UGI Corp Q3 6.30.2014 10-Q
Table of Contents

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
 
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2014
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  ________ to ________            
Commission file number 1-11071

UGI CORPORATION
(Exact name of registrant as specified in its charter)
 
Pennsylvania
 
23-2668356
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
460 North Gulph Road, King of Prussia, PA
 
19406
(Address of principal executive offices)
 
(Zip Code)
(610) 337-1000
(Registrant’s telephone number, including area code)
______________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
ý
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý
At July 31, 2014, there were 114,922,662 shares of UGI Corporation Common Stock, without par value, outstanding.
 
 
 
 
 


Table of Contents

UGI CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
 
 
PAGES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
52 
 
 
 
 
 

- i -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES

 
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(Millions of dollars)
 
 
June 30,
2014
 
September 30,
2013
 
June 30,
2013 (Revised, See Note 3)
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 
$
438.4

 
$
389.3

 
$
401.8

Restricted cash
 
5.9

 
8.3

 
6.0

Accounts receivable (less allowances for doubtful accounts of $52.5, $39.5 and $48.0, respectively)
 
785.4

 
745.6

 
752.6

Accrued utility revenues
 
8.0

 
18.9

 
11.8

Inventories
 
332.0

 
365.5

 
304.0

Deferred income taxes
 
9.1

 
10.6

 
6.6

Utility regulatory assets
 
9.4

 
8.2

 
3.7

Derivative financial instruments
 
12.4

 
23.8

 
18.7

Prepaid expenses and other current assets
 
38.3

 
57.1

 
36.1

Total current assets
 
1,638.9

 
1,627.3

 
1,541.3

Property, plant and equipment, at cost (less accumulated depreciation and amortization of $2,702.3, $2,560.3 and $2,495.4, respectively)
 
4,543.4

 
4,480.2

 
4,323.7

Goodwill
 
2,885.1

 
2,871.0

 
2,834.0

Intangible assets, net
 
590.3

 
610.6

 
608.6

Other assets
 
420.0

 
419.7

 
499.2

Total assets
 
$
10,077.7

 
$
10,008.8

 
$
9,806.8

LIABILITIES AND EQUITY
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Current maturities of long-term debt
 
$
78.4

 
$
67.2

 
$
195.6

Bank loans
 
96.5

 
227.9

 
135.9

Accounts payable
 
403.8

 
472.3

 
384.5

Derivative financial instruments
 
26.2

 
30.0

 
56.8

Other current liabilities
 
609.3

 
627.5

 
552.9

Total current liabilities
 
1,214.2

 
1,424.9

 
1,325.7

Long-term debt
 
3,477.8

 
3,542.2

 
3,298.2

Deferred income taxes
 
986.2

 
962.3

 
933.5

Deferred investment tax credits
 
4.0

 
4.3

 
4.4

Other noncurrent liabilities
 
514.7

 
527.2

 
616.9

Total liabilities
 
6,196.9

 
6,460.9

 
6,178.7

Commitments and contingencies (Note 10)
 

 

 

Equity:
 
 
 
 
 
 
UGI Corporation stockholders’ equity:
 
 
 
 
 
 
UGI Common Stock, without par value (authorized—300,000,000 shares; issued — 115,830,694, 115,783,794 and 115,759,694 shares, respectively)
 
1,216.0

 
1,208.1

 
1,192.9

Retained earnings
 
1,566.7

 
1,308.3

 
1,354.9

Accumulated other comprehensive income (loss)
 
25.4

 
8.4

 
(27.4
)
Treasury stock, at cost
 
(37.1
)
 
(32.3
)
 
(26.2
)
Total UGI Corporation stockholders’ equity
 
2,771.0

 
2,492.5

 
2,494.2

Noncontrolling interests, principally in AmeriGas Partners
 
1,109.8

 
1,055.4

 
1,133.9

Total equity
 
3,880.8

 
3,547.9

 
3,628.1

Total liabilities and equity
 
$
10,077.7

 
$
10,008.8

 
$
9,806.8

See accompanying notes to condensed consolidated financial statements.

- 1 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Millions of dollars, except per share amounts)
 
 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
 
2014
 
2013 (Revised, See Note 3)
 
2014
 
2013 (Revised, See Note 3)
Revenues
 
$
1,486.7

 
$
1,374.3

 
$
6,965.9

 
$
5,935.7

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation shown below)
 
926.5

 
836.8

 
4,357.7

 
3,539.0

Operating and administrative expenses
 
415.9

 
407.5

 
1,339.4

 
1,295.9

Utility taxes other than income taxes
 
3.7

 
3.7

 
12.7

 
12.7

Depreciation
 
74.6

 
76.4

 
230.0

 
222.9

Amortization
 
15.4

 
15.4

 
41.7

 
46.3

Other income, net
 
(12.1
)
 
(7.0
)
 
(30.6
)
 
(24.5
)
 
 
1,424.0

 
1,332.8

 
5,950.9

 
5,092.3

Operating income
 
62.7

 
41.5

 
1,015.0

 
843.4

(Loss) income from equity investees
 
(0.1
)
 

 
(0.1
)
 
0.1

Interest expense
 
(60.1
)
 
(59.2
)
 
(178.9
)
 
(180.8
)
Income (loss) before income taxes
 
2.5

 
(17.7
)
 
836.0

 
662.7

Income tax expense
 
(15.2
)
 
(5.1
)
 
(243.4
)
 
(176.0
)
Net (loss) income
 
(12.7
)
 
(22.8
)
 
592.6

 
486.7

Add net loss (deduct net income) attributable to noncontrolling interests, principally in AmeriGas Partners
 
33.3

 
31.9

 
(235.6
)
 
(194.4
)
Net income attributable to UGI Corporation
 
$
20.6

 
$
9.1

 
$
357.0

 
$
292.3

Earnings per common share attributable to UGI Corporation stockholders:
 
 
 
 
 
 
 
 
Basic
 
$
0.18

 
$
0.08

 
$
3.10

 
$
2.57

Diluted
 
$
0.18

 
$
0.08

 
$
3.06

 
$
2.54

Average common shares outstanding (thousands):
 
 
 
 
 
 
 
 
Basic
 
115,370

 
114,240

 
115,121

 
113,693

Diluted
 
117,048

 
116,196

 
116,731

 
115,275

Dividends declared per common share
 
$
0.2950

 
$
0.2825

 
$
0.8600

 
$
0.8225

See accompanying notes to condensed consolidated financial statements.


- 2 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(Millions of dollars)
 
 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
 
2014
 
2013 (Revised, See Note 3)
 
2014
 
2013 (Revised, See Note 3)
Net (loss) income
 
$
(12.7
)
 
$
(22.8
)
 
$
592.6

 
$
486.7

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Net (losses) gains on derivative instruments (net of tax of $0.6, $(4.1) $(6.5) and $(7.1), respectively)
 
(0.6
)
 
(7.6
)
 
46.2

 
(7.2
)
Reclassifications of net (gains) losses on derivative instruments (net of tax of $(1.3), $(2.1), $4.0 and $(9.8), respectively)
 
(1.5
)
 
9.7

 
(46.7
)
 
52.3

Foreign currency adjustments (net of tax of $0.0, $(2.4), $(3.1) and $1.8, respectively)
 
(0.2
)
 
8.8

 
11.5

 
1.3

Benefit plans (net of tax of $(0.2), $(0.2), $(0.2) and $(0.7), respectively)
 
0.2

 
0.3

 
0.8

 
1.1

Other comprehensive (loss) income
 
(2.1
)
 
11.2

 
11.8

 
47.5

Comprehensive (loss) income
 
(14.8
)
 
(11.6
)
 
604.4

 
534.2

Add comprehensive loss (deduct comprehensive income) attributable to noncontrolling interests, principally in AmeriGas Partners
 
36.5

 
39.9

 
(230.4
)
 
(214.0
)
Comprehensive income attributable to UGI Corporation
 
$
21.7

 
$
28.3

 
$
374.0

 
$
320.2

See accompanying notes to condensed consolidated financial statements.


- 3 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(Millions of dollars)
 
 
Nine Months Ended
June 30,
 
 
2014
 
2013 (Revised, See Note 3)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Net income
 
$
592.6

 
$
486.7

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
271.7

 
269.2

Deferred income taxes, net
 
21.2

 
32.2

Provision for uncollectible accounts
 
38.2

 
23.9

Unrealized losses (gains) on derivative instruments
 
3.1

 
(0.7
)
Other, net
 
(4.9
)
 
(3.6
)
Net change in:
 
 
 
 
Accounts receivable and accrued utility revenues
 
(56.4
)
 
(146.2
)
Inventories
 
34.8

 
51.3

Utility deferred fuel and power costs, net of changes in unsettled derivatives
 
(17.6
)
 
20.5

Accounts payable
 
(40.8
)
 
(25.5
)
Other current assets
 
11.2

 
52.4

Other current liabilities
 
5.0

 
(73.8
)
Net cash provided by operating activities
 
858.1

 
686.4

CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Expenditures for property, plant and equipment
 
(325.5
)
 
(291.6
)
Acquisitions of businesses, net of cash acquired
 
(23.3
)
 
(24.3
)
Decrease (increase) in restricted cash
 
2.4

 
(3.0
)
Other, net
 
9.0

 
2.2

Net cash used by investing activities
 
(337.4
)
 
(316.7
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Dividends on UGI Common Stock
 
(98.6
)
 
(93.4
)
Distributions on AmeriGas Partners publicly held Common Units
 
(176.9
)
 
(168.5
)
Issuances of debt
 
175.0

 

Repayments of debt
 
(236.8
)
 
(28.5
)
Decrease in bank loans
 
(74.6
)
 
(39.0
)
Receivables Facility net (repayments) borrowings
 
(57.0
)
 
9.5

Issuances of UGI Common Stock
 
7.0

 
28.5

Repurchases of UGI Common Stock
 
(21.4
)
 

Other
 
7.9

 
5.4

Net cash used by financing activities
 
(475.4
)
 
(286.0
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
 
3.8

 
(1.8
)
Cash and cash equivalents increase
 
$
49.1

 
$
81.9

Cash and cash equivalents:
 
 
 
 
End of period
 
$
438.4

 
$
401.8

Beginning of period
 
389.3

 
319.9

Increase
 
$
49.1

 
$
81.9

See accompanying notes to condensed consolidated financial statements.

- 4 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited)
(Millions of dollars)

 
Nine Months Ended
June 30,
 
2014
 
2013 (Revised, See Note 3)
Common stock, without par value
 
 
 
Balance, beginning of period
$
1,208.1

 
$
1,157.7

Common Stock issued in connection with employee and director plans (including gains (losses) on treasury stock transactions), net of tax withheld
(9.6
)
 
19.7

Dividend reinvestment plan

 
1.4

Excess tax benefits realized on equity-based compensation
8.4

 
5.7

Equity-based compensation expense
9.1

 
8.4

Balance, end of period
$
1,216.0

 
$
1,192.9

Retained earnings
 
 
 
Balance, beginning of period
$
1,308.3

 
$
1,156.0

Net income attributable to UGI Corporation
357.0

 
292.3

Cash dividends on Common Stock
(98.6
)
 
(93.4
)
Balance, end of period
$
1,566.7

 
$
1,354.9

Accumulated other comprehensive income (loss)
 
 
 
Balance, beginning of period
$
8.4

 
$
(55.2
)
Net gains on derivative instruments, net of tax
12.3

 
10.5

Reclassification of net (gains) losses on derivative instruments, net of tax
(7.6
)
 
14.9

Benefit plans, net of tax
0.8

 
1.1

Foreign currency, net of tax
11.5

 
1.3

Balance, end of period
$
25.4

 
$
(27.4
)
Treasury stock
 
 
 
Balance, beginning of period
$
(32.3
)
 
$
(28.7
)
Common Stock issued in connection with employee and director plans, net of tax withheld
46.7

 
20.8

Dividend reinvestment plan

 
0.8

Repurchases of Common Stock
(21.4
)
 

Reacquired Common Stock - employee and director plans
(30.1
)
 
(19.1
)
Balance, end of period
$
(37.1
)
 
$
(26.2
)
Total UGI Corporation stockholders’ equity
$
2,771.0

 
$
2,494.2

Noncontrolling interests
 
 
 
Balance, beginning of period
$
1,055.4

 
$
1,085.6

Net income attributable to noncontrolling interests, principally in AmeriGas Partners
235.6

 
194.4

Net gains (losses) on derivative instruments
33.9

 
(17.7
)
Reclassification of net (gains) losses on derivative instruments
(39.1
)
 
37.3

Dividends and distributions
(176.9
)
 
(168.7
)
Other
0.9

 
3.0

Balance, end of period
$
1,109.8

 
$
1,133.9

Total equity
$
3,880.8

 
$
3,628.1


See accompanying notes to condensed consolidated financial statements.


- 5 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)


1.
Nature of Operations

UGI Corporation (“UGI”) is a holding company that, through subsidiaries and affiliates, distributes and markets energy products and related services. In the United States, we (1) are the general partner and own limited partner interests in a retail propane marketing and distribution business; (2) own and operate natural gas and electric distribution utilities; (3) own all or a portion of electricity generation facilities; and (4) own and operate an energy marketing, midstream infrastructure, storage, natural gas gathering, natural gas production and energy services business. Internationally, we market and distribute propane and other liquefied petroleum gases (“LPG”) in Europe and China. We refer to UGI and its consolidated subsidiaries collectively as the “Company” or “we.”
We conduct a domestic retail propane marketing and distribution business through AmeriGas Partners, L.P. (“AmeriGas Partners”). AmeriGas Partners is a publicly traded limited partnership that conducts a national propane distribution business through its principal operating subsidiary AmeriGas Propane, L.P. (“AmeriGas OLP”) and, prior to its merger with AmeriGas OLP on July 1, 2013 (the “Merger”), AmeriGas OLP’s principal operating subsidiary Heritage Operating, L.P. (“HOLP”). AmeriGas OLP after the Merger, and AmeriGas OLP and HOLP prior to the Merger, are collectively referred to herein as the “Operating Partnership.” AmeriGas Partners and AmeriGas OLP are Delaware limited partnerships. UGI’s wholly owned second-tier subsidiary, AmeriGas Propane, Inc. (the “General Partner”), serves as the general partner of AmeriGas Partners and AmeriGas OLP. We refer to AmeriGas Partners and its subsidiaries together as the “Partnership” and the General Partner and its subsidiaries, including the Partnership, as “AmeriGas Propane.” At June 30, 2014, the General Partner held a 1% general partner interest and 25.3% limited partner interest in AmeriGas Partners and an effective 27.1% ownership interest in AmeriGas OLP. Our limited partnership interest in AmeriGas Partners comprises 23,756,882 AmeriGas Partners Common Units (“Common Units”). The remaining 73.7% interest in AmeriGas Partners at June 30, 2014, comprises 69,109,914 publicly held Common Units of which 4,367,362 Common Units are held by a subsidiary of Energy Transfer Partners, L.P. (“ETP”) as a result of the January 12, 2012, acquisition of substantially all of ETP’s propane operations (“Heritage Propane”). In January 2014 and June 2014, ETP sold 9,200,000 and 8,500,000, respectively, of the Common Units it held in underwritten public offerings, pursuant to its registration rights in its unitholder agreement. AmeriGas Partners did not receive any proceeds from either sale of Common Units by ETP.
Our wholly owned subsidiary, UGI Enterprises, Inc. (“Enterprises”), through subsidiaries conducts (1) an LPG distribution business in France, Belgium, the Netherlands and Luxembourg (“Antargaz”); (2) an LPG distribution business in central, northern and eastern Europe (“Flaga”); (3) an LPG distribution business in the United Kingdom (“AvantiGas”); and (4) an LPG distribution business in the Nantong region of China. We refer to our foreign LPG operations collectively as “UGI International.”
Enterprises, through UGI Energy Services, LLC (which was formerly known as UGI Energy Services, Inc. prior to its merger with and into UGI Energy Services, LLC effective October 1, 2013) and its subsidiaries conduct an energy marketing, midstream infrastructure, storage, natural gas gathering, natural gas production and energy services business primarily in the Mid-Atlantic region of the United States. In addition, UGI Energy Services, LLC’s wholly owned subsidiary, UGI Development Company (“UGID”), owns all or a portion of electricity generation facilities principally located in Pennsylvania. These businesses are referred to herein collectively as “Midstream & Marketing.” UGI Energy Services, LLC subsequent to the merger and UGI Energy Services, Inc. prior to the merger are referred to herein as “Energy Services.” Enterprises also conducts heating, ventilation, air-conditioning, refrigeration and electrical contracting businesses in the Mid-Atlantic region through first-tier subsidiaries.

Our natural gas and electric distribution utility businesses are conducted through our wholly owned subsidiary, UGI Utilities, Inc. (“UGI Utilities”), and its subsidiaries UGI Penn Natural Gas, Inc. (“PNG”) and UGI Central Penn Gas, Inc. (“CPG”). UGI Utilities, PNG and CPG own and operate natural gas distribution utilities in eastern, northeastern and central Pennsylvania and in a portion of one Maryland county. UGI Utilities also owns and operates an electric distribution utility in northeastern Pennsylvania (“Electric Utility”). UGI Utilities’ natural gas distribution utility is referred to as “UGI Gas.” UGI Gas, PNG and CPG are collectively referred to as “Gas Utility.” Gas Utility is subject to regulation by the Pennsylvania Public Utility Commission (“PUC”) and, with respect to a small service territory in one Maryland county, the Maryland Public Service Commission, and Electric Utility is subject to regulation by the PUC. Gas Utility and Electric Utility are collectively referred to as “Utilities.”

2.
Significant Accounting Policies

Our condensed consolidated financial statements include the accounts of UGI and its controlled subsidiary companies which, except for the Partnership, are majority owned. We report the public’s and ETP’s limited partner interests in the Partnership, and

- 6 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

outside ownership interests in other consolidated but less than 100%-owned subsidiaries, as noncontrolling interests. We eliminate all significant intercompany accounts and transactions when we consolidate. Entities in which we do not have control but have significant influence over operating and financial policies are accounted for by the equity method. Investments in business entities that are not publicly traded and in which we hold less than 20% of voting rights are accounted for using the cost method. Undivided interests in natural gas production assets and an electricity generation facility are consolidated on a proportionate basis.
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“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, 2013, condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”).
These financial statements should be read in conjunction with the financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2013 (the “Company’s 2013 Annual Financial Statements and Notes”). 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.
Earnings Per Common Share. Basic earnings per share attributable to UGI Corporation shareholders reflect the weighted-average number of common shares outstanding. Diluted earnings per share attributable to UGI Corporation include the effects of dilutive stock options and common stock awards.
 
Shares used in computing basic and diluted earnings per share are as follows:
 
 
 
Three Months Ended
June 30,
 
Nine Months Ended
June 30,
 
 
2014
 
2013
 
2014
 
2013
Denominator (thousands of shares):
 
 
 
 
 
 
 
 
Average common shares outstanding for basic computation
 
115,370

 
114,240

 
115,121

 
113,693

Incremental shares issuable for stock options and awards
 
1,678

 
1,956

 
1,610

 
1,582

Average common shares outstanding for diluted computation
 
117,048

 
116,196

 
116,731

 
115,275

Comprehensive Income. Comprehensive income (loss) comprises net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) principally comprises (1) gains and losses on derivative instruments qualifying as cash flow hedges, net of reclassifications to net income; (2) actuarial gains and losses on postretirement benefit plans, net of associated amortization; and (3) foreign currency translation and intracompany transaction adjustments.









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Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

Changes in accumulated other comprehensive income (“AOCI”) during the three and nine months ended June 30, 2014, are as follows:
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2014:
Postretirement
 
Derivative
 
Foreign
 
 
 
Benefit Plans
 
Instruments
 
Currency
 
Total
Balance, March 31, 2014
$
(15.8
)
 
$
(23.3
)
 
$
63.4

 
$
24.3

Other comprehensive (loss) before reclassification adjustments (after-tax)

 
(0.6
)
 
(0.2
)
 
(0.8
)
Amounts reclassified from AOCI and noncontrolling interests:
 
 
 
 
 
 

    Reclassification adjustments (pre-tax)
0.4

 
(0.2
)
 

 
0.2

    Reclassification adjustments tax (expense) benefit
(0.2
)
 
(1.3
)
 

 
(1.5
)
    Reclassification adjustments (after-tax)
0.2

 
(1.5
)
 

 
(1.3
)
Other comprehensive income (loss)
0.2

 
(2.1
)
 
(0.2
)
 
(2.1
)
Add comprehensive loss attributable to noncontrolling interests, principally in AmeriGas Partners

 
3.2

 

 
3.2

Other comprehensive income (loss) attributable to UGI
0.2

 
1.1

 
(0.2
)
 
1.1

Balance, June 30, 2014
$
(15.6
)
 
$
(22.2
)
 
$
63.2

 
$
25.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2014:
Postretirement
 
Derivative
 
Foreign
 
 
 
Benefit Plans
 
Instruments
 
Currency
 
Total
Balance, September 30, 2013
$
(16.4
)
 
$
(26.9
)
 
$
51.7

 
$
8.4

Other comprehensive income before reclassification adjustments (after-tax)

 
46.2

 
11.5

 
57.7

Amounts reclassified from AOCI and noncontrolling interests:
 
 
 
 
 
 
 
    Reclassification adjustments (pre-tax)
1.0

 
(50.7
)
 

 
(49.7
)
    Reclassification adjustments tax (expense) benefit
(0.2
)
 
4.0

 

 
3.8

    Reclassification adjustments (after-tax)
0.8

 
(46.7
)
 

 
(45.9
)
Other comprehensive income (loss)
0.8

 
(0.5
)
 
11.5

 
11.8

Add comprehensive loss attributable to noncontrolling interests, principally in AmeriGas Partners

 
5.2

 

 
5.2

Other comprehensive income attributable to UGI
0.8

 
4.7

 
11.5

 
17.0

Balance, June 30, 2014
$
(15.6
)
 
$
(22.2
)
 
$
63.2

 
$
25.4

 
 
 
 
 
 
 
 
For additional information on amounts reclassified from AOCI relating to derivative instruments, see Note 12 to condensed consolidated financial statements.
Income Taxes. In December 2013, the French Parliament approved the Finance Bill for 2014 and amended the Finance Bill for 2013 (collectively, the “Finance Bills”). Among other things, the Finance Bills limit Antargaz’ ability to deduct interest expense for income tax purposes on certain intercompany debt and temporarily increases the corporate surtax rate for a period of two years. Based upon our review of the Finance Bills and interpretive guidance currently available, provisions of the Finance Bills associated with the deductibility of interest expense on certain intercompany debt at Antargaz applies retroactively to such interest expense incurred during Fiscal 2013. In December 2013, the Company recorded additional income taxes of $5.7 to reflect the effects of the retroactive provisions of the Finance Bills associated with the deductibility of interest expense on certain intercompany debt.
Reclassifications. Certain prior period amounts have been reclassified to conform to current period presentation.

- 8 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

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.
 
3.
Revisions of Condensed Consolidated Financial Statements

During the preparation of the Fiscal 2013 consolidated financial statements, management concluded that it had incorrectly accounted for certain commodity derivative instruments as cash flow hedges. Management had incorrectly applied the hedge accounting criteria when designating certain commodity derivative instruments at its Midstream & Marketing businesses as cash flow hedges. Management has discontinued the use of hedge accounting for Midstream & Marketing’s commodity derivative instruments and reports changes in the fair values of unsettled commodity derivative instruments, and gains and losses on settled commodity derivatives for which the associated forecasted transaction has not yet occurred, in net income.

The Company had previously determined that the impact of the error was not material to the Company’s historical condensed consolidated statements of income for the three and nine months ended June 30, 2013. However, in conjunction with its conclusion that the error was material to the three months ended March 31, 2013, the Company decided to revise its consolidated financial statements for the three and nine months ended June 30, 2013. Accordingly, the accompanying condensed consolidated financial statements as of June 30, 2013, and for the three and nine months ended June 30, 2013, have been revised to report changes in the fair values of unsettled commodity derivative instruments and gains and losses on settled commodity derivative instruments for which the associated forecasted transactions have not yet occurred in cost of sales or revenues in the Condensed Consolidated Statement of Income rather than in other comprehensive income.

The following tables set forth the effects of the revisions on the affected line items within the Company’s previously reported condensed consolidated financial statements as of and for the three and nine months ended June 30, 2013. Also included in the adjustment columns in the tables below are certain other immaterial corrections that the Company made, including, but not limited to, adjustments to correct the Partnership’s accounting for certain customer credits and to correct the classification of deferred income tax assets, as well as certain other minor adjustments related principally to the timing of certain expense and income accruals.

- 9 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)


Condensed Consolidated Balance Sheet
 
June 30, 2013
 
As Previously Reported
Adjustment
As Revised
Assets:
 
 
 
Deferred income taxes
$
27.3

$
(20.7
)
$
6.6

Property, plant and equipment
$
4,325.0

$
(1.3
)
$
4,323.7

Liabilities and equity:
 
 
 
Deferred income taxes
$
956.9

$
(23.4
)
$
933.5

Other noncurrent liabilities
$
613.5

$
3.4

$
616.9

Retained earnings
$
1,361.9

$
(7.0
)
$
1,354.9

Accumulated other comprehensive loss
$
(30.7
)
$
3.3

$
(27.4
)
Noncontrolling interests, principally in AmeriGas Partners
$
1,132.2

$
1.7

$
1,133.9


Condensed Consolidated Statement of Income
 
For the three months ended June 30, 2013
 
For the nine months ended June 30, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Revenues
$
1,372.3

$
2.0

$
1,374.3

 
$
5,932.6

$
3.1

$
5,935.7

Cost of sales
$
827.9

$
8.9

$
836.8

 
$
3,547.3

$
(8.3
)
$
3,539.0

Operating and administrative expenses
$
404.7

$
2.8

$
407.5

 
$
1,297.4

$
(1.5
)
$
1,295.9

Depreciation
$
76.5

$
(0.1
)
$
76.4

 
$
220.0

$
2.9

$
222.9

Other income, net
$
(9.0
)
$
2.0

$
(7.0
)
 
$
(26.5
)
$
2.0

$
(24.5
)
Operating income
$
53.1

$
(11.6
)
$
41.5

 
$
835.4

$
8.0

$
843.4

Interest expense
$
(59.2
)
$

$
(59.2
)
 
$
(179.6
)
$
(1.2
)
$
(180.8
)
Income (loss) before income taxes
$
(6.1
)
$
(11.6
)
$
(17.7
)
 
$
655.9

$
6.8

$
662.7

Income taxes
$
(9.0
)
$
3.9

$
(5.1
)
 
$
(174.1
)
$
(1.9
)
$
(176.0
)
Net (loss) income
$
(15.1
)
$
(7.7
)
$
(22.8
)
 
$
481.8

$
4.9

$
486.7

Add net loss (deduct net income) attributable to noncontrolling interests, principally in AmeriGas Partners
$
29.8

$
2.1

$
31.9

 
$
(192.6
)
$
(1.8
)
$
(194.4
)
Net income attributable to UGI Corporation
$
14.7

$
(5.6
)
$
9.1

 
$
289.2

$
3.1

$
292.3

Basic earnings per common share
$
0.13

 
$
0.08

 
$
2.54

 
$
2.57

Diluted earnings per common share
$
0.13

 
$
0.08

 
$
2.51

 
$
2.54



- 10 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

Condensed Consolidated Statement of Comprehensive Income
 
For the three months ended June 30, 2013
 
For the nine months ended June 30, 2013
 
As Previously Reported
Adjustment
As Revised
 
As Previously Reported
Adjustment
As Revised
Net (loss) income
$
(15.1
)
$
(7.7
)
$
(22.8
)
 
$
481.8

$
4.9

$
486.7

Net losses on derivative instruments
$
(11.0
)
$
3.4

$
(7.6
)
 
$
(11.1
)
$
3.9

$
(7.2
)
Reclassifications of net losses on derivative instruments
$
8.9

$
0.8

$
9.7

 
$
59.7

$
(7.4
)
$
52.3

Other comprehensive income
$
7.0

$
4.2

$
11.2

 
$
51.0

$
(3.5
)
$
47.5

Comprehensive (loss) income
$
(8.1
)
$
(3.5
)
$
(11.6
)
 
$
532.8

$
1.4

$
534.2

Add comprehensive loss (deduct comprehensive income) attributable to noncontrolling interests, principally in AmeriGas Partners
$
37.8

$
2.1

$
39.9

 
$
(212.2
)
$
(1.8
)
$
(214.0
)
Comprehensive income attributable to UGI Corporation
$
29.7

$
(1.4
)
$
28.3

 
$
320.6

$
(0.4
)
$
320.2


Condensed Consolidated Statements of Cash Flows
 
For the nine months ended June 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
As Previously Reported
Adjustment
As Revised
Net income
$
481.8

$
4.9

$
486.7

Depreciation and amortization
$
266.3

$
2.9

$
269.2

Deferred income taxes, net
$
35.5

$
(3.3
)
$
32.2

Net change in realized gains and losses deferred as cash flow hedges
$
5.0

$
(5.0
)
$

Unrealized losses on derivative instruments
$

$
(0.7
)
$
(0.7
)
Other, net
$
(11.3
)
$
7.7

$
(3.6
)
Net change in:
 
 
 
   Accounts receivable and accrued utility revenues
$
(141.1
)
$
(5.1
)
$
(146.2
)
   Inventories
$
54.1

$
(2.8
)
$
51.3

   Accounts payable
$
(26.9
)
$
1.4

$
(25.5
)
   Other current liabilities
$
(73.8
)
$

$
(73.8
)

Condensed Consolidated Statements of Changes in Equity
 
For the nine months ended June 30, 2013
 
As Previously Reported
Adjustment
As Revised
Retained earnings
$
1,361.9

$
(7.0
)
$
1,354.9

Accumulated other comprehensive loss
$
(30.7
)
$
3.3

$
(27.4
)
Noncontrolling interests
$
1,132.2

$
1.7

$
1,133.9




- 11 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

4.
Accounting Changes
Adoption of New Accounting Standards
Disclosures about Reclassifications Out of Accumulated Other Comprehensive Income. In Fiscal 2014, the Company adopted new accounting guidance regarding disclosures for items reclassified out of AOCI. The disclosures required by the new accounting guidance are included in Note 2 and Note 12 to the condensed consolidated financial statements. The new disclosures are applied prospectively. As this guidance only affects disclosure requirements, the adoption of this guidance did not impact our results of operations, cash flows or financial position.
Disclosures about Offsetting Assets and Liabilities. Effective October 1, 2013, the Company adopted new accounting guidance requiring entities to disclose both gross and net information about recognized derivative instruments that are offset on the balance sheet as a result of an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the balance sheet. The new disclosures are applied retroactively to all periods presented. The required disclosures are included in Note 11 to the condensed consolidated financial statements. As this guidance only affects disclosure requirements, the adoption of this guidance did not impact our results of operations, cash flows or financial position.
Accounting Standards Not Yet Adopted
Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition,” and most industry-specific guidance included in the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for the Company beginning in fiscal 2018 and allows for either full retrospective adoption or modified retrospective adoption. The Company is in the process of assessing the impact of the adoption of ASU 2014-09 on its results of operations, cash flows and financial position.

Discontinued Operations. In April 2014, the FASB issued authoritative guidance amending existing requirements for reporting discontinued operations.  Under the new guidance, discontinued operations reporting will be limited to disposal transactions that represent strategic shifts having a major effect on operations and financial results. The amended guidance also enhances disclosures and requires assets and liabilities of a discontinued operation to be classified as such for all periods presented in the financial statements. Public entities will apply the amended guidance prospectively to all disposals occurring within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company will adopt this standard on October 1, 2015. Due to the change in requirements for reporting discontinued operations described above, presentation and disclosure of future disposal transactions after adoption may be different than under current standards.  


- 12 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

5.
Goodwill and Intangible Assets

Goodwill and intangible assets comprise the following:
 
 
 
June 30,
2014
 
September 30,
2013
 
June 30,
2013
Goodwill (not subject to amortization)
 
$
2,885.1

 
$
2,871.0

 
$
2,834.0

Intangible assets:
 
 
 
 
 
 
Customer relationships, noncompete agreements and other
 
$
717.3

 
$
706.4

 
$
692.6

Trademarks and tradenames (not subject to amortization)
 
132.0

 
131.3

 
128.4

     Gross carrying amount
 
849.3

 
837.7

 
821.0

     Accumulated amortization
 
(259.0
)
 
(227.1
)
 
(212.4
)
       Intangible assets, net
 
$
590.3

 
$
610.6

 
$
608.6

We amortize customer relationship and noncompete agreement intangible assets over their estimated periods of benefit which do not exceed 15 years. Amortization expense of intangible assets was $13.3 and $35.5 in the three and nine months ended June 30, 2014, respectively, and $13.3 and $40.2 in the three and nine months ended June 30, 2013, respectively. No amortization is included in cost of sales in the Condensed Consolidated Statements of Income. As of June 30, 2014, our expected aggregate amortization expense of intangible assets for the remainder of Fiscal 2014 and for the next four fiscal years is as follows: remainder of Fiscal 2014$13.1; Fiscal 2015$50.6; Fiscal 2016$44.2; Fiscal 2017$37.6; Fiscal 2018$36.3.


- 13 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

6.
Segment Information

Our operations comprise six reportable segments generally based upon products sold, geographic location and regulatory environment. Our reportable segments comprise: (1) AmeriGas Propane; (2) an international LPG segment comprising Antargaz; (3) an international LPG segment principally comprising Flaga and AvantiGas; (4) Gas Utility; (5) Energy Services; and (6) Electric Generation. We refer to both international segments together as “UGI International” and Energy Services and Electric Generation together as “Midstream & Marketing.”
The accounting policies of our reportable segments are the same as those described in Note 2, “Significant Accounting Policies” in the Company’s 2013 Annual Financial Statements and Notes. We evaluate AmeriGas Propane’s performance principally based upon the Partnership’s earnings before interest expense, income taxes, depreciation and amortization (“Partnership EBITDA”). Although we use Partnership EBITDA to evaluate AmeriGas Propane’s profitability, it should not be considered as an alternative to net income (as an indicator of operating performance) or as an alternative to cash flow (as a measure of liquidity or ability to service debt obligations) and is not a measure of performance or financial condition under GAAP. Our definition of Partnership EBITDA may be different from that used by other companies. We evaluate the performance of our other reportable segments principally based upon their income before income taxes.

Three Months Ended June 30, 2014:
 
 
 
 
 
 
 
 
 
 
Midstream & Marketing
 
UGI International
 
 
 
 
Total
 
Eliminations
 
AmeriGas
Propane
 
Gas
Utility
 
Energy Services
 
Electric Generation
 
Antargaz
 
Flaga &
Other
 
Corporate
& Other (b)
Revenues
 
$
1,486.7

 
$
(50.8
)
(c)
$
613.2

 
$
128.3

 
$
248.3

 
$
20.5

 
$
249.2

 
$
232.3

 
$
45.7

Cost of sales
 
$
926.5

 
$
(49.6
)
(c)
$
340.8

 
$
49.2

 
$
209.2

 
$
10.5

 
$
164.1

 
$
180.7

 
$
21.6

Segment profit:
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Operating income (loss)
 
$
62.7

 
$
(0.1
)
 
$
7.2

 
$
17.1

 
$
23.5

 
$
2.6

 
$
(1.4
)
 
$
8.2

 
$
5.6

Loss from equity investees
 
(0.1
)
 

 

 

 

 

 
(0.1
)
 

 

Interest expense
 
(60.1
)
 

 
(41.4
)
 
(9.8
)
 
(0.5
)
 

 
(6.3
)
 
(1.4
)
 
(0.7
)
Income (loss) before income taxes
 
$
2.5

 
$
(0.1
)
 
$
(34.2
)
 
$
7.3

 
$
23.0

 
$
2.6

 
$
(7.8
)
 
$
6.8

 
$
4.9

Partnership EBITDA (a)
 
$
52.2

 
 
 
$
55.0

 
 
 
 
 
 
 
 
 
 
 
$
(2.8
)
Noncontrolling interests’ net (loss)
 
$
(33.3
)
 
$

 
$
(31.0
)
 
$

 
$

 
$

 
$
(0.3
)
 
$

 
$
(2.0
)
Depreciation and amortization
 
$
90.0

 
$

 
$
47.8

 
$
13.7

 
$
3.3

 
$
2.7

 
$
14.6

 
$
6.2

 
$
1.7

Capital expenditures
 
$
102.4

 
$
1.2

 
$
29.3

 
$
35.9

 
$
11.2

 
$
1.9

 
$
15.6

 
$
4.8

 
$
2.5

Total assets (at period end)
 
$
10,077.7

 
$
(112.8
)
 
$
4,345.8

 
$
2,147.4

 
$
542.7

 
$
279.1

 
$
1,784.2

 
$
650.6

 
$
440.7

Bank loans (at period end)
 
$
96.5

 
$

 
$
92.5

 
$

 
$

 
$

 
$

 
$
4.0

 
$

Goodwill (at period end)
 
$
2,885.1

 
$

 
$
1,939.0

 
$
182.1

 
$
5.6

 
$

 
$
651.7

 
$
99.7

 
$
7.0


- 14 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

Three Months Ended June 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
Midstream & Marketing
 
UGI International
 
 
 
 
Total
 
Eliminations
 
 
AmeriGas
Propane
 
Gas
Utility
 
Energy Services
 
Electric Generation
 
Antargaz
 
Flaga &
Other
 
Corporate
& Other (b)
Revenues
 
$
1,374.3

 
$
(61.5
)
(c)
 
$
581.7

 
$
126.7

 
$
233.0

 
$
16.3

 
$
249.3

 
$
182.5

 
$
46.3

Cost of sales
 
$
836.8

 
$
(60.1
)
(c)
 
$
305.7

 
$
52.4

 
$
214.9

 
$
8.5

 
$
148.7

 
$
134.8

 
$
31.9

Segment profit:
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
Operating income (loss)
 
$
41.5

 
$
(0.2
)
 
 
$
3.8

 
$
14.2

 
$
6.4

 
$
0.6

 
$
14.6

 
$
6.5

 
$
(4.4
)
Income from equity investees
 

 

 
 

 

 

 

 

 

 

Interest expense
 
(59.2
)
 

 
 
(41.2
)
 
(9.2
)
 
(0.6
)
 

 
(6.2
)
 
(1.2
)
 
(0.8
)
(Loss) income before income taxes
 
$
(17.7
)
 
$
(0.2
)
 
 
$
(37.4
)
 
$
5.0

 
$
5.8

 
$
0.6

 
$
8.4

 
$
5.3

 
$
(5.2
)
Partnership EBITDA (a)
 

 
 
 
 
$
56.3

 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests’ net (loss) income
 
$
(31.9
)
 
$

 
 
$
(31.7
)
 
$

 
$

 
$

 
$
(0.3
)
 
$
0.1

 
$

Depreciation and amortization
 
$
91.8

 
$
(0.1
)
 
 
$
52.4

 
$
13.1

 
$
2.1

 
$
2.6

 
$
14.0

 
$
6.1

 
$
1.6

Capital expenditures
 
$
107.6

 
$
(0.1
)
 
 
$
26.3

 
$
37.3

 
$
22.0

 
$
4.4

 
$
11.7

 
$
4.0

 
$
2.0

Total assets (at period end)
 
$
9,806.8

 
$
(95.9
)
 
 
$
4,386.8

 
$
2,143.7

 
$
437.0

 
$
267.2

 
$
1,771.7

 
$
543.1

 
$
353.2

Bank loans (at period end)
 
$
135.9

 
$

 
 
$
80.0

 
$

 
$
45.5

 
$

 
$

 
$
10.4

 
$

Goodwill (at period end)
 
$
2,834.0

 
$

 
 
$
1,929.2

 
$
182.1

 
$
2.8

 
$

 
$
619.2

 
$
93.7

 
$
7.0


(a)
The following table provides a reconciliation of Partnership EBITDA to AmeriGas Propane operating income:
Three Months Ended June 30,
 
2014
 
2013
Partnership EBITDA
 
$
55.0

 
$
56.3

Depreciation and amortization
 
(47.8
)
 
(52.4
)
Noncontrolling interests (i)
 

 
(0.1
)
Operating income
 
$
7.2

 
$
3.8

(i)
Principally represents the General Partner’s 1.01% interest in AmeriGas OLP.
(b)
Corporate & Other results principally comprise (1) Electric Utility, (2) Enterprises’ heating, ventilation, air-conditioning, refrigeration and electrical contracting businesses (“HVAC”), (3) net gains and losses on Midstream & Marketing’s commodity derivative instruments, and net gains and losses on AmeriGas Propane’s commodity derivative instruments entered into beginning April 1, 2014, that are not associated with current period transactions, (4) net expenses of UGI’s captive general liability insurance company, and (5) UGI Corporation’s unallocated corporate and general expenses and interest income. Corporate & Other assets principally comprise cash, short-term investments, the assets of Electric Utility and HVAC, and an intercompany loan. The intercompany loan and associated interest is removed in the segment presentation.

- 15 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

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

Nine Months Ended June 30, 2014:
 
 
 
 
 
 
 
 
 
 
 
Midstream & Marketing
 
UGI International
 
 
 
 
Total
 
Elim-
inations
 
 
AmeriGas
Propane
 
Gas
Utility
 
Energy Services
 
Electric Generation
 
Antargaz
 
Flaga &
Other
 
Corporate &
Other (b)
Revenues
 
$
6,965.9

 
$
(281.0
)
(c)
 
$
3,152.7

 
$
880.0

 
$
1,109.9

 
$
66.4

 
$
1,086.5

 
$
802.8

 
$
148.6

Cost of sales
 
$
4,357.7

 
$
(278.0
)
(c)
 
$
1,809.0

 
$
463.5

 
$
894.2

 
$
30.5

 
$
713.3

 
$
635.1

 
$
90.1

Segment profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
1,015.0

 
$

 
 
$
471.7

 
$
233.7

 
$
166.8

 
$
16.9

 
$
94.7

 
$
32.8

 
$
(1.6
)
Loss from equity investees
 
(0.1
)
 

 
 

 

 

 

 
(0.1
)
 

 

Interest expense
 
(178.9
)
 

 
 
(125.0
)
 
(26.6
)
 
(2.5
)
 

 
(19.1
)
 
(3.8
)
 
(1.9
)
Income (loss) before income taxes
 
$
836.0

 
$

 
 
$
346.7

 
$
207.1

 
$
164.3

 
$
16.9

 
$
75.5

 
$
29.0

 
$
(3.5
)
Partnership EBITDA (a)
 
$
613.7

 
 
 
 
$
616.5

 
 
 
 
 
 
 
 
 
 
 
$
(2.8
)
Noncontrolling interests’ net income (loss)
 
$
235.6

 
$

 
 
$
237.6

 
$

 
$

 
$

 
$

 
$

 
$
(2.0
)
Depreciation and amortization
 
$
271.7

 
$
(0.1
)
 
 
$
149.3

 
$
40.7

 
$
9.1

 
$
8.0

 
$
39.9

 
$
20.0

 
$
4.8

Capital expenditures
 
$
290.5

 
$

 
 
$
80.3

 
$
98.8

 
$
41.3

 
$
13.0

 
$
36.7

 
$
13.6

 
$
6.8

Total assets (at period end)
 
$
10,077.7

 
$
(112.8
)
 
 
$
4,345.8

 
$
2,147.4

 
$
542.7

 
$
279.1

 
$
1,784.2

 
$
650.6

 
$
440.7

Bank loans (at period end)
 
$
96.5

 
$

 
 
$
92.5

 
$

 
$

 
$

 
$

 
$
4.0

 
$

Goodwill (at period end)
 
$
2,885.1

 
$

 
 
$
1,939.0

 
$
182.1

 
$
5.6

 
$

 
$
651.7

 
$
99.7

 
$
7.0



- 16 -

Table of Contents
UGI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(unaudited)
(Millions of dollars and euros, except per share amounts)

Nine Months Ended June 30, 2013: