AMERIGAS PARTNERS LP, 10-K filed on 11/21/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Sep. 30, 2017
Nov. 14, 2017
Mar. 31, 2017
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
AMERIGAS PARTNERS LP 
 
 
Entity Central Index Key
0000932628 
 
 
Document Type
10-K 
 
 
Document Period End Date
Sep. 30, 2017 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--09-30 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 3,252,169,135 
Entity Common Stock, Shares Outstanding
 
92,963,052 
 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Current assets:
 
 
Cash and cash equivalents
$ 7,316 
$ 15,827 
Accounts receivable (less allowances for doubtful accounts of $11,820 and $11,436, respectively)
197,776 
182,665 
Accounts receivable — related parties
3,665 
2,643 
Inventories
116,679 
78,823 
Derivative instruments
30,483 
7,994 
Prepaid expenses
25,605 
22,757 
Other current assets
32,250 
33,739 
Total current assets
413,774 
344,448 
Property, plant and equipment (less accumulated depreciation and amortization of $1,511,890 and $1,499,396, respectively)
1,206,710 
1,274,557 
Goodwill
2,002,010 
1,978,981 
Intangible assets
390,040 
411,319 
Derivative instruments
1,320 
1,166 
Other assets
45,407 
47,299 
Total assets
4,059,261 
4,057,770 
Current liabilities:
 
 
Current maturities of long-term debt
8,447 
8,475 
Short-term borrowings
140,000 
153,200 
Accounts payable — trade
119,686 
94,007 
Accounts payable — related parties
304 
2,759 
Employee compensation and benefits accrued
45,926 
40,793 
Interest accrued
44,135 
40,106 
Customer deposits and advances
109,453 
119,319 
Other current liabilities
113,581 
129,796 
Total current liabilities
581,532 
588,455 
Long-term debt
2,563,832 
2,325,334 
Other noncurrent liabilities
130,826 
124,772 
Total liabilities
3,276,190 
3,038,561 
Commitments and contingencies (Note 12)
   
   
AmeriGas Partners, L.P. partners’ capital:
 
 
Common unitholders (units issued — 92,958,586 and 92,923,410, respectively)
733,104 
967,073 
General partner
14,795 
17,148 
Total AmeriGas Partners, L.P. partners’ capital
747,899 
984,221 
Noncontrolling interest
35,172 
34,988 
Total partners’ capital
783,071 
1,019,209 
Total liabilities and partners’ capital
$ 4,059,261 
$ 4,057,770 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowances for doubtful accounts
$ 11,820 
$ 11,436 
Property, plant and equipment, accumulated depreciation and amortization
$ 1,511,890 
$ 1,499,396 
Common unitholders, units issued
92,958,586 
92,923,410 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Revenues:
 
 
 
Propane
$ 2,183,538 
$ 2,053,160 
$ 2,612,401 
Other
269,957 
258,657 
272,921 
Revenues
2,453,495 
2,311,817 
2,885,322 
Costs and expenses:
 
 
 
Cost of sales — propane (excluding depreciation shown below)
891,261 
719,842 
1,301,167 
Cost of sales — other (excluding depreciation shown below)
80,611 
78,857 
86,638 
Operating and administrative expenses
915,133 
928,786 
953,283 
Depreciation
147,741 
146,805 
152,204 
Amortization
42,764 
43,175 
42,676 
Other operating income, net
(11,873)
(28,252)
(31,355)
Costs and expenses
2,065,637 
1,889,213 
2,504,613 
Operating income
387,858 
422,604 
380,709 
Loss on extinguishments of debt
(59,729)
(48,889)
0 
Interest expense
(160,226)
(164,095)
(162,842)
Income before income taxes
167,903 
209,620 
217,867 
Income tax (expense) benefit
(2,034)
1,573 
(2,898)
Net income including noncontrolling interest
165,869 
211,193 
214,969 
Deduct net income attributable to noncontrolling interest
(3,810)
(4,209)
(3,758)
Net income attributable to AmeriGas Partners, L.P.
162,059 
206,984 
211,211 
General partner’s interest in net income attributable to AmeriGas Partners, L.P.
45,146 
40,227 
32,469 
Limited partners’ interest in net income attributable to AmeriGas Partners, L.P.
$ 116,913 
$ 166,757 
$ 178,742 
Income per limited partner unit (Note 2):
 
 
 
Basic (in dollars per unit)
$ 1.25 
$ 1.77 
$ 1.91 
Diluted (in dollars per unit)
$ 1.25 
$ 1.77 
$ 1.91 
Weighted-average limited partner units outstanding (thousands):
 
 
 
Basic (in units)
92,996 
92,949 
92,910 
Diluted (in units)
93,050 
93,023 
92,977 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net income including noncontrolling interest
$ 165,869 
$ 211,193 
$ 214,969 
Other comprehensive loss:
 
 
 
Reclassifications of net gains on derivative instruments
0 
0 
(2,822)
Other comprehensive loss
0 
0 
(2,822)
Total comprehensive income including noncontrolling interest
165,869 
211,193 
212,147 
Deduct comprehensive income attributable to noncontrolling interest
(3,810)
(4,209)
(3,730)
Comprehensive income attributable to AmeriGas Partners, L.P.
$ 162,059 
$ 206,984 
$ 208,417 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
Net income including noncontrolling interest
$ 165,869 
$ 211,193 
$ 214,969 
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
 
 
 
Depreciation and amortization
190,505 
189,980 
194,880 
Provision for uncollectible accounts
17,693 
11,215 
15,800 
Loss on extinguishments of debt
59,729 
48,889 
0 
Change in unrealized (gains) losses on derivative instruments
(31,062)
(66,079)
47,841 
Other, net
23,350 
2,112 
(14,754)
Net change in:
 
 
 
Accounts receivable
(35,132)
3,963 
51,613 
Inventories
(37,398)
15,478 
86,198 
Accounts payable
26,325 
(5,267)
(52,975)
Other current assets
(8,661)
3,895 
(10,889)
Other current liabilities
(14,436)
7,564 
(8,825)
Net cash provided by operating activities
356,782 
422,943 
523,858 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Expenditures for property, plant and equipment
(98,164)
(101,693)
(102,009)
Proceeds from disposals of assets
19,935 
14,636 
23,816 
Acquisitions of businesses, net of cash acquired
(36,824)
(37,560)
(20,840)
Net cash used by investing activities
(115,053)
(124,617)
(99,033)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Distributions
(398,877)
(387,659)
(368,426)
Noncontrolling interest activity
(3,626)
(5,378)
(5,949)
(Decrease) increase in short-term borrowings
(13,200)
85,100 
(40,900)
Issuance of long-term debt, net of issuance costs
1,207,727 
1,331,293 
0 
Repayment of long-term debt, including redemption premiums
(1,043,744)
(1,321,750)
(11,808)
Proceeds associated with equity based compensation plans, net of tax withheld
1,465 
1,127 
3,501 
Capital contributions from General Partner
15 
11 
34 
Net cash used by financing activities
(250,240)
(297,256)
(423,548)
Cash and cash equivalents (decrease) increase
(8,511)
1,070 
1,277 
CASH AND CASH EQUIVALENTS
 
 
 
End of year
7,316 
15,827 
14,757 
Beginning of year
15,827 
14,757 
13,480 
(Decrease) increase
(8,511)
1,070 
1,277 
SUPPLEMENTAL CASH FLOW INFORMATION
 
 
 
Cash paid for interest
$ 152,165 
$ 167,460 
$ 158,837 
Consolidated Statements of Partners' Capital (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Total AmeriGas Partners, L.P. partners’ capital
Common unitholders
General partner
Accumulated other comprehensive income (loss)
Noncontrolling Interest
Beginning balance at Sep. 30, 2014
$ 1,360,890 
$ 1,322,514 
$ 1,299,260 
$ 20,460 
$ 2,794 
$ 38,376 
Beginning balance (in units) at Sep. 30, 2014
 
 
92,867,204 
 
 
 
Increase (Decrease) in Partners' Capital [Roll Forward]
 
 
 
 
 
 
Net income including noncontrolling interest
214,969 
211,211 
178,742 
32,469 
 
3,758 
Reclassification of net gains on derivative instruments
(2,822)
(2,794)
 
 
(2,794)
(28)
Distributions
(373,731)
(368,426)
(334,387)
(34,039)
 
(5,305)
Unit-based compensation expense
2,228 
2,228 
2,228 
 
 
 
Common Units issued in connection with employee and director plans, net of tax withheld (in units)
 
 
22,776 
 
 
 
Common Units issued in connection with employee and director plans, net of tax withheld
(517)
(517)
(552)
35 
 
 
Distribution related to common control transaction
(644)
0 
 
 
 
(644)
Ending balance at Sep. 30, 2015
1,200,373 
1,164,216 
1,145,291 
18,925 
0 
36,157 
Ending balance (in units) at Sep. 30, 2015
 
 
92,889,980 
 
 
 
Increase (Decrease) in Partners' Capital [Roll Forward]
 
 
 
 
 
 
Net income including noncontrolling interest
211,193 
206,984 
166,757 
40,227 
 
4,209 
Reclassification of net gains on derivative instruments
0 
 
 
 
 
 
Distributions
(393,076)
(387,659)
(345,644)
(42,015)
 
(5,417)
Unit-based compensation expense
1,242 
1,242 
1,242 
 
 
 
General Partner contribution to AmeriGas Propane, L.P.
39 
0 
 
 
 
39 
Common Units issued in connection with employee and director plans, net of tax withheld (in units)
 
 
33,430 
 
 
 
Common Units issued in connection with employee and director plans, net of tax withheld
(562)
(562)
(573)
11 
 
 
Ending balance at Sep. 30, 2016
1,019,209 
984,221 
967,073 
17,148 
0 
34,988 
Ending balance (in units) at Sep. 30, 2016
 
 
92,923,410 
 
 
 
Increase (Decrease) in Partners' Capital [Roll Forward]
 
 
 
 
 
 
Net income including noncontrolling interest
165,869 
162,059 
116,913 
45,146 
 
3,810 
Reclassification of net gains on derivative instruments
0 
 
 
 
 
 
Distributions
(404,105)
(398,877)
(351,363)
(47,514)
 
(5,228)
Unit-based compensation expense
1,237 
1,237 
1,237 
 
 
 
General Partner contribution to AmeriGas Propane, L.P.
1,602 
0 
 
 
 
1,602 
Common Units issued in connection with employee and director plans, net of tax withheld (in units)
 
 
35,176 
 
 
 
Common Units issued in connection with employee and director plans, net of tax withheld
(741)
(741)
(756)
15 
 
 
Ending balance at Sep. 30, 2017
$ 783,071 
$ 747,899 
$ 733,104 
$ 14,795 
$ 0 
$ 35,172 
Ending balance (in units) at Sep. 30, 2017
 
 
92,958,586 
 
 
 
Nature of Operations
Nature of Operations
Nature of Operations
AmeriGas Partners, L.P. (“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”). AmeriGas Partners and AmeriGas OLP are Delaware limited partnerships. AmeriGas Partners, AmeriGas OLP and all of their subsidiaries are collectively referred to herein as “the Partnership” or “we.”
AmeriGas OLP is engaged in the distribution of propane and related equipment and supplies. AmeriGas OLP comprises the largest retail propane distribution business in the United States serving residential, commercial, industrial, motor fuel and agricultural customers in all 50 states.
At September 30, 2017, AmeriGas Propane, Inc. (the “General Partner”), an indirect wholly owned subsidiary of UGI Corporation (“UGI”), held a 1% general partner interest in AmeriGas Partners and a 1.01% general partner interest in AmeriGas OLP. The General Partner also owns AmeriGas Partners Common Units (“Common Units”). The remaining Common Units outstanding represents publicly held Common Units. Common Units represent limited partner interests in AmeriGas Partners. AmeriGas Partners holds a 98.99% limited partner interest in AmeriGas OLP.
AmeriGas Partners and AmeriGas OLP have no employees. Employees of the General Partner conduct, direct and manage our operations. The General Partner is reimbursed monthly for all direct and indirect expenses it incurs on our behalf (see Note 13).
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation. Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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.
Certain prior-year amounts have been reclassified to conform to the current-year presentation.
Principles of Consolidation. The consolidated financial statements include the accounts of AmeriGas Partners, its majority-owned subsidiary AmeriGas OLP, and its 100%-owned finance subsidiaries AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp., and AmeriGas Finance LLC. AmeriGas Partners and AmeriGas OLP are under the common control of the General Partner. The General Partner of AmeriGas OLP, which is also the General Partner of AmeriGas Partners, makes all decisions for AmeriGas OLP; limited partners of AmeriGas OLP do not have the ability to remove the General Partner or participate in the decision-making for AmeriGas OLP. The accounts of AmeriGas OLP are included based upon the determination that AmeriGas Partners has a controlling financial interest in and is the primary beneficiary of AmeriGas OLP.
Finance Corps. AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC are 100%-owned finance subsidiaries of AmeriGas Partners. Their sole purpose is to serve as issuers or co-obligors for debt securities issued or guaranteed by AmeriGas Partners.
Fair Value Measurements. The Partnership applies fair value measurements on a recurring and, as otherwise required under GAAP, also on a nonrecurring basis. Fair value in GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements performed on a recurring basis principally relate to derivative instruments.
GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
We use the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
•
Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date.
•
Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means.
•
Level 3 — Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability.
Fair value is based upon assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and risks inherent in valuation techniques and inputs to valuations. This includes not only the credit standing of counterparties and credit enhancements but also the impact of our own nonperformance risk on our liabilities. We evaluate the need for credit adjustments to our derivative instrument fair values. These credit adjustments were not material to the fair values of our derivative instruments.
Derivative Instruments. Derivative instruments are reported in the Consolidated Balance Sheets at their fair values, unless the derivative instruments qualify for the normal purchase and normal sale (“NPNS”) exception under GAAP. The accounting for changes in fair value depends upon the purpose of the derivative instrument and whether it is designated and qualifies for hedge accounting. Changes in the fair values of these derivative instruments are reflected in cost of sales on the Consolidated Statements of Operations. Cash flows from derivative instruments are included in cash flows from operating activities.
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 16.
Revenue Recognition. Revenues from the sale of propane are recognized principally upon delivery. Revenues from the sale of appliances and equipment are recognized at the later of sale or installation. Revenues from repair or maintenance services are recognized upon completion of services. Revenues from annually billed fees are generally recorded on a straight-line basis over one year. We present revenue-related taxes collected on behalf of customers and remitted to taxing authorities, principally sales and use taxes, on a net basis.
Accounts Receivable. Accounts receivable are reported on the Consolidated Balance Sheets at the gross outstanding amount adjusted for an allowance for doubtful accounts. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. Provisions for uncollectible accounts are established based upon our collection experience and the assessment of the collectability of specific amounts. Accounts receivable are written off in the period in which the receivable is deemed uncollectible.
Delivery Expenses. Expenses associated with the delivery of propane to customers (including vehicle expenses, expenses of delivery personnel, vehicle repair and maintenance and general liability expenses) are classified as “Operating and administrative expenses” on the Consolidated Statements of Operations. Depreciation expense associated with delivery vehicles is classified in “Depreciation” on the Consolidated Statements of Operations.
Income Taxes. AmeriGas Partners and AmeriGas OLP are not directly subject to federal income taxes. Instead, their taxable income or loss is allocated to their individual partners. AmeriGas OLP has corporate subsidiaries which are directly subject to federal and state income taxes. Accordingly, our consolidated financial statements reflect income taxes related to these corporate subsidiaries. Legislation in certain states allows for taxation of partnerships’ income and the accompanying financial statements reflect state income taxes resulting from such legislation. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders. This is a result of (1) differences between the tax basis and financial reporting basis of assets and liabilities and (2) the taxable income allocation requirements of the Fourth Amended and Restated Agreement of Limited Partnership of AmeriGas Partners, L.P., as amended (“Partnership Agreement”) and the Internal Revenue Code.
Cash and Cash Equivalents. For cash flow purposes, cash and cash equivalents include cash on hand, cash in banks and highly liquid investments with maturities of three months or less when purchased.
Inventories. Our inventories are stated at the lower of cost or net realizable value. We determine cost using an average cost method for propane, specific identification for appliances and the first-in, first-out (“FIFO”) method for all other inventories.
Property, Plant and Equipment and Related Depreciation. We record property, plant and equipment at cost. The amounts we assign to property, plant and equipment of acquired businesses are based upon estimated fair value at date of acquisition.
We record depreciation expense on plant and equipment using the straight-line method over estimated service lives. At September 30, 2017, estimated useful lives by type were as follows:
Asset Type
 
Minimum Estimated Useful Life
(in years)
 
Maximum Estimated Useful Life
(in years)
Buildings and improvements
 
15
 
40
Storage, customer tanks and cylinders and related assets
 
6
 
30
Vehicles, equipment and office furniture and fixtures
 
3
 
10
Computer software
 
3
 
10

No depreciation expense is included in cost of sales on the Consolidated Statements of Operations.
Segment Information. We have determined that we have a single reportable operating segment that engages in the distribution of propane and related equipment and supplies. No single customer represents ten percent or more of consolidated revenues. In addition, substantially all of our revenues are derived from sources within the United States and substantially all of our long-lived assets are located in the United States.
Goodwill and Intangible Assets. Estimated useful lives of definite-lived intangible assets, consisting of customer relationships and noncompete agreements, do not exceed 15 years. We review definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the associated carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires comparing the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. Intangible assets with indefinite lives are not amortized but are tested annually for impairment (and more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that they are impaired) and written down to fair value, if impaired.
Intangible assets with indefinite lives are not amortized but are tested annually for impairment (and more frequently if indicators of impairment are present) and written down to fair value, if impaired.  We test our indefinite-lived intangible assets comprising trademarks and tradenames by comparing their book values to their estimated fair values. The estimated fair values of the Partnership’s trademarks and tradenames are determined using the “relief from royalty” method. This method requires the Partnership to, among other things, forecast future revenues expected to be derived from the use of these trademarks and tradenames and to determine a fair royalty rate from their use. These future estimated royalties are then discounted to present value using a discount rate based upon a weighted average cost of capital adjusted for the risks inherent in the forecasted financial information and those specific to the asset itself.
We do not amortize goodwill, but test it at least annually for impairment at the reporting unit level. A reporting unit is the operating segment, or a business one level below the operating segment (a component) if discrete financial information is prepared and regularly reviewed by segment management. Components are aggregated as a single reporting unit if they have similar economic characteristics. A reporting unit with goodwill is required to perform an impairment test annually or whenever events or circumstances indicate that the value of goodwill may be impaired. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance simplifying the test for goodwill impairment. The adoption of the new guidance did not impact the consolidated financial statements (see Note 3).

We are required to recognize an impairment charge under GAAP if the carrying amount of a reporting unit exceeds its fair value. From time to time, we may assess qualitative factors to determine whether it is more likely than not that the fair value of such reporting unit is less than its carrying amount. Among the significant factors considered in performing the qualitative assessment is the market price of AmeriGas Partners Common Units. We may bypass the qualitative assessment and perform the quantitative assessment by comparing the fair value of the reporting unit with its carrying amount, including goodwill. We determine fair value generally based on a weighting of income and market approaches. For purposes of the income approach, fair value is determined based upon the present value of the estimated future cash flows, including an estimate of the terminal value based upon these cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows which may include estimates of long-term future growth rates based upon our most recent long-term outlook. Cash flow estimates used to establish fair values under our income approach involve management judgments based on a broad range of information and historical results. In addition, external economic and competitive conditions can influence future performance. For purposes of the market approach, we use valuation multiples for companies comparable to our reporting unit. The market approach requires judgment to determine the appropriate valuation multiple. If the carrying amount of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to such excess but not to exceed the total amount of the goodwill.

There were no accumulated impairment losses at September 30, 2017 and 2016 and no provisions for goodwill or other intangible asset impairments were recorded during Fiscal 2017, Fiscal 2016 or Fiscal 2015. No amortization expense of intangible assets is included in cost of sales in the Consolidated Statements of Operations.
Impairment of Long-Lived Assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We evaluate recoverability based upon undiscounted future cash flows expected to be generated by such assets. If the undiscounted future cash flows indicate that the recorded amounts are not expected to be recoverable, such long-lived assets are reduced to their estimated fair values. No provisions for impairments were recorded during Fiscal 2017, Fiscal 2016 or Fiscal 2015.
Deferred Debt Issuance Costs. We defer and amortize debt issuance costs and debt premiums and discounts over the expected lives of the respective debt issues considering maturity dates. Deferred debt issuance costs associated with long-term debt are reflected as a direct deduction from the carrying amount of such debt. Amortization of the issuance costs is reported as interest expense. Unamortized costs associated with redemptions of debt prior to their stated maturity are generally recognized and included in “Loss on extinguishments of debt” on the Consolidated Statements of Operations.
Customer Deposits. We offer certain of our customers prepayment programs which require customers to pay a fixed periodic amount or to otherwise prepay a portion of their anticipated propane purchases. Customer prepayments, in excess of associated billings, are classified as “Customer deposits and advances” on the Consolidated Balance Sheets.
Equity-Based Compensation. The General Partner may grant Common Unit awards (as further described in Note 11) to employees and non-employee directors under its Common Unit plans, and employees of the General Partner may be granted stock options for UGI Common Stock. All of our equity-based compensation is measured at fair value on the grant date, date of modification or end of the period, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity on our Consolidated Balance Sheets. Equity-based compensation costs associated with the portion of Common Unit awards classified as equity are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation costs associated with the portion of Common Unit awards classified as liabilities are measured based upon their estimated fair value at the date of grant and remeasured as of the end of each period. For a further description of our equity-based compensation plans and related disclosures, see Note 11.
Environmental Matters. We are subject to environmental laws and regulations intended to mitigate or remove the effects of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current or former operating sites.
Environmental reserves are accrued when assessments indicate that it is probable that a liability has been incurred and an amount can be reasonably estimated. Amounts recorded as environmental liabilities on the Consolidated Balance Sheets represent our best estimate of costs expected to be incurred or, if no best estimate can be made, the minimum liability associated with a range of expected environmental investigation and remediation costs. Our estimated liability for environmental contamination is reduced to reflect anticipated participation of other responsible parties but is not reduced for possible recovery from insurance carriers. In those instances for which the amount and timing of cash payments associated with environmental investigation and cleanup are reliably determinable, we discount such liabilities to reflect the time value of money. We intend to pursue recovery of incurred costs through all appropriate means.
Loss Contingencies Subject to Insurance. The Partnership is subject to risk of loss for general, automobile and product liability, and workers’ compensation claims for which it obtains insurance coverage under insurance policies that are subject to self-insured retentions or deductibles. In accordance with GAAP, the Partnership establishes reserves for pending legal actions, and for pending and incurred but not reported claims associated with general, automobile and workers’ compensation when it is probable that a liability exists and the amount or range of amounts can be reasonably estimated. When there is a range of possible loss with equal likelihood, liabilities recorded are based upon the low end of the range. The Partnership maintains insurance coverage such that its net exposure for claims covered by insurance would be limited to the self-insured retentions or deductibles, claims above which would be paid by the insurance carrier. For such claims, the Partnership records a receivable related to the amount of the liability expected to be paid by insurance.
Correction of Prior Period Errors. During the first quarter of Fiscal 2017, the Partnership determined that it had not properly recorded gains on sales of property, plant and equipment relating to certain assets acquired in the acquisition of Heritage Propane in Fiscal 2012.  Also, during the fourth quarter of Fiscal 2017, the Partnership determined that it had not properly recorded depreciation expense on certain assets acquired in the acquisition of Heritage Propane in Fiscal 2012.
The Partnership evaluated the impact of these errors on prior periods and determined that the effects were not material to the financial statements for Fiscal 2017, or any prior period financial statements, and recorded the cumulative effect of the error in accounting for certain disposals as of October 1, 2016, and recorded the cumulative effect of the error in accounting for depreciation expense relating to certain assets acquired in the Heritage Propane acquisition as of July 1, 2017. The correction of the error related to gains on sales of certain property, plant and equipment obtained in the Heritage Propane acquisition decreased Fiscal 2017 other operating income, net by $8,847 and decreased Fiscal 2017 depreciation by $1,162. The correction of the error related to the error in accounting for depreciation expense relating to certain assets acquired in the Heritage Propane acquisition increased Fiscal 2017 depreciation by $7,350.
Allocation of Net Income (Loss). Net income attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its incentive distribution rights (“IDRs”) under the Partnership Agreement (see Note 5).
Net Income (Loss) Per Unit. Income (loss) per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income (loss) per unit for master limited partnerships (“MLPs”) when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership).
The following table sets forth reconciliations of the numerators and denominators of the basic and diluted income per limited partner unit computations:
 
2017
 
2016
 
2015
Net income attributable to AmeriGas Partners, L.P.
$
162,059

 
$
206,984

 
$
211,211

Adjust for general partner share and theoretical distributions of net income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs
(46,054
)
 
(42,024
)
 
(33,845
)
Common Unitholders’ interest in net income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs
$
116,005

 
$
164,960

 
$
177,366

 
 
 
 
 
 
Weighted average Common Units outstanding — basic (thousands)
92,996

 
92,949

 
92,910

Potentially dilutive Common Units (thousands)
54

 
74

 
67

Weighted average Common Units outstanding — diluted (thousands)
93,050

 
93,023

 
92,977



Theoretical distributions of net income attributable to AmeriGas Partners, L.P. in accordance with the two-class method for Fiscal 2017, Fiscal 2016 and Fiscal 2015 resulted in an increased allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner in the computation of income per limited partner unit which had the effect of decreasing earnings per limited partner unit by $0.01, $0.02, and $0.02, respectively.

Potentially dilutive Common Units included in the diluted limited partner units outstanding computation reflect the effects of restricted Common Unit awards granted under the General Partner’s incentive compensation plans.
Accounting Changes
Accounting Changes
Accounting Changes

Adoption of New Accounting Standards

Definition of a Business. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance which clarifies the definition of a business. The new guidance is intended to assist entities with evaluating whether a set of transferred assets and activities comprises a business. The guidance is required to be applied prospectively. The adoption of the new guidance did not impact our consolidated financial statements.

Cash Flow Classification. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is generally required to be applied retrospectively. The adoption of the new guidance did not impact the consolidated financial statements.

Goodwill Impairment. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance regarding the test for goodwill impairment. Under the new accounting guidance, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. The guidance is required to be applied prospectively. The adoption of the new guidance did not impact the consolidated financial statements.

Consolidation. Effective October 1, 2016, the Partnership adopted Accounting Standards Update (“ASU”) No. 2015-02, “Amendments to Consolidation Analysis” and ASU No. 2016-17, “Interest Held through Related Parties That Are under Common Control.” These ASUs provide new accounting guidance regarding whether a reporting entity should consolidate certain types of legal entities including variable interest entities (“VIEs”). Among other things, the new guidance affects the consolidation analysis of reporting entities that are involved with VIEs and requires that, under ASU 2015-02, if a single decision maker and its related parties are under common control, the single decision maker consider indirect interests in the entity held through these related parties to be the equivalent of direct interests, in their entirety. ASU 2016-07 amended the guidance in ASU 2015-02 to provide that such indirect interests be considered the equivalent of direct interests, on a proportionate basis. The adoption of this new guidance did not impact the consolidated financial statements.

Accounting Standards Not Yet Adopted

Derivatives and Hedging. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2018 (Fiscal 2020). Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the period in which the new guidance will be adopted.

Leases. In February 2016, the FASB issued ASU No. 2016-02, "Leases." This ASU amends existing guidance to require entities that lease assets to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows from leases. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 (Fiscal 2020). Early adoption is permitted. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance but anticipates an increase in the recognition of right-of-use assets and lease liabilities.

Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The guidance provided under ASU 2014-09, as amended, supersedes the revenue recognition requirements in ASC No. 605, “Revenue Recognition,” and most industry-specific guidance included in the ASC. ASU 2014-09 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 entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Partnership for interim and annual periods beginning after December 15, 2017 (Fiscal 2019) and allows for either full retrospective adoption or modified retrospective adoption.

The Partnership is in the process of analyzing the impact of the new guidance using an integrated approach which includes evaluating differences in the amount and timing of revenue recognition from applying the requirements of the new guidance, reviewing its accounting policies and practices, and assessing the need for changes to its processes, accounting systems and design of internal controls. The Partnership has completed the assessment of a significant number of its contracts with customers under the new guidance to determine the effect of the adoption of the new guidance. Although the Partnership has not completed its assessment of the impact of the new guidance, the Partnership does not expect its adoption will have a material impact on its consolidated financial statements.

The Partnership currently anticipates that it will adopt the new standard using the modified retrospective transition method effective October 1, 2018. The ultimate decision with respect to the transition method that it will use will depend upon the completion of the Partnership’s analysis including confirming its preliminary conclusion that the adoption of the new guidance will not have a material impact on its consolidated financial statements.
Acquisitions
Acquisitions
Acquisitions

During Fiscal 2017, Fiscal 2016 and Fiscal 2015, AmeriGas OLP acquired a number of domestic retail propane distribution businesses for total net cash consideration of $36,824, $37,560 and $20,840, respectively. In conjunction with these acquisitions, liabilities of $10,848 in Fiscal 2017, $11,819 in Fiscal 2016 and $4,160 in Fiscal 2015 were incurred. The operating results of these businesses have been included in our operating results from their respective dates of acquisition. The total purchase price of these acquisitions has been allocated to the assets acquired and liabilities assumed as follows:
 
2017
 
2016
 
2015
Net current assets (liabilities)
$
1,176

 
$
(162
)
 
$
1,609

Property, plant and equipment
6,712

 
9,322

 
5,880

Goodwill
23,029

 
24,213

 
10,940

Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively)
16,714

 
16,006

 
7,279

Other assets (liabilities)
41

 
—

 
(708
)
Total
$
47,672

 
$
49,379

 
$
25,000



The goodwill above results principally from anticipated synergies between the acquired businesses and our existing propane business. The pro forma effects of these transactions were not material.
Quarterly Distributions of Available Cash
Quarterly Distributions of Available Cash
Quarterly Distributions of Available Cash
The Partnership makes distributions to its partners approximately 45 days after the end of each fiscal quarter in a total amount equal to its Available Cash (as defined in the Partnership Agreement) for such quarter. Available Cash generally means:
1.all cash on hand at the end of such quarter, plus
2.all additional cash on hand as of the date of determination resulting from borrowings after the end of such quarter, less
3.the amount of cash reserves established by the General Partner in its reasonable discretion.
The General Partner may establish reserves for the proper conduct of the Partnership’s business and for distributions during the next four quarters.
Distributions of Available Cash are made 98% to limited partners and 2% to the General Partner (giving effect to the 1.01% interest of the General Partner in distributions of Available Cash from AmeriGas OLP to AmeriGas Partners) until Available Cash exceeds the Minimum Quarterly Distribution of $0.55 and the First Target Distribution of $0.055 per Common Unit (or a total of $0.605 per Common Unit). When Available Cash exceeds $0.605 per Common Unit in any quarter, the General Partner will receive a greater percentage of the total Partnership distribution (the “incentive distribution”) but only with respect to the amount by which the distribution per Common Unit to limited partners exceeds $0.605.
Quarterly distributions of Available Cash per limited partner unit paid during Fiscal 2017, Fiscal 2016 and Fiscal 2015 were as follows:
 
2017
 
2016
 
2015
1st Quarter
$
0.94

 
$
0.92

 
$
0.88

2nd Quarter
$
0.94

 
$
0.92

 
$
0.88

3rd Quarter
$
0.95

 
$
0.94

 
$
0.92

4th Quarter
$
0.95

 
$
0.94

 
$
0.92



During Fiscal 2017, Fiscal 2016 and Fiscal 2015, the Partnership made quarterly distributions to Common Unitholders in excess of $0.605 per limited partner unit. As a result, the General Partner received a greater percentage of the total Partnership distribution than its aggregate 2% general partner interest in AmeriGas OLP and AmeriGas Partners. During Fiscal 2017, Fiscal 2016 and Fiscal 2015, the total amount of distributions received by the General Partner with respect to its aggregate 2% general partner ownership interests totaled $52,742, $47,432 and $39,346, respectively. Included in these amounts are incentive distributions received by the General Partner during Fiscal 2017, Fiscal 2016 and Fiscal 2015 of $43,525, $38,157 and $30,357, respectively.
Debt
Debt
Debt
Long-term debt comprises the following at September 30:
 
2017
 
2016
AmeriGas Partners Senior Notes:
 
 
 
   5.50% due May 2025 (a)
$
700,000

 
$
—

   5.875% due August 2026 (a)
675,000

 
675,000

   5.75% due May 2027 (a)
525,000

 
—

   5.625% due May 2024 (a)
675,000

 
675,000

   7.00%, due May 2022 (b)
—

 
980,844

Heritage Operating, L.P. (“HOLP”) Senior Secured Notes
11,348

 
15,241

Other
17,262

 
14,349

Total long-term debt
2,603,610

 
2,360,434

Less: unamortized debt issuance costs
(31,331
)
 
(26,625
)
Less: current maturities
(8,447
)
 
(8,475
)
Total long-term debt due after one year
$
2,563,832

 
$
2,325,334


(a)
AmeriGas Partners and AmeriGas Finance Corp. co-issued these senior notes.
(b)
AmeriGas Partners fully and unconditionally guaranteed these senior notes co-issued by AmeriGas Finance Corp. and AmeriGas Finance LLC.

Scheduled principal repayments of long-term debt for each of the next five fiscal years ending September 30 are as follows: Fiscal 2018 — $8,593; Fiscal 2019 — $8,202; Fiscal 2020 — $7,453; Fiscal 2021 — $3,158; Fiscal 2022 — $1,204.
AmeriGas Partners Senior Notes
During Fiscal 2017, AmeriGas Partners and AmeriGas Finance Corp. issued, in underwritten offerings, $700,000 principal amount of 5.50% Senior Notes due May 2025 and $525,000 principal amount of 5.75% Senior Notes due May 2027 (collectively, the “AmeriGas 2017 Senior Notes”). The AmeriGas 2017 Senior Notes rank equally with AmeriGas Partners’ existing outstanding senior notes. The net proceeds from the issuance of the AmeriGas 2017 Senior Notes were used (1) for the early repayment, pursuant to tender offers and notices of redemption, of all of AmeriGas Partners’ 7.00% Senior Notes, having an aggregate principal balance of $980,844 plus accrued and unpaid interest and early redemption premiums, and (2) for general corporate purposes.
During Fiscal 2016, AmeriGas Partners and AmeriGas Finance Corp. issued in an underwritten offering $675,000 principal amount of 5.625% Senior Notes due May 2024 and $675,000 principal amount of 5.875% Senior Notes due August 2026 (collectively, the “AmeriGas 2016 Senior Notes”). The AmeriGas 2016 Senior Notes rank equally with AmeriGas Partners’ existing outstanding senior notes. The net proceeds from the issuance of the AmeriGas 2016 Senior Notes were used (1) for the early repayment, pursuant to tender offers and notices of redemption, of all of AmeriGas Partners’ previously issued 6.50% Senior Notes, 6.75% Senior Notes and 6.25% Senior Notes, having an aggregate principal balance of $1,270,001 plus accrued and unpaid interest and early redemption premiums and (2) for general corporate purposes.
In connection with the early repayments of the Partnership’s Senior Notes, during Fiscal 2017 and Fiscal 2016, the Partnership recognized losses which are reflected in “Loss on extinguishments of debt” on the Consolidated Statements of Operations and comprise the following:
 
2017
 
2016
Early redemption premiums
$
51,253

 
$
39,569

Write-off of unamortized debt issuance costs
8,476

 
9,320

Loss on extinguishments of debt
$
59,729

 
$
48,889


HOLP Senior Secured Notes
The Partnership’s total long-term debt at September 30, 2017 and 2016, includes $11,348 and $15,241, respectively, of HOLP Senior Secured Notes including unamortized premium of $439 and $696, respectively. The effective interest rate on the HOLP Notes is 6.75% at September 30, 2017 and 2016. The HOLP Senior Secured Notes are collateralized by AmeriGas OLP’s receivables, contracts, equipment, inventory, general intangibles and cash.
AmeriGas OLP Credit Agreement
The AmeriGas OLP Credit Agreement (“Credit Agreement”) provides for borrowings up to $525,000 (including a $125,000 sublimit for letters of credit) and permits AmeriGas OLP to borrow at prevailing interest rates, including the base rate, defined as the higher of the Federal Funds rate plus 0.50% or the agent bank’s prime rate, or at a one-week, or one-, two-, three-, or six-month Eurodollar Rate, as defined in the Credit Agreement, plus a margin. Under the Credit Agreement, the applicable margin on base rate borrowings ranges from 0.50% to 1.50%; the applicable margin on Eurodollar Rate borrowings ranges from 1.50% to 2.50%; and the facility fee ranges from 0.30% to 0.45%. The aforementioned margins and facility fees are dependent upon AmeriGas Partners’ ratio of debt to earnings before interest expense, income taxes, depreciation and amortization (each as defined in the Credit Agreement). The Credit Agreement expires in June 2019.
At September 30, 2017 and 2016, there were $140,000 and $153,200 of borrowings outstanding under the Credit Agreement, which amounts are reflected as “Short-term borrowings” on the Consolidated Balance Sheets. The weighted-average interest rates on borrowings under the Credit Agreement at September 30, 2017 and 2016 were 3.74% and 2.79%, respectively. Issued and outstanding letters of credit, which reduce available borrowings under the Credit Agreement, totaled $67,211 and $67,161 at September 30, 2017 and 2016, respectively.
Restrictive Covenants
The AmeriGas Partners Senior Notes restrict the ability of the Partnership and AmeriGas OLP to, among other things, incur additional indebtedness, make investments, incur liens, issue preferred interests, prepay subordinated indebtedness, and effect mergers, consolidations and sales of assets. Under the Senior Notes indentures, AmeriGas Partners is generally permitted to make cash distributions equal to available cash, as defined, as of the end of the immediately preceding quarter, if certain conditions are met. These conditions include:
1.no event of default exists or would exist upon making such distributions and
2.the Partnership’s consolidated fixed charge coverage ratio, as defined, is greater than 1.75-to-1.
If the ratio in item 2 above is less than or equal to 1.75-to-1, the Partnership may make cash distributions in a total amount not to exceed $300,000 less the total amount of distributions made during the immediately preceding 16 Fiscal quarters. At September 30, 2017, the Partnership was not restricted by the consolidated fixed charge coverage ratio from making cash distributions. See the provisions of the Partnership Agreement relating to distributions of Available Cash in Note 5.
The HOLP Senior Secured Notes contain restrictive covenants including the maintenance of financial covenants and limitations on the disposition of assets, changes in ownership, additional indebtedness, restrictive payments and the creation of liens. The financial covenants require AmeriGas OLP to maintain a ratio of Consolidated Funded Indebtedness to Consolidated EBITDA (as defined) below certain thresholds and to maintain a minimum ratio of Consolidated EBITDA to Consolidated Interest Expense (as defined).
The Credit Agreement restricts the incurrence of additional indebtedness and also restricts certain liens, guarantees, investments, loans and advances, payments, mergers, consolidations, asset transfers, transactions with affiliates, sales of assets, acquisitions and other transactions. The Credit Agreement requires that AmeriGas OLP and AmeriGas Partners maintain ratios of total indebtedness to EBITDA, as defined, below certain thresholds. In addition, the Partnership must maintain a minimum ratio of EBITDA to interest expense, as defined and as calculated on a rolling four-quarter basis. Generally, as long as no default exists or would result therefrom, AmeriGas OLP is permitted to make cash distributions not more frequently than quarterly in an amount not to exceed available cash, as defined, for the immediately preceding calendar quarter.
At September 30, 2017, the amount of net assets of the Partnership’s subsidiaries that was restricted from transfer as a result of the amount of Available Cash, computed in accordance with the Partnership Agreement, applicable debt agreements and AmeriGas OLP’s partnership agreement, totaled approximately $3,000,000.
Employee Retirement Plans
Employee Retirement Plans
Employee Retirement Plans
The General Partner sponsors a 401(k) savings plan for eligible employees. Participants in the savings plan may contribute a portion of their compensation on a before-tax basis. Generally, employee contributions are matched on a dollar-for-dollar (100%) basis up to 5% of eligible compensation. The cost of benefits under our savings plan was $10,775 in Fiscal 2017, $10,335 in Fiscal 2016 and $11,435 in Fiscal 2015.
The General Partner also sponsors a nonqualified deferred compensation plan and a nonqualified supplemental executive retirement plan. These plans provide benefits to executives that would otherwise be provided under the Partnership’s retirement plans but are prohibited due to Internal Revenue Code limits. Costs associated with these plans were not material in Fiscal 2017, Fiscal 2016 and Fiscal 2015.
Inventories
Inventories
Inventories
Inventories comprise the following at September 30:
 
2017
 
2016
Propane gas
$
99,035

 
$
61,849

Materials, supplies and other
11,899

 
11,521

Appliances for sale
5,745

 
5,453

Total inventories
$
116,679

 
$
78,823



In addition to inventories on hand, we also enter into contracts to purchase propane to meet a portion of our supply requirements. Generally, these contracts are one- to three-year agreements subject to annual price and quantity adjustments.
Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
Property, plant and equipment comprise the following at September 30:
 
2017
 
2016
Land
$
135,965

 
$
136,728

Buildings and improvements
196,798

 
193,300

Transportation equipment
250,493

 
262,645

Storage facilities
268,415

 
262,430

Equipment, primarily cylinders and tanks
1,612,375

 
1,682,493

Work in process
19,517

 
24,740

Other
235,037

 
211,617

Gross property, plant and equipment
2,718,600

 
2,773,953

Less accumulated depreciation and amortization
(1,511,890
)
 
(1,499,396
)
Net property, plant and equipment
$
1,206,710

 
$
1,274,557

Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets

Changes in the carrying amount of goodwill are as follows:
Balance September 30, 2015
$
1,956,688

Acquisitions
24,213

Purchase accounting adjustments
(1,920
)
Balance September 30, 2016
1,978,981

Acquisitions
23,029

Balance September 30, 2017
$
2,002,010


The Partnership’s intangible assets comprise the following at September 30:
 
2017
 
2016
Customer relationships and noncompete agreements
$
497,385

 
$
520,180

   Trademarks and tradenames (not subject to amortization)
82,944

 
82,944

   Gross carrying amount
580,329

 
603,124

Accumulated amortization
(190,289
)
 
(191,805
)
Intangible assets, net
$
390,040

 
$
411,319



Amortization expense of intangible assets was $37,994, $38,405 and $37,905 in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively. Estimated amortization expense of intangible assets during the next five fiscal years is as follows: Fiscal 2018 — $38,249; Fiscal 2019 — $37,024; Fiscal 2020 — $35,803; Fiscal 2021 — $33,968; Fiscal 2022 — $32,361.
Partners' Capital and Equity Compensation Plans
Partners' Capital and Equity Compensation Plans
Partners’ Capital and Equity Compensation Plans
Partners’ Capital
In accordance with the Partnership Agreement, the General Partner may, in its sole discretion, cause the Partnership to issue an unlimited number of additional Common Units and other equity securities of the Partnership ranking on a parity with the Common Units.
On November 7, 2017, AmeriGas Partners entered into a Standby Equity Commitment Agreement (the “Commitment Agreement”) with the General Partner and UGI. Under the terms of the Commitment Agreement, UGI has committed to make up to $225,000 of capital contributions to the Partnership through July 1, 2019 (the “Commitment Period”). UGI’s capital contributions may be made from time to time during the Commitment Period upon request of the Partnership.
In consideration for any capital contributions pursuant to the Commitment Agreement, the Partnership will issue to UGI or a wholly owned subsidiary new Class B Common Units representing limited partner interests in the Partnership (“Class B Units”). The Class B Units will be issued at a price per unit equal to the 20-day volume-weighted average price of the Partnership’s Common Units prior to the date of the Partnership’s related capital call. The Class B Units will be entitled to cumulative quarterly distributions at a rate equal to the annualized Common Unit yield at the time of the applicable capital call, plus 130 basis points. The Partnership may choose to make the distributions in cash or in kind in the form of additional Class B Units. While outstanding, the Class B Units will not be subject to any incentive distributions from the Partnership.
At any time after five years from the initial issuance of the Class B Units, holders may elect to convert all or any portion of the Class B Units they own into Common Units on a one-for-one basis. At any time after six years from the initial issuance of the Class B Units, the Partnership may elect to convert all or any portion of the Class B Units into Common Units if (i) the closing trading price of the Common Units is greater than 110% of the applicable purchase price for the Class B Units and (ii) the Common Units are listed or admitted for trading on a National Securities Exchange. Upon certain events involving a change of control, and immediately prior to a liquidation or winding up of the Partnership, the Class B Units will automatically convert into Common Units on a one-for-one basis.
Equity Compensation Plans
The General Partner grants equity-based awards to employees and non-employee directors comprising grants of AmeriGas Partners equity instruments as further described below. We recognized total pre-tax equity-based compensation expense of $3,920, $4,025 and $5,635 in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.
Under the AmeriGas Propane, Inc. 2010 Long-Term Incentive Plan on Behalf of AmeriGas Partners, L.P. (“2010 Plan”), the General Partner may award to employees and non-employee directors grants of Common Units (comprising “AmeriGas Stock Units” and “AmeriGas Performance Units”), options, phantom units, unit appreciation rights and other Common Unit-based awards. The total aggregate number of Common Units that may be issued under the 2010 Plan is 2,800,000. The exercise price for options may not be less than the fair market value on the date of grant. Awards granted under the 2010 Plan may vest immediately or ratably over a period of years, and options can be exercised no later than ten years from the grant date. In addition, the 2010 Plan provides that Common Unit-based awards may also provide for the crediting of Common Unit distribution equivalents to participants’ accounts.
AmeriGas Stock Unit and AmeriGas Performance Unit awards entitle the grantee to AmeriGas Partners Common Units or cash once the service condition is met and, with respect to AmeriGas Performance Units, subject to market performance conditions, and for certain awards granted on or after January 1, 2015, actual net customer acquisition and retention performance. Recipients of AmeriGas Performance Units are awarded a target number of AmeriGas Performance Units. The number of AmeriGas Performance Units ultimately paid at the end of the performance period (generally three years) may be higher or lower than the target number, or it may be zero. For that portion of Performance Unit awards whose ultimate payout is based upon market-based conditions (as further described below), the number of awards ultimately paid is based upon AmeriGas Partners’ Total Unitholder Return (“TUR”) percentile rank relative to entities in a master limited partnership peer group (“Alerian MLP Group”) and, for certain AmeriGas Performance Awards granted in January 2014, based upon AmeriGas Partners’ TUR relative to the two other publicly traded propane master limited partnerships in the Alerian MLP Group (“Propane MLP Group”). For Performance Unit awards granted on or after January 1, 2015, the number of AmeriGas Performance Units ultimately paid is based upon AmeriGas Partner’s TUR percentile rank relative to entities in the Alerian MLP Group as modified by AmeriGas Partners’ performance relative to the Propane MLP Group.
With respect to AmeriGas Performance Unit awards subject to measurement compared with the Alerian MLP Group, grantees may receive from 0% to 200% of the target award granted. For such grants issued on or after January 1, 2013, if AmeriGas Partners’ TUR is below the 25th percentile compared to the peer group, the grantee will not be paid. At the 25th percentile, the employee will be paid an award equal to 25% of the target award; at the 40th percentile, 70%; at the 50th percentile, 100%; at the 60th percentile, 125%; at the 75th percentile, 162.5%; and at the 90th percentile or above, 200%. The actual amount of the award is interpolated between these percentile rankings. For such grants issued on or after January 1, 2015, the amount ultimately paid shall be modified based upon AmeriGas Partners’ TUR ranking relative to the Propane MLP Group over the performance period (“MLP Modifier”). Such modification ranges from 70% to 130%, but in no event shall the amount ultimately paid, after such modification, exceed 200% of the target award grant.
With respect to AmeriGas Performance Unit awards granted in January 2014 subject to measurement compared with the Propane MLP Group, grantees were eligible to receive 150% of the target award if AmeriGas Partners’ TUR exceeded the TUR of all the other members of the Propane MLP Group. Otherwise there would be no payout of such AmeriGas Performance Units. If one of the other two members of the Propane MLP Group ceased to exist as a publicly traded company or declares bankruptcy (“MLP Event”) and, depending upon the timing of such MLP Event, the ultimate amount of such AmeriGas Performance Unit awards to be issued pursuant to the January 2014 grant, and the amount of distribution equivalents to be paid, would depend upon AmeriGas Partners’ TUR rank relative to (1) the Alerian MLP Group for the entire performance period; (2) the Alerian MLP Group for the entire performance period and the Propane MLP Group (through the date of the MLP Event); or (3) the Propane MLP Group through the date of the MLP Event. For those performance awards granted on or after January 1, 2015 that are subject to the MLP Modifier, if an MLP Event were to occur during the performance period such MLP Modifier would be based upon AmeriGas Partners’ TUR rank as determined in (1), (2) or (3) above, as appropriate.

With respect to AmeriGas Performance Unit awards granted in January 2015 whose payout is based upon net customer gain and retention performance, grantees may ultimately receive between 0% and 200% of the target award based upon the annual actual net customer gain and retention performance as adjusted for the net customer gain and retention performance over the three-year performance period. With respect to AmeriGas Performance Unit awards granted in January 2016 and 2017 whose payout is based upon net customer gain and retention performance, grantees may ultimately receive between 0% and 200% of the target award based upon the actual net customer gain and retention performance over the entire three-year performance period.
Common Unit distribution equivalents are paid in cash only on AmeriGas Performance Units that eventually vest. Generally, except in the event of retirement, death or disability, each grant, unless paid, will terminate when the participant ceases to be employed. There are certain change of control and retirement eligibility conditions that, if met, generally result in accelerated vesting or elimination of further service requirements.
Under GAAP, AmeriGas Performance Unit awards that are subject to market-based conditions are equity awards that, if settled in Common Units, result in the recognition of compensation cost over the requisite employee service period regardless of whether the market-based condition is satisfied. The fair values of AmeriGas Performance Units subject to market-based conditions are estimated using a Monte Carlo valuation model. The fair value associated with the target award which will be paid in Common Units, is accounted for as equity, and the fair value of the award over the target, as well as all Common Unit distribution equivalents, which will be paid in cash, is accounted for as a liability. For purposes of valuing AmeriGas Performance Unit awards that are subject to market-based conditions, expected volatility is based on the historical volatility of Common Units over a three-year period. The risk-free interest rate is based on the rates on U.S. Treasury bonds at the time of grant. Volatility for all entities in the peer group is based on historical volatility. The expected term of the AmeriGas Performance Unit awards is three years based on the performance period. AmeriGas Performance Unit awards whose ultimate payout is based upon net customer acquisition and retention performance measures are recorded as expense when it is probable all or a portion of the award will be paid. The fair value associated with the target award is the market price of the Common Units on the date of grant. The fair value of the award over the target, as well as all Common Unit distribution equivalents, which will be paid in cash, is accounted for as a liability.
The following table summarizes the weighted-average assumptions used to determine the fair value of AmeriGas Performance Unit awards subject to market-based conditions and related compensation costs:
 
Grants Awarded in Fiscal Year
 
2017
 
2016
 
2015
Risk-free rate
1.5%
 
1.3%
 
0.9%
Expected life
3 years
 
3 years
 
3 years
Expected volatility
21.7%
 
20.6%
 
19.2%
Dividend Yield
7.8%
 
10.7%
 
6.8%


The General Partner granted awards under the 2010 Plan representing 67,563, 73,080 and 80,336 Common Units in Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively, having weighted-average grant date fair values per Common Unit subject to award of $52.37, $37.93 and $61.00, respectively. At September 30, 2017, 2,287,879 Common Units were available for future award grants under the 2010 Plan.
The following table summarizes AmeriGas Common Unit-based award activity for Fiscal 2017:
 
Total
 
Vested
 
Non-Vested
 
Number of
Common
Units
Subject to
Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
 
Number of
Common
Units Subject
to Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
 
Number of
Common
Units
Subject to
Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
September 30, 2016
210,549

 
$
47.24

 
55,622

 
$
45.67

 
154,927

 
$
47.80

AmeriGas Performance Units:
 
 
 
 
 
 
 
 
 
 
 
   Granted
49,225

 
$
54.24

 
633

 
$
54.45

 
48,592

 
$
54.24

   Forfeited
(9,151
)
 
$
48.76

 
—

 
$
—

 
(9,151
)
 
$
48.76

   Vested
—

 
$
—

 
40,933

 
$
42.55

 
(40,933
)
 
$
42.55

   Awards paid
(44,732
)
 
$
41.53

 
(44,732
)
 
$
41.53

 
—

 
$
—

AmeriGas Stock Units:
 
 
 
 
 
 
 
 
 
 
 
   Granted
18,338

 
$
47.33

 
12,738

 
$
48.06

 
5,600

 
$
45.66

   Vested
—

 
$
—

 
6,800

 
$
46.13

 
(6,800
)
 
$
46.13

   Awards paid
(6,005
)
 
$
43.64

 
(6,005
)
 
$
43.64

 
—

 
$
—

September 30, 2017
218,224

 
$
50.03

 
65,989

 
$
47.31

 
152,235

 
$
51.21



During Fiscal 2017, Fiscal 2016 and Fiscal 2015, the Partnership paid AmeriGas Performance Unit and AmeriGas Stock Unit awards in Common Units and cash as follows:
 
2017
 
2016
 
2015
AmeriGas Performance Unit awards:
 
 
 
 
 
Number of Common Units subject to original Awards granted
53,800

 
44,800

 
55,750

Fiscal year granted
2014

 
2013

 
2012

Payment of awards:
 
 
 
 
 
AmeriGas Partners Common Units issued, net of units withheld for taxes
29,489

 
23,017

 
—

Cash paid
$
2,928

 
$
1,718

 
$
—

AmeriGas Stock Unit awards:
 
 
 
 
 
Number of Common Units subject to original Awards granted
32,658

 
20,336

 
42,532

Payment of awards:
 
 
 
 
 
AmeriGas Partners Common Units issued, net of units withheld for taxes
3,932

 
9,272

 
21,509

Cash paid
$
95

 
$
370

 
$
789



As of September 30, 2017, there was $1,195 of unrecognized equity-based compensation expense related to non-vested UGI stock options that is expected to be recognized over a weighted-average period of 1.8 years. As of September 30, 2017, there was a total of approximately $1,718 of unrecognized compensation cost associated with 218,224 Common Units subject to award that is expected to be recognized over a weighted-average period of 1.7 years. The total fair values of Common Unit-based awards that vested during Fiscal 2017, Fiscal 2016 and Fiscal 2015 were $2,056, $1,968 and $2,625, respectively. As of September 30, 2017 and 2016, total liabilities of $2,501 and $3,509 associated with Common Unit-based awards are reflected in employee compensation and benefits accrued and other noncurrent liabilities in the Consolidated Balance Sheets. It is the Partnership’s practice to issue new AmeriGas Partners Common Units for the portion of any Common Unit-based awards paid in AmeriGas Partners Common Units.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Commitments
We lease various buildings and other facilities and vehicles, computer and office equipment under operating leases. Certain of the leases contain renewal and purchase options and also contain step-rent provisions. Our aggregate rental expense for such leases was $78,880 in Fiscal 2017, $73,043 in Fiscal 2016 and $67,304 in Fiscal 2015.
Minimum future payments under noncancelable operating leases are as follows:
Year Ending September 30,
 
2018
$
72,083

2019
63,762

2020
58,595

2021
51,024

2022
42,741

Thereafter
110,346

Total minimum operating lease payments
$
398,551



Certain of our operating lease arrangements, primarily vehicle leases with remaining lease terms of one to ten years, have residual value guarantees. At the end of the lease term, we guarantee that the fair value of the equipment will equal or exceed the guaranteed amount or we will pay the lessors the difference. Although such fair values at the end of the leases have historically exceeded the guaranteed amount, at September 30, 2017, the maximum potential amount of future payments under lease guarantees, assuming the leased equipment was deemed worthless at the end of the lease term, was approximately $47,000. The fair values of residual lease guarantees were not material at September 30, 2017.

Contingencies

Saranac Lake Environmental Matter. By letter dated March 6, 2008, the New York State Department of Environmental Conservation (“DEC”) notified AmeriGas OLP that the DEC 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 DEC disclosed contamination related to a former manufactured gas plant (“MGP”). At that time, AmeriGas OLP reviewed the study and researched the history of the site, including the extent of AmeriGas OLP’s ownership. In its written response to the DEC in early 2009, AmeriGas OLP disputed DEC’s contention it was a potentially responsible party (“PRP”) as it did not operate the MGP and appeared to only own a portion of the site. The DEC did not respond to the 2009 communication. In March 2017, the DEC communicated to AmeriGas OLP that the DEC had previously issued three Records of Decision (“RODs”) related to the site and requested additional information regarding AmeriGas OLP’s purported ownership.  The selected remedies identified in the RODs total approximately $27,700. To AmeriGas OLP’s knowledge, the DEC has not yet commenced implementation of the remediation plan but remediation is currently expected to commence in 2018.  AmeriGas OLP responded to the DEC’s March 2017 request for ownership information, renewing its challenge to designation as a PRP and identifying potential defenses. In October 2017, the DEC identified a third party PRP with respect to the site. Based on our evaluation of the available information, during Fiscal 2017, the Partnership accrued an environmental remediation liability of $7,545 related to the site, which amount is included in “Operating and administrative expenses” on the Consolidated Statements of Operations. Our share of the actual remediation costs could be significantly more or less than the accrued amount.

Purported Class Action Lawsuits. Between May and October of 2014, more than 35 purported class action lawsuits were filed in multiple jurisdictions against the Partnership/UGI and a competitor by certain of their direct and indirect customers.  The class action lawsuits allege, among other things, that the Partnership and its competitor colluded, beginning in 2008, to reduce the fill level of portable propane cylinders from 17 pounds to 15 pounds and combined to persuade their common customer, Walmart Stores, Inc., to accept that fill reduction, resulting in increased cylinder costs to retailers and end-user customers in violation of federal and certain state antitrust laws.  The claims seek treble damages, injunctive relief, attorneys’ fees and costs on behalf of the putative classes. 

On October 16, 2014, the United States Judicial Panel on Multidistrict Litigation transferred all of these purported class action cases to the Western Division of the United States District Court for the Western District of Missouri (“District Court”).  In July 2015, the District Court dismissed all claims brought by direct customers. In June 2017, the United States Court of Appeals for the Eighth Circuit (“Eighth Circuit”) ruled en banc to reverse the dismissal by the District Court, which had previously been affirmed by a panel of the Eighth Circuit.  In September 2017, we filed a Petition for a Writ of Certiorari to the U.S. Supreme Court appealing the decision of the Eighth Circuit.   

In July 2015, the District Court also dismissed all claims brought by the indirect customers other than those for injunctive relief.  The indirect customers filed an amended complaint with the District Court claiming injunctive relief and state law claims under Wisconsin, Maine and Vermont law.  In September 2016, the District Court dismissed the amended complaint in its entirety.  The indirect customers appealed this decision to the Eighth Circuit; such appeal was subject to a stay pending the en banc review of the direct purchasers’ claims.  In light of the Eighth Circuit decision with respect to the direct purchaser claims, the briefing schedule in respect of the indirect purchaser appeal will now resume.  On July 21, 2016, several new indirect customer plaintiffs filed an antitrust class action lawsuit against the Partnership in the Western District of Missouri.  The new indirect customer class action lawsuit was dismissed in September 2016 and certain indirect customer plaintiffs appealed the decision, consolidating their appeal with the indirect customer appeal still pending in the Eighth Circuit. Now that the Eighth Circuit ruled on the direct purchasers’ claims, the stay has been lifted for the indirect claims and the parties submitted briefs in October 2017 to the Eighth Circuit and are waiting the court’s ruling.

We are unable to reasonably estimate the impact, if any, arising from such litigation. We believe we have strong defenses to the claims and intend to vigorously defend against them.

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.
Related Party Transactions
Related Party Transactions
Related Party Transactions

Pursuant to the Partnership Agreement and a management services agreement, the General Partner is entitled to reimbursement for all direct and indirect expenses incurred or payments it makes on behalf of the Partnership. These costs, which totaled $561,574 in Fiscal 2017, $556,964 in Fiscal 2016, and $576,135 in Fiscal 2015, include employee compensation and benefit expenses of employees of the General Partner and general and administrative expenses.

UGI provides certain financial and administrative services to the General Partner. UGI bills the General Partner monthly for all direct and indirect corporate expenses incurred in connection with providing these services and the General Partner is reimbursed by the Partnership for these expenses. The allocation of indirect UGI corporate expenses to the Partnership utilizes a weighted, three-component formula based on the relative percentage of the Partnership’s revenues, operating expenses and net assets employed to the total of such items for all UGI operating subsidiaries for which general and administrative services are provided. The General Partner believes that this allocation method is reasonable and equitable to the Partnership. Such corporate expenses totaled $16,862 in Fiscal 2017, $18,680 in Fiscal 2016 and $22,624 in Fiscal 2015. In addition, UGI and certain of its subsidiaries provide office space, stop loss medical coverage and automobile liability insurance to the Partnership. The costs related to these items totaled $3,283 in Fiscal 2017, $2,323 in Fiscal 2016 and $2,985 in Fiscal 2015.

From time to time, AmeriGas OLP purchases propane on an as needed basis from UGI Energy Services, LLC (“Energy Services”). The price of the purchases is generally based on market price at the time of purchase. There were no purchases of propane by AmeriGas OLP from Energy Services during Fiscal 2017, Fiscal 2016 and Fiscal 2015.

In addition, AmeriGas OLP sells propane to affiliates of UGI. Sales of propane to affiliates of UGI totaled $543, $339 and $1,216 during Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.

On November 7, 2017, AmeriGas Partners entered into the Commitment Agreement with the General Partner and UGI pursuant to which UGI has committed to make up to $225,000 of capital contributions to the Partnership through July 1, 2019, for consideration comprising new Class B Common Units representing limited partner interests in the Partnership.  See Note 11 for additional information.
Other Current Liabilities
Other Current Liabilities
Other Current Liabilities
Other current liabilities comprise the following at September 30:
 
2017
 
2016
Litigation, property and casualty liabilities
$
65,071

 
$
75,415

Taxes other than income taxes
12,207

 
10,141

Deferred tank rent revenue
16,533

 
22,353

Other
19,770

 
21,887

Total other current liabilities
$
113,581

 
$
129,796

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
Derivative Instruments
The following table presents on a gross basis our derivative assets and liabilities including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy as described in Note 2, as of September 30, 2017 and 2016:
 
Asset (Liability)
 
Level 1
 
Level 2
 
Level 3
 
Total
September 30, 2017:
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
40,714

 
$
—

 
$
40,714

Liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(920
)
 
$
—

 
$
(920
)
September 30, 2016:
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
13,522

 
$
—

 
$
13,522

Liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(4,779
)
 
$
—

 
$
(4,779
)


The fair values of our non-exchange traded commodity derivative contracts included in Level 2 are based upon indicative price quotations available through brokers, industry price publications or recent market transactions and related market indicators. For commodity option contracts not traded on an exchange, we use a Black-Scholes option pricing model that considers time value and volatility of the underlying commodity.
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 amount and estimated fair value of our long-term debt (including current maturities but excluding unamortized debt issuance costs) at September 30, 2017 and September 30, 2016 were as follows:
 
2017
 
2016
Carrying amount
$
2,603,610

 
$
2,360,434

Estimated fair value
$
2,699,428

 
$
2,483,565


Financial instruments other than derivative instruments, such as short-term investments and trade accounts receivable could expose us to concentrations of credit risk. We limit credit risk from short-term investments by investing only in investment-grade commercial paper, money market mutual funds, securities guaranteed by the U.S. Government or its agencies and FDIC insured bank deposits. The credit risk arising from concentrations of trade accounts receivable is limited because we have a large customer base that extends across many different U.S. markets.
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities

The Partnership is exposed to certain market risks associated with its ongoing business operations. Management uses derivative financial and commodity instruments, among other things, to manage these risks. The primary risk managed by derivative instruments is commodity price 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 the Partnership can use, counterparty credit limits and contract authorization limits.
Commodity Price Risk
In order to manage market risk associated with the Partnership’s fixed-price programs, the Partnership uses over-the-counter derivative commodity instruments, principally price swap contracts. In addition, the Partnership uses over-the-counter price swap and option contracts to reduce propane price volatility associated with a portion of forecasted propane purchases. In addition, the Partnership from time to time enters into price swap and put option agreements to reduce the effects of short-term commodity price volatility. At September 30, 2017 and 2016, total volumes associated with propane commodity derivatives totaled 213.6 million gallons and 245.4 million gallons, respectively. At September 30, 2017, the maximum period over which we are economically hedging propane market price risk is 24 months.
Derivative Instruments Credit Risk
The Partnership is exposed to credit loss in the event of nonperformance by counterparties to derivative financial and commodity instruments. Our counterparties principally comprise major energy companies and major U.S. 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. Certain of these agreements call for the posting of collateral by the counterparty or by the Partnership in the forms of letters of credit, parental guarantees or cash. Although we have concentrations of credit risk associated with derivative instruments held by certain derivative instrument counterparties, the maximum amount of loss due to credit risk that, based upon the gross fair values of the derivative instruments, we would incur if these counterparties that make up the concentration failed to perform according to the terms of their contracts was not material at September 30, 2017. Certain of our derivative contracts have credit-risk-related contingent features that may require the posting of additional collateral in the event of a downgrade in the Partnership’s debt rating. At September 30, 2017, 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 our Consolidated Balance Sheets if the right of offset exists. Our derivative instruments comprise over-the-counter transactions. Over-the-counter contracts are bilateral contracts that are transacted directly with a third party. Certain over-the-counter contracts contain contractual rights of offset through master netting arrangements and contract default provisions. In addition, the contracts are subject to conditional rights of offset through counterparty nonperformance, insolvency, or other conditions.
In general, most of our over-the-counter transactions 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 our 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 our derivative assets and liabilities by type, as well as the effects of offsetting, as of September 30, 2017 and 2016:
 
2017
 
2016
Derivative assets:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
$
40,714

 
$
13,522

Total derivative assets — gross
40,714

 
13,522

Gross amounts offset in the balance sheet
(920
)
 
(4,362
)
Cash collateral received
(7,991
)
 
—

Total derivative assets — net
$
31,803

 
$
9,160

Derivative liabilities:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
$
(920
)
 
$
(4,779
)
Total derivative liabilities — gross
(920
)
 
(4,779
)
Gross amounts offset in the balance sheet
920

 
4,362

Total derivative liabilities — net (a)
$
—

 
$
(417
)

(a)
Derivative liabilities are recorded in “Other current liabilities” and “Other noncurrent liabilities” on the Consolidated Balance Sheets.

Effects of Derivative Instruments

The following table provides information on the effects of derivative instruments on the Consolidated Statements of Operations and changes in AOCI and noncontrolling interest for Fiscal 2017, Fiscal 2016 and Fiscal 2015:
 
Gain Reclassified from
AOCI and Noncontrolling
Interest into Income
 
Location of Gain
Reclassified from
AOCI and Noncontrolling
Interest into Income
 
2017
 
2016
 
2015
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
—

 
$
2,822

 
Cost of sales — propane
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss)
 
Location of Gain (Loss)
Recognized in Income
 
Recognized in Income
 
 
2017
 
2016
 
2015
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
65,644

 
$
2,567

 
$
(209,351
)
 
Cost of sales — propane


We are also a party to a number of contracts that have elements of a derivative instrument. These contracts include, among others, binding purchase orders, contracts that provide for the purchase and delivery of propane and service contracts that require the counterparty to provide commodity storage or transportation service to meet our normal sales commitments. Although certain of these contracts have the requisite elements of a derivative instrument, these contracts qualify for normal purchase and normal sales exception accounting under GAAP 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.
Other Operating Income, Net
Other Operating Income, Net
Other Operating Income, Net
Other operating income, net, comprises the following:
 
2017
 
2016
 
2015
Finance charges
11,805

 
15,201

 
12,665

(Losses) gains on sales of fixed assets (a)
$
(2,197
)
 
$
8,062

 
$
14,260

Other
2,265

 
4,989

 
4,430

Total other operating income, net
$
11,873

 
$
28,252

 
$
31,355


(a)
Fiscal 2017 amount includes a loss of $8,847 from correction of error (see Note 2).
Quarterly Data (Unaudited)
Quarterly Data (Unaudited)
Quarterly Data (Unaudited)
The following unaudited quarterly data includes all adjustments (consisting only of normal recurring adjustments with the exception of those indicated below) which we consider necessary for a fair presentation unless otherwise indicated. Our quarterly results fluctuate primarily because of the seasonal nature of our propane business and the effects of unrealized gains and losses on commodity derivative instruments used to economically hedge commodity price risk (see Note 16).
 
December 31,
 
March 31,
 
June 30,
 
September 30,
 
2016 (a)
 
2015
 
2017 (a)
 
2016
 
2017 (a) (b)
 
2016 (a)
 
2017
 
2016 (a) (c)
Revenues
$
677,166

 
$
644,098

 
$
863,660

 
$
827,487

 
$
467,496

 
$
446,684

 
$
445,173

 
$
393,548

Operating income (loss)
$
167,631

 
$
124,121

 
$
199,864

 
$
289,882

 
$
(1,137
)
 
$
46,204

 
$
21,500

 
$
(37,603
)
Loss on extinguishments of debt
$
(33,151
)
 
$
—

 
$
(22,144
)
 
$
—

 
$
(4,434
)
 
$
(37,086
)
 
$
—

 
$
(11,803
)
Net income (loss) including noncontrolling interest
$
93,615

 
$
82,186

 
$
137,083

 
$
248,786

 
$
(46,794
)
 
$
(32,627
)
 
$
(18,035
)
 
$
(87,152
)
Net income (loss) attributable to AmeriGas Partners, L.P.
$
91,954

 
$
80,973

 
$
135,088

 
$
245,908

 
$
(46,752
)
 
$
(33,069
)
 
$
(18,231
)
 
$
(86,828
)
Income (loss) per limited partner unit (d):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.87

 
$
0.77

 
$
1.14

 
$
1.74

 
$
(0.62
)
 
$
(0.46
)
 
$
(0.32
)
 
$
(1.04
)
Diluted
$
0.87

 
$
0.77

 
$
1.14

 
$
1.74

 
$
(0.62
)
 
$
(0.46
)
 
$
(0.32
)
 
$
(1.04
)
(a)
The quarter ended December 31, 2016 includes loss on extinguishments of debt which decreased net income including noncontrolling interest and net income attributable to AmeriGas Partners, L.P. by $33,151. The quarter ended March 31, 2017 includes loss on extinguishments of debt which decreased net income including noncontrolling interest and net income attributable to AmeriGas Partners, L.P. by $22,144. The quarter ended June 30, 2017 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $4,434. The quarter ended June 30, 2016 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $37,086. The quarter ended September 30, 2016 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $11,803 (see Note 6).
(b)
Includes an environmental accrual associated with the site of a former MGP obtained in a prior year acquisition which increased operating loss and net loss including noncontrolling interest by $7,545, and net loss attributable to AmeriGas Partners, L.P. by $7,469 (See Note 12).
(c)
Includes increase in litigation accrual which increased operating loss and net loss including noncontrolling interest by $14,950 and net loss attributable to AmeriGas Partners, L.P. by $14,799 (see Note 12).
(d)
Theoretical distributions of net income (loss) attributable to AmeriGas Partners, L.P. in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share (see Note 2) resulted in a different allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner and the limited partners in the computation of income per limited partner unit which had the effect of decreasing quarterly earnings per limited partner unit for the quarter ended March 31 as follows:
 
 
March 31,
Quarter ended:
 
2017
 
2016
Decrease in income per limited partner unit
 
$
(0.19
)
 
$
(0.79
)
Schedule I - Condensed Financial Information of Registrant (Parent Company)
Schedule I - Condensed Financial Information of Registrant (Parent Company)
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
BALANCE SHEETS
(Thousands of dollars)

 
September 30,
 
2017
 
2016
ASSETS
 
 
 
Current assets:
 
 
 
Cash
$
1,529

 
$
11,662

Total current assets
1,529

 
11,662

Investment in AmeriGas Propane, L.P.
3,335,902

 
3,317,856

Other assets
56

 
56

Total assets
$
3,337,487

 
$
3,329,574

LIABILITIES AND PARTNERS’ CAPITAL
 
 
 
Current liabilities:
 
 
 
Accounts payable and other liabilities
$
2,820

 
$
2,005

Accrued interest (including related party accrued interest)
42,921

 
39,198

Total current liabilities
45,741

 
41,203

Long-term debt (a)
2,543,847

 
2,304,150

Commitments and contingencies


 


Partners’ capital:
 
 
 
Common unitholders
733,104

 
967,073

General partner
14,795

 
17,148

Total partners’ capital
747,899

 
984,221

Total liabilities and partners’ capital
$
3,337,487

 
$
3,329,574

(a)
September 30, 2016 includes related-party long-term debt comprising $980,844 principal amount of 7.00% notes due May 2022, which were paid during Fiscal 2017.

Commitments and Contingencies
There are no scheduled principal repayments of long-term debt during the next five fiscal years.
AMERIGAS PARTNERS, L.P.
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
STATEMENTS OF OPERATIONS
(Thousands of dollars, except per unit amounts)

 
Year Ended
September 30,
 
2017
 
2016
 
2015
Operating expenses, net
$
(300
)
 
$
(255
)
 
$
(1,517
)
Loss on extinguishments of debt
(59,729
)
 
(48,889
)
 
—

Interest expense (including related party interest expense)
(151,294
)
 
(156,350
)
 
(155,510
)
Loss before income taxes
(211,323
)
 
(205,494
)
 
(157,027
)
Income tax benefit
—

 
—

 
(6
)
Loss before equity in income of AmeriGas Propane, L.P.
(211,323
)
 
(205,494
)
 
(157,021
)
Equity in income of AmeriGas Propane, L.P.
373,382

 
412,478

 
368,232

Net income attributable to AmeriGas Partners
162,059

 
206,984

 
211,211

Equity in other comprehensive loss of AmeriGas Propane, L.P.
—

 
—

 
(2,794
)
Comprehensive income attributable to AmeriGas Partners
$
162,059

 
$
206,984

 
$
208,417

General partner’s interest in net income attributable to AmeriGas Partners
$
45,146

 
$
40,227

 
$
32,469

Limited partners’ interest in net income attributable to AmeriGas Partners
$
116,913

 
$
166,757

 
$
178,742

Income per limited partner unit — basic and diluted
$
1.25

 
$
1.77

 
$
1.91

Weighted average limited partner units outstanding — basic (thousands)
92,996

 
92,949

 
92,910

Weighted average limited partner units outstanding — diluted (thousands)
93,050

 
93,023

 
92,977


AMERIGAS PARTNERS, L.P.
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
STATEMENTS OF CASH FLOWS
(Thousands of dollars)

 
Year Ended
September 30,
 
2017
 
2016
 
2015
NET CASH PROVIDED BY OPERATING ACTIVITIES (a)
$
368,634

 
$
371,536

 
$
368,987

 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 

 
 
Contributions to AmeriGas Propane, L.P.
(157,000
)
 
(3,900
)
 
—

Net cash used by investing activities
(157,000
)
 
(3,900
)
 
—

 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Distributions
(398,877
)
 
(387,659
)
 
(368,426
)
Issuance of long-term debt, net of issuance costs
1,207,727

 
1,331,293

 
—

Repayment of long-term debt, including redemption premiums
(1,032,097
)
 
(1,309,588
)
 
—

Proceeds associated with equity based compensation plans, net of tax withheld
1,465

 
1,127

 
3,501

Capital contribution from General Partner
15

 
11

 
34

Net cash used by financing activities
(221,767
)
 
(364,816
)
 
(364,891
)
(Decrease) increase in cash and cash equivalents
$
(10,133
)
 
$
2,820

 
$
4,096

CASH AND CASH EQUIVALENTS:
 
 
 
 
 
End of year
$
1,529

 
$
11,662

 
$
8,842

Beginning of year
11,662

 
8,842

 
4,746

(Decrease) increase
$
(10,133
)
 
$
2,820

 
$
4,096

(a)
Includes cash distributions received from AmeriGas Propane, L.P. of $512,326, $530,912 and $519,885 for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.
Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts
AMERIGAS PARTNERS, L.P. AND SUBSIDIARIES
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
(Thousands of dollars)
 
Balance at
beginning
of year
 
Charged
to costs and
expenses
 
Other
 
Balance at
end of
year
Year Ended September 30, 2017
 
 
 
 
 
 
 
Reserves deducted from assets in the consolidated balance sheet:
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
11,436

 
$
17,693

 
$
(17,309
)
(1)
$
11,820

 
 
 
 
 
 
 
 
Year Ended September 30, 2016
 
 
 
 
 
 
 
Reserves deducted from assets in the consolidated balance sheet:
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
12,257

 
$
11,215

 
$
(12,036
)
(1)
$
11,436

Year Ended September 30, 2015
 
 
 
 
 
 
 
 
Reserves deducted from assets in the consolidated balance sheet:
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
 
$
17,681

 
$
15,800

 
$
(21,224
)
(1)
$
12,257

(1)
Uncollectible accounts written off, net of recoveries.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation. Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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.
Certain prior-year amounts have been reclassified to conform to the current-year presentation.
Principles of Consolidation 
Principles of Consolidation. The consolidated financial statements include the accounts of AmeriGas Partners, its majority-owned subsidiary AmeriGas OLP, and its 100%-owned finance subsidiaries AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp., and AmeriGas Finance LLC. AmeriGas Partners and AmeriGas OLP are under the common control of the General Partner. The General Partner of AmeriGas OLP, which is also the General Partner of AmeriGas Partners, makes all decisions for AmeriGas OLP; limited partners of AmeriGas OLP do not have the ability to remove the General Partner or participate in the decision-making for AmeriGas OLP. The accounts of AmeriGas OLP are included based upon the determination that AmeriGas Partners has a controlling financial interest in and is the primary beneficiary of AmeriGas OLP.
Finance Corps 
Finance Corps. AmeriGas Finance Corp., AmeriGas Eagle Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC are 100%-owned finance subsidiaries of AmeriGas Partners. Their sole purpose is to serve as issuers or co-obligors for debt securities issued or guaranteed by AmeriGas Partners.
Fair Value Measurements 
Fair Value Measurements. The Partnership applies fair value measurements on a recurring and, as otherwise required under GAAP, also on a nonrecurring basis. Fair value in GAAP is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value measurements performed on a recurring basis principally relate to derivative instruments.
GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
We use the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:
•
Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date.
•
Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means.
•
Level 3 — Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability.
Fair value is based upon assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and risks inherent in valuation techniques and inputs to valuations. This includes not only the credit standing of counterparties and credit enhancements but also the impact of our own nonperformance risk on our liabilities. We evaluate the need for credit adjustments to our derivative instrument fair values. These credit adjustments were not material to the fair values of our derivative instruments.
Derivative Instruments 
Derivative Instruments. Derivative instruments are reported in the Consolidated Balance Sheets at their fair values, unless the derivative instruments qualify for the normal purchase and normal sale (“NPNS”) exception under GAAP. The accounting for changes in fair value depends upon the purpose of the derivative instrument and whether it is designated and qualifies for hedge accounting. Changes in the fair values of these derivative instruments are reflected in cost of sales on the Consolidated Statements of Operations. Cash flows from derivative instruments are included in cash flows from operating activities.
For a more detailed description of the derivative instruments we use, our accounting for derivatives, our objectives for using them and other information
Revenue Recognition 
Revenue Recognition. Revenues from the sale of propane are recognized principally upon delivery. Revenues from the sale of appliances and equipment are recognized at the later of sale or installation. Revenues from repair or maintenance services are recognized upon completion of services. Revenues from annually billed fees are generally recorded on a straight-line basis over one year. We present revenue-related taxes collected on behalf of customers and remitted to taxing authorities, principally sales and use taxes, on a net basis.
Accounts Receivable 
Accounts Receivable. Accounts receivable are reported on the Consolidated Balance Sheets at the gross outstanding amount adjusted for an allowance for doubtful accounts. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. Provisions for uncollectible accounts are established based upon our collection experience and the assessment of the collectability of specific amounts. Accounts receivable are written off in the period in which the receivable is deemed uncollectible.
Delivery Expenses 
Delivery Expenses. Expenses associated with the delivery of propane to customers (including vehicle expenses, expenses of delivery personnel, vehicle repair and maintenance and general liability expenses) are classified as “Operating and administrative expenses” on the Consolidated Statements of Operations. Depreciation expense associated with delivery vehicles is classified in “Depreciation” on the Consolidated Statements of Operations.
Income Taxes 
Income Taxes. AmeriGas Partners and AmeriGas OLP are not directly subject to federal income taxes. Instead, their taxable income or loss is allocated to their individual partners. AmeriGas OLP has corporate subsidiaries which are directly subject to federal and state income taxes. Accordingly, our consolidated financial statements reflect income taxes related to these corporate subsidiaries. Legislation in certain states allows for taxation of partnerships’ income and the accompanying financial statements reflect state income taxes resulting from such legislation. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders. This is a result of (1) differences between the tax basis and financial reporting basis of assets and liabilities and (2) the taxable income allocation requirements of the Fourth Amended and Restated Agreement of Limited Partnership of AmeriGas Partners, L.P., as amended (“Partnership Agreement”) and the Internal Revenue Code.
Cash and Cash Equivalents 
Cash and Cash Equivalents. For cash flow purposes, cash and cash equivalents include cash on hand, cash in banks and highly liquid investments with maturities of three months or less when purchased.
Inventories 
Inventories. Our inventories are stated at the lower of cost or net realizable value. We determine cost using an average cost method for propane, specific identification for appliances and the first-in, first-out (“FIFO”) method for all other inventories.
Property, Plant and Equipment and Related Depreciation 
Property, Plant and Equipment and Related Depreciation. We record property, plant and equipment at cost. The amounts we assign to property, plant and equipment of acquired businesses are based upon estimated fair value at date of acquisition.
We record depreciation expense on plant and equipment using the straight-line method over estimated service lives. At September 30, 2017, estimated useful lives by type were as follows:
Asset Type
 
Minimum Estimated Useful Life
(in years)
 
Maximum Estimated Useful Life
(in years)
Buildings and improvements
 
15
 
40
Storage, customer tanks and cylinders and related assets
 
6
 
30
Vehicles, equipment and office furniture and fixtures
 
3
 
10
Computer software
 
3
 
10
Segment Information 
Segment Information. We have determined that we have a single reportable operating segment that engages in the distribution of propane and related equipment and supplies. No single customer represents ten percent or more of consolidated revenues. In addition, substantially all of our revenues are derived from sources within the United States and substantially all of our long-lived assets are located in the United States.
Goodwill and Intangible Assets 
Goodwill and Intangible Assets. Estimated useful lives of definite-lived intangible assets, consisting of customer relationships and noncompete agreements, do not exceed 15 years. We review definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the associated carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires comparing the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. Intangible assets with indefinite lives are not amortized but are tested annually for impairment (and more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that they are impaired) and written down to fair value, if impaired.
Intangible assets with indefinite lives are not amortized but are tested annually for impairment (and more frequently if indicators of impairment are present) and written down to fair value, if impaired.  We test our indefinite-lived intangible assets comprising trademarks and tradenames by comparing their book values to their estimated fair values. The estimated fair values of the Partnership’s trademarks and tradenames are determined using the “relief from royalty” method. This method requires the Partnership to, among other things, forecast future revenues expected to be derived from the use of these trademarks and tradenames and to determine a fair royalty rate from their use. These future estimated royalties are then discounted to present value using a discount rate based upon a weighted average cost of capital adjusted for the risks inherent in the forecasted financial information and those specific to the asset itself.
We do not amortize goodwill, but test it at least annually for impairment at the reporting unit level. A reporting unit is the operating segment, or a business one level below the operating segment (a component) if discrete financial information is prepared and regularly reviewed by segment management. Components are aggregated as a single reporting unit if they have similar economic characteristics. A reporting unit with goodwill is required to perform an impairment test annually or whenever events or circumstances indicate that the value of goodwill may be impaired. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance simplifying the test for goodwill impairment. The adoption of the new guidance did not impact the consolidated financial statements (see Note 3).

We are required to recognize an impairment charge under GAAP if the carrying amount of a reporting unit exceeds its fair value. From time to time, we may assess qualitative factors to determine whether it is more likely than not that the fair value of such reporting unit is less than its carrying amount. Among the significant factors considered in performing the qualitative assessment is the market price of AmeriGas Partners Common Units. We may bypass the qualitative assessment and perform the quantitative assessment by comparing the fair value of the reporting unit with its carrying amount, including goodwill. We determine fair value generally based on a weighting of income and market approaches. For purposes of the income approach, fair value is determined based upon the present value of the estimated future cash flows, including an estimate of the terminal value based upon these cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows which may include estimates of long-term future growth rates based upon our most recent long-term outlook. Cash flow estimates used to establish fair values under our income approach involve management judgments based on a broad range of information and historical results. In addition, external economic and competitive conditions can influence future performance. For purposes of the market approach, we use valuation multiples for companies comparable to our reporting unit. The market approach requires judgment to determine the appropriate valuation multiple. If the carrying amount of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to such excess but not to exceed the total amount of the goodwill.

Impairment of Long-Lived Assets 
Impairment of Long-Lived Assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We evaluate recoverability based upon undiscounted future cash flows expected to be generated by such assets. If the undiscounted future cash flows indicate that the recorded amounts are not expected to be recoverable, such long-lived assets are reduced to their estimated fair values.
Deferred Debt Issuance Costs 
Deferred Debt Issuance Costs. We defer and amortize debt issuance costs and debt premiums and discounts over the expected lives of the respective debt issues considering maturity dates. Deferred debt issuance costs associated with long-term debt are reflected as a direct deduction from the carrying amount of such debt. Amortization of the issuance costs is reported as interest expense. Unamortized costs associated with redemptions of debt prior to their stated maturity are generally recognized and included in “Loss on extinguishments of debt” on the Consolidated Statements of Operations.
Customer Deposits 
Customer Deposits. We offer certain of our customers prepayment programs which require customers to pay a fixed periodic amount or to otherwise prepay a portion of their anticipated propane purchases. Customer prepayments, in excess of associated billings, are classified as “Customer deposits and advances” on the Consolidated Balance Sheets.
Equity-Based Compensation 
Equity-Based Compensation. The General Partner may grant Common Unit awards (as further described in Note 11) to employees and non-employee directors under its Common Unit plans, and employees of the General Partner may be granted stock options for UGI Common Stock. All of our equity-based compensation is measured at fair value on the grant date, date of modification or end of the period, as applicable, and recognized in earnings over the requisite service period. Depending upon the settlement terms of the awards, all or a portion of the fair value of equity-based awards may be presented as a liability or as equity on our Consolidated Balance Sheets. Equity-based compensation costs associated with the portion of Common Unit awards classified as equity are measured based upon their estimated fair value on the date of grant or modification. Equity-based compensation costs associated with the portion of Common Unit awards classified as liabilities are measured based upon their estimated fair value at the date of grant and remeasured as of the end of each period. For a further description of our equity-based compensation plans and related disclosures
Environmental Matters 
Environmental Matters. We are subject to environmental laws and regulations intended to mitigate or remove the effects of past operations and improve or maintain the quality of the environment. These laws and regulations require the removal or remedy of the effect on the environment of the disposal or release of certain specified hazardous substances at current or former operating sites.
Environmental reserves are accrued when assessments indicate that it is probable that a liability has been incurred and an amount can be reasonably estimated. Amounts recorded as environmental liabilities on the Consolidated Balance Sheets represent our best estimate of costs expected to be incurred or, if no best estimate can be made, the minimum liability associated with a range of expected environmental investigation and remediation costs. Our estimated liability for environmental contamination is reduced to reflect anticipated participation of other responsible parties but is not reduced for possible recovery from insurance carriers. In those instances for which the amount and timing of cash payments associated with environmental investigation and cleanup are reliably determinable, we discount such liabilities to reflect the time value of money. We intend to pursue recovery of incurred costs through all appropriate means.
Loss Contingencies Subject to Insurance 
Loss Contingencies Subject to Insurance. The Partnership is subject to risk of loss for general, automobile and product liability, and workers’ compensation claims for which it obtains insurance coverage under insurance policies that are subject to self-insured retentions or deductibles. In accordance with GAAP, the Partnership establishes reserves for pending legal actions, and for pending and incurred but not reported claims associated with general, automobile and workers’ compensation when it is probable that a liability exists and the amount or range of amounts can be reasonably estimated. When there is a range of possible loss with equal likelihood, liabilities recorded are based upon the low end of the range. The Partnership maintains insurance coverage such that its net exposure for claims covered by insurance would be limited to the self-insured retentions or deductibles, claims above which would be paid by the insurance carrier. For such claims, the Partnership records a receivable related to the amount of the liability expected to be paid by insurance.
Allocation of Net Income (Loss) 
Allocation of Net Income (Loss). Net income attributable to AmeriGas Partners, L.P. for partners’ capital and statement of operations presentation purposes is allocated to the General Partner and the limited partners in accordance with their respective ownership percentages after giving effect to amounts distributed to the General Partner in excess of its 1% general partner interest in AmeriGas Partners based on its incentive distribution rights (“IDRs”) under the Partnership Agreement (see Note 5).
Net Income (Loss) Per Unit 
Net Income (Loss) Per Unit. Income (loss) per limited partner unit is computed in accordance with GAAP regarding the application of the two-class method for determining income (loss) per unit for master limited partnerships (“MLPs”) when IDRs are present. The two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. Generally, in periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership).
Adoption of New Accounting Standards and Accounting Standards Not Yet Adopted 
Adoption of New Accounting Standards

Definition of a Business. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance which clarifies the definition of a business. The new guidance is intended to assist entities with evaluating whether a set of transferred assets and activities comprises a business. The guidance is required to be applied prospectively. The adoption of the new guidance did not impact our consolidated financial statements.

Cash Flow Classification. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is generally required to be applied retrospectively. The adoption of the new guidance did not impact the consolidated financial statements.

Goodwill Impairment. During the fourth quarter of Fiscal 2017, the Partnership adopted new accounting guidance regarding the test for goodwill impairment. Under the new accounting guidance, an entity will perform its goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value but not to exceed the total amount of the goodwill of the reporting unit. The guidance is required to be applied prospectively. The adoption of the new guidance did not impact the consolidated financial statements.

Consolidation. Effective October 1, 2016, the Partnership adopted Accounting Standards Update (“ASU”) No. 2015-02, “Amendments to Consolidation Analysis” and ASU No. 2016-17, “Interest Held through Related Parties That Are under Common Control.” These ASUs provide new accounting guidance regarding whether a reporting entity should consolidate certain types of legal entities including variable interest entities (“VIEs”). Among other things, the new guidance affects the consolidation analysis of reporting entities that are involved with VIEs and requires that, under ASU 2015-02, if a single decision maker and its related parties are under common control, the single decision maker consider indirect interests in the entity held through these related parties to be the equivalent of direct interests, in their entirety. ASU 2016-07 amended the guidance in ASU 2015-02 to provide that such indirect interests be considered the equivalent of direct interests, on a proportionate basis. The adoption of this new guidance did not impact the consolidated financial statements.

Accounting Standards Not Yet Adopted

Derivatives and Hedging. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2018 (Fiscal 2020). Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance and determining the period in which the new guidance will be adopted.

Leases. In February 2016, the FASB issued ASU No. 2016-02, "Leases." This ASU amends existing guidance to require entities that lease assets to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows from leases. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 (Fiscal 2020). Early adoption is permitted. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Partnership is in the process of assessing the impact on its financial statements from the adoption of the new guidance but anticipates an increase in the recognition of right-of-use assets and lease liabilities.

Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The guidance provided under ASU 2014-09, as amended, supersedes the revenue recognition requirements in ASC No. 605, “Revenue Recognition,” and most industry-specific guidance included in the ASC. ASU 2014-09 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 entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Partnership for interim and annual periods beginning after December 15, 2017 (Fiscal 2019) and allows for either full retrospective adoption or modified retrospective adoption.

The Partnership is in the process of analyzing the impact of the new guidance using an integrated approach which includes evaluating differences in the amount and timing of revenue recognition from applying the requirements of the new guidance, reviewing its accounting policies and practices, and assessing the need for changes to its processes, accounting systems and design of internal controls. The Partnership has completed the assessment of a significant number of its contracts with customers under the new guidance to determine the effect of the adoption of the new guidance. Although the Partnership has not completed its assessment of the impact of the new guidance, the Partnership does not expect its adoption will have a material impact on its consolidated financial statements.

The Partnership currently anticipates that it will adopt the new standard using the modified retrospective transition method effective October 1, 2018. The ultimate decision with respect to the transition method that it will use will depend upon the completion of the Partnership’s analysis including confirming its preliminary conclusion that the adoption of the new guidance will not have a material impact on its consolidated financial statements.
Summary of Significant Accounting Policies (Tables)
Estimated Useful Lives by Type 
We record depreciation expense on plant and equipment using the straight-line method over estimated service lives. At September 30, 2017, estimated useful lives by type were as follows:
Asset Type
 
Minimum Estimated Useful Life
(in years)
 
Maximum Estimated Useful Life
(in years)
Buildings and improvements
 
15
 
40
Storage, customer tanks and cylinders and related assets
 
6
 
30
Vehicles, equipment and office furniture and fixtures
 
3
 
10
Computer software
 
3
 
10
Property, plant and equipment comprise the following at September 30:
 
2017
 
2016
Land
$
135,965

 
$
136,728

Buildings and improvements
196,798

 
193,300

Transportation equipment
250,493

 
262,645

Storage facilities
268,415

 
262,430

Equipment, primarily cylinders and tanks
1,612,375

 
1,682,493

Work in process
19,517

 
24,740

Other
235,037

 
211,617

Gross property, plant and equipment
2,718,600

 
2,773,953

Less accumulated depreciation and amortization
(1,511,890
)
 
(1,499,396
)
Net property, plant and equipment
$
1,206,710

 
$
1,274,557

Income Per Limited Partner Unit 
The following table sets forth reconciliations of the numerators and denominators of the basic and diluted income per limited partner unit computations:
 
2017
 
2016
 
2015
Net income attributable to AmeriGas Partners, L.P.
$
162,059

 
$
206,984

 
$
211,211

Adjust for general partner share and theoretical distributions of net income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs
(46,054
)
 
(42,024
)
 
(33,845
)
Common Unitholders’ interest in net income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs
$
116,005

 
$
164,960

 
$
177,366

 
 
 
 
 
 
Weighted average Common Units outstanding — basic (thousands)
92,996

 
92,949

 
92,910

Potentially dilutive Common Units (thousands)
54

 
74

 
67

Weighted average Common Units outstanding — diluted (thousands)
93,050

 
93,023

 
92,977



Acquisitions (Tables)
Allocation of Purchase Price
The total purchase price of these acquisitions has been allocated to the assets acquired and liabilities assumed as follows:
 
2017
 
2016
 
2015
Net current assets (liabilities)
$
1,176

 
$
(162
)
 
$
1,609

Property, plant and equipment
6,712

 
9,322

 
5,880

Goodwill
23,029

 
24,213

 
10,940

Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively)
16,714

 
16,006

 
7,279

Other assets (liabilities)
41

 
—

 
(708
)
Total
$
47,672

 
$
49,379

 
$
25,000

Quarterly Distributions of Available Cash (Tables)
Quarterly Distributions of Available Cash Per Limited Partner Unit
Quarterly distributions of Available Cash per limited partner unit paid during Fiscal 2017, Fiscal 2016 and Fiscal 2015 were as follows:
 
2017
 
2016
 
2015
1st Quarter
$
0.94

 
$
0.92

 
$
0.88

2nd Quarter
$
0.94

 
$
0.92

 
$
0.88

3rd Quarter
$
0.95

 
$
0.94

 
$
0.92

4th Quarter
$
0.95

 
$
0.94

 
$
0.92

Debt (Tables)
Schedule of Long Term Debt 
Long-term debt comprises the following at September 30:
 
2017
 
2016
AmeriGas Partners Senior Notes:
 
 
 
   5.50% due May 2025 (a)
$
700,000

 
$
—

   5.875% due August 2026 (a)
675,000

 
675,000

   5.75% due May 2027 (a)
525,000

 
—

   5.625% due May 2024 (a)
675,000

 
675,000

   7.00%, due May 2022 (b)
—

 
980,844

Heritage Operating, L.P. (“HOLP”) Senior Secured Notes
11,348

 
15,241

Other
17,262

 
14,349

Total long-term debt
2,603,610

 
2,360,434

Less: unamortized debt issuance costs
(31,331
)
 
(26,625
)
Less: current maturities
(8,447
)
 
(8,475
)
Total long-term debt due after one year
$
2,563,832

 
$
2,325,334


(a)
AmeriGas Partners and AmeriGas Finance Corp. co-issued these senior notes.
(b)
AmeriGas Partners fully and unconditionally guaranteed these senior notes co-issued by AmeriGas Finance Corp. and AmeriGas Finance LLC.
Losses on Extinguishments of Debt 
In connection with the early repayments of the Partnership’s Senior Notes, during Fiscal 2017 and Fiscal 2016, the Partnership recognized losses which are reflected in “Loss on extinguishments of debt” on the Consolidated Statements of Operations and comprise the following:
 
2017
 
2016
Early redemption premiums
$
51,253

 
$
39,569

Write-off of unamortized debt issuance costs
8,476

 
9,320

Loss on extinguishments of debt
$
59,729

 
$
48,889

Inventories (Tables)
Summary of Inventories
Inventories comprise the following at September 30:
 
2017
 
2016
Propane gas
$
99,035

 
$
61,849

Materials, supplies and other
11,899

 
11,521

Appliances for sale
5,745

 
5,453

Total inventories
$
116,679

 
$
78,823

Property, Plant and Equipment (Tables)
Summary of Property, Plant and Equipment
We record depreciation expense on plant and equipment using the straight-line method over estimated service lives. At September 30, 2017, estimated useful lives by type were as follows:
Asset Type
 
Minimum Estimated Useful Life
(in years)
 
Maximum Estimated Useful Life
(in years)
Buildings and improvements
 
15
 
40
Storage, customer tanks and cylinders and related assets
 
6
 
30
Vehicles, equipment and office furniture and fixtures
 
3
 
10
Computer software
 
3
 
10
Property, plant and equipment comprise the following at September 30:
 
2017
 
2016
Land
$
135,965

 
$
136,728

Buildings and improvements
196,798

 
193,300

Transportation equipment
250,493

 
262,645

Storage facilities
268,415

 
262,430

Equipment, primarily cylinders and tanks
1,612,375

 
1,682,493

Work in process
19,517

 
24,740

Other
235,037

 
211,617

Gross property, plant and equipment
2,718,600

 
2,773,953

Less accumulated depreciation and amortization
(1,511,890
)
 
(1,499,396
)
Net property, plant and equipment
$
1,206,710

 
$
1,274,557

Goodwill and Intangible Assets (Tables)
Changes in the Carrying Amount of Goodwill 
Changes in the carrying amount of goodwill are as follows:
Balance September 30, 2015
$
1,956,688

Acquisitions
24,213

Purchase accounting adjustments
(1,920
)
Balance September 30, 2016
1,978,981

Acquisitions
23,029

Balance September 30, 2017
$
2,002,010

Components of Intangible Assets 
The Partnership’s intangible assets comprise the following at September 30:
 
2017
 
2016
Customer relationships and noncompete agreements
$
497,385

 
$
520,180

   Trademarks and tradenames (not subject to amortization)
82,944

 
82,944

   Gross carrying amount
580,329

 
603,124

Accumulated amortization
(190,289
)
 
(191,805
)
Intangible assets, net
$
390,040

 
$
411,319

Partners' Capital and Equity Compensation Plans (Tables)
Weighted-Average Assumptions Used to Determine Fair Value of AmeriGas Performance Unit Awards and Related Compensation Costs 
The following table summarizes the weighted-average assumptions used to determine the fair value of AmeriGas Performance Unit awards subject to market-based conditions and related compensation costs:
 
Grants Awarded in Fiscal Year
 
2017
 
2016
 
2015
Risk-free rate
1.5%
 
1.3%
 
0.9%
Expected life
3 years
 
3 years
 
3 years
Expected volatility
21.7%
 
20.6%
 
19.2%
Dividend Yield
7.8%
 
10.7%
 
6.8%
AmeriGas Common Unit-Based Award Activity 
The following table summarizes AmeriGas Common Unit-based award activity for Fiscal 2017:
 
Total
 
Vested
 
Non-Vested
 
Number of
Common
Units
Subject to
Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
 
Number of
Common
Units Subject
to Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
 
Number of
Common
Units
Subject to
Award
 
Weighted
Average
Grant Date
Fair Value
(per Unit)
September 30, 2016
210,549

 
$
47.24

 
55,622

 
$
45.67

 
154,927

 
$
47.80

AmeriGas Performance Units:
 
 
 
 
 
 
 
 
 
 
 
   Granted
49,225

 
$
54.24

 
633

 
$
54.45

 
48,592

 
$
54.24

   Forfeited
(9,151
)
 
$
48.76

 
—

 
$
—

 
(9,151
)
 
$
48.76

   Vested
—

 
$
—

 
40,933

 
$
42.55

 
(40,933
)
 
$
42.55

   Awards paid
(44,732
)
 
$
41.53

 
(44,732
)
 
$
41.53

 
—

 
$
—

AmeriGas Stock Units:
 
 
 
 
 
 
 
 
 
 
 
   Granted
18,338

 
$
47.33

 
12,738

 
$
48.06

 
5,600

 
$
45.66

   Vested
—

 
$
—

 
6,800

 
$
46.13

 
(6,800
)
 
$
46.13

   Awards paid
(6,005
)
 
$
43.64

 
(6,005
)
 
$
43.64

 
—

 
$
—

September 30, 2017
218,224

 
$
50.03

 
65,989

 
$
47.31

 
152,235

 
$
51.21

Partnership Paid AmeriGas Common Unit-Based Awards in Common Units and Cash 
During Fiscal 2017, Fiscal 2016 and Fiscal 2015, the Partnership paid AmeriGas Performance Unit and AmeriGas Stock Unit awards in Common Units and cash as follows:
 
2017
 
2016
 
2015
AmeriGas Performance Unit awards:
 
 
 
 
 
Number of Common Units subject to original Awards granted
53,800

 
44,800

 
55,750

Fiscal year granted
2014

 
2013

 
2012

Payment of awards:
 
 
 
 
 
AmeriGas Partners Common Units issued, net of units withheld for taxes
29,489

 
23,017

 
—

Cash paid
$
2,928

 
$
1,718

 
$
—

AmeriGas Stock Unit awards:
 
 
 
 
 
Number of Common Units subject to original Awards granted
32,658

 
20,336

 
42,532

Payment of awards:
 
 
 
 
 
AmeriGas Partners Common Units issued, net of units withheld for taxes
3,932

 
9,272

 
21,509

Cash paid
$
95

 
$
370

 
$
789



Commitments and Contingencies (Tables)
Minimum Future Payments Under Noncancellable Operating Leases
Minimum future payments under noncancelable operating leases are as follows:
Year Ending September 30,
 
2018
$
72,083

2019
63,762

2020
58,595

2021
51,024

2022
42,741

Thereafter
110,346

Total minimum operating lease payments
$
398,551

Other Current Liabilities (Tables)
Other Current Liabilities
Other current liabilities comprise the following at September 30:
 
2017
 
2016
Litigation, property and casualty liabilities
$
65,071

 
$
75,415

Taxes other than income taxes
12,207

 
10,141

Deferred tank rent revenue
16,533

 
22,353

Other
19,770

 
21,887

Total other current liabilities
$
113,581

 
$
129,796

Fair Value Measurements (Tables)
Financial Assets and Financial Liabilities at Fair Value on a Recurring Basis 
The following table presents on a gross basis our derivative assets and liabilities including both current and noncurrent portions, that are measured at fair value on a recurring basis within the fair value hierarchy as described in Note 2, as of September 30, 2017 and 2016:
 
Asset (Liability)
 
Level 1
 
Level 2
 
Level 3
 
Total
September 30, 2017:
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
40,714

 
$
—

 
$
40,714

Liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(920
)
 
$
—

 
$
(920
)
September 30, 2016:
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
13,522

 
$
—

 
$
13,522

Liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(4,779
)
 
$
—

 
$
(4,779
)


Carrying Amount and Estimated Fair Value of Long-term Debt 
The carrying amount and estimated fair value of our long-term debt (including current maturities but excluding unamortized debt issuance costs) at September 30, 2017 and September 30, 2016 were as follows:
 
2017
 
2016
Carrying amount
$
2,603,610

 
$
2,360,434

Estimated fair value
$
2,699,428

 
$
2,483,565

Derivative Instruments and Hedging Activities (Tables)
Components of Fair Value of Derivative Assets and Liabilities 
The following table presents our derivative assets and liabilities by type, as well as the effects of offsetting, as of September 30, 2017 and 2016:
 
2017
 
2016
Derivative assets:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
$
40,714

 
$
13,522

Total derivative assets — gross
40,714

 
13,522

Gross amounts offset in the balance sheet
(920
)
 
(4,362
)
Cash collateral received
(7,991
)
 
—

Total derivative assets — net
$
31,803

 
$
9,160

Derivative liabilities:
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
$
(920
)
 
$
(4,779
)
Total derivative liabilities — gross
(920
)
 
(4,779
)
Gross amounts offset in the balance sheet
920

 
4,362

Total derivative liabilities — net (a)
$
—

 
$
(417
)

(a)
Derivative liabilities are recorded in “Other current liabilities” and “Other noncurrent liabilities” on the Consolidated Balance Sheets.
Components of Derivative Instruments Gain Loss in Statement of Operations 
The following table provides information on the effects of derivative instruments on the Consolidated Statements of Operations and changes in AOCI and noncontrolling interest for Fiscal 2017, Fiscal 2016 and Fiscal 2015:
 
Gain Reclassified from
AOCI and Noncontrolling
Interest into Income
 
Location of Gain
Reclassified from
AOCI and Noncontrolling
Interest into Income
 
2017
 
2016
 
2015
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
—

 
$
2,822

 
Cost of sales — propane
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss)
 
Location of Gain (Loss)
Recognized in Income
 
Recognized in Income
 
 
2017
 
2016
 
2015
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
65,644

 
$
2,567

 
$
(209,351
)
 
Cost of sales — propane
Other Operating Income, Net (Tables)
Schedule of Other Operating Income, Net
Other operating income, net, comprises the following:
 
2017
 
2016
 
2015
Finance charges
11,805

 
15,201

 
12,665

(Losses) gains on sales of fixed assets (a)
$
(2,197
)
 
$
8,062

 
$
14,260

Other
2,265

 
4,989

 
4,430

Total other operating income, net
$
11,873

 
$
28,252

 
$
31,355


(a)
Fiscal 2017 amount includes a loss of $8,847 from correction of error (see Note 2).
Quarterly Data (Unaudited) (Tables)
Unaudited Quarterly Data Including Adjustments
The following unaudited quarterly data includes all adjustments (consisting only of normal recurring adjustments with the exception of those indicated below) which we consider necessary for a fair presentation unless otherwise indicated. Our quarterly results fluctuate primarily because of the seasonal nature of our propane business and the effects of unrealized gains and losses on commodity derivative instruments used to economically hedge commodity price risk (see Note 16).
 
December 31,
 
March 31,
 
June 30,
 
September 30,
 
2016 (a)
 
2015
 
2017 (a)
 
2016
 
2017 (a) (b)
 
2016 (a)
 
2017
 
2016 (a) (c)
Revenues
$
677,166

 
$
644,098

 
$
863,660

 
$
827,487

 
$
467,496

 
$
446,684

 
$
445,173

 
$
393,548

Operating income (loss)
$
167,631

 
$
124,121

 
$
199,864

 
$
289,882

 
$
(1,137
)
 
$
46,204

 
$
21,500

 
$
(37,603
)
Loss on extinguishments of debt
$
(33,151
)
 
$
—

 
$
(22,144
)
 
$
—

 
$
(4,434
)
 
$
(37,086
)
 
$
—

 
$
(11,803
)
Net income (loss) including noncontrolling interest
$
93,615

 
$
82,186

 
$
137,083

 
$
248,786

 
$
(46,794
)
 
$
(32,627
)
 
$
(18,035
)
 
$
(87,152
)
Net income (loss) attributable to AmeriGas Partners, L.P.
$
91,954

 
$
80,973

 
$
135,088

 
$
245,908

 
$
(46,752
)
 
$
(33,069
)
 
$
(18,231
)
 
$
(86,828
)
Income (loss) per limited partner unit (d):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.87

 
$
0.77

 
$
1.14

 
$
1.74

 
$
(0.62
)
 
$
(0.46
)
 
$
(0.32
)
 
$
(1.04
)
Diluted
$
0.87

 
$
0.77

 
$
1.14

 
$
1.74

 
$
(0.62
)
 
$
(0.46
)
 
$
(0.32
)
 
$
(1.04
)
(a)
The quarter ended December 31, 2016 includes loss on extinguishments of debt which decreased net income including noncontrolling interest and net income attributable to AmeriGas Partners, L.P. by $33,151. The quarter ended March 31, 2017 includes loss on extinguishments of debt which decreased net income including noncontrolling interest and net income attributable to AmeriGas Partners, L.P. by $22,144. The quarter ended June 30, 2017 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $4,434. The quarter ended June 30, 2016 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $37,086. The quarter ended September 30, 2016 includes loss on extinguishments of debt which increased net loss including noncontrolling interest and net loss attributable to AmeriGas Partners, L.P. by $11,803 (see Note 6).
(b)
Includes an environmental accrual associated with the site of a former MGP obtained in a prior year acquisition which increased operating loss and net loss including noncontrolling interest by $7,545, and net loss attributable to AmeriGas Partners, L.P. by $7,469 (See Note 12).
(c)
Includes increase in litigation accrual which increased operating loss and net loss including noncontrolling interest by $14,950 and net loss attributable to AmeriGas Partners, L.P. by $14,799 (see Note 12).
(d)
Theoretical distributions of net income (loss) attributable to AmeriGas Partners, L.P. in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share (see Note 2) resulted in a different allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner and the limited partners in the computation of income per limited partner unit which had the effect of decreasing quarterly earnings per limited partner unit for the quarter ended March 31 as follows:
 
 
March 31,
Quarter ended:
 
2017
 
2016
Decrease in income per limited partner unit
 
$
(0.19
)
 
$
(0.79
)
Nature of Operations (Details)
12 Months Ended
Sep. 30, 2017
employee
state
Sep. 30, 2016
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Number of states in which the company has market share (in states)
50 
 
 
General Partners Interest
 
 
 
General partners ownership interest (as a percent)
2.00% 
2.00% 
2.00% 
Number of employees of the AmeriGas Partners and the Operating Partnership
0 
 
 
AmeriGas Propane Inc Partnership Interest In AmeriGas Partners
 
 
 
General Partners Interest
 
 
 
General partners ownership interest (as a percent)
1.00% 
 
 
AmeriGas OLP
 
 
 
General Partners Interest
 
 
 
General partners ownership interest (as a percent)
1.01% 
 
 
Limited partner interest held by AmeriGas Partners in AmeriGas OLP (as a percent)
98.99% 
 
 
- Finance Corps. (Details) (AmeriGas Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC)
Sep. 30, 2017
AmeriGas Finance Corp., AP Eagle Finance Corp. and AmeriGas Finance LLC
 
Related Party Transaction [Line Items]
 
Ownership percentage of finance subsidiaries
100.00% 
Summary of Significant Accounting Policies - Estimated Useful Lives by Type (Details)
12 Months Ended
Sep. 30, 2017
Buildings and improvements |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
15 years 0 months 
Buildings and improvements |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
40 years 
Storage, customer tanks and cylinders and related assets |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
6 years 
Storage, customer tanks and cylinders and related assets |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
30 years 0 days 
Vehicles, equipment and office furniture and fixtures |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
3 years 
Vehicles, equipment and office furniture and fixtures |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
10 years 0 months 
Computer software |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
3 years 
Computer software |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Estimated useful life
10 years 
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) (USD $)
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
 
Accumulated impairment losses
$ 0 
$ 0 
 
Goodwill and intangible asset impairment
0 
0 
0 
Asset impairment charges
$ 0 
$ 0 
$ 0 
Customer Relationships and Noncompete Agreements |
Maximum
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Estimated useful life of intangible assets (in years)
15 years 
 
 
Summary of Significant Accounting Policies - Correction of Prior Period Errors (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Decrease in other operating income, net
$ 2,197 
$ (8,062)
$ (14,260)
Increase (decrease) in depreciation
147,741 
146,805 
152,204 
Correction of Error in Accounting for Gains on Sales of Certain Property, Plant and Equipment |
Restatement Adjustment
 
 
 
Decrease in other operating income, net
8,847 
 
 
Increase (decrease) in depreciation
(1,162)
 
 
Correction Of Error In Accounting For Depreciation Expense Relating To Certain Assets Acquired |
Restatement Adjustment
 
 
 
Increase (decrease) in depreciation
$ 7,350 
 
 
Summary of Significant Accounting Policies - Allocation of Net Income (Loss) (Details)
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
 
Dilutive effect of theoretical distributions of net income on earnings (in dollars per unit)
$ 0.01 
$ 0.02 
$ 0.02 
AmeriGas Propane Inc Partnership Interest in AmeriGas Partners [Member]
 
 
 
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
 
General Partners' ownership interest (as a percent)
1.00% 
 
 
Summary of Significant Accounting Policies - Income Per Limited Partner Unit (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Income per limited partner unit
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to AmeriGas Partners, L.P.
$ (18,231)
$ (46,752)
$ 135,088 
$ 91,954 
$ (86,828)
$ (33,069)
$ 245,908 
$ 80,973 
$ 162,059 
$ 206,984 
$ 211,211 
Adjust for general partner share and theoretical distributions of net income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs
 
 
 
 
 
 
 
 
(46,054)
(42,024)
(33,845)
Common Unitholders’ interest in net income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs
 
 
 
 
 
 
 
 
$ 116,005 
$ 164,960 
$ 177,366 
Weighted average Common Units outstanding — basic (in units)
 
 
 
 
 
 
 
 
92,996 
92,949 
92,910 
Potentially dilutive Common Units (in units)
 
 
 
 
 
 
 
 
54 
74 
67 
Weighted average Common Units outstanding — diluted (in units)
 
 
 
 
 
 
 
 
93,050 
93,023 
92,977 
Acquisitions (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Business Combinations [Abstract]
 
 
 
Total net cash consideration
$ 36,824 
$ 37,560 
$ 20,840 
Liabilities incurred
10,848 
11,819 
4,160 
Business Acquisition
 
 
 
Goodwill
2,002,010 
1,978,981 
1,956,688 
Other Acquisitions
 
 
 
Business Acquisition
 
 
 
Net current assets
1,176 
 
1,609 
Net current (liabilities)
 
(162)
 
Property, plant and equipment
6,712 
9,322 
5,880 
Goodwill
23,029 
24,213 
10,940 
Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively)
16,714 
16,006 
7,279 
Other assets
41 
0 
 
Other (liabilities)
 
 
(708)
Total
$ 47,672 
$ 49,379 
$ 25,000 
Other Acquisitions |
Customer Relationships
 
 
 
Business Acquisition
 
 
 
Estimated useful life of intangible assets (in years)
10 years 
10 years 
10 years 
Other Acquisitions |
Noncompete Agreements
 
 
 
Business Acquisition
 
 
 
Estimated useful life of intangible assets (in years)
5 years 
5 years 
5 years 
Quarterly Distributions of Available Cash - Narrative (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Distributions Made to Members or Limited Partners [Abstract]
 
 
 
Approximate time after end of each fiscal quarter quarterly distributions are made
45 days 
 
 
Distribution of available cash to limited partners (as a percent)
98.00% 
 
 
Distribution of available cash to general partners (as a percent)
2.00% 
 
 
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
 
Interest of general partner in distributions of available cash (as a percent)
2.00% 
2.00% 
2.00% 
Minimum quarterly distribution (in dollars per unit)
$ 0.55 
 
 
First target distribution (in dollars per unit)
$ 0.055 
 
 
Total of minimum target distribution and first target distribution (in dollars per unit)
$ 0.605 
$ 0.605 
$ 0.605 
Aggregate amount of distributions received by the General Partner
$ 52,742 
$ 47,432 
$ 39,346 
Incentive distributions received by the General Partner
$ 43,525 
$ 38,157 
$ 30,357 
AmeriGas OLP
 
 
 
Incentive Distribution Made to Managing Member or General Partner [Line Items]
 
 
 
Interest of general partner in distributions of available cash (as a percent)
1.01% 
 
 
Quarterly Distributions of Available Cash - Quarterly Distributions of Available Cash Per Limited Partner Unit (Details)
3 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Distributions Made to Members or Limited Partners [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly distributions of available cash per limited partner unit (in dollars per unit)
$ 0.95 
$ 0.95 
$ 0.94 
$ 0.94 
$ 0.94 
$ 0.94 
$ 0.92 
$ 0.92 
$ 0.92 
$ 0.92 
$ 0.88 
$ 0.88 
Debt - Schedule of Long Term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Debt Instrument [Line Items]
 
 
Other
$ 17,262 
$ 14,349 
Total long-term debt
2,603,610 
2,360,434 
Less: unamortized debt issuance costs
(31,331)
(26,625)
Less: current maturities
(8,447)
(8,475)
Total long-term debt due after one year
2,563,832 
2,325,334 
Heritage Operating, L.P. (“HOLP”) Senior Secured Notes
 
 
Debt Instrument [Line Items]
 
 
Heritage Operating, L.P. (“HOLP”) Senior Secured Notes
11,348 
15,241 
Senior Notes |
5.50% due May 2025
 
 
Debt Instrument [Line Items]
 
 
AmeriGas Partners Senior Notes
700,000 
0 
Stated interest rate
5.50% 
 
Senior Notes |
5.875% due August 2026
 
 
Debt Instrument [Line Items]
 
 
AmeriGas Partners Senior Notes
675,000 
675,000 
Stated interest rate
5.875% 
5.875% 
Senior Notes |
5.75% due May 2027
 
 
Debt Instrument [Line Items]
 
 
AmeriGas Partners Senior Notes
525,000 
0 
Stated interest rate
5.75% 
 
Senior Notes |
5.625% due May 2024
 
 
Debt Instrument [Line Items]
 
 
AmeriGas Partners Senior Notes
675,000 
675,000 
Stated interest rate
5.625% 
5.625% 
Senior Notes |
7.00%, due May 2022
 
 
Debt Instrument [Line Items]
 
 
AmeriGas Partners Senior Notes
$ 0 
$ 980,844 
Stated interest rate
 
7.00% 
Debt - Narrative (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Debt Disclosure [Abstract]
 
Principal repayments of long-term debt due in 2018
$ 8,593 
Principal repayments of long-term debt due in 2019
8,202 
Principal repayments of long-term debt due in 2020
7,453 
Principal repayments of long-term debt due in 2021
3,158 
Principal repayments of long-term debt due in 2022
$ 1,204 
Debt - AmeriGas Partners Senior Notes (Details) (Senior Notes, USD $)
12 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2017
5.50% due May 2025
Sep. 30, 2017
5.75% due May 2027
Sep. 30, 2016
7.00%, due May 2022
Sep. 30, 2017
5.625% due May 2024
Sep. 30, 2016
5.625% due May 2024
Sep. 30, 2017
5.875% due August 2026
Sep. 30, 2016
5.875% due August 2026
Sep. 30, 2016
6.50% Senior Notes
Sep. 30, 2016
6.75% Senior Notes
Sep. 30, 2016
6.25% Senior Notes
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Debt instrument principal amount
 
$ 700,000,000 
$ 525,000,000 
 
 
$ 675,000,000 
 
$ 675,000,000 
 
 
 
Stated interest rate
 
5.50% 
5.75% 
7.00% 
5.625% 
5.625% 
5.875% 
5.875% 
6.50% 
6.75% 
6.25% 
Aggregate principal balance repaid
 
 
 
980,844,000 
 
 
 
 
 
 
 
Aggregate principal balance redeemed
$ 1,270,001,000 
 
 
 
 
 
 
 
 
 
 
Debt - Losses on Extinguishments of Debt (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Extinguishment of Debt [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishments of debt
$ 0 
$ 4,434 
$ 22,144 
$ 33,151 
$ 11,803 
$ 37,086 
$ 0 
$ 0 
$ 59,729 
$ 48,889 
$ 0 
Senior Notes |
7.00%, due May 2022
 
 
 
 
 
 
 
 
 
 
 
Extinguishment of Debt [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Early redemption premiums
 
 
 
 
 
 
 
 
51,253 
39,569 
 
Write-off of unamortized debt issuance costs
 
 
 
 
 
 
 
 
8,476 
9,320 
 
Loss on extinguishments of debt
 
 
 
 
 
 
 
 
$ 59,729 
$ 48,889 
 
Debt - HOLP Senior Secured Notes (Details) (HOLP Senior Secured Notes, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
HOLP Senior Secured Notes
 
 
Debt Instrument [Line Items]
 
 
Total long-term debt
$ 11,348 
$ 15,241 
Unamortized premium
$ 439 
$ 696 
Effective interest rate
6.75% 
6.75% 
Debt - AmeriGas OLP Credit Agreement (Details) (USD $)
12 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Credit Agreement
Line of Credit
Federal Funds Rate
Sep. 30, 2017
Credit Agreement
Line of Credit
Base Rate
Minimum
Sep. 30, 2017
Credit Agreement
Line of Credit
Base Rate
Maximum
Sep. 30, 2017
Credit Agreement
Line of Credit
Eurodollar
Minimum
Sep. 30, 2017
Credit Agreement
Line of Credit
Eurodollar
Maximum
Sep. 30, 2017
Credit Agreement
AmeriGas OLP
Line of Credit
Sep. 30, 2016
Credit Agreement
AmeriGas OLP
Line of Credit
Sep. 30, 2017
Credit Agreement
AmeriGas OLP
Line of Credit
Minimum
Sep. 30, 2017
Credit Agreement
AmeriGas OLP
Line of Credit
Maximum
Sep. 30, 2017
Credit Agreement
AmeriGas OLP
Letter of Credit
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under revolving credit facility
 
 
 
 
 
 
 
$ 525,000,000 
 
 
 
$ 125,000,000 
Spread on variable interest rate
 
 
0.50% 
0.50% 
1.50% 
1.50% 
2.50% 
 
 
 
 
 
Facility fee
 
 
 
 
 
 
 
 
 
0.30% 
0.45% 
 
Short-term bank loans and notes payable
140,000,000 
153,200,000 
 
 
 
 
 
140,000,000 
153,200,000 
 
 
 
Interest rate at period end
 
 
 
 
 
 
 
3.74% 
2.79% 
 
 
 
Letters of credit issued and outstanding
 
 
 
 
 
 
 
$ 67,211,000 
$ 67,161,000 
 
 
 
Debt - Restrictive Covenants (Details) (USD $)
12 Months Ended
Sep. 30, 2017
Debt Instrument [Line Items]
 
Amount of net assets
$ 3,000,000,000 
Senior Notes
 
Debt Instrument [Line Items]
 
Fixed charge coverage ratio
1.75 
Cash distributions in a total amount
$ 300,000,000 
Employee Retirement Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Retirement Benefits [Abstract]
 
 
 
Employee contribution on retirement plans, dollar-for-dollar percentage match
100.00% 
 
 
Percentage of eligible compensation
5.00% 
 
 
Cost of benefits under savings plan
$ 10,775 
$ 10,335 
$ 11,435 
Inventories (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Minimum
Sep. 30, 2017
Maximum
Inventory Disclosure [Abstract]
 
 
 
 
Propane gas
$ 99,035 
$ 61,849 
 
 
Materials, supplies and other
11,899 
11,521 
 
 
Appliances for sale
5,745 
5,453 
 
 
Total inventories
$ 116,679 
$ 78,823 
 
 
Inventory [Line Items]
 
 
 
 
Inventory contract period (in years)
 
 
1 year 
3 years 
Property, Plant and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
$ 2,718,600 
$ 2,773,953 
Less accumulated depreciation and amortization
(1,511,890)
(1,499,396)
Net property, plant and equipment
1,206,710 
1,274,557 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
135,965 
136,728 
Buildings and improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
196,798 
193,300 
Transportation equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
250,493 
262,645 
Storage facilities
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
268,415 
262,430 
Equipment, primarily cylinders and tanks
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
1,612,375 
1,682,493 
Work in process
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
19,517 
24,740 
Other
 
 
Property, Plant and Equipment [Line Items]
 
 
Gross property, plant and equipment
$ 235,037 
$ 211,617 
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Goodwill [Roll Forward]
 
 
Beginning balance
$ 1,978,981 
$ 1,956,688 
Acquisitions
23,029 
24,213 
Purchase accounting adjustment
 
(1,920)
Ending balance
$ 2,002,010 
$ 1,978,981 
Goodwill and Intangible Assets - Components of Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Customer relationships and noncompete agreements
$ 497,385 
$ 520,180 
Trademarks and tradenames (not subject to amortization)
82,944 
82,944 
Gross carrying amount
580,329 
603,124 
Accumulated amortization
(190,289)
(191,805)
Intangible assets, net
$ 390,040 
$ 411,319 
Goodwill and Intangible Assets - Narrative (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Amortization of intangible assets
$ 37,994 
$ 38,405 
$ 37,905 
Fiscal 2018
38,249 
 
 
Fiscal 2019
37,024 
 
 
Fiscal 2020
35,803 
 
 
Fiscal 2021
33,968 
 
 
Fiscal 2022
$ 32,361 
 
 
Partners' Capital and Equity Compensation Plans - Partners' Capital (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended 20 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Nov. 7, 2017
Subsequent Event
Class B Units
Nov. 7, 2017
Subsequent Event
Minimum
Class B Units
Jul. 1, 2019
Scenario, Forecast
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
 
 
Capital contribution commitment
$ 1,602 
$ 39 
 
 
$ 225,000 
Number of volume days of weighted average price of Partnership's common units
 
 
20 days 
 
 
Basis points on annualized yield (as a percent)
 
 
1.30% 
 
 
Period from initial issuance, holders may elect to convert units
 
 
5 years 
 
 
Conversion ratio
 
 
1 
 
 
Period from initial issuance, holders may elect to convert subject to certain conditions
 
 
6 years 
 
 
Trading price (as a percent)
 
 
 
110.00% 
 
Partners' Capital and Equity Compensation Plans - Narrative (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Equity based compensation expenses
$ 3,920 
$ 4,025 
$ 5,635 
Fair value of common unit based awards that vested during period
2,056 
1,968 
2,625 
Total liabilities associated with common unit based awards reflected in the Consolidated Balance Sheet
2,501 
3,509 
 
2010 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Common units available for future award grants (in units)
2,800,000 
 
 
Expiration period (in years)
10 years 
 
 
Common units granted by General Partner in period (in units)
67,563 
73,080 
80,336 
Weighted-average grant date fair value per Common Unit subject to award during period (in dollars per unit)
$ 52.37 
$ 37.93 
$ 61.00 
Common Units available for future award grants (in units)
2,287,879 
 
 
AmeriGas Performance Units
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Term of the AmeriGas performance unit awards
3 years 
 
 
Expected volatility measurement period (in years)
3 years 
 
 
Common units granted by General Partner in period (in units)
49,225 
 
 
Weighted-average grant date fair value per Common Unit subject to award during period (in dollars per unit)
$ 54.24 
 
 
AmeriGas Performance Units |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
0.00% 
 
 
AmeriGas Performance Units |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
200.00% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 25th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
25.00% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 40th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
70.00% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 50th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
100.00% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 60th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
125.00% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 75th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
162.50% 
 
 
AmeriGas Performance Units |
Grants Issued on or After January 1, 2013 |
Total Unitholder Return vs Alerian MLP Group at 90th Percentile
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
200.00% 
 
 
AmeriGas Performance Units |
Grants Issued in January 1, 2015 |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
0.00% 
 
 
Modification range
70.00% 
 
 
AmeriGas Performance Units |
Grants Issued in January 1, 2015 |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
200.00% 
 
 
Modification range
130.00% 
 
 
AmeriGas Performance Units |
Certain Grants Issued on or After January 2014 |
Total Unitholder Return Highest of Propane MLP Group
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
150.00% 
 
 
AmeriGas Performance Units |
Grants Issued In January 2016 |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
0.00% 
 
 
AmeriGas Performance Units |
Grants Issued In January 2016 |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Percentage of target award to be granted
200.00% 
 
 
UGI Stock Option
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Unrecognized equity-based compensation expense related to non-vested UGI stock options
1,195 
 
 
Weighted average period of recognition
1 year 9 months 18 days 
 
 
Common Unit Awards
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award
 
 
 
Unrecognized equity-based compensation expense related to non-vested UGI stock options
$ 1,718 
 
 
Weighted average period of recognition
1 year 8 months 12 days 
 
 
Common units subject to award (in units)
218,224 
 
 
Partners' Capital and Equity Compensation Plans - Weighted-Average Assumptions Used to Determine Fair Value of AmeriGas Performance Unit Awards and Related Compensation Costs (Details)
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Fair value of AmeriGas Performance Unit awards and related compensation costs
 
 
 
Risk-free rate
1.50% 
1.30% 
0.90% 
Expected life
3 years 
3 years 
3 years 
Expected volatility
21.70% 
20.60% 
19.20% 
Dividend Yield
7.80% 
10.70% 
6.80% 
Partners' Capital and Equity Compensation Plans - Amerigas Common Unit-Based Award Activity (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
AmeriGas Performance Units
Sep. 30, 2017
AmeriGas Stock Units
Sep. 30, 2017
Vested
Sep. 30, 2016
Vested
Sep. 30, 2017
Vested
AmeriGas Performance Units
Sep. 30, 2017
Vested
AmeriGas Stock Units
Sep. 30, 2017
Non-Vested
Sep. 30, 2016
Non-Vested
Sep. 30, 2017
Non-Vested
AmeriGas Performance Units
Sep. 30, 2017
Non-Vested
AmeriGas Stock Units
Number of Common Units Subject to Award
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance (in units)
218,224 
210,549 
 
 
65,989 
55,622 
 
 
152,235 
154,927 
 
 
Granted (in units)
 
 
49,225 
18,338 
 
 
633 
12,738 
 
 
48,592 
5,600 
Forfeited (in units)
 
 
(9,151)
 
 
 
0 
 
 
 
(9,151)
 
Vested (in units)
 
 
0 
0 
 
 
40,933 
6,800 
 
 
40,933 
6,800 
Awards paid (in units)
 
 
(44,732)
(6,005)
 
 
(44,732)
(6,005)
 
 
0 
0 
Ending balance (in units)
218,224 
210,549 
 
 
65,989 
55,622 
 
 
152,235 
154,927 
 
 
Weighted Average Grant Date Fair Value (per Unit)
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance (in dollars per unit)
$ 50.03 
$ 47.24 
 
 
$ 47.31 
$ 45.67 
 
 
$ 51.21 
$ 47.80 
 
 
Granted (in dollars per unit)
 
 
$ 54.24 
$ 47.33 
 
 
$ 54.45 
$ 48.06 
 
 
$ 54.24 
$ 45.66 
Forfeited (in dollars per unit)
 
 
$ 48.76 
 
 
 
$ 0.00 
 
 
 
$ 48.76 
 
Vested (in dollars per unit)
 
 
$ 0.00 
$ 0.00 
 
 
$ 42.55 
$ 46.13 
 
 
$ 42.55 
$ 46.13 
Awards paid (in dollars per unit)
 
 
$ 41.53 
$ 43.64 
 
 
$ 41.53 
$ 43.64 
 
 
$ 0.00 
$ 0.00 
Ending balance (in dollars per unit)
$ 50.03 
$ 47.24 
 
 
$ 47.31 
$ 45.67 
 
 
$ 51.21 
$ 47.80 
 
 
Commitments and Contingencies - Commitments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Aggregate rental expense for leases
$ 78,880 
$ 73,043 
$ 67,304 
Operating Leased Assets [Line Items]
 
 
 
Residual value guarantee of operating lease arrangement
$ 47,000 
 
 
Minimum
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Remaining lease terms
1 year 
 
 
Maximum
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Remaining lease terms
10 years 
 
 
Commitments and Contingencies - Minimum Future Payments Under Noncancellable Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Year Ending September 30,
 
2018
$ 72,083 
2019
63,762 
2020
58,595 
2021
51,024 
2022
42,741 
Thereafter
110,346 
Total minimum operating lease payments
$ 398,551 
Commitments and Contingencies - Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended 1 Months Ended
Oct. 31, 2014
lawsuit
Sep. 30, 2017
FTC Cylinder Investigation
lb
Mar. 31, 2017
Saranac Lake, New York
DEC
AmeriGas OLP
record_of_decision
Sep. 30, 2017
Saranac Lake, New York
DEC
AmeriGas OLP
Loss Contingencies [Line Items]
 
 
 
 
Number of RODs
 
 
3 
 
Estimated cost of selected remediation plan
 
 
$ 27,700 
 
Environmental remediation liability
 
 
 
$ 7,545 
Number of class action lawsuits (more than)
35 
 
 
 
Amount of propane in cylinders before reduction (in pounds)
 
17 
 
 
Amount of propane in cylinders after reduction (in pounds)
 
15 
 
 
Related Party Transactions (Details) (USD $)
12 Months Ended 20 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Jul. 1, 2019
Scenario, Forecast
Sep. 30, 2017
General Partner
Reimbursed Expenses or Payments
Sep. 30, 2016
General Partner
Reimbursed Expenses or Payments
Sep. 30, 2015
General Partner
Reimbursed Expenses or Payments
Sep. 30, 2017
General Partner
General and Administrative Services
UGI Corp
Sep. 30, 2016
General Partner
General and Administrative Services
UGI Corp
Sep. 30, 2015
General Partner
General and Administrative Services
UGI Corp
Sep. 30, 2017
General Partner
UGI Corp Office Insurance Reimbursement
UGI Corp
Sep. 30, 2016
General Partner
UGI Corp Office Insurance Reimbursement
UGI Corp
Sep. 30, 2015
General Partner
UGI Corp Office Insurance Reimbursement
UGI Corp
Jun. 30, 2017
Affiliated Entity
Propane Purchases
Energy Services
Sep. 30, 2016
Affiliated Entity
Propane Purchases
Energy Services
Sep. 30, 2015
Affiliated Entity
Propane Purchases
Energy Services
Sep. 30, 2017
Affiliated Entity
Sales to UGI Affiliates
Sep. 30, 2016
Affiliated Entity
Sales to UGI Affiliates
Sep. 30, 2015
Affiliated Entity
Sales to UGI Affiliates
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related party costs and expenses
 
 
 
$ 561,574,000 
$ 556,964,000 
$ 576,135,000 
$ 16,862,000 
$ 18,680,000 
$ 22,624,000 
$ 3,283,000 
$ 2,323,000 
$ 2,985,000 
$ 0 
$ 0 
$ 0 
 
 
 
Revenue from related parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
543,000 
339,000 
1,216,000 
Capital contribution commitment
$ 1,602,000 
$ 39,000 
$ 225,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Payables and Accruals [Abstract]
 
 
Litigation, property and casualty liabilities
$ 65,071 
$ 75,415 
Taxes other than income taxes
12,207 
10,141 
Deferred tank rent revenue
16,533 
22,353 
Other
19,770 
21,887 
Total other current liabilities
$ 113,581 
$ 129,796 
Fair Value Measurements - Financial Assets and Financial Liabilities at Fair Value (Details) (Fair Value, Measurements, Recurring, Commodity contracts, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Assets:
 
 
Commodity contracts
$ 40,714 
$ 13,522 
Liabilities:
 
 
Commodity contracts
(920)
(4,779)
Level 1
 
 
Assets:
 
 
Commodity contracts
0 
0 
Liabilities:
 
 
Commodity contracts
0 
0 
Level 2
 
 
Assets:
 
 
Commodity contracts
40,714 
13,522 
Liabilities:
 
 
Commodity contracts
(920)
(4,779)
Level 3
 
 
Assets:
 
 
Commodity contracts
0 
0 
Liabilities:
 
 
Commodity contracts
$ 0 
$ 0 
Fair Value Measurements - Other Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Carrying amount
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Long-term debt
$ 2,603,610 
$ 2,360,434 
Estimated fair value
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Long-term debt
$ 2,699,428 
$ 2,483,565 
Derivative Instruments and Hedging Activities - Commodity Price Risk (Details) (USD $)
12 Months Ended
Sep. 30, 2017
gal
Agreement
Sep. 30, 2016
gal
Agreement
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Underlying derivative (in gallons)
213,600,000 
245,400,000 
Maximum period of economically hedging propane market price risk
24 months 
 
Net losses associated with commodity price risk hedges expected to be reclassified into earnings during the next twelve months
 
$ 0 
Number of settled or unsettled interest rate protection agreements outstanding (in agreements)
 
0 
Derivative Instruments and Hedging Activities - Components of Fair Value of Derivative Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Derivative assets
 
 
Derivative assets:
 
 
Total derivative assets — gross
$ 40,714 
$ 13,522 
Gross amounts offset in the balance sheet
(920)
(4,362)
Cash collateral received
(7,991)
0 
Total derivative assets — net
31,803 
9,160 
Derivative assets |
Derivatives not designated as hedging instruments |
Commodity contracts
 
 
Derivative assets:
 
 
Total derivative assets — gross
40,714 
13,522 
Derivative liabilities
 
 
Derivative liabilities:
 
 
Total derivative liabilities — gross
(920)
(4,779)
Gross amounts offset in the balance sheet
920 
4,362 
Total derivative liabilities
0 
(417)
Derivative liabilities |
Derivatives not designated as hedging instruments |
Commodity contracts
 
 
Derivative liabilities:
 
 
Total derivative liabilities — gross
$ (920)
$ (4,779)
Derivative Instruments and Hedging Activities - Components of Derivative Instruments Gain Loss In Statement Of Operations (Details) (Commodity contracts, Cost of sales — propane, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Derivatives Designated as Hedging Instruments |
Cash Flow Hedges
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
Gain Reclassified from AOCI and Noncontrolling Interest into Income
$ 0 
$ 0 
$ 2,822 
Derivatives Not Designated as Hedging Instruments
 
 
 
Derivative Instruments, Gain (Loss)
 
 
 
Gain (Loss) Recognized in Income
$ 65,644 
$ 2,567 
$ (209,351)
Other Operating Income, Net - Component (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Other Income and Expenses [Abstract]
 
 
 
Finance charges
$ 11,805 
$ 15,201 
$ 12,665 
(Losses) gains on sales of fixed assets
(2,197)
8,062 
14,260 
Other
2,265 
4,989 
4,430 
Total other operating income, net
$ 11,873 
$ 28,252 
$ 31,355 
Other Operating Income, Net - Footnote (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Loss on sales of fixed assets
$ 2,197 
$ (8,062)
$ (14,260)
Restatement Adjustment |
Correction of Error in Accounting for Gains on Sales of Certain Property, Plant and Equipment
 
 
 
Loss on sales of fixed assets
$ 8,847 
 
 
Quarterly Data (Unaudited) - Unaudited Quarterly Data Including Adjustments (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenues
$ 445,173 
$ 467,496 
$ 863,660 
$ 677,166 
$ 393,548 
$ 446,684 
$ 827,487 
$ 644,098 
$ 2,453,495 
$ 2,311,817 
$ 2,885,322 
Operating income (loss)
21,500 
(1,137)
199,864 
167,631 
(37,603)
46,204 
289,882 
124,121 
387,858 
422,604 
380,709 
Loss on extinguishments of debt
0 
(4,434)
(22,144)
(33,151)
(11,803)
(37,086)
0 
0 
(59,729)
(48,889)
0 
Net income (loss) including noncontrolling interest
(18,035)
(46,794)
137,083 
93,615 
(87,152)
(32,627)
248,786 
82,186 
165,869 
211,193 
214,969 
Net income (loss) attributable to AmeriGas Partners, L.P.
$ (18,231)
$ (46,752)
$ 135,088 
$ 91,954 
$ (86,828)
$ (33,069)
$ 245,908 
$ 80,973 
$ 162,059 
$ 206,984 
$ 211,211 
Income (loss) per limited partner unit:
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per unit)
$ (0.32)
$ (0.62)
$ 1.14 
$ 0.87 
$ (1.04)
$ (0.46)
$ 1.74 
$ 0.77 
$ 1.25 
$ 1.77 
$ 1.91 
Diluted (in dollars per unit)
$ (0.32)
$ (0.62)
$ 1.14 
$ 0.87 
$ (1.04)
$ (0.46)
$ 1.74 
$ 0.77 
$ 1.25 
$ 1.77 
$ 1.91 
Quarterly Data (Unaudited) - Unaudited Quarterly Data Including Adjustments (Footnotes) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Effect of Fourth Quarter Events [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishments of debt
$ 0 
$ 4,434 
$ 22,144 
$ 33,151 
$ 11,803 
$ 37,086 
$ 0 
$ 0 
$ 59,729 
$ 48,889 
$ 0 
Decrease in income per limited partner unit (in dollars per unit)
 
 
$ (0.19)
 
 
 
$ (0.79)
 
 
 
 
Net Income (Loss) Including Noncontrolling Interest
 
 
 
 
 
 
 
 
 
 
 
Effect of Fourth Quarter Events [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishments of debt
 
4,434 
22,144 
33,151 
11,803 
37,086 
 
 
 
 
 
Environmental accrual
 
7,545 
 
 
 
 
 
 
 
 
 
Increase in litigation accrual
14,950 
 
 
 
 
 
 
 
 
 
 
Operating Loss
 
 
 
 
 
 
 
 
 
 
 
Effect of Fourth Quarter Events [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Environmental accrual
 
7,469 
 
 
 
 
 
 
 
 
 
Increase in litigation accrual
14,950 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to AmeriGas Partners, L.P.
 
 
 
 
 
 
 
 
 
 
 
Effect of Fourth Quarter Events [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishments of debt
 
4,434 
22,144 
33,151 
11,803 
37,086 
 
 
 
 
 
Environmental accrual
 
7,545 
 
 
 
 
 
 
 
 
 
Increase in litigation accrual
$ 14,799 
 
 
 
 
 
 
 
 
 
 
Schedule I - Condensed Financial Information of Registrant (Parent Company) - Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Current assets:
 
 
Total current assets
$ 413,774 
$ 344,448 
Other assets
45,407 
47,299 
Total assets
4,059,261 
4,057,770 
Current liabilities:
 
 
Accounts payable and other liabilities
113,581 
129,796 
Total current liabilities
581,532 
588,455 
Long-term debt
2,563,832 
2,325,334 
Commitments and contingencies
   
   
Partners’ capital:
 
 
Common unitholders
733,104 
967,073 
General partner
14,795 
17,148 
Total AmeriGas Partners, L.P. partners’ capital
747,899 
984,221 
Total liabilities and partners’ capital
4,059,261 
4,057,770 
Senior Notes |
7.00%, due May 2022
 
 
Partners’ capital:
 
 
Stated interest rate
 
7.00% 
Parent Company
 
 
Current assets:
 
 
Cash
1,529 
11,662 
Total current assets
1,529 
11,662 
Investment in AmeriGas Propane, L.P.
3,335,902 
3,317,856 
Other assets
56 
56 
Total assets
3,337,487 
3,329,574 
Current liabilities:
 
 
Accounts payable and other liabilities
2,820 
2,005 
Accrued interest (including related party accrued interest)
42,921 
39,198 
Total current liabilities
45,741 
41,203 
Long-term debt
2,543,847 
2,304,150 
Commitments and contingencies
   
   
Partners’ capital:
 
 
Common unitholders
733,104 
967,073 
General partner
14,795 
17,148 
Total AmeriGas Partners, L.P. partners’ capital
747,899 
984,221 
Total liabilities and partners’ capital
3,337,487 
3,329,574 
Parent Company |
Senior Notes |
7.00%, due May 2022
 
 
Partners’ capital:
 
 
AmeriGas Partners senior notes
 
$ 980,844 
Stated interest rate
 
7.00% 
Schedule I - Condensed Financial Information of Registrant (Parent Company) - Statements of Operations (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Condensed Income Statements
 
 
 
 
 
 
 
 
 
 
 
Operating expenses, net
$ 21,500 
$ (1,137)
$ 199,864 
$ 167,631 
$ (37,603)
$ 46,204 
$ 289,882 
$ 124,121 
$ 387,858 
$ 422,604 
$ 380,709 
Loss on extinguishments of debt
0 
(4,434)
(22,144)
(33,151)
(11,803)
(37,086)
0 
0 
(59,729)
(48,889)
0 
Interest expense (including related party interest expense)
 
 
 
 
 
 
 
 
(160,226)
(164,095)
(162,842)
Income before income taxes
 
 
 
 
 
 
 
 
167,903 
209,620 
217,867 
Income tax benefit
 
 
 
 
 
 
 
 
2,034 
(1,573)
2,898 
Net income including noncontrolling interest
(18,035)
(46,794)
137,083 
93,615 
(87,152)
(32,627)
248,786 
82,186 
165,869 
211,193 
214,969 
Equity in income of AmeriGas Propane, L.P.
 
 
 
 
 
 
 
 
(3,810)
(4,209)
(3,758)
Net income attributable to AmeriGas Partners, L.P.
(18,231)
(46,752)
135,088 
91,954 
(86,828)
(33,069)
245,908 
80,973 
162,059 
206,984 
211,211 
Comprehensive income attributable to AmeriGas Partners, L.P.
 
 
 
 
 
 
 
 
162,059 
206,984 
208,417 
General partner’s interest in net income attributable to AmeriGas Partners
 
 
 
 
 
 
 
 
45,146 
40,227 
32,469 
Limited partners’ interest in net income attributable to AmeriGas Partners
 
 
 
 
 
 
 
 
116,913 
166,757 
178,742 
Weighted average limited partner units outstanding — basic (in units)
 
 
 
 
 
 
 
 
92,996 
92,949 
92,910 
Weighted average limited partner units outstanding — diluted (in units)
 
 
 
 
 
 
 
 
93,050 
93,023 
92,977 
Parent Company
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements
 
 
 
 
 
 
 
 
 
 
 
Operating expenses, net
 
 
 
 
 
 
 
 
(300)
(255)
(1,517)
Loss on extinguishments of debt
 
 
 
 
 
 
 
 
(59,729)
(48,889)
0 
Interest expense (including related party interest expense)
 
 
 
 
 
 
 
 
(151,294)
(156,350)
(155,510)
Income before income taxes
 
 
 
 
 
 
 
 
(211,323)
(205,494)
(157,027)
Income tax benefit
 
 
 
 
 
 
 
 
0 
0 
(6)
Net income including noncontrolling interest
 
 
 
 
 
 
 
 
(211,323)
(205,494)
(157,021)
Equity in income of AmeriGas Propane, L.P.
 
 
 
 
 
 
 
 
373,382 
412,478 
368,232 
Net income attributable to AmeriGas Partners, L.P.
 
 
 
 
 
 
 
 
162,059 
206,984 
211,211 
Equity in other comprehensive loss of AmeriGas Propane, L.P.
 
 
 
 
 
 
 
 
0 
0 
(2,794)
Comprehensive income attributable to AmeriGas Partners, L.P.
 
 
 
 
 
 
 
 
162,059 
206,984 
208,417 
General partner’s interest in net income attributable to AmeriGas Partners
 
 
 
 
 
 
 
 
45,146 
40,227 
32,469 
Limited partners’ interest in net income attributable to AmeriGas Partners
 
 
 
 
 
 
 
 
$ 116,913 
$ 166,757 
$ 178,742 
Income per limited partner unit — basic and diluted (in dollars per unit)
 
 
 
 
 
 
 
 
$ 1.25 
$ 1.77 
$ 1.91 
Weighted average limited partner units outstanding — basic (in units)
 
 
 
 
 
 
 
 
92,996 
92,949 
92,910 
Weighted average limited partner units outstanding — diluted (in units)
 
 
 
 
 
 
 
 
93,050 
93,023 
92,977 
Schedule I - Condensed Financial Information of Registrant (Parent Company) - Statements of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Condensed Cash Flow Statements
 
 
 
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 356,782 
$ 422,943 
$ 523,858 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Net cash used by investing activities
(115,053)
(124,617)
(99,033)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Distributions
(398,877)
(387,659)
(368,426)
Issuance of long-term debt, net of issuance costs
1,207,727 
1,331,293 
0 
Repayment of long-term debt, including redemption premiums
(1,043,744)
(1,321,750)
(11,808)
Capital contributions from General Partner
15 
11 
34 
Net cash used by financing activities
(250,240)
(297,256)
(423,548)
Cash and cash equivalents (decrease) increase
(8,511)
1,070 
1,277 
CASH AND CASH EQUIVALENTS
 
 
 
End of year
7,316 
15,827 
14,757 
Beginning of year
15,827 
14,757 
13,480 
Cash and cash equivalents (decrease) increase
(8,511)
1,070 
1,277 
Parent Company
 
 
 
Condensed Cash Flow Statements
 
 
 
NET CASH PROVIDED BY OPERATING ACTIVITIES
368,634 
371,536 
368,987 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
Contributions to AmeriGas Propane, L.P.
(157,000)
(3,900)
0 
Net cash used by investing activities
(157,000)
(3,900)
0 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
Distributions
(398,877)
(387,659)
(368,426)
Issuance of long-term debt, net of issuance costs
1,207,727 
1,331,293 
0 
Repayment of long-term debt, including redemption premiums
(1,032,097)
(1,309,588)
0 
Proceeds associated with equity based compensation plans, net of tax withheld
1,465 
1,127 
3,501 
Capital contributions from General Partner
15 
11 
34 
Net cash used by financing activities
(221,767)
(364,816)
(364,891)
Cash and cash equivalents (decrease) increase
(10,133)
2,820 
4,096 
CASH AND CASH EQUIVALENTS
 
 
 
End of year
1,529 
11,662 
8,842 
Beginning of year
11,662 
8,842 
4,746 
Cash and cash equivalents (decrease) increase
(10,133)
2,820 
4,096 
Distributions received from AmeriGas Propane, L.P
$ 512,326 
$ 530,912 
$ 519,885 
Schedule II - Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts, USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Allowance for doubtful accounts
 
 
 
Valuation And Qualifying Accounts
 
 
 
Balance at beginning of year
$ 11,436 
$ 12,257 
$ 17,681 
Charged to costs and expenses
17,693 
11,215 
15,800 
Other
(17,309)
(12,036)
(21,224)
Balance at end of year
$ 11,820 
$ 11,436 
$ 12,257