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Acquisitions | 12 Months Ended
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Sep. 30, 2017
Business Combinations [Abstract] |
Acquisitions | Note 4 — Acquisitions Acquisition of Totalgaz On May 29, 2015 (the “Acquisition Date”), UGI, through its wholly owned indirect subsidiary, France SAS, acquired all of the outstanding shares of Totalgaz SAS, a retail distributor of LPG in France, for €451.8 ($496.6) in cash, including €30.0 ($33.0) for estimated Acquisition Date working capital. In November 2015, France SAS received €1.1 ($1.2) of cash as a result of the completion of the final working capital amount. The Totalgaz Acquisition was consummated pursuant to the terms of a Share Purchase Agreement dated November 11, 2014, between Total Marketing Services, a subsidiary of global energy company, Total, and France SAS. The Totalgaz Acquisition nearly doubled our retail LPG distribution business in France and was consistent with our growth strategies, one of which is to grow our core business through acquisitions. The Totalgaz Acquisition was funded from existing cash balances and a portion of loan proceeds from France SAS’s May 29, 2015, issuance of a €600 term loan under its 2015 Senior Facilities Agreement (see Note 5). The Company accounted for the Totalgaz Acquisition using the acquisition method. The components of the final Totalgaz purchase price allocation are as follows:
Assets acquired: |
Cash | $ | 86.8 |
Accounts receivable (a) | 170.3 |
Prepaid expenses and other current assets | 11.0 |
Property, plant and equipment | 375.6 |
Intangible assets (b) | 91.3 |
Other assets | 21.4 |
Total assets acquired | $ | 756.4 |
Liabilities assumed: |
Accounts payable | 109.2 |
Other current liabilities | 103.5 |
Deferred income taxes | 117.5 |
Other noncurrent liabilities | 113.4 |
Total liabilities assumed | $ | 443.6 |
Goodwill | 183.8 |
Net consideration transferred (including working capital adjustments) | $ | 496.6 |
(a) | Approximates the gross contractual amounts of receivables acquired.
(b) | Comprises $79.3 of customer relationships and $12.0 of tradenames ($8.3 of which is subject to amortization), having average amortization periods of 15 years.
We allocated the purchase price of the acquisition to identifiable intangible assets and property, plant and equipment based on estimated fair values as follows:
• | Customer relationships were valued using a multi-period, excess earnings method. Key assumptions used in this method include discount rates, growth rates and cash flow projections. These assumptions are most sensitive and susceptible to change as they require significant management judgment;
• | Tradenames were valued using the relief from royalty method, which estimates our theoretical royalty savings from ownership of the tradenames. Key assumptions used in this method include discount rates, royalty rates, growth rates and sales projections. These assumptions are most sensitive and susceptible to change as they require significant management judgment; and
• | Property, plant and equipment were valued based on estimated fair values primarily using depreciated replacement cost and market value methods.
The excess of the purchase price for the Totalgaz Acquisition over the fair values of the assets acquired and liabilities assumed has been reflected as goodwill, assigned to the UGI International reportable segment, and results principally from anticipated synergies and value creation resulting from the Company’s combined LPG businesses in France. The goodwill is not deductible for income tax purposes. The Company recognized $16.1 of direct transaction-related costs associated with the Totalgaz Acquisition during Fiscal 2015, which are reflected primarily in “Operating and administrative expenses” on the Consolidated Statements of Income. The acquisition of Totalgaz did not have a material impact on the Company’s revenues or net income attributable to UGI for the year ended September 30, 2015. The following table presents unaudited pro forma revenues, net income attributable to UGI Corporation and earnings per share data for Fiscal 2015 as if the Totalgaz Acquisition had occurred on October 1, 2014. The unaudited pro forma consolidated information reflects the historical results of Totalgaz SAS and its subsidiaries after giving effect to adjustments directly attributable to the transaction, including depreciation, amortization, interest expense, intercompany eliminations and related income tax effects. The unaudited pro forma net income also reflects the effects of the issuance of the €600 term loan under France SAS’s 2015 Senior Facilities Agreement and the associated repayment of the term loan outstanding under Antargaz’ 2011 Senior Facilities Agreement as if such transactions had occurred on October 1, 2014. Amounts in the table below exclude costs associated with extinguishment of debt under Antargaz’ 2011 Senior Facilities Agreement (see Note 5):
| 2015
| As Reported |  | Pro Forma Adjusted
Revenues | $ | 6,691.1 |  |  | $ | 7,065.8 |
Net income attributable to UGI Corporation | $ | 281.0 |  |  | $ | 341.2 |
Earnings per common share attributable to UGI Corporation stockholders: |  |  |
Basic | $ | 1.62 |  |  | $ | 1.97 |
Diluted | $ | 1.60 |  |  | $ | 1.94 |
The unaudited pro forma consolidated information is not necessarily indicative of the results that would have occurred had the Totalgaz Acquisition occurred on the date indicated nor are they necessarily indicative of future operating results. Other Acquisitions During Fiscal 2017, UGI International acquired an energy marketing business with operations in the Netherlands and an LPG distribution business with operations in Sweden, and AmeriGas Propane acquired several retail propane distribution businesses. During Fiscal 2016, UGI International acquired several LPG distribution businesses with operations in Austria, Norway and the United Kingdom, and AmeriGas Propane acquired several retail propane distribution businesses. During Fiscal 2015, in addition to the Totalgaz Acquisition in France, UGI International acquired an LPG distribution business with operations in Hungary, and AmeriGas Propane acquired several retail propane distribution businesses. Total cash paid and liabilities incurred in connection with these acquisitions were as follows:
|  | 2017 |  | 2016 |  | 2015
|  | AmeriGas Propane |  | UGI International |  | AmeriGas Propane |  | UGI International |  | AmeriGas Propane |  | UGI International
Total cash paid |  | $ | 36.8 |  |  | $ | 99.7 |  |  | $ | 37.6 |  |  | $ | 24.1 |  |  | $ | 20.8 |  |  | $ | 17.6 |
Liabilities incurred (a) |  | 10.8 |  |  | 20.6 |  |  | 11.8 |  |  | — |  |  | 4.2 |  |  | — |
Total purchase price |  | $ | 47.6 |  |  | $ | 120.3 |  |  | $ | 49.4 |  |  | $ | 24.1 |  |  | $ | 25.0 |  |  | $ | 17.6 |
(a) | Reflects notes payable to seller and liabilities associated with noncompete agreements.

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