XML 42 R32.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended
--- | ---
Jun. 30, 2024
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 June 30, 2024, September 30, 2023 and June 30, 2023, and the final settlement dates of the Company's open derivative contracts as of June 30, 2024, but excluding those derivatives that qualified for the NPNS exception:
|  |  |  |  |  | Notional Amounts (in millions)
Type |  | Units |  | Settlements Extending Through |  | June 30, 2024 |  | September 30, 2023 |  | June 30, 2023
Commodity Price Risk: |  |  |  |  |  |  |  |  |  |
Regulated Utility Operations |  |  |  |  |  |  |  |  |  |
PA Gas Utility NYMEX natural gas futures and option contracts |  | Dekatherms |  | February 2025 |  | 14 |  |  | 38 |  |  | 24 |
Non-utility Operations |  |  |  |  |  |  |  |  |  |
LPG swaps |  | Gallons |  | December 2026 |  | 416 |  |  | 727 |  |  | 734 |
Natural gas futures, forward, basis swap, options and pipeline contracts (a) |  | Dekatherms |  | March 2028 |  | 320 |  |  | 338 |  |  | 357 |
Electricity forward and futures contracts |  | Kilowatt hours |  | December 2027 |  | 651 |  |  | 1,260 |  |  | 1,586 |
Interest Rate Risk: |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | Euro |  | March 2026 |  | € | 300 |  |  | € | 300 |  |  | € | 300 |
Interest rate swaps |  | USD |  | September 2026 |  | $ | 1,260 |  |  | $ | 1,270 |  |  | $ | 1,274 |
Foreign Currency Exchange Rate Risk: |  |  |  |  |  |  |  |  |  |
Forward foreign currency exchange contracts |  | USD |  | September 2027 |  | $ | 367 |  |  | $ | 425 |  |  | $ | 434 |
Net investment hedge forward foreign exchange contracts |  | Euro |  | December 2026 |  | € | 181 |  |  | € | 256 |  |  | € | 256 |
(a)Amounts at September 30, 2023 and June 30, 2023 include contracts associated with certain UGI International energy marketing business transactions that qualified for held for sale accounting treatment (see Note 5).
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:
|  | June 30, 2024 |  | September 30, 2023 |  | June 30, 2023
Derivative assets: |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |
Foreign currency contracts |  | $ | 12 |  |  | $ | 14 |  |  | $ | 6 |
Interest rate contracts |  | 7 |  |  | 28 |  |  | 30 |
|  | 19 |  |  | 42 |  |  | 36 |
Derivatives subject to PGC and DS mechanisms: |  |  |  |  |  |
Commodity contracts |  | 4 |  |  | 6 |  |  | 11 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Commodity contracts (a) |  | 133 |  |  | 226 |  |  | 246 |
Foreign currency contracts |  | 6 |  |  | 24 |  |  | 12 |
|  | 139 |  |  | 250 |  |  | 258 |
Total derivative assets — gross |  | 162 |  |  | 298 |  |  | 305 |
Gross amounts offset in the balance sheet |  | (94) |  |  | (124) |  |  | (134) |
Cash collateral received |  | (12) |  |  | (40) |  |  | (36) |
Total derivative assets — net |  | $ | 56 |  |  | $ | 134 |  |  | $ | 135 |
Derivative liabilities: |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | (4) |
Derivatives subject to PGC and DS mechanisms: |  |  |  |  |  |
Commodity contracts |  | (5) |  |  | (8) |  |  | (18) |
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Commodity contracts (a) (b) |  | (169) |  |  | (266) |  |  | (448) |
Foreign currency contracts |  | (2) |  |  | (2) |  |  | (4) |
|  | (171) |  |  | (268) |  |  | (452) |
Total derivative liabilities — gross |  | (176) |  |  | (276) |  |  | (474) |
Gross amounts offset in the balance sheet |  | 94 |  |  | 124 |  |  | 134 |
Cash collateral pledged |  | 32 |  |  | 53 |  |  | 137 |
Total derivative liabilities — net |  | $ | (50) |  |  | $ | (99) |  |  | $ | (203) |
(a)Amounts at September 30, 2023 and June 30, 2023 include derivative contracts associated with certain UGI International energy marketing business transactions (see Note 5). The related derivative assets and liabilities qualify for held for sale accounting treatment and are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, on the Condensed Consolidated Balance Sheets at September 30, 2023 and June 30, 2023.
Schedule of 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 June 30,: |  |  |  |  |  |  |  |  |  |
|  | Gain (Loss) Recognized in AOCI |  | Gain Reclassified from AOCI into Income |  | Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges: |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
Interest rate contracts |  | $ | 7 |  |  | $ | 32 |  |  | $ | 13 |  |  | $ | 14 |  |  | Interest expense
Net Investment Hedges: |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | 2 |  |  | $ | (5) |  |  |  |  |  |  |
|  | Gain (Loss) Recognized in Income |  |  |  |  |  |
Derivatives Not Designated as Hedging Instruments: |  | 2024 |  | 2023 |  | Location of Gain (Loss) Recognized in Income
Commodity contracts |  | $ | — |  |  | $ | 1 |  |  | Revenues
Commodity contracts |  | 77 |  |  | (224) |  |  | Cost of sales
Commodity contracts |  | — |  |  | (10) |  |  | Other operating income, net
Foreign currency contracts |  | 1 |  |  | (2) |  |  | Other non-operating income (expense), net
Total |  | $ | 78 |  |  | $ | (235) |  |  |  |  |  |  |
Nine Months Ended June 30,: |  |  |  |  |  |  |  |  |  |
|  | Loss Recognized in AOCI |  | Gain Reclassified from AOCI into Income |  | Location of Gain Reclassified from AOCI into Income
Cash Flow Hedges: |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
Interest rate contracts |  | $ | 2 |  |  | $ | 15 |  |  | $ | 40 |  |  | $ | 28 |  |  | Interest expense
Net Investment Hedges: |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | — |  |  | $ | (28) |  |  |  |  |  |  |
|  | Gain (Loss) Recognized in Income |  |  |  |  |  |
Derivatives Not Designated as Hedging Instruments: |  | 2024 |  | 2023 |  | Location of Gain (Loss) Recognized in Income
Commodity contracts |  | $ | 1 |  |  | $ | 11 |  |  | Revenues
Commodity contracts |  | (52) |  |  | (1,893) |  |  | Cost of sales
Commodity contracts |  | 2 |  |  | (5) |  |  | Other operating income, net
Foreign currency contracts |  | (7) |  |  | (36) |  |  | Other non-operating income (expense), net
Total |  | $ | (56) |  |  | $ | (1,923) |  |  |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration