and Utilities expect to record approximately $2.3 billion and $0.2 billion of revenues, respectively, related to the minimum future performance obligations over the remaining terms of the related contracts. |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Note 5 — Acquisitions Stonehenge Acquisition On January 27, 2022, UGI through its wholly owned indirect subsidiary, Energy Services, completed the Stonehenge Acquisition in which Energy Services acquired all of the equity interests in Stonehenge, for total cash consideration of approximately $190. The Stonehenge business includes a natural gas gathering system, located in Western Pennsylvania, with more than 47 miles of pipeline and associated compression assets. The Stonehenge Acquisition is consistent with our growth strategies, including expanding our midstream natural gas gathering assets within the Appalachian basin production region. The Stonehenge Acquisition was funded using available cash. The Company has accounted for the Stonehenge Acquisition using the acquisition method and the purchase price has been primarily allocated to property, plant and equipment. Mountaineer Acquisition On September 1, 2021, UGI completed the Mountaineer Acquisition in which UGI acquired all of the equity interests in Mountaineer, the largest natural gas distribution company in West Virginia, for a purchase price of $540, including the assumption of $140 principal amounts of long-term debt. The Mountaineer Acquisition was consummated pursuant to a purchase and sale agreement between UGI and the iCON Sellers and is consistent with our growth strategies, including expanding our core utility operations in the mid-Atlantic region. The Mountaineer Acquisition was funded with cash proceeds from the UGI Corporation Senior Credit Facility $215 term loan and cash on hand including proceeds from the issuance of Equity Units . Accounts associated with Mountaineer are included within our Utilities reportable segment. The Company has accounted for the Mountaineer Acquisition using the acquisition method. During the six months ended March 31, 2022, the Company recorded an adjustment to decrease goodwill by $5 primarily reflecting an adjustment to a valuation allowance on certain deferred income taxes. The Condensed Balance Sheet at March 31, 2022, reflects the final allocation of the purchase price to the assets acquired and liabilities assumed for the Mountaineer Acquisition. The components of the Mountaineer purchase price allocations are as follows: Assets acquired: Cash and cash equivalents $ 3 Accounts receivable 14 Inventories 41 Other current assets 21 Property, plant and equipment 397 Other noncurrent assets 48 Total assets acquired $ 524 Liabilities assumed: Short-term borrowings $ 55 Accounts payable 20 Other current liabilities 52 Long-term debt 164 Pension and other postretirement benefit obligation 33 Deferred income taxes 21 Other noncurrent liabilities 29 Total liabilities assumed $ 374 Goodwill 250 Net consideration transferred $ 400 Mountaineer is a regulated entity which accounts for the financial effects of regulation in accordance with ASC 980. The effects of regulation can impact the fair value of certain assets and liabilities acquired, and as such, the measurement of the fair value of regulated property assets using the predecessor’s carrying value is generally accepted since regulation attaches to the assets and regulation is so pervasive that the regulation extends to the individual assets. In certain other instances where assets or liabilities are subject to rate recovery, we recorded fair value adjustments to such assets and liabilities as regulatory assets and liabilities. The excess of the purchase price for the Mountaineer Acquisition over the fair values of the assets acquired and liabilities assumed has been reflected as goodwill, assigned to the Utilities reportable segment. Goodwill is attributable to the assembled workforce of Mountaineer, planned customer growth and planned growth in rate base through continued investment in utility infrastructure. The goodwill recognized from the Mountaineer Acquisition is not expected to be deductible for income tax purposes. The impact of the Mountaineer Acquisition on a pro forma basis as if the Mountaineer Acquisition had occurred on October 1, 2020 was not material to the Company’s revenues or net income for the three and six months ended March 31, 2021. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6 — Inventories Inventories comprise the following: March 31, September 30, March 31, Non-utility LPG and natural gas $ 253 $ 278 $ 179 Gas Utility natural gas 6 68 3 Energy certificates 63 53 31 Materials, supplies and other 76 70 55 Total inventories $ 398 $ 469 $ 268 |
Utility Regulatory Assets and L
Utility Regulatory Assets and Liabilities and Regulatory Matters | 6 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
Utility Regulatory Assets and Liabilities and Regulatory Matters | Note 7 — Utility Regulatory Assets and Liabilities and Regulatory Matters For a description of the Company’s regulatory assets and liabilities other than those described below, see Note 9 in the Company’s 2021 Annual Report. Other than removal costs, Utilities currently does not recover a rate of return on its regulatory assets listed below. The following regulatory assets and liabilities associated with Utilities are included on the Condensed Consolidated Balance Sheets: March 31, September 30, March 31, Regulatory assets (a): Income taxes recoverable $ 148 $ 143 $ 128 Underfunded pension and postretirement plans 104 108 169 Environmental costs 55 58 59 Deferred fuel and power costs 6 11 — Removal costs, net 22 24 24 Other 49 53 18 Total regulatory assets $ 384 $ 397 $ 398 Regulatory liabilities (a): Postretirement benefit overcollections $ 12 $ 13 $ 12 Deferred fuel and power refunds 17 36 17 State tax benefits — distribution system repairs 34 32 29 Excess federal deferred income taxes 283 287 270 Other 14 20 7 Total regulatory liabilities $ 360 $ 388 $ 335 (a) Current regulatory assets are included in “Prepaid expenses and other current assets” and regulatory liabilities are included in “Other current liabilities” and “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheets. Deferred fuel and power - costs and refunds. Utilities’ tariffs contain clauses that permit recovery of all prudently incurred purchased gas and power costs through the application of PGC rates and DS tariffs. These clauses provide for periodic adjustments to PGC and DS rates for differences between the total amount of purchased gas and electric generation supply costs collected from customers and recoverable costs incurred. Net undercollected costs are classified as a regulatory asset and net overcollections are classified as a regulatory liability. PA Gas Utility uses derivative instruments to reduce volatility in the cost of gas it purchases for retail core-market customers. Realized and unrealized gains or losses on natural gas derivative instruments are included in deferred fuel and power costs or refunds. Net unrealized gains on such contracts at March 31, 2022, September 30, 2021 and March 31, 2021 were $21, $35 and $1, respectively. Other Regulatory Matters Base Rate Filings . On January 28, 2022, PA Gas Utility filed a request with the PAPUC to increase its base operating revenues for residential, commercial and industrial customers by $83 annually. The increased revenues would fund ongoing system improvements and operations necessary to maintain safe and reliable natural gas service and continue to fund programs designed to promote and reward customers’ efforts to increase efficient use of natural gas. PA Gas Utility requested that the new gas rates become effective March 29, 2022. The PAPUC entered an Order on February 24, 2022, suspending the effective date for the rate increase to allow for investigation and public hearings. Unless a settlement is reached sooner, the review process is expected to last up to nine months from the date of filing. The Company cannot predict the timing or the ultimate outcome of the rate case review process. On February 8, 2021, Electric Utility filed a rate request with the PAPUC to increase its annual base distribution revenues by $9. On October 28, 2021, the PAPUC issued a final order approving a settlement that permitted Electric Utility, effective November 9, 2021, to increase its base distribution revenues by $6. On January 28, 2020, PA Gas Utility filed a request with the PAPUC to increase its annual base distribution operating revenues by $75 annually. On October 8, 2020, the PAPUC issued a final Order approving a settlement that permitted PA Gas Utility to increase its annual base distribution rates by $20, through a phased approach, with $10 beginning January 1, 2021 and an additional $10 beginning July 1, 2021. Additionally, PA Gas Utility was authorized to implement a DSIC once PA Gas Utility total property, plant and equipment less accumulated depreciation reached $2,875. This threshold was achieved in December 2020, and PA Gas Utility implemented a DSIC effective April 1, 2021. The PAPUC’s final Order also included enhanced COVID-19 customer assistance measures, including the establishment of an Emergency Relief Program for a defined set of payment troubled customers (“ERP”). Additionally, the PAPUC’s final order permitted PA Gas Utility to establish a regulatory asset for certain incremental expenses attributable to the ongoing COVID-19 pandemic, most notably expenses related to the ERP and uncollectible accounts expense, through the effective date of rates in the next PA Gas Utility base rate case, to be recovered and amortized over a 10-year period. In accordance with the terms of the Joint Petition, PA Gas Utility was not permitted to file a rate case prior to January 1, 2022. |
Debt
Debt | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 — Debt UGI International. On December 7, 2021, UGI International, LLC issued, in an underwritten private placement, €400 principal amount of the UGI International 2.50% Senior Notes due December 1, 2029. The UGI International 2.50% Senior Notes rank equal in right of payment with indebtedness issued under the UGI International Credit Facilities Agreement. The net proceeds from the UGI International 2.50% Senior Notes were used (1) to repay all of the UGI International 3.25% Senior Notes due November 1, 2025 and associated fees and expenses and (2) for general corporate purposes. We have designated the UGI International 2.50% Senior Notes as a net investment hedge. In connection with this early repayment of debt, UGI International recognized a pre-tax loss of $11, which is reflected in “Loss on extinguishment of debt” on the Condensed Consolidated Statements of Income, and primarily comprises the write-off of unamortized debt issuance costs and early redemption premiums. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies Environmental Matters UGI Utilities From the late 1800s through the mid-1900s, UGI Utilities and its former subsidiaries owned and operated a number of MGPs prior to the general availability of natural gas. Some constituents of coal tars and other residues of the manufactured gas process are today considered hazardous substances under the Superfund Law and may be present on the sites of former MGPs. Between 1882 and 1953, UGI Utilities owned the stock of subsidiary gas companies in Pennsylvania and elsewhere and also operated the businesses of some gas companies under agreement. By the early 1950s, UGI Utilities divested all of its utility operations other than certain gas and electric operations. Beginning in 2006 and 2008, UGI Utilities also owned and operated two acquired subsidiaries, with similar histories of owning, and in some cases operating, MGPs in Pennsylvania. UGI Utilities is subject to a COA with the PADEP to address the remediation of specified former MGP sites in Pennsylvania which is scheduled to terminate at the end of 2031. In accordance with the COA, UGI Utilities is required to either obtain a certain number of points per calendar year based on defined eligible environmental investigatory and/or remedial activities at the MGPs, or make expenditures for such activities in an amount equal to an annual environmental minimum expenditure threshold. The annual minimum expenditure threshold of the COA is $5. The COA permits the transfer of the specified wells, with related costs counted towards the annual minimum expenditure. At March 31, 2022, September 30, 2021 and March 31, 2021, our aggregate estimated accrued liabilities for environmental investigation and remediation costs related to the current COA and the predecessor agreements totaled $49, $50 and $50, respectively. We do not expect the costs for investigation and remediation of hazardous substances at Pennsylvania MGP sites to be material to UGI Utilities’ results of operations because UGI Utilities receives ratemaking recovery of actual environmental investigation and remediation costs associated with the sites covered by the COA. This ratemaking recognition reconciles the accumulated difference between historical costs and rate recoveries with an estimate of future costs associated with the sites. As such, UGI Utilities has recorded an associated regulatory asset for these costs because recovery of these costs from customers is probable (see Note 7). From time to time, UGI Utilities is notified of sites outside Pennsylvania on which private parties allege MGPs were formerly owned or operated by UGI Utilities or owned or operated by a former subsidiary. Such parties generally investigate the extent of environmental contamination or perform environmental remediation. Management believes that under applicable law UGI Utilities should not be liable in those instances in which a former subsidiary owned or operated an MGP. There could be, however, significant future costs of an uncertain amount associated with environmental damage caused by MGPs outside Pennsylvania that UGI Utilities directly operated, or that were owned or operated by a former subsidiary of UGI Utilities if a court were to conclude that (1) the subsidiary’s separate corporate form should be disregarded, or (2) UGI Utilities should be considered to have been an operator because of its conduct with respect to its subsidiary’s MGP. Neither the undiscounted nor the accrued liability for environmental investigation and cleanup costs for UGI Utilities’ MGP sites outside Pennsylvania was material for all periods presented. AmeriGas Propane AmeriGas OLP Saranac Lake. 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 $28 and requested additional information regarding AmeriGas OLP’s purported ownership. AmeriGas OLP 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 as of March 31, 2022, the Partnership has an undiscounted environmental remediation liability of $8 related to the site. Our share of the actual remediation costs could be significantly more or less than the accrued amount. 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. |
Defined Benefit Pension and Oth
Defined Benefit Pension and Other Postretirement Plans | 6 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension and Other Postretirement Plans | Note 10 — Defined Benefit Pension and Other Postretirement Plans The Company maintains defined benefit plans and other postretirement plans for certain current and former employees. The service cost component of our pension and other postretirement plans, net of amounts capitalized, is reflected in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income. The non-service cost component, net of amounts capitalized by Utilities as a regulatory asset, is reflected in “Other non-operating income (expense), net” on the Condensed Consolidated Statements of Income. Other postretirement benefit cost was not material for all periods presented. Net periodic pension cost includes the following components: Three Months Ended March 31, 2022 2021 Service cost $ 4 $ 3 Interest cost 7 6 Expected return on assets (13) (10) Amortization of: Actuarial loss 2 3 Net cost $ — $ 2 Six Months Ended March 31, 2022 2021 Service cost $ 8 $ 6 Interest cost 13 11 Expected return on assets (25) (20) Amortization of: Actuarial loss 4 7 Net cost $ — $ 4 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 — Fair Value Measurements Recurring Fair Value Measurements The following table presents, on a gross basis, our financial assets and liabilities, including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy: Asset (Liability) Level 1 Level 2 Level 3 Total March 31, 2022: Derivative instruments: Assets: Commodity contracts $ 823 $ 1,146 $ — $ 1,969 Foreign currency contracts $ — $ 35 $ — $ 35 Interest rate contracts $ — $ 31 $ — $ 31 Liabilities: Commodity contracts $ (308) $ (13) $ — $ (321) Foreign currency contracts $ — $ (2) $ — $ (2) Interest rate contracts $ — $ (1) $ — $ (1) Non-qualified supplemental postretirement grantor trust investments (a) $ 50 $ — $ — $ 50 September 30, 2021: Derivative instruments: Assets: Commodity contracts $ 641 $ 1,008 $ — $ 1,649 Foreign currency contracts $ — $ 38 $ — $ 38 Liabilities: Commodity contracts $ (264) $ (16) $ — $ (280) Foreign currency contracts $ — $ (8) $ — $ (8) Interest rate contracts $ — $ (29) $ — $ (29) Non-qualified supplemental postretirement grantor trust investments (a) $ 53 $ — $ — $ 53 March 31, 2021: Derivative instruments: Assets: Commodity contracts $ 73 $ 162 $ — $ 235 Foreign currency contracts $ — $ 25 $ — $ 25 Liabilities: Commodity contracts $ (63) $ (9) $ — $ (72) Foreign currency contracts $ — $ (12) $ — $ (12) Interest rate contracts $ — $ (39) $ — $ (39) Non-qualified supplemental postretirement grantor trust investments (a) $ 40 $ — $ — $ 40 (a) Consists primarily of mutual fund investments held in grantor trusts associated with non-qualified supplemental retirement plans. The fair values of our Level 1 exchange-traded commodity futures and option contracts and non-exchange-traded commodity futures and forward contracts are based upon actively quoted market prices for identical assets and liabilities. The remainder of our derivative instruments are designated as Level 2. The fair values of certain non-exchange-traded commodity derivatives designated as Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. The fair values of our Level 2 interest rate contracts and foreign currency contracts are based upon third-party quotes or indicative values based on recent market transactions. The fair values of investments held in grantor trusts are derived from quoted market prices as substantially all of the investments in these trusts have active markets. 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 amounts and estimated fair values of our long-term debt (including current maturities but excluding unamortized debt issuance costs) were as follows: March 31, 2022 September 30, 2021 March 31, 2021 Carrying amount $ 6,559 $ 6,491 $ 6,046 Estimated fair value $ 6,543 $ 6,996 $ 6,362 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 12 — Derivative Instruments and Hedging Activities We are exposed to certain market risks related to our ongoing business operations. Management uses derivative financial and commodity instruments, among other things, to manage: (1) commodity price risk; (2) interest rate risk; and (3) foreign currency exchange rate 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 we 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. For information on the accounting for our derivative instruments, see Note 2. The following summarizes the types of derivative instruments used by the Company to manage certain market risks: Commodity Price Risk Regulated Utility Operations Natural Gas UGI Utilities’ tariffs contain clauses that permit recovery of all prudently incurred costs of natural gas it sells to retail core-market customers, including the cost of financial instruments used to hedge purchased gas costs. As permitted and agreed to by the PAPUC pursuant to PA Gas Utility’s annual PGC filings, PA Gas Utility currently uses NYMEX natural gas futures and option contracts to reduce commodity price volatility associated with a portion of the natural gas it purchases for its retail core-market customers. See Note 7 for further information on the regulatory accounting treatment for these derivative instruments. Non-utility Operations LPG In order to manage market price risk associated with the Partnership’s fixed-price programs and to reduce the effects of short-term commodity price volatility, the Partnership uses over-the-counter derivative commodity instruments, principally price swap contracts. In addition, the Partnership and our UGI International operations also use over-the-counter price swap contracts to reduce commodity price volatility associated with a portion of their forecasted LPG purchases. Natural Gas In order to manage market price risk relating to fixed-price sales contracts for physical natural gas, Midstream & Marketing enters into NYMEX and over-the-counter natural gas futures and over-the-counter and ICE natural gas basis swap contracts. In addition, Midstream & Marketing uses NYMEX and over-the-counter futures and options contracts to economically hedge price volatility associated with the gross margin derived from the purchase and anticipated later near-term sale of natural gas storage inventories. Outside of the financial market, Midstream & Marketing also uses ICE and over-the-counter forward physical contracts. UGI International also uses natural gas futures and forward contracts to economically hedge market price risk associated with a substantial portion of anticipated volumes under fixed-price sales contracts with its customers. Electricity In order to manage market price risk relating to fixed-price sales contracts for electricity, Midstream & Marketing enters into electricity futures and forward contracts. Midstream & Marketing also uses NYMEX and over-the-counter electricity futures contracts to economically hedge the price of a portion of its anticipated future sales of electricity from its electric generation facilities. UGI International also uses electricity futures and forward contracts to economically hedge market price risk associated with fixed-price sales and purchase contracts for electricity. Interest Rate Risk Certain of our long-term debt agreements have interest rates that are generally indexed to short-term market interest rates. In order to fix the underlying short-term market interest rates, we may enter into pay-fixed, receive-variable interest rate swap agreements and designate such swaps as cash flow hedges. The remainder of our long-term debt is typically issued at fixed rates of interest. As this long-term debt matures, we typically refinance such debt with new debt having interest rates reflecting then-current market conditions. In order to reduce market rate risk on the underlying benchmark rate of interest associated with near- to medium-term forecasted issuances of fixed-rate debt, from time to time, we enter into IRPAs. We account for IRPAs as cash flow hedges. There were no unsettled IRPAs during any of the periods presented. At March 31, 2022, the amount of pre-tax net losses associated with interest rate hedges (excluding pay-fixed, receive-variable interest rate swaps) expected to be reclassified into earnings during the next twelve months is $3. Foreign Currency Exchange Rate Risk Forward Foreign Currency Exchange Contracts In order to reduce the volatility in net income associated with our foreign operations, principally as a result of changes in the U.S. dollar exchange rate to the euro and British pound sterling, we enter into forward foreign currency exchange contracts. We layer in these foreign currency exchange contracts over a multi-year period to eventually equal approximately 90% of anticipated UGI International foreign currency earnings before income taxes. Because these contracts are not designated as hedging instruments, realized and unrealized gains and losses on these contracts are recorded in “Other non-operating income (expense), net,” on the Condensed Consolidated Statements of Income. Net Investment Hedges From time to time, we also enter into certain forward foreign currency exchange contracts to reduce the volatility of the U.S. dollar value of a portion of our UGI International euro-denominated net investments, including anticipated foreign currency denominated dividends. We account for these foreign currency exchange contracts as net investment hedges and all changes in the fair value of these contracts are reported in the cumulative translation adjustment component in AOCI. We use the spot rate method to measure ineffectiveness of our net investment hedges. Concurrent with the repayment of UGI International’s 3.25% Senior Notes on December 7, 2021, we terminated an associated net investment hedge having a notional value of €93. Cash flows from this termination are included in cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows. Our euro-denominated long-term debt has also been designated as net investment hedges, representing a portion of our UGI International euro-denominated net investment. We recognized pre-tax gains (losses) associated with these net investment hedges in the cumulative translation adjustment component in AOCI of $21 and $31 during the three months ended March 31, 2022 and 2021, respectively, $34 and $(1) during the six months ended March 31, 2022 and 2021, respectively. Quantitative Disclosures Related to Derivative Instruments The following table summarizes by derivative type the gross notional amounts related to open derivative contracts at March 31, 2022, September 30, 2021 and March 31, 2021, and the final settlement dates of the Company's open derivative contracts as of March 31, 2022, excluding those derivatives that qualified for the NPNS exception: Notional Amounts Type Units Settlements Extending Through March 31, 2022 September 30, 2021 March 31, 2021 Commodity Price Risk: Regulated Utility Operations PA Gas Utility NYMEX natural gas futures and option contracts Dekatherms February 2023 11 20 12 Non-utility Operations LPG swaps Gallons September 2024 622 708 557 Natural gas futures, forward, basis swap, options and pipeline contracts Dekatherms March 2026 346 355 338 Electricity forward and futures contracts Kilowatt hours January 2026 3,098 4,302 4,773 Interest Rate Risk: Interest rate swaps Euro October 2022 € 300 € 300 € 300 Interest rate swaps USD September 2024 $ 1,414 $ 1,421 $ 1,302 Foreign Currency Exchange Rate Risk: Forward foreign currency exchange contracts USD September 2024 $ 274 $ 509 $ 384 Net investment hedge forward foreign exchange contracts Euro December 2026 € 486 € 173 € 173 Derivative Instrument Credit Risk We are exposed to risk of loss in the event of nonperformance by our derivative instrument counterparties. Our derivative instrument counterparties principally comprise large energy companies and major U.S. and international 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 or entering into netting agreements that allow for offsetting counterparty receivable and payable balances for certain financial transactions, as deemed appropriate. We have concentrations of credit risk associated with derivative instruments and we evaluate the creditworthiness of our derivative counterparties on an ongoing basis. As of March 31, 2022, the maximum amount of loss, based upon the gross fair values of the derivative instruments, we would incur if these counterparties failed to perform according to the terms of their contracts was $2,035. In general, many of our over-the-counter derivative instruments and all exchange contracts call for the posting of collateral by the counterparty or by the Company in the forms of letters of credit, parental guarantees or cash. At March 31, 2022, we had received cash collateral from derivative instrument counterparties totaling $603. In addition, we may have offsetting derivative liabilities and certain accounts payable balances with certain of these counterparties, which further mitigates the previously mentioned maximum amount of losses. Certain of the Partnership’s derivative contracts have credit-risk-related contingent features that may require the posting of additional collateral in the event of a downgrade of the Partnership’s debt rating. At March 31, 2022, 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 Condensed Consolidated Balance Sheets if the right of offset exists. We offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty. Our derivative instruments include both those that are executed on an exchange through brokers and centrally cleared and over-the-counter transactions. Exchange contracts utilize a financial intermediary, exchange or clearinghouse to enter, execute or clear the transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter and exchange contracts contain contractual rights of offset through master netting arrangements, derivative clearing agreements and contract default provisions. In addition, the contracts are subject to conditional rights of offset through counterparty nonperformance, insolvency or other conditions. In general, many of our over-the-counter transactions and all exchange contracts 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 Condensed 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 the Company’s derivative assets and liabilities by type, as well as the effects of offsetting: March 31, September 30, March 31, Derivative assets: Derivatives designated as hedging instruments: Foreign currency contracts $ 18 $ 20 $ 16 Interest rate contracts 31 — — 49 20 16 Derivatives subject to PGC and DS mechanisms: Commodity contracts 38 58 2 Derivatives not designated as hedging instruments: Commodity contracts 1,931 1,591 233 Foreign currency contracts 17 18 9 1,948 1,609 242 Total derivative assets — gross 2,035 1,687 260 Gross amounts offset in the balance sheet (215) (216) (35) Cash collateral received (603) (468) (37) Total derivative assets — net $ 1,217 $ 1,003 $ 188 Derivative liabilities: Derivatives designated as hedging instruments: Interest rate contracts $ (1) $ (29) $ (39) Derivatives subject to PGC and DS mechanisms: Commodity contracts (17) (23) (1) Derivatives not designated as hedging instruments: Commodity contracts (304) (257) (71) Foreign currency contracts (2) (8) (12) (306) (265) (83) Total derivative liabilities — gross (324) (317) (123) Gross amounts offset in the balance sheet 215 216 35 Cash collateral pledged — 3 — Total derivative liabilities — net $ (109) $ (98) $ (88) Effects of Derivative Instruments The following tables provide information on the effects of derivative instruments on the Condensed Consolidated Statements of Income and changes in AOCI: Three Months Ended March 31,: Gain Loss Location of Loss Reclassified from Cash Flow Hedges: 2022 2021 2022 2021 Interest rate contracts $ 36 $ 6 $ (7) $ (6) Interest expense Net Investment Hedges: Foreign currency contracts $ 11 $ 7 Gain (Loss) Derivatives Not Designated as Hedging Instruments: 2022 2021 Location of Gain (Loss) Recognized in Income Commodity contracts $ (7) $ (2) Revenues Commodity contracts 599 135 Cost of sales Commodity contracts — (2) Operating and administrative expenses Foreign currency contracts 7 17 Other non-operating income (expense), net Total $ 599 $ 148 Six Months Ended March 31,: Gain (Loss) Loss Location of Loss Reclassified from Cash Flow Hedges: 2022 2021 2022 2021 Interest rate contracts $ 48 $ 6 $ (13) $ (13) Interest expense Net Investment Hedges: Foreign currency contracts $ 11 $ (1) Gain (Loss) Derivatives Not Designated as Hedging Instruments: 2022 2021 Location of Gain (Loss) Recognized in Income Commodity contracts $ 1 $ 1 Revenues Commodity contracts 326 238 Cost of sales Commodity contracts — 5 Other operating income, net Foreign currency contracts 15 (3) Other non-operating income (expense), net Total $ 342 $ 241 We are also a party to a number of other contracts that have elements of a derivative instrument. However, these contracts qualify for NPNS exception accounting 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. These contracts include, among others, binding purchase orders, contracts that provide for the purchase and delivery, or sale, of energy products, and service contracts that require the counterparty to provide commodity storage, transportation or capacity service to meet our normal sales commitments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 13 — Accumulated Other Comprehensive Income (Loss) The tables below present changes in AOCI, net of tax: Three Months Ended March 31, 2022 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — December 31, 2021 $ (15) $ (19) $ (122) $ (156) Other comprehensive income (loss) before reclassification adjustments — 24 (53) (29) Amounts reclassified from AOCI 1 6 — 7 Other comprehensive income (loss) attributable to UGI 1 30 (53) (22) AOCI — March 31, 2022 $ (14) $ 11 $ (175) $ (178) Three Months Ended March 31, 2021 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — December 31, 2020 $ (26) $ (49) $ (4) $ (79) Other comprehensive income (loss) before reclassification adjustments — 4 (56) (52) Amounts reclassified from AOCI 1 4 — 5 Other comprehensive income (loss) attributable to UGI 1 8 (56) (47) AOCI — March 31, 2021 $ (25) $ (41) $ (60) $ (126) Six Months Ended March 31, 2022 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — September 30, 2021 $ (17) $ (33) $ (90) $ (140) Other comprehensive income (loss) before reclassification adjustments — 34 (85) (51) Amounts reclassified from AOCI 3 10 — 13 Other comprehensive income (loss) attributable to UGI 3 44 (85) (38) AOCI — March 31, 2022 $ (14) $ 11 $ (175) $ (178) Six Months Ended March 31, 2021 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — September 30, 2020 $ (26) $ (54) $ (67) $ (147) Other comprehensive income before reclassification adjustments — 4 7 11 Amounts reclassified from AOCI 1 9 — 10 Other comprehensive income attributable to UGI 1 13 7 21 AOCI — March 31, 2021 $ (25) $ (41) $ (60) $ (126) |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 — Segment Information Our operations comprise four reportable segments generally based upon products or services sold, geographic location and regulatory environment: (1) AmeriGas Propane; (2) UGI International; (3) Midstream & Marketing; and (4) Utilities. Corporate & Other includes certain items that are excluded from our CODM’s assessment of segment performance (see below for further details on these items). Corporate & Other also includes the net expenses of UGI’s captive general liability insurance company, UGI’s corporate headquarters facility and UGI’s unallocated corporate and general expenses as well as interest expense on UGI debt that is not allocated. Corporate & Other assets principally comprise cash and cash equivalents of UGI and its captive insurance company, and UGI corporate headquarters’ assets. The accounting policies of our reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Company’s 2021 Annual Report. Three Months Ended March 31, 2022 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 3,466 $ — $ 1,048 $ 1,224 $ 533 $ 667 $ (6) Intersegment revenues $ — $ (179) (b) $ — $ — $ 138 $ 40 $ 1 Cost of sales $ 1,470 $ (178) (b) $ 545 $ 930 $ 540 $ 380 $ (747) Operating income $ 1,332 $ — $ 227 $ 111 $ 85 $ 191 $ 718 Income from equity investees 5 — — — 5 — — Other non-operating income (expense), net 11 — — 9 — 3 (1) Earnings before interest expense and income taxes 1,348 — 227 120 90 194 717 Interest expense (82) — (38) (8) (10) (16) (10) Income before income taxes $ 1,266 $ — $ 189 $ 112 $ 80 $ 178 $ 707 Depreciation and amortization $ 128 $ — $ 44 $ 29 $ 18 $ 36 $ 1 Capital expenditures (including the effects of accruals) $ 170 $ — $ 36 $ 23 $ 10 $ 101 $ — Three Months Ended March 31, 2021 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 2,581 $ — $ 940 $ 834 $ 392 $ 417 $ (2) Intersegment revenues $ — $ (118) (b) $ — $ — $ 92 $ 25 $ 1 Cost of sales $ 1,274 $ (117) (b) $ 431 $ 491 $ 343 $ 202 $ (76) Operating income $ 671 $ — $ 239 $ 147 $ 90 $ 142 $ 53 Income from equity investees 10 — — — 10 — — Other non-operating income, net 18 — — 2 — — 16 Earnings before interest expense and income taxes 699 — 239 149 100 142 69 Interest expense (78) — (40) (6) (11) (14) (7) Income before income taxes $ 621 $ — $ 199 $ 143 $ 89 $ 128 $ 62 Depreciation and amortization $ 126 $ — $ 44 $ 34 $ 19 $ 29 $ — Capital expenditures (including the effects of accruals) $ 124 $ — $ 30 $ 18 $ 12 $ 64 $ — Six Months Ended March 31, 2022 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 6,139 $ — $ 1,826 $ 2,273 $ 974 $ 1,063 $ 3 Intersegment revenues $ — $ (297) (b) $ — $ — $ 232 $ 63 $ 2 Cost of sales $ 3,590 $ (295) (b) $ 963 $ 1,723 $ 953 $ 580 $ (334) Operating income $ 1,264 $ — $ 313 $ 189 $ 159 $ 287 $ 316 Income from equity investees 13 — — — 13 — — Loss on extinguishments of debt (11) — — — — — (11) Other non-operating income, net 21 — — 13 — 5 3 Earnings before interest expense and income taxes 1,287 — 313 202 172 292 308 Interest expense (163) — (79) (15) (20) (32) (17) Income before income taxes $ 1,124 $ — $ 234 $ 187 $ 152 $ 260 $ 291 Depreciation and amortization $ 257 $ — $ 88 $ 60 $ 37 $ 71 $ 1 Capital expenditures (including the effects of accruals) $ 345 $ — $ 71 $ 46 $ 16 $ 212 $ — As of March 31, 2022 Total assets $ 17,777 $ (163) $ 4,563 $ 4,905 $ 3,195 $ 5,106 $ 171 Six Months Ended March 31, 2021 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 4,513 $ — $ 1,606 $ 1,534 $ 671 $ 702 $ — Intersegment revenues $ — $ (196) (b) $ — $ — $ 154 $ 40 $ 2 Cost of sales $ 2,107 $ (194) (b) $ 703 $ 874 $ 580 $ 334 $ (190) Operating income $ 1,173 $ — $ 380 $ 282 $ 142 $ 219 $ 150 Income from equity investees 17 — — — 17 — — Other non-operating (expense) income, net (1) — — 3 — 1 (5) Earnings before interest expense and income taxes 1,189 — 380 285 159 220 145 Interest expense (156) — (80) (13) (21) (28) (14) Income before income taxes $ 1,033 $ — $ 300 $ 272 $ 138 $ 192 $ 131 Depreciation and amortization $ 250 $ — $ 87 $ 67 $ 37 $ 58 $ 1 Capital expenditures (including the effects of accruals) $ 276 $ — $ 57 $ 47 $ 29 $ 143 $ — As of March 31, 2021 Total assets $ 14,945 $ (227) $ 4,515 $ 3,576 $ 2,893 $ 3,982 $ 206 (a) Corporate & Other includes specific items attributable to our reportable segments that are not included in the segment profit measures used by our CODM in assessing our reportable segments’ performance or allocating resources. The following table presents such pre-tax gains (losses) which have been included in Corporate & Other, and the reportable segments to which they relate: Three Months Ended March 31, 2022 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Revenues $ — $ 2 $ (9) Net gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ 32 $ 560 $ 154 Restructuring costs Operating and administrative expenses $ (14) $ (2) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ (1) $ — Three Months Ended March 31, 2021 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net losses on commodity derivative instruments not associated with current-period transactions Revenues $ — $ — $ (2) Net gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ 27 $ 48 $ 1 Business transformation expenses Operating and administrative expenses $ (14) $ (3) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ 15 $ — Six Months Ended March 31, 2022 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Revenues $ — $ 5 $ (2) Net (losses) gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ (37) $ 348 $ 22 Restructuring costs Operating and administrative expenses $ (14) $ (2) $ — Loss on extinguishment of debt Loss on extinguishment of debt $ — $ (11) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ 5 $ — Six Months Ended March 31, 2021 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Cost of sales $ 64 $ 154 $ (28) Unrealized losses on foreign currency derivative instruments Other non-operating income (expense), net $ — $ (5) $ — Business transformation expenses Operating and administrative expenses $ (26) $ (6) $ — (b) Represents the elimination of intersegment transactions principally among Midstream & Marketing, Utilities and AmeriGas Propane. |
Business Transformation Initiat
Business Transformation Initiatives | 6 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Business Transformation Initiatives | Note 15 — Business Transformation Initiatives AmeriGas and UGI International. Beginning in Fiscal 2019, we began executing on multi-year business transformation initiatives at our AmeriGas Propane and UGI International business segments. These initiatives are designed to improve long-term operational performance by, among other things, reducing costs and improving efficiency in the areas of sales and marketing, supply and logistics, operations, purchasing, and administration. In addition, these business transformation initiatives focus on enhancing the customer experience through, among other things, enhanced customer relationship management and an improved digital customer experience. During the three and six months ended March 31, 2021, we incurred $17 and $32 of costs, respectively, principally comprising consulting, advisory, marketing and employee-related costs. These costs are primarily reflected in “Operating and administrative expenses” on the Condensed Consolidated Statements of Income. These previously announced business transformation initiatives are substantially complete. Corporate Services. Beginning in Fiscal 2020, we initiated a transformation project focused on our support functions including: finance, procurement, human resources, and information technology. This initiative will standardize processes and activities across our global platform, while leveraging the use of best practices and efficiencies between our businesses. Amounts reflected in “Operating and administrative expenses” on the Condensed Consolidated Statement of Income in connection with this initiative during the three and six months ended March 31, 2022 and 2021, were not material. |
Impact of Global Pandemic
Impact of Global Pandemic | 6 Months Ended |
Mar. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Impact of Global Pandemic | Note 16 — Impact of Global Pandemic In March 2020, the WHO declared a global pandemic attributable to the outbreak and continued spread of COVID-19 that has had a significant impact throughout the global economy. In connection with the mitigation and containment procedures recommended by the WHO, the CDC, and as imposed by federal, state, and local governmental authorities, including shelter-in-place orders, quarantines and similar restrictions, the Company has implemented a variety of procedures to protect its employees, third-party business partners, and customers worldwide. The Company continues to provide essential products and services to its global customers in a safe and reliable manner, and will continue to do so in compliance with mandated restrictions presented by each of the markets it serves. The Company continues to evaluate and react to the effects of a prolonged disruption and the potential of continued impact on its results of operations. These items may include, but are not limited to: the financial condition of its customers; decreased availability and demand for its products and services; realization of accounts receivable; impairment considerations related to certain current assets, long-lived assets and goodwill; delays related to current and future projects; commodity price volatility and supply chain constraints; and the effects of government stimulus efforts including tax legislation in response to COVID-19. The Company cannot predict the duration or magnitude of the pandemic and the total effects on its business, financial position, results of operations, liquidity or cash flows at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted Cash. |
Earnings Per Common Share | Earnings Per Common Share. |
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, whether it is subject to regulatory ratemaking mechanisms or if it qualifies and is designated as a hedge for accounting purposes. Certain of our derivative instruments qualify and are designated as cash flow hedges. For cash flow hedges, changes in the fair values of the derivative instruments are recorded in AOCI, to the extent effective at offsetting changes in the hedged item, until earnings are affected by the hedged item. We discontinue cash flow hedge accounting if occurrence of the forecasted transaction is determined to be no longer probable. Hedge accounting is also discontinued for derivatives that cease to be highly effective. We do not designate our commodity and certain foreign currency derivative instruments as hedges under GAAP. Changes in the fair values of these derivative instruments are reflected in net income. Gains and losses on substantially all of the commodity derivative instruments used by Utilities are included in regulatory assets or liabilities because it is probable such gains or losses will be recoverable from, or refundable to, customers. From time to time, we also enter into net investment hedges. Gains and losses on net investment hedges that relate to our foreign operations are included in the cumulative translation adjustment component in AOCI until such foreign net investment is substantially sold or liquidated. Cash flows from derivative instruments, other than certain cross-currency swaps and net investment hedges, if any, are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. Cash flows from the interest portion of our cross-currency hedges, if any, are included in cash flows from operating activities while cash flows from the currency portion of such hedges, if any, are included in cash flows from financing activities. Cash flows from net investment hedges, if any, are included in cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows. |
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 |
Reclassifications | Reclassifications. For purposes of comparability, certain prior-period amounts have been reclassified to conform to the current-period presentation. During the second quarter of Fiscal 2022, the Company reclassified certain amounts on the Consolidated Balance Sheet and Consolidated Statement of Changes in Equity related to the accounting for the Equity Units issued in May 2021. |
New Accounting Standards Adopted in Fiscal 2022 And Accounting Standard Not Yet Adopted | New Accounting Standard Adopted in Fiscal 2022 Income Taxes. Effective October 1, 2021, the Company adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” prospectively and retrospectively where deemed applicable. This ASU simplifies the accounting for income taxes by eliminating certain exceptions within the existing guidance for recognizing deferred taxes for equity method investments, performing intraperiod allocations and calculating income taxes in interim periods. Further, this ASU clarifies existing guidance related to, among other things, recognizing deferred taxes for goodwill and allocated taxes to members of a consolidated group. The adoption of the new guidance did not have a material impact on our consolidated financial statements. Accounting Standard Not Yet Adopted Debt and Derivatives and Hedging. In August 2020, the FASB issued ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40).” The amendments in this ASU affect entities that issue convertible instruments and/or contracts indexed to and potentially settled in an entity’s own equity. This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock, expands disclosure requirements for convertible instruments, and simplifies the related earnings per share guidance. This new guidance is effective for the Company for interim and annual periods beginning October 1, 2022 (Fiscal 2023). Early adoption is permitted. The amendments in this ASU may be adopted using the modified or full retrospective transition methods. The Company is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the transition method and the period in which the new guidance will be adopted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the corresponding amounts reported on the Condensed Consolidated Statements of Cash Flows. March 31, March 31, Cash and cash equivalents $ 718 $ 444 Restricted cash 55 28 Cash, cash equivalents and restricted cash $ 773 $ 472 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of the total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the corresponding amounts reported on the Condensed Consolidated Statements of Cash Flows. March 31, March 31, Cash and cash equivalents $ 718 $ 444 Restricted cash 55 28 Cash, cash equivalents and restricted cash $ 773 $ 472 |
Shares Used in Computing Basic and Diluted Earnings Per Share | Shares used in computing basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Denominator (thousands of shares): Weighted-average common shares outstanding — basic 210,163 208,930 209,919 208,849 Incremental shares issuable for stock options, common stock awards and Equity Units (a) 5,765 1,162 6,017 1,014 Weighted-average common shares outstanding — diluted 215,928 210,092 215,936 209,863 (a) For the three and six months ended March 31, 2022 and 2021, there were 6,535 and 5,102 shares, respectively, associated with outstanding stock option awards that were not included in the computation of diluted earnings per share above because their effect was antidilutive. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenues by Reportable Segment | The following tables present our disaggregated revenues by reportable segment: Three Months Ended March 31, 2022 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 400 $ — $ — $ — $ — $ 400 $ — Commercial & Industrial 167 — — — — 167 — Large delivery service 54 — — — — 54 — Off-system sales and capacity releases 37 (40) — — — 77 — Other 7 — — — — 7 — Total Utility 665 (40) — — — 705 — Non-Utility: LPG: Retail 1,554 — 908 646 — — — Wholesale 154 — 68 86 — — — Energy Marketing 909 (81) — 466 524 — — Midstream: Pipeline 50 — — — 50 — — Peaking 23 (57) — — 80 — — Other 2 — — — 2 — — Electricity Generation 14 — — — 14 — — Other 71 — 54 17 — — — Total Non-Utility 2,777 (138) 1,030 1,215 670 — — Total revenues from contracts with customers 3,442 (178) 1,030 1,215 670 705 — Other revenues (b) 24 (1) 18 9 1 2 (5) Total revenues $ 3,466 $ (179) $ 1,048 $ 1,224 $ 671 $ 707 $ (5) Three Months Ended March 31, 2021 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 243 $ — $ — $ — $ — $ 243 $ — Commercial & Industrial 96 — — — — 96 — Large delivery service 44 — — — — 44 — Off-system sales and capacity releases 22 (25) — — — 47 — Other 7 — — — — 7 — Total Utility 412 (25) — — — 437 — Non-Utility: LPG: Retail 1,395 — 833 562 — — — Wholesale 99 — 38 61 — — — Energy Marketing 514 (39) — 186 367 — — Midstream: Pipeline 48 — — — 48 — — Peaking 9 (53) — — 62 — — Other 2 — — — 2 — — Electricity Generation 3 — — — 3 — — Other 70 — 54 16 — — — Total Non-Utility 2,140 (92) 925 825 482 — — Total revenues from contracts with customers 2,552 (117) 925 825 482 437 — Other revenues (b) 29 (1) 15 9 2 5 (1) Total revenues $ 2,581 $ (118) $ 940 $ 834 $ 484 $ 442 $ (1) Six Months Ended March 31, 2022 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 634 $ — $ — $ — $ — $ 634 $ — Commercial & Industrial 261 — — — — 261 — Large delivery service 97 — — — — 97 — Off-system sales and capacity releases 56 (62) — — — 118 — Other 12 (1) — — — 13 — Total Utility 1,060 (63) — — — 1,123 — Non-Utility: LPG: Retail 2,804 — 1,554 1,250 — — — Wholesale 294 — 124 170 — — — Energy Marketing 1,623 (136) — 799 960 — — Midstream: Pipeline 96 — — — 96 — — Peaking 29 (96) — — 125 — — Other 4 — — — 4 — — Electricity Generation 19 — — — 19 — — Other 149 — 112 37 — — — Total Non-Utility 5,018 (232) 1,790 2,256 1,204 — — Total revenues from contracts with customers 6,078 (295) 1,790 2,256 1,204 1,123 — Other revenues (b) 61 (2) 36 17 2 3 5 Total revenues $ 6,139 $ (297) $ 1,826 $ 2,273 $ 1,206 $ 1,126 $ 5 Six Months Ended March 31, 2021 Total Eliminations AmeriGas Propane UGI International Midstream & Marketing Utilities Corporate & Other Revenues from contracts with customers: Utility: Core Market: Residential $ 408 $ — $ — $ — $ — $ 408 $ — Commercial & Industrial 156 — — — — 156 — Large delivery service 84 — — — — 84 — Off-system sales and capacity releases 37 (39) — — — 76 — Other 11 (1) — — — 12 — Total Utility 696 (40) — — — 736 — Non-Utility: LPG: Retail 2,450 — 1,405 1,045 — — — Wholesale 158 — 57 101 — — — Energy Marketing 894 (65) — 341 618 — — Midstream: Pipeline 93 — — — 93 — — Peaking 11 (89) — — 100 — — Other 4 — — — 4 — — Electricity Generation 7 — — — 7 — — Other 142 — 110 32 — — — Total Non-Utility 3,759 (154) 1,572 1,519 822 — — Total revenues from contracts with customers 4,455 (194) 1,572 1,519 822 736 — Other revenues (b) 58 (2) 34 15 3 6 2 Total revenues $ 4,513 $ (196) $ 1,606 $ 1,534 $ 825 $ 742 $ 2 (a) Includes intersegment revenues principally among Midstream & Marketing, Utilities and AmeriGas Propane. (b) Primarily represents revenues from tank rentals at AmeriGas Propane and UGI International, revenues from certain gathering assets at Midstream & Marketing, revenues from alternative revenue programs at UGI Utilities and gains and losses on commodity derivative instruments not associated with current-period transactions reflected in Corporate & Other, none of which are within the scope of ASC 606 and are accounted for in accordance with other GAAP. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Components of Purchase Price Allocations | The components of the Mountaineer purchase price allocations are as follows: Assets acquired: Cash and cash equivalents $ 3 Accounts receivable 14 Inventories 41 Other current assets 21 Property, plant and equipment 397 Other noncurrent assets 48 Total assets acquired $ 524 Liabilities assumed: Short-term borrowings $ 55 Accounts payable 20 Other current liabilities 52 Long-term debt 164 Pension and other postretirement benefit obligation 33 Deferred income taxes 21 Other noncurrent liabilities 29 Total liabilities assumed $ 374 Goodwill 250 Net consideration transferred $ 400 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories comprise the following: March 31, September 30, March 31, Non-utility LPG and natural gas $ 253 $ 278 $ 179 Gas Utility natural gas 6 68 3 Energy certificates 63 53 31 Materials, supplies and other 76 70 55 Total inventories $ 398 $ 469 $ 268 |
Utility Regulatory Assets and_2
Utility Regulatory Assets and Liabilities and Regulatory Matters (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | The following regulatory assets and liabilities associated with Utilities are included on the Condensed Consolidated Balance Sheets: March 31, September 30, March 31, Regulatory assets (a): Income taxes recoverable $ 148 $ 143 $ 128 Underfunded pension and postretirement plans 104 108 169 Environmental costs 55 58 59 Deferred fuel and power costs 6 11 — Removal costs, net 22 24 24 Other 49 53 18 Total regulatory assets $ 384 $ 397 $ 398 Regulatory liabilities (a): Postretirement benefit overcollections $ 12 $ 13 $ 12 Deferred fuel and power refunds 17 36 17 State tax benefits — distribution system repairs 34 32 29 Excess federal deferred income taxes 283 287 270 Other 14 20 7 Total regulatory liabilities $ 360 $ 388 $ 335 (a) Current regulatory assets are included in “Prepaid expenses and other current assets” and regulatory liabilities are included in “Other current liabilities” and “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheets. |
Schedule of Regulatory Liabilities | The following regulatory assets and liabilities associated with Utilities are included on the Condensed Consolidated Balance Sheets: March 31, September 30, March 31, Regulatory assets (a): Income taxes recoverable $ 148 $ 143 $ 128 Underfunded pension and postretirement plans 104 108 169 Environmental costs 55 58 59 Deferred fuel and power costs 6 11 — Removal costs, net 22 24 24 Other 49 53 18 Total regulatory assets $ 384 $ 397 $ 398 Regulatory liabilities (a): Postretirement benefit overcollections $ 12 $ 13 $ 12 Deferred fuel and power refunds 17 36 17 State tax benefits — distribution system repairs 34 32 29 Excess federal deferred income taxes 283 287 270 Other 14 20 7 Total regulatory liabilities $ 360 $ 388 $ 335 (a) Current regulatory assets are included in “Prepaid expenses and other current assets” and regulatory liabilities are included in “Other current liabilities” and “Other noncurrent liabilities” on the Condensed Consolidated Balance Sheets. |
Defined Benefit Pension and O_2
Defined Benefit Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Net periodic pension cost includes the following components: Three Months Ended March 31, 2022 2021 Service cost $ 4 $ 3 Interest cost 7 6 Expected return on assets (13) (10) Amortization of: Actuarial loss 2 3 Net cost $ — $ 2 Six Months Ended March 31, 2022 2021 Service cost $ 8 $ 6 Interest cost 13 11 Expected return on assets (25) (20) Amortization of: Actuarial loss 4 7 Net cost $ — $ 4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents, on a gross basis, our financial assets and liabilities, including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy: Asset (Liability) Level 1 Level 2 Level 3 Total March 31, 2022: Derivative instruments: Assets: Commodity contracts $ 823 $ 1,146 $ — $ 1,969 Foreign currency contracts $ — $ 35 $ — $ 35 Interest rate contracts $ — $ 31 $ — $ 31 Liabilities: Commodity contracts $ (308) $ (13) $ — $ (321) Foreign currency contracts $ — $ (2) $ — $ (2) Interest rate contracts $ — $ (1) $ — $ (1) Non-qualified supplemental postretirement grantor trust investments (a) $ 50 $ — $ — $ 50 September 30, 2021: Derivative instruments: Assets: Commodity contracts $ 641 $ 1,008 $ — $ 1,649 Foreign currency contracts $ — $ 38 $ — $ 38 Liabilities: Commodity contracts $ (264) $ (16) $ — $ (280) Foreign currency contracts $ — $ (8) $ — $ (8) Interest rate contracts $ — $ (29) $ — $ (29) Non-qualified supplemental postretirement grantor trust investments (a) $ 53 $ — $ — $ 53 March 31, 2021: Derivative instruments: Assets: Commodity contracts $ 73 $ 162 $ — $ 235 Foreign currency contracts $ — $ 25 $ — $ 25 Liabilities: Commodity contracts $ (63) $ (9) $ — $ (72) Foreign currency contracts $ — $ (12) $ — $ (12) Interest rate contracts $ — $ (39) $ — $ (39) Non-qualified supplemental postretirement grantor trust investments (a) $ 40 $ — $ — $ 40 |
Schedule of Carrying Amount and Estimated Fair Value of Long-term Debt | The carrying amounts and estimated fair values of our long-term debt (including current maturities but excluding unamortized debt issuance costs) were as follows: March 31, 2022 September 30, 2021 March 31, 2021 Carrying amount $ 6,559 $ 6,491 $ 6,046 Estimated fair value $ 6,543 $ 6,996 $ 6,362 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts Related to Open Derivative Contracts | The following table summarizes by derivative type the gross notional amounts related to open derivative contracts at March 31, 2022, September 30, 2021 and March 31, 2021, and the final settlement dates of the Company's open derivative contracts as of March 31, 2022, excluding those derivatives that qualified for the NPNS exception: Notional Amounts Type Units Settlements Extending Through March 31, 2022 September 30, 2021 March 31, 2021 Commodity Price Risk: Regulated Utility Operations PA Gas Utility NYMEX natural gas futures and option contracts Dekatherms February 2023 11 20 12 Non-utility Operations LPG swaps Gallons September 2024 622 708 557 Natural gas futures, forward, basis swap, options and pipeline contracts Dekatherms March 2026 346 355 338 Electricity forward and futures contracts Kilowatt hours January 2026 3,098 4,302 4,773 Interest Rate Risk: Interest rate swaps Euro October 2022 € 300 € 300 € 300 Interest rate swaps USD September 2024 $ 1,414 $ 1,421 $ 1,302 Foreign Currency Exchange Rate Risk: Forward foreign currency exchange contracts USD September 2024 $ 274 $ 509 $ 384 Net investment hedge forward foreign exchange contracts Euro December 2026 € 486 € 173 € 173 |
Schedule of Derivative Assets, Liabilities and Effects of Offsetting | The following table presents the Company’s derivative assets and liabilities by type, as well as the effects of offsetting: March 31, September 30, March 31, Derivative assets: Derivatives designated as hedging instruments: Foreign currency contracts $ 18 $ 20 $ 16 Interest rate contracts 31 — — 49 20 16 Derivatives subject to PGC and DS mechanisms: Commodity contracts 38 58 2 Derivatives not designated as hedging instruments: Commodity contracts 1,931 1,591 233 Foreign currency contracts 17 18 9 1,948 1,609 242 Total derivative assets — gross 2,035 1,687 260 Gross amounts offset in the balance sheet (215) (216) (35) Cash collateral received (603) (468) (37) Total derivative assets — net $ 1,217 $ 1,003 $ 188 Derivative liabilities: Derivatives designated as hedging instruments: Interest rate contracts $ (1) $ (29) $ (39) Derivatives subject to PGC and DS mechanisms: Commodity contracts (17) (23) (1) Derivatives not designated as hedging instruments: Commodity contracts (304) (257) (71) Foreign currency contracts (2) (8) (12) (306) (265) (83) Total derivative liabilities — gross (324) (317) (123) Gross amounts offset in the balance sheet 215 216 35 Cash collateral pledged — 3 — Total derivative liabilities — net $ (109) $ (98) $ (88) |
Effects of Derivative Instruments on Condensed Consolidated Statements of Income and Changes in AOCI | The following tables provide information on the effects of derivative instruments on the Condensed Consolidated Statements of Income and changes in AOCI: Three Months Ended March 31,: Gain Loss Location of Loss Reclassified from Cash Flow Hedges: 2022 2021 2022 2021 Interest rate contracts $ 36 $ 6 $ (7) $ (6) Interest expense Net Investment Hedges: Foreign currency contracts $ 11 $ 7 Gain (Loss) Derivatives Not Designated as Hedging Instruments: 2022 2021 Location of Gain (Loss) Recognized in Income Commodity contracts $ (7) $ (2) Revenues Commodity contracts 599 135 Cost of sales Commodity contracts — (2) Operating and administrative expenses Foreign currency contracts 7 17 Other non-operating income (expense), net Total $ 599 $ 148 Six Months Ended March 31,: Gain (Loss) Loss Location of Loss Reclassified from Cash Flow Hedges: 2022 2021 2022 2021 Interest rate contracts $ 48 $ 6 $ (13) $ (13) Interest expense Net Investment Hedges: Foreign currency contracts $ 11 $ (1) Gain (Loss) Derivatives Not Designated as Hedging Instruments: 2022 2021 Location of Gain (Loss) Recognized in Income Commodity contracts $ 1 $ 1 Revenues Commodity contracts 326 238 Cost of sales Commodity contracts — 5 Other operating income, net Foreign currency contracts 15 (3) Other non-operating income (expense), net Total $ 342 $ 241 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The tables below present changes in AOCI, net of tax: Three Months Ended March 31, 2022 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — December 31, 2021 $ (15) $ (19) $ (122) $ (156) Other comprehensive income (loss) before reclassification adjustments — 24 (53) (29) Amounts reclassified from AOCI 1 6 — 7 Other comprehensive income (loss) attributable to UGI 1 30 (53) (22) AOCI — March 31, 2022 $ (14) $ 11 $ (175) $ (178) Three Months Ended March 31, 2021 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — December 31, 2020 $ (26) $ (49) $ (4) $ (79) Other comprehensive income (loss) before reclassification adjustments — 4 (56) (52) Amounts reclassified from AOCI 1 4 — 5 Other comprehensive income (loss) attributable to UGI 1 8 (56) (47) AOCI — March 31, 2021 $ (25) $ (41) $ (60) $ (126) Six Months Ended March 31, 2022 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — September 30, 2021 $ (17) $ (33) $ (90) $ (140) Other comprehensive income (loss) before reclassification adjustments — 34 (85) (51) Amounts reclassified from AOCI 3 10 — 13 Other comprehensive income (loss) attributable to UGI 3 44 (85) (38) AOCI — March 31, 2022 $ (14) $ 11 $ (175) $ (178) Six Months Ended March 31, 2021 Postretirement Benefit Plans Derivative Instruments Foreign Currency Total AOCI — September 30, 2020 $ (26) $ (54) $ (67) $ (147) Other comprehensive income before reclassification adjustments — 4 7 11 Amounts reclassified from AOCI 1 9 — 10 Other comprehensive income attributable to UGI 1 13 7 21 AOCI — March 31, 2021 $ (25) $ (41) $ (60) $ (126) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended March 31, 2022 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 3,466 $ — $ 1,048 $ 1,224 $ 533 $ 667 $ (6) Intersegment revenues $ — $ (179) (b) $ — $ — $ 138 $ 40 $ 1 Cost of sales $ 1,470 $ (178) (b) $ 545 $ 930 $ 540 $ 380 $ (747) Operating income $ 1,332 $ — $ 227 $ 111 $ 85 $ 191 $ 718 Income from equity investees 5 — — — 5 — — Other non-operating income (expense), net 11 — — 9 — 3 (1) Earnings before interest expense and income taxes 1,348 — 227 120 90 194 717 Interest expense (82) — (38) (8) (10) (16) (10) Income before income taxes $ 1,266 $ — $ 189 $ 112 $ 80 $ 178 $ 707 Depreciation and amortization $ 128 $ — $ 44 $ 29 $ 18 $ 36 $ 1 Capital expenditures (including the effects of accruals) $ 170 $ — $ 36 $ 23 $ 10 $ 101 $ — Three Months Ended March 31, 2021 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 2,581 $ — $ 940 $ 834 $ 392 $ 417 $ (2) Intersegment revenues $ — $ (118) (b) $ — $ — $ 92 $ 25 $ 1 Cost of sales $ 1,274 $ (117) (b) $ 431 $ 491 $ 343 $ 202 $ (76) Operating income $ 671 $ — $ 239 $ 147 $ 90 $ 142 $ 53 Income from equity investees 10 — — — 10 — — Other non-operating income, net 18 — — 2 — — 16 Earnings before interest expense and income taxes 699 — 239 149 100 142 69 Interest expense (78) — (40) (6) (11) (14) (7) Income before income taxes $ 621 $ — $ 199 $ 143 $ 89 $ 128 $ 62 Depreciation and amortization $ 126 $ — $ 44 $ 34 $ 19 $ 29 $ — Capital expenditures (including the effects of accruals) $ 124 $ — $ 30 $ 18 $ 12 $ 64 $ — Six Months Ended March 31, 2022 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 6,139 $ — $ 1,826 $ 2,273 $ 974 $ 1,063 $ 3 Intersegment revenues $ — $ (297) (b) $ — $ — $ 232 $ 63 $ 2 Cost of sales $ 3,590 $ (295) (b) $ 963 $ 1,723 $ 953 $ 580 $ (334) Operating income $ 1,264 $ — $ 313 $ 189 $ 159 $ 287 $ 316 Income from equity investees 13 — — — 13 — — Loss on extinguishments of debt (11) — — — — — (11) Other non-operating income, net 21 — — 13 — 5 3 Earnings before interest expense and income taxes 1,287 — 313 202 172 292 308 Interest expense (163) — (79) (15) (20) (32) (17) Income before income taxes $ 1,124 $ — $ 234 $ 187 $ 152 $ 260 $ 291 Depreciation and amortization $ 257 $ — $ 88 $ 60 $ 37 $ 71 $ 1 Capital expenditures (including the effects of accruals) $ 345 $ — $ 71 $ 46 $ 16 $ 212 $ — As of March 31, 2022 Total assets $ 17,777 $ (163) $ 4,563 $ 4,905 $ 3,195 $ 5,106 $ 171 Six Months Ended March 31, 2021 Total Eliminations AmeriGas UGI International Midstream & Marketing Utilities Corporate Revenues from external customers $ 4,513 $ — $ 1,606 $ 1,534 $ 671 $ 702 $ — Intersegment revenues $ — $ (196) (b) $ — $ — $ 154 $ 40 $ 2 Cost of sales $ 2,107 $ (194) (b) $ 703 $ 874 $ 580 $ 334 $ (190) Operating income $ 1,173 $ — $ 380 $ 282 $ 142 $ 219 $ 150 Income from equity investees 17 — — — 17 — — Other non-operating (expense) income, net (1) — — 3 — 1 (5) Earnings before interest expense and income taxes 1,189 — 380 285 159 220 145 Interest expense (156) — (80) (13) (21) (28) (14) Income before income taxes $ 1,033 $ — $ 300 $ 272 $ 138 $ 192 $ 131 Depreciation and amortization $ 250 $ — $ 87 $ 67 $ 37 $ 58 $ 1 Capital expenditures (including the effects of accruals) $ 276 $ — $ 57 $ 47 $ 29 $ 143 $ — As of March 31, 2021 Total assets $ 14,945 $ (227) $ 4,515 $ 3,576 $ 2,893 $ 3,982 $ 206 (a) Corporate & Other includes specific items attributable to our reportable segments that are not included in the segment profit measures used by our CODM in assessing our reportable segments’ performance or allocating resources. The following table presents such pre-tax gains (losses) which have been included in Corporate & Other, and the reportable segments to which they relate: Three Months Ended March 31, 2022 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Revenues $ — $ 2 $ (9) Net gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ 32 $ 560 $ 154 Restructuring costs Operating and administrative expenses $ (14) $ (2) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ (1) $ — Three Months Ended March 31, 2021 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net losses on commodity derivative instruments not associated with current-period transactions Revenues $ — $ — $ (2) Net gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ 27 $ 48 $ 1 Business transformation expenses Operating and administrative expenses $ (14) $ (3) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ 15 $ — Six Months Ended March 31, 2022 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Revenues $ — $ 5 $ (2) Net (losses) gains on commodity derivative instruments not associated with current-period transactions Cost of sales $ (37) $ 348 $ 22 Restructuring costs Operating and administrative expenses $ (14) $ (2) $ — Loss on extinguishment of debt Loss on extinguishment of debt $ — $ (11) $ — Unrealized gains on foreign currency derivative instruments Other non-operating income (expense), net $ — $ 5 $ — Six Months Ended March 31, 2021 Location on Income Statement AmeriGas Propane UGI International Midstream & Marketing Net gains (losses) on commodity derivative instruments not associated with current-period transactions Cost of sales $ 64 $ 154 $ (28) Unrealized losses on foreign currency derivative instruments Other non-operating income (expense), net $ — $ (5) $ — Business transformation expenses Operating and administrative expenses $ (26) $ (6) $ — (b) Represents the elimination of intersegment transactions principally among Midstream & Marketing, Utilities and AmeriGas Propane. |
Nature of Operations (Details)
Nature of Operations (Details) - Mountaineer customer in Millions, $ in Millions | Sep. 01, 2021USD ($)customercounty |
Business Acquisition [Line Items] | |
Enterprise value | $ 540 |
Assumption of debt | $ 140 |
Customers served | customer | 0.2 |
Number of counties of operation | county | 50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 718 | $ 855 | $ 444 | |
Restricted cash | 55 | 22 | 28 | |
Cash, cash equivalents and restricted cash | $ 773 | $ 877 | $ 472 | $ 357 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Shares Used in Computing Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Denominator (thousands of shares): | ||||
Weighted-average common shares outstanding - basic (in shares) | 210,163 | 208,930 | 209,919 | 208,849 |
Incremental shares issuable for stock options, common stock awards and Equity Units (in shares) | 5,765 | 1,162 | 6,017 | 1,014 |
Weighted-average common shares outstanding - diluted (in shares) | 215,928 | 210,092 | 215,936 | 209,863 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,535 | 5,102 | 6,535 | 5,102 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregated Revenues by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 3,442 | $ 2,552 | $ 6,078 | $ 4,455 |
Other revenues | 24 | 29 | 61 | 58 |
Total revenues | 3,466 | 2,581 | 6,139 | 4,513 |
Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 665 | 412 | 1,060 | 696 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 400 | 243 | 634 | 408 |
Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 167 | 96 | 261 | 156 |
Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 54 | 44 | 97 | 84 |
Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 37 | 22 | 56 | 37 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 7 | 7 | 12 | 11 |
Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2,777 | 2,140 | 5,018 | 3,759 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,554 | 1,395 | 2,804 | 2,450 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 154 | 99 | 294 | 158 |
Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 909 | 514 | 1,623 | 894 |
Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 50 | 48 | 96 | 93 |
Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 23 | 9 | 29 | 11 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2 | 2 | 4 | 4 |
Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 14 | 3 | 19 | 7 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 71 | 70 | 149 | 142 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (178) | (117) | (295) | (194) |
Other revenues | (1) | (1) | (2) | (2) |
Total revenues | (179) | (118) | (297) | (196) |
Eliminations | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (40) | (25) | (63) | (40) |
Eliminations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (40) | (25) | (62) | (39) |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | (1) | (1) |
Eliminations | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (138) | (92) | (232) | (154) |
Eliminations | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (81) | (39) | (136) | (65) |
Eliminations | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (57) | (53) | (96) | (89) |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | AmeriGas Propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | UGI International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | Midstream & Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 138 | 92 | 232 | 154 |
Eliminations | Utilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 40 | 25 | 63 | 40 |
Operating Segments | AmeriGas Propane | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,030 | 925 | 1,790 | 1,572 |
Other revenues | 18 | 15 | 36 | 34 |
Total revenues | 1,048 | 940 | 1,826 | 1,606 |
Operating Segments | AmeriGas Propane | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,030 | 925 | 1,790 | 1,572 |
Operating Segments | AmeriGas Propane | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 908 | 833 | 1,554 | 1,405 |
Operating Segments | AmeriGas Propane | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 68 | 38 | 124 | 57 |
Operating Segments | AmeriGas Propane | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | AmeriGas Propane | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 54 | 54 | 112 | 110 |
Operating Segments | UGI International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,215 | 825 | 2,256 | 1,519 |
Other revenues | 9 | 9 | 17 | 15 |
Total revenues | 1,224 | 834 | 2,273 | 1,534 |
Operating Segments | UGI International | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,215 | 825 | 2,256 | 1,519 |
Operating Segments | UGI International | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 646 | 562 | 1,250 | 1,045 |
Operating Segments | UGI International | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 86 | 61 | 170 | 101 |
Operating Segments | UGI International | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 466 | 186 | 799 | 341 |
Operating Segments | UGI International | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | UGI International | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 17 | 16 | 37 | 32 |
Operating Segments | Midstream & Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 670 | 482 | 1,204 | 822 |
Other revenues | 1 | 2 | 2 | 3 |
Total revenues | 671 | 484 | 1,206 | 825 |
Operating Segments | Midstream & Marketing | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 670 | 482 | 1,204 | 822 |
Operating Segments | Midstream & Marketing | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Midstream & Marketing | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 524 | 367 | 960 | 618 |
Operating Segments | Midstream & Marketing | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 50 | 48 | 96 | 93 |
Operating Segments | Midstream & Marketing | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 80 | 62 | 125 | 100 |
Operating Segments | Midstream & Marketing | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 2 | 2 | 4 | 4 |
Operating Segments | Midstream & Marketing | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 14 | 3 | 19 | 7 |
Operating Segments | Midstream & Marketing | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 705 | 437 | 1,123 | 736 |
Other revenues | 2 | 5 | 3 | 6 |
Total revenues | 707 | 442 | 1,126 | 742 |
Operating Segments | Utilities | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 705 | 437 | 1,123 | 736 |
Operating Segments | Utilities | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 400 | 243 | 634 | 408 |
Operating Segments | Utilities | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 167 | 96 | 261 | 156 |
Operating Segments | Utilities | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 54 | 44 | 97 | 84 |
Operating Segments | Utilities | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 77 | 47 | 118 | 76 |
Operating Segments | Utilities | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 7 | 7 | 13 | 12 |
Operating Segments | Utilities | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments | Utilities | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | (5) | (1) | 5 | 2 |
Total revenues | (5) | (1) | 5 | 2 |
Corporate & Other | Total Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Large delivery service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Off-system sales and capacity releases | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Total Non-Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Energy Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Pipeline | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Peaking | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Electricity Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate & Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 100 | $ 93 | $ 149 |
Revenue recognized | 112 | $ 131 | |
Midstream & Marketing | |||
Disaggregation of Revenue [Line Items] | |||
Expected revenue | 2,300 | ||
Utilities | |||
Disaggregation of Revenue [Line Items] | |||
Expected revenue | $ 200 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jan. 27, 2022 | Sep. 01, 2021 | Mar. 31, 2022 |
UGI Corporation Senior Credit Facility | |||
Business Acquisition [Line Items] | |||
Issuance of debt | $ 215 | ||
Stonehenge | |||
Business Acquisition [Line Items] | |||
Enterprise value | $ 190 | ||
Mountaineer | |||
Business Acquisition [Line Items] | |||
Enterprise value | 540 | ||
Assumption of debt | $ 140 | ||
Goodwill decrease | $ 5 |
Acquisitions - Summary of Compo
Acquisitions - Summary of Components of Purchase Price Allocations (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 01, 2021 | Mar. 31, 2021 |
Liabilities assumed: | ||||
Goodwill | $ 3,722 | $ 3,770 | $ 3,524 | |
Mountaineer | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 3 | |||
Accounts receivable | 14 | |||
Inventories | 41 | |||
Other current assets | 21 | |||
Property, plant and equipment | 397 | |||
Other noncurrent assets | 48 | |||
Total assets acquired | 524 | |||
Liabilities assumed: | ||||
Short-term borrowings | 55 | |||
Accounts payable | 20 | |||
Other current liabilities | 52 | |||
Long-term debt | 164 | |||
Pension and other postretirement benefit obligation | 33 | |||
Deferred income taxes | 21 | |||
Other noncurrent liabilities | 29 | |||
Total liabilities assumed | 374 | |||
Goodwill | 250 | |||
Net consideration transferred | $ 400 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Inventory | |||
Total inventories | $ 398 | $ 469 | $ 268 |
Non-utility LPG and natural gas | |||
Inventory | |||
Total inventories | 253 | 278 | 179 |
Gas Utility natural gas | |||
Inventory | |||
Total inventories | 6 | 68 | 3 |
Energy certificates | |||
Inventory | |||
Total inventories | 63 | 53 | 31 |
Materials, supplies and other | |||
Inventory | |||
Total inventories | $ 76 | $ 70 | $ 55 |
Utility Regulatory Assets and_3
Utility Regulatory Assets and Liabilities and Regulatory Matters - Schedule of Regulatory Assets and Liabilities (Details) - Utilities - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Regulatory Assets | |||
Regulatory assets | $ 384 | $ 397 | $ 398 |
Regulatory Liabilities | |||
Regulatory liabilities | 360 | 388 | 335 |
Postretirement benefit overcollections | |||
Regulatory Liabilities | |||
Regulatory liabilities | 12 | 13 | 12 |
Deferred fuel and power refunds | |||
Regulatory Liabilities | |||
Regulatory liabilities | 17 | 36 | 17 |
State tax benefits — distribution system repairs | |||
Regulatory Liabilities | |||
Regulatory liabilities | 34 | 32 | 29 |
Excess federal deferred income taxes | |||
Regulatory Liabilities | |||
Regulatory liabilities | 283 | 287 | 270 |
Other | |||
Regulatory Liabilities | |||
Regulatory liabilities | 14 | 20 | 7 |
Income taxes recoverable | |||
Regulatory Assets | |||
Regulatory assets | 148 | 143 | 128 |
Underfunded pension and postretirement plans | |||
Regulatory Assets | |||
Regulatory assets | 104 | 108 | 169 |
Environmental costs | |||
Regulatory Assets | |||
Regulatory assets | 55 | 58 | 59 |
Deferred fuel and power costs | |||
Regulatory Assets | |||
Regulatory assets | 6 | 11 | 0 |
Removal costs, net | |||
Regulatory Assets | |||
Regulatory assets | 22 | 24 | 24 |
Other | |||
Regulatory Assets | |||
Regulatory assets | $ 49 | $ 53 | $ 18 |
Utility Regulatory Assets and_4
Utility Regulatory Assets and Liabilities and Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | Jan. 28, 2022 | Nov. 09, 2021 | Apr. 01, 2021 | Feb. 08, 2021 | Oct. 08, 2020 | Jan. 28, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 |
Regulatory Assets | |||||||||
Net unrealized gains (losses) | $ 341 | $ 185 | |||||||
Gas Utility | |||||||||
Regulatory Assets | |||||||||
Net unrealized gains (losses) | $ 21 | $ 1 | $ 35 | ||||||
Gas Utility | PAPUC | |||||||||
Regulatory Assets | |||||||||
Requested rate increase | $ 83 | $ 75 | |||||||
Approved rate increase | $ 20 | ||||||||
Property, plant and equipment, net threshold | $ 2,875 | ||||||||
Amortization period | 10 years | ||||||||
Gas Utility | PAPUC | Beginning January 1, 2021 | |||||||||
Regulatory Assets | |||||||||
Approved rate increase | 10 | ||||||||
Gas Utility | PAPUC | Beginning July 1, 2021 | |||||||||
Regulatory Assets | |||||||||
Approved rate increase | $ 10 | ||||||||
Electric Utility | PAPUC | |||||||||
Regulatory Assets | |||||||||
Requested rate increase | $ 9 | ||||||||
Electric Utility | PAPUC | Joint Petition | |||||||||
Regulatory Assets | |||||||||
Requested rate increase | $ 6 |
Debt (Details)
Debt (Details) $ in Millions | Dec. 07, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 07, 2021EUR (€) |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 11 | $ 0 | ||
Senior Notes | UGI International | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 11 | |||||
Senior Notes | UGI International | 2.50% Senior notes due December 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | € | € 400,000,000 | |||||
Interest rate | 2.50% | |||||
Senior Notes | UGI International | 3.25% Senior notes due November 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.25% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)subsidiary | Sep. 30, 2017USD ($)record_of_decision | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | |
Loss Contingencies | ||||
Environmental expenditures cap during calendar year | $ 5,000,000 | |||
CPG, PNG and UGI Gas COAs | ||||
Loss Contingencies | ||||
Accrual for environmental loss contingencies | $ 49,000,000 | $ 50,000,000 | $ 50,000,000 | |
Utilities | ||||
Loss Contingencies | ||||
Number of subsidiaries acquired with similar histories | subsidiary | 2 | |||
AmeriGas OLP | Saranac Lake, New York | NYDEC ROD | ||||
Loss Contingencies | ||||
Accrual for environmental loss contingencies | $ 8,000,000 | |||
Loss contingency, number of remediation plans | record_of_decision | 3 | |||
Estimated remediation plan cost | $ 28,000,000 |
Defined Benefit Pension and O_3
Defined Benefit Pension and Other Postretirement Plans - Components of Net Periodic Pension Cost (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure | ||||
Service cost | $ 4 | $ 3 | $ 8 | $ 6 |
Interest cost | 7 | 6 | 13 | 11 |
Expected return on assets | (13) | (10) | (25) | (20) |
Amortization of: | ||||
Actuarial loss | 2 | 3 | 4 | 7 |
Net cost | $ 0 | $ 2 | $ 0 | $ 4 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | $ 2,035 | $ 1,687 | $ 260 |
Derivative instruments, Liabilities | (324) | (317) | (123) |
Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 38 | 58 | 2 |
Derivative instruments, Liabilities | (17) | (23) | (1) |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-qualified supplemental postretirement grantor trust investments | 50 | 53 | 40 |
Recurring | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 1,969 | 1,649 | 235 |
Derivative instruments, Liabilities | (321) | (280) | (72) |
Recurring | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 35 | 38 | 25 |
Derivative instruments, Liabilities | (2) | (8) | (12) |
Recurring | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 31 | ||
Derivative instruments, Liabilities | (1) | (29) | (39) |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-qualified supplemental postretirement grantor trust investments | 50 | 53 | 40 |
Recurring | Level 1 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 823 | 641 | 73 |
Derivative instruments, Liabilities | (308) | (264) | (63) |
Recurring | Level 1 | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 0 | 0 | 0 |
Derivative instruments, Liabilities | 0 | 0 | 0 |
Recurring | Level 1 | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 0 | ||
Derivative instruments, Liabilities | 0 | 0 | 0 |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-qualified supplemental postretirement grantor trust investments | 0 | 0 | 0 |
Recurring | Level 2 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 1,146 | 1,008 | 162 |
Derivative instruments, Liabilities | (13) | (16) | (9) |
Recurring | Level 2 | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 35 | 38 | 25 |
Derivative instruments, Liabilities | (2) | (8) | (12) |
Recurring | Level 2 | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 31 | ||
Derivative instruments, Liabilities | (1) | (29) | (39) |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-qualified supplemental postretirement grantor trust investments | 0 | 0 | 0 |
Recurring | Level 3 | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 0 | 0 | 0 |
Derivative instruments, Liabilities | 0 | 0 | 0 |
Recurring | Level 3 | Foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 0 | 0 | 0 |
Derivative instruments, Liabilities | 0 | 0 | 0 |
Recurring | Level 3 | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instruments, Assets | 0 | ||
Derivative instruments, Liabilities | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Carrying amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 6,559 | $ 6,491 | $ 6,046 |
Estimated fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 6,543 | $ 6,996 | $ 6,362 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022EUR (€) | Dec. 07, 2021EUR (€) | Sep. 30, 2021USD ($) | Sep. 30, 2021EUR (€) | Mar. 31, 2021EUR (€) | |
Derivative [Line Items] | |||||||||
Pre-tax (losses) gains associated with net investment hedges | $ 21,000,000 | $ 31,000,000 | $ 34,000,000 | $ (1,000,000) | |||||
Maximum amount of loss | 2,035,000,000 | 2,035,000,000 | |||||||
Cash collateral received | (603,000,000) | (37,000,000) | (603,000,000) | (37,000,000) | $ (468,000,000) | ||||
UGI International | Senior Notes | 3.25% Senior notes due November 2025 | |||||||||
Derivative [Line Items] | |||||||||
Interest rate | 3.25% | ||||||||
IRPAs | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | 0 | 0 | 0 | 0 | 0 | ||||
Pre-tax net losses associated with interest rate hedges | $ 3,000,000 | $ 3,000,000 | |||||||
Forward foreign currency exchange contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount percent of required need coverage | 90.00% | 90.00% | 90.00% | ||||||
Foreign currency contracts | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | $ 274,000,000 | $ 384,000,000 | $ 274,000,000 | $ 384,000,000 | € 486,000,000 | $ 509,000,000 | € 173,000,000 | € 173,000,000 | |
Foreign currency contracts | UGI International | Net Investment Hedging | |||||||||
Derivative [Line Items] | |||||||||
Notional amount | € | € 93,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Notional Amounts (Details) € in Millions, kWh in Millions, gal in Millions, DTH in Millions, $ in Millions | Mar. 31, 2022USD ($)DTHgalkWh | Mar. 31, 2022EUR (€)DTHgalkWh | Sep. 30, 2021USD ($)kWhDTHgal | Sep. 30, 2021EUR (€)kWhDTHgal | Mar. 31, 2021USD ($)kWhgalDTH | Mar. 31, 2021EUR (€)kWhgalDTH |
Commodity contracts | Regulated Utility Operations | Natural Gas | ||||||
Derivative [Line Items] | ||||||
Notional amount (in units) | 11 | 11 | 20 | 20 | 12 | 12 |
Commodity contracts | Non-utility Operations | LPG | ||||||
Derivative [Line Items] | ||||||
Notional amount (in units) | gal | 622 | 622 | 708 | 708 | 557 | 557 |
Commodity contracts | Non-utility Operations | Electricity | ||||||
Derivative [Line Items] | ||||||
Notional amount (in units) | kWh | 3,098 | 3,098 | 4,302 | 4,302 | 4,773 | 4,773 |
Natural gas futures, forward and pipeline contracts (in dekatherms) | Non-utility Operations | Natural Gas | ||||||
Derivative [Line Items] | ||||||
Notional amount (in units) | 346 | 346 | 355 | 355 | 338 | 338 |
Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 1,414 | € 300 | $ 1,421 | € 300 | $ 1,302 | € 300 |
Forward foreign currency exchange contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 274 | € 486 | $ 509 | € 173 | $ 384 | € 173 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 |
Derivative assets: | |||
Total derivative assets — gross | $ 2,035 | $ 1,687 | $ 260 |
Gross amounts offset in the balance sheet | (215) | (216) | (35) |
Cash collateral received | (603) | (468) | (37) |
Total derivative assets — net | 1,217 | 1,003 | 188 |
Derivative liabilities: | |||
Total derivative liabilities — gross | (324) | (317) | (123) |
Gross amounts offset in the balance sheet | 215 | 216 | 35 |
Cash collateral pledged | 0 | 3 | 0 |
Total derivative liabilities — net | (109) | (98) | (88) |
Commodity contracts | |||
Derivative assets: | |||
Total derivative assets — gross | 38 | 58 | 2 |
Derivative liabilities: | |||
Total derivative liabilities — gross | (17) | (23) | (1) |
Derivatives designated as hedging instruments: | |||
Derivative assets: | |||
Total derivative assets — gross | 49 | 20 | 16 |
Derivatives designated as hedging instruments: | Foreign currency contracts | |||
Derivative assets: | |||
Total derivative assets — gross | 18 | 20 | 16 |
Derivatives designated as hedging instruments: | Interest rate contracts | |||
Derivative assets: | |||
Total derivative assets — gross | 31 | 0 | 0 |
Derivative liabilities: | |||
Total derivative liabilities — gross | (1) | (29) | (39) |
Derivatives not designated as hedging instruments: | |||
Derivative assets: | |||
Total derivative assets — gross | 1,948 | 1,609 | 242 |
Derivative liabilities: | |||
Total derivative liabilities — gross | (306) | (265) | (83) |
Derivatives not designated as hedging instruments: | Foreign currency contracts | |||
Derivative assets: | |||
Total derivative assets — gross | 17 | 18 | 9 |
Derivative liabilities: | |||
Total derivative liabilities — gross | (2) | (8) | (12) |
Derivatives not designated as hedging instruments: | Commodity contracts | |||
Derivative assets: | |||
Total derivative assets — gross | 1,931 | 1,591 | 233 |
Derivative liabilities: | |||
Total derivative liabilities — gross | $ (304) | $ (257) | $ (71) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on the Condensed Consolidated Statements of Income and Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | $ 599 | $ 148 | $ 342 | $ 241 |
Interest rate contracts | Derivatives designated as hedging instruments: | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in AOCI | 36 | 6 | 48 | 6 |
Interest rate contracts | Derivatives designated as hedging instruments: | Interest expense | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Loss Reclassified from AOCI into Income | (7) | (6) | (13) | (13) |
Foreign currency contracts | Derivatives designated as hedging instruments: | Net Investment Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Foreign currency contracts | 11 | 7 | 11 | (1) |
Foreign currency contracts | Derivatives Not Designated as Hedging Instruments | Other non-operating income (expense), net | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | 7 | 17 | 15 | (3) |
Commodity contracts | Derivatives Not Designated as Hedging Instruments | Revenues | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | (7) | (2) | 1 | 1 |
Commodity contracts | Derivatives Not Designated as Hedging Instruments | Cost of sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | 599 | 135 | 326 | 238 |
Commodity contracts | Derivatives Not Designated as Hedging Instruments | Operating and administrative expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | $ 0 | $ (2) | ||
Commodity contracts | Derivatives Not Designated as Hedging Instruments | Other operating income, net | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in Income | $ 0 | $ 5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | $ 5,531 | |||
Other comprehensive income (loss) before reclassification adjustments | $ (29) | $ (52) | (51) | $ 11 |
Amounts reclassified from AOCI | 7 | 5 | 13 | 10 |
Other comprehensive income (loss) attributable to UGI | (22) | (47) | (38) | 21 |
Balance, end of period | 6,210 | 4,828 | 6,210 | 4,828 |
Postretirement Benefit Plans | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (15) | (26) | (17) | (26) |
Other comprehensive income (loss) before reclassification adjustments | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 1 | 1 | 3 | 1 |
Other comprehensive income (loss) attributable to UGI | 1 | 1 | 3 | 1 |
Balance, end of period | (14) | (25) | (14) | (25) |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (19) | (49) | (33) | (54) |
Other comprehensive income (loss) before reclassification adjustments | 24 | 4 | 34 | 4 |
Amounts reclassified from AOCI | 6 | 4 | 10 | 9 |
Other comprehensive income (loss) attributable to UGI | 30 | 8 | 44 | 13 |
Balance, end of period | 11 | (41) | 11 | (41) |
Foreign Currency | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (122) | (4) | (90) | (67) |
Other comprehensive income (loss) before reclassification adjustments | (53) | (56) | (85) | 7 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) attributable to UGI | (53) | (56) | (85) | 7 |
Balance, end of period | (175) | (60) | (175) | (60) |
Total | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Balance, beginning of period | (156) | (79) | (140) | (147) |
Balance, end of period | $ (178) | $ (126) | $ (178) | $ (126) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 3,466 | $ 2,581 | $ 6,139 | $ 4,513 | |
Cost of sales | 1,470 | 1,274 | 3,590 | 2,107 | |
Operating income | 1,332 | 671 | 1,264 | 1,173 | |
Income from equity investees | 5 | 10 | 13 | 17 | |
Loss on extinguishment of debt | 0 | 0 | (11) | 0 | |
Other non-operating (expense) income, net | 11 | 18 | 21 | (1) | |
Earnings before interest expense and income taxes | 1,348 | 699 | 1,287 | 1,189 | |
Interest expense | (82) | (78) | (163) | (156) | |
Income before income taxes | 1,266 | 621 | 1,124 | 1,033 | |
Depreciation and amortization | 128 | 126 | 257 | 250 | |
Capital expenditures (including the effects of accruals) | 170 | 124 | 345 | 276 | |
Total assets | 17,777 | 14,945 | 17,777 | 14,945 | $ 16,723 |
AmeriGas Propane | |||||
Segment Reporting Information [Line Items] | |||||
Loss on extinguishment of debt | 0 | ||||
UGI International | |||||
Segment Reporting Information [Line Items] | |||||
Loss on extinguishment of debt | (11) | ||||
Midstream & Marketing | |||||
Segment Reporting Information [Line Items] | |||||
Loss on extinguishment of debt | 0 | ||||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | (179) | (118) | (297) | (196) | |
Cost of sales | (178) | (117) | (295) | (194) | |
Operating income | 0 | 0 | 0 | 0 | |
Income from equity investees | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||||
Other non-operating (expense) income, net | 0 | 0 | 0 | 0 | |
Earnings before interest expense and income taxes | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures (including the effects of accruals) | 0 | 0 | 0 | 0 | |
Total assets | (163) | (227) | (163) | (227) | |
Eliminations | AmeriGas Propane | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Eliminations | UGI International | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Eliminations | Midstream & Marketing | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 138 | 92 | 232 | 154 | |
Eliminations | Utilities | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 40 | 25 | 63 | 40 | |
Operating Segments | AmeriGas Propane | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,048 | 940 | 1,826 | 1,606 | |
Cost of sales | 545 | 431 | 963 | 703 | |
Operating income | 227 | 239 | 313 | 380 | |
Income from equity investees | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||||
Other non-operating (expense) income, net | 0 | 0 | 0 | 0 | |
Earnings before interest expense and income taxes | 227 | 239 | 313 | 380 | |
Interest expense | (38) | (40) | (79) | (80) | |
Income before income taxes | 189 | 199 | 234 | 300 | |
Depreciation and amortization | 44 | 44 | 88 | 87 | |
Capital expenditures (including the effects of accruals) | 36 | 30 | 71 | 57 | |
Total assets | 4,563 | 4,515 | 4,563 | 4,515 | |
Operating Segments | UGI International | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 1,224 | 834 | 2,273 | 1,534 | |
Cost of sales | 930 | 491 | 1,723 | 874 | |
Operating income | 111 | 147 | 189 | 282 | |
Income from equity investees | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||||
Other non-operating (expense) income, net | 9 | 2 | 13 | 3 | |
Earnings before interest expense and income taxes | 120 | 149 | 202 | 285 | |
Interest expense | (8) | (6) | (15) | (13) | |
Income before income taxes | 112 | 143 | 187 | 272 | |
Depreciation and amortization | 29 | 34 | 60 | 67 | |
Capital expenditures (including the effects of accruals) | 23 | 18 | 46 | 47 | |
Total assets | 4,905 | 3,576 | 4,905 | 3,576 | |
Operating Segments | Midstream & Marketing | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 671 | 484 | 1,206 | 825 | |
Revenues, before intersegment effect | 533 | 392 | 974 | 671 | |
Cost of sales | 540 | 343 | 953 | 580 | |
Operating income | 85 | 90 | 159 | 142 | |
Income from equity investees | 5 | 10 | 13 | 17 | |
Loss on extinguishment of debt | 0 | ||||
Other non-operating (expense) income, net | 0 | 0 | 0 | 0 | |
Earnings before interest expense and income taxes | 90 | 100 | 172 | 159 | |
Interest expense | (10) | (11) | (20) | (21) | |
Income before income taxes | 80 | 89 | 152 | 138 | |
Depreciation and amortization | 18 | 19 | 37 | 37 | |
Capital expenditures (including the effects of accruals) | 10 | 12 | 16 | 29 | |
Total assets | 3,195 | 2,893 | 3,195 | 2,893 | |
Operating Segments | Utilities | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 707 | 442 | 1,126 | 742 | |
Revenues, before intersegment effect | 667 | 417 | 1,063 | 702 | |
Cost of sales | 380 | 202 | 580 | 334 | |
Operating income | 191 | 142 | 287 | 219 | |
Income from equity investees | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||||
Other non-operating (expense) income, net | 3 | 0 | 5 | 1 | |
Earnings before interest expense and income taxes | 194 | 142 | 292 | 220 | |
Interest expense | (16) | (14) | (32) | (28) | |
Income before income taxes | 178 | 128 | 260 | 192 | |
Depreciation and amortization | 36 | 29 | 71 | 58 | |
Capital expenditures (including the effects of accruals) | 101 | 64 | 212 | 143 | |
Total assets | 5,106 | 3,982 | 5,106 | 3,982 | |
Corporate & Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues, before intersegment effect | (6) | (2) | 3 | 0 | |
Cost of sales | (747) | (76) | (334) | (190) | |
Operating income | 718 | 53 | 316 | 150 | |
Income from equity investees | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | (11) | ||||
Other non-operating (expense) income, net | (1) | 16 | 3 | (5) | |
Earnings before interest expense and income taxes | 717 | 69 | 308 | 145 | |
Interest expense | (10) | (7) | (17) | (14) | |
Income before income taxes | 707 | 62 | 291 | 131 | |
Depreciation and amortization | 1 | 0 | 1 | 1 | |
Capital expenditures (including the effects of accruals) | 0 | 0 | 0 | 0 | |
Total assets | 171 | 206 | 171 | 206 | |
Intersegment revenues Corporate & Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 1 | $ 1 | $ 2 | $ 2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Partnership Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | $ 341 | $ 185 | ||
Loss on extinguishment of debt | $ 0 | $ 0 | (11) | 0 |
AmeriGas Propane | ||||
Segment Reporting Information [Line Items] | ||||
Loss on extinguishment of debt | 0 | |||
AmeriGas Propane | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 0 | 0 | 0 | |
AmeriGas Propane | Cost of sales | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 32 | 27 | (37) | 64 |
AmeriGas Propane | Operating and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | (14) | (14) | ||
Business transformation expenses | (14) | (26) | ||
AmeriGas Propane | Other non-operating income (expense), net | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 0 | 0 | 0 | 0 |
UGI International | ||||
Segment Reporting Information [Line Items] | ||||
Loss on extinguishment of debt | (11) | |||
UGI International | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 2 | 0 | 5 | |
UGI International | Cost of sales | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 560 | 48 | 348 | 154 |
UGI International | Operating and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | (2) | (2) | ||
Business transformation expenses | (3) | (6) | ||
UGI International | Other non-operating income (expense), net | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | (1) | 15 | 5 | (5) |
Midstream & Marketing | ||||
Segment Reporting Information [Line Items] | ||||
Loss on extinguishment of debt | 0 | |||
Midstream & Marketing | Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | (9) | (2) | (2) | |
Midstream & Marketing | Cost of sales | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | 154 | 1 | 22 | (28) |
Midstream & Marketing | Operating and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | 0 | 0 | ||
Business transformation expenses | 0 | 0 | ||
Midstream & Marketing | Other non-operating income (expense), net | ||||
Segment Reporting Information [Line Items] | ||||
Net gains (losses) on commodity derivative instruments not associated with current-period transactions | $ 0 | $ 0 | $ 0 | $ 0 |
Business Transformation Initi_2
Business Transformation Initiatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
AmeriGas and UGI International | ||
Restructuring Cost and Reserve [Line Items] | ||
Recognized expenses | $ 17 | $ 32 |