<SEC-DOCUMENT>0001193125-13-192658.txt : 20130813
<SEC-HEADER>0001193125-13-192658.hdr.sgml : 20130813
<ACCEPTANCE-DATETIME>20130501164746
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ACCESSION NUMBER:		0001193125-13-192658
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130501

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UGI CORP /PA/
		CENTRAL INDEX KEY:			0000884614
		STANDARD INDUSTRIAL CLASSIFICATION:	GAS & OTHER SERVICES COMBINED [4932]
		IRS NUMBER:				232668356
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		460 N GULPH RD
		STREET 2:		P O BOX 858
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406
		BUSINESS PHONE:		6103371000

	MAIL ADDRESS:	
		STREET 1:		460 NORTH GULPH ROAD
		CITY:			KING OF PRUSSIA
		STATE:			PA
		ZIP:			19406

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NEW UGI CORP
		DATE OF NAME CHANGE:	19600201
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<TYPE>CORRESP
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">May 1, 2013 </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>VIA EDGAR </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">William H. Thompson </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation
Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">U.S. Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">100 F Street, NE </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>UGI Corporation </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form
10-K for Fiscal Year Ended September&nbsp;30, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed November&nbsp;21, 2012 </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No.&nbsp;1-11071 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Thompson, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">This letter responds
to the comment set forth in the Staff&#146;s letter dated April&nbsp;24, 2013 (the &#147;Staff&#146;s April Letter&#148;) to me regarding UGI Corporation&#146;s (&#147;UGI&#148; or the &#147;Company&#148;) Annual Report on Form 10-K for the Fiscal
Year Ended September&nbsp;30, 2012. For your convenience, we have restated the Staff&#146;s comment and have provided the Company&#146;s response below such comment: </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for Fiscal Year Ended September&nbsp;30, 2012 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Index to Financial
Statements and Financial Statement Schedules, page F-2 </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Notes to Consolidated Financial Statements, page F-11 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note 4 &#150; Acquisitions&nbsp;&amp; Dispositions, page F-18 </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We reviewed your response to comment two in our letter dated April&nbsp;4, 2013. Please tell us your basis for adjusting the numerators in the significance tests to
reflect your ownership interest in AmeriGas Partners, L.P. (&#147;AmeriGas Partners&#148;). In doing so, please tell us your consideration of whether Rule 1-02(w)(1) &#150; (3)&nbsp;of Regulation S-X&#146;s reference to &#147;registrants and its
other subsidiaries&#148; suggests that you should not adjust the numerators for controlled subsidiaries such as AmeriGas Partners. In addition, tell us if you are similarly adjusting the denominators in the significance tests and if not, why.
</B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company Response: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">At the time of the acquisition of Heritage Operating, L.P. and subsidiaries and Titan Energy Partners, L.P. and subsidiaries (referred to hereafter
together as &#147;Heritage Propane&#148;) by AmeriGas Partners, L.P. (&#147;AmeriGas Partners&#148;) on January&nbsp;12, 2012 from affiliates of Energy Transfer </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. William H. Thompson </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">U.S. Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">May 1, 2013 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
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 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Partners, L.P. (&#147;ETP&#148;), UGI reviewed Rule 1-02(w) of Regulation S-X for guidance as to how to implement the significance test when a registrant is issuing equity as partial
consideration for the purchase of a business. Since Rule 1-02(w) is focused on the significance of an existing subsidiary, UGI reviewed the Financial Reporting Manual for guidance in the context of an acquisition. Section&nbsp;2015.4 of the
Financial Reporting Manual states the following with respect to the asset test: &#147;Compare registrant&#146;s share of acquired business&#146;s total assets to the registrant&#146;s consolidated total assets.&#148; Accordingly, UGI believed that
this guidance meant that it should exclude from the assets of Heritage Propane the percentage of AmeriGas Partners that ETP and the holders of AmeriGas Partners&#146; outstanding common units other than UGI&#146;s subsidiaries would own after
completion of the transaction. Since the guidance did not also say to exclude any amount from consolidated total assets, UGI did not adjust the denominator. Although UGI found no similar guidance in the Financial Reporting Manual with respect to the
income and purchase price tests, it believed that a consistent approach should be taken in applying those tests as well. Accordingly, it adjusted the numerators to exclude ETP&#146;s interest in AmeriGas Partners and the interests of the other
unaffiliated holders in AmeriGas Partners after the acquisition but did not adjust the denominators. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">UGI reviewed Rule 1-02(w) in preparation
of this response to the Staff&#146;s April Letter and believes that Rule 1-02(w)(3) may require exclusion of both the noncontrolling interest from the numerator as well as the denominator, notwithstanding the fact that UGI consolidates AmeriGas
Partners, based on the italicized language in this provision: &#147;The registrant&#146;s and its other subsidiaries&#146; equity in the income from continuing operations before income taxes, extraordinary items and cumulative effect of a change in
accounting principle of the subsidiary <I>exclusive of amounts attributable to any noncontrolling interests</I> exceeds 10% of <I>such income</I> of the registrant and its subsidiaries consolidated for the most recently completed fiscal year.&#148;
Accordingly, UGI has recalculated the significance of Heritage Propane based on adjusting the numerators and the denominators to exclude the noncontrolling interests. The resulting percentages, based upon UGI&#146;s Fiscal 2011 Consolidated
Financial Statements and the Combined Financial Statements of Heritage Propane for the year ended December&nbsp;31, 2010, were (1)&nbsp;16%, with respect to the purchase price test; (2)&nbsp;10%, with respect to the total assets test; and
(3)&nbsp;13%, with respect to the equity in income from continuing operations before income taxes, extraordinary items and the cumulative effect of a change in accounting principle test. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Given the fact that AmeriGas Partners&#146; acquisition involved the sale of equity to ETP, UGI also considered the applicability of Section&nbsp;2025.4 of the Financial Reporting Manual entitled
&#147;Exchange Transaction (Acquisition and Disposition).&#148; Although the transaction has similarities to the facts in Section&nbsp;2025.4, UGI concluded that Section&nbsp;2025.4 was not applicable because it contemplates the formation of a joint
venture and the contribution of assets by the joint venture partners in exchange for interests in the joint venture. AmeriGas Partners and ETP did not form a joint venture. Although ETP obtained a 32% interest in AmeriGas Partners as a result of its
sale of Heritage Propane to AmeriGas Partners, AmeriGas Partners did not sell or contribute assets to ETP. AmeriGas Partners issued 32% of its equity securities as partial consideration for its acquisition of Heritage Propane. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. William H. Thompson </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">U.S. Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">May 1, 2013 </FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Based on the foregoing, the Company has concluded that Heritage Propane was not significant to UGI under
the tests in Rule 1-02(w). Heritage Propane&#146;s significance was less than 20% under the tests when either the numerators of the tests were adjusted to exclude the minority interests in AmeriGas Partners or both the numerators and the
denominators were adjusted to exclude the minority interests. Accordingly, the Company was not required to file Heritage Propane&#146;s financial statements. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">In connection with the response above, the Company acknowledges that </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">it is responsible for the adequacy and accuracy of the disclosure in the filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the
filing; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">it may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the
United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If you should have any questions, please do not hesitate to contact Linda L. Griggs, of Morgan,
Lewis&nbsp;&amp; Bockius LLP, at (202)&nbsp;739-5245 or Davinder S. Athwal, Vice President &#150; Accounting and Financial Control and Chief Risk Officer, at (610)&nbsp;768-3636. </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely yours,</FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>UGI Corporation</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Kirk R. Oliver</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Kirk R. Oliver</FONT></TD></TR>
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<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">cc:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Linda L. Griggs</FONT></TD></TR>
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 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>

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