UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 |
For the fiscal year ended December 31, 2021
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the transition period from
to
Commission file
number: 001-11071
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A. |
Full title of the plan and the address of the plan, if different
from that of the issuer named below: |
UGI UTILITIES, INC. SAVINGS PLAN
ONE UGI DRIVE
DENVER, PA 17517
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B. |
Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office: |
UGI CORPORATION
460 NORTH GULPH ROAD
KING OF PRUSSIA, PENNSYLVANIA 19406
UGI UTILITIES, INC.
SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL
SCHEDULE
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Page(s) |
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Report of Independent Registered Public Accounting Firm |
1 |
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Financial Statements: |
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Statements of Net Assets Available for Benefits at
December 31, 2021 and 2020
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2 |
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Statements of Changes in Net Assets Available for Benefits for the
years ended December 31, 2021 and 2020
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3 |
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Notes to Financial Statements |
4 - 10 |
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Schedule H, Line Item 4(i) — Schedule of Assets (Held at End
of Year) |
11 |
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Signatures |
12 |
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Exhibit Index |
13 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Plan Administrator and Plan Participants of
UGI Utilities, Inc. Savings Plan
Opinion on the Financial Statements
We have audited the accompanying statement of net assets available
for benefits of the UGI Utilities, Inc. Savings Plan (the Plan) as
of December 31, 2021 and 2020, and the related statement of changes
in net assets available for benefits for years then ended, and the
related notes and schedule (collectively referred to as the
financial statements). In our opinion, the financial statements
present fairly, in all material respects, the net assets available
for benefits of the Plan as of December 31, 2021 and 2020, and the
changes in net assets available for benefits for the years then
ended, in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on the
Plan's financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Plan in accordance with the U.S.
federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error
or fraud.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis
for our opinion.
Supplemental Information
The supplemental Schedule H, Line 4(i) – Schedule of Assets (Held
at End of Year) as of December 31, 2021 has been subjected to audit
procedures performed in conjunction with the audit of the Plan's
financial statements. The supplemental information is the
responsibility of the Plan's management. Our audit procedures
included determining whether the supplemental information
reconciles to the financial statements or the underlying accounting
and other records, as applicable, and performing procedures to test
the completeness and accuracy of the information presented in the
supplemental information. In forming our opinion on the
supplemental information, we evaluated whether the supplemental
information, including its forms and content, is presented in
conformity with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. In our opinion, the supplemental information
is fairly stated, in all material respects, in relation to the
financial statements as a whole.
/s/ Baker Tilly US, LLP
We have served as the Plan’s auditor since 2019.
Philadelphia, Pennsylvania
June 9, 2022
UGI UTILITIES, INC.
SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
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December 31, |
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2021 |
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2020 |
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ASSETS: |
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Investments (Note 3) |
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$ |
510,646,135 |
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$ |
420,243,434 |
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Employers' contributions receivable |
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256,010 |
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213,662 |
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Notes receivable from participants |
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4,711,763 |
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4,518,963 |
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Total assets |
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515,613,908 |
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424,976,059 |
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LIABILITIES: |
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Accrued administrative expenses |
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33,260 |
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29,483 |
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Excess contributions payable |
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4,456 |
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— |
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Total liabilities |
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37,716 |
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29,483 |
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Net assets available for benefits |
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$ |
515,576,192 |
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$ |
424,946,576 |
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See accompanying notes to financial statements.
UGI UTILITIES, INC.
SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS
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Year Ended December 31, |
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2021 |
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2020 |
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Additions: |
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Participants’ contributions |
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$ |
18,412,629 |
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$ |
17,147,935 |
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Employers’ contributions |
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9,765,416 |
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8,986,757 |
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Participants’ rollover contributions |
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2,048,396 |
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2,115,500 |
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Investment income: |
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Dividends and interest |
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6,999,099 |
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4,392,667 |
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Net appreciation in fair value of investments |
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62,258,092 |
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59,971,118 |
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Net transfers of participants’ balances (Note 2) |
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23,525,125 |
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1,505,043 |
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Interest on notes receivable from participants |
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252,352 |
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264,628 |
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Total additions |
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123,261,109 |
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94,383,648 |
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Deductions: |
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Distributions to participants |
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(32,453,718) |
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(25,839,892) |
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Administrative fees |
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(177,775) |
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(172,850) |
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Total deductions |
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(32,631,493) |
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(26,012,742) |
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Net increase |
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90,629,616 |
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68,370,906 |
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Net assets available for benefits—beginning of year |
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424,946,576 |
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356,575,670 |
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Net assets available for benefits—end of year |
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$ |
515,576,192 |
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$ |
424,946,576 |
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See accompanying notes to financial statements.
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1.
Description of the Plan
The following description of the UGI Utilities, Inc. Savings Plan
(the “Plan”) is provided for general information purposes only.
Unless otherwise noted, such description provides general
information on the provisions of the Plan on December 31, 2021
and 2020 and for the years then ended covered by the financial
statements. More complete information is included in the Plan
document.
General.
The Plan is a defined contribution plan covering employees of UGI
Utilities, Inc. and its subsidiaries (collectively, “UGI
Utilities”), its holding company parent UGI Corporation (“UGI”),
and certain affiliated companies (collectively, the “Employers”).
Employees of the Employers are eligible upon hire to participate in
the Plan. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”). The
Plan is administered by the UGI Corporation Retirement Plan
Committee (“Plan Administrator”) which is comprised of certain
members of Employers' management.
Contributions.
Generally a participant may elect to contribute to the Plan in an
amount ranging from 1% to 50%, in whole percentages, of eligible
compensation on a before-tax basis, on an after-tax basis to a Roth
401(k), or a combination of both. After-tax basis contributions,
including Roth 401(k) contributions, are not to exceed 30% of the
participant's total deferral provided that the combination of
before-tax and after-tax contributions does not exceed 50% of
eligible compensation. Calendar year contribution amounts are
subject to limits prescribed by the Internal Revenue Code (“IRC”)
and the Plan, respectively. For both the 2021 and 2020 Plan Years,
the IRC before-tax and Roth (401k) contribution limit was $19,500.
Participants may also contribute amounts representing distributions
from other qualified defined benefit or contribution plans. The
Plan includes an auto-enrollment provision whereby all newly
eligible employees are automatically enrolled in the Plan, unless
they affirmatively elect not to participate, with a default
deferral rate set at 4% of eligible compensation in Plan Years 2021
and 2020.
The Plan allows for “catch-up contributions,” a provision which
allows employees that have attained age 50 before the end of the
Plan Year and are contributing at the IRC or Plan limit to make
before-tax and Roth 401(k) contributions over and above the IRC and
Plan limits. The maximum catch-up contribution for both the 2021
and 2020 Plan Years was $6,500. Catch-up contributions are not
eligible for the Employers' matching contribution.
For each pay period during a plan year, the Employers may, at their
discretion, make a contribution to the Plan equal to a percentage
of participant before-tax and after-tax contributions. Generally,
for pension eligible employees hired prior to January 1, 2009,
the Employers' matching contribution is equal to 50% of the first
3% of eligible compensation and 25% of the next 3% of eligible
compensation that such participant has elected to make on his or
her behalf in salary deferrals to the Plan or has elected to
contribute to the plan as after-tax contributions. Generally,
eligible employees who are not pension eligible, hired on or after
January 1, 2009, receive an Employers' matching contribution of
100% of up to 6% of eligible compensation.
All contributions are invested in accordance with participant
investment elections in effect on the dates of the
contributions.
Participant Accounts.
Each participant's account is credited with the participant's
contributions and the Employers' contributions as well as
allocations of Plan earnings. Participants are charged with an
allocation of administrative expenses, as defined. The benefit to
which a participant is entitled is the benefit that can be provided
from the participant's vested account.
A participant may elect to have his or her funds invested in one or
more investment options. The Plan currently offers investments in
selected mutual funds, UGI Common Stock, common collective trust
funds, a collective investment trust fund and Brokerage Link, a
self-directed brokerage account. Generally, participants may
transfer amounts between funds at any time with no limit. Fidelity
Management Trust Company is the Plan’s Trustee for all investment
assets of the Plan and qualifies as a party in interest. The
Statements of Changes in Net Assets Available for Benefits reflects
certain administrative fees paid by Plan Participants to Fidelity
Institutional Retirement Services Co. ("FIRSCO") from Plan assets
(see “Administrative Expenses” below). FIRSCO invests funds
received from contributions, investment sales, interest and
dividend income and makes distribution payments to participants.
Investments in UGI Common Stock are generally limited to 25% of a
participant's account balance.
Vesting.
A participant will, at all times, be fully vested in their
cumulative contributions, including Employer matching
contributions, plus actual earnings as defined by the Plan
document. Certain Plan participants covered by collective
bargaining agreements have a different vesting schedule for
Employers' matching contributions.
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Notes Receivable from Participants.
Generally, at the time a loan is to be made, the amount of all
loans to be outstanding may not exceed the lesser of (i) 50%
of a participant’s vested account balance or (ii) $50,000 less
the highest balance of any loan during the prior twelve-month
period. The minimum loan amount is $1,000. Each loan bears interest
at a rate determined in accordance with generally prevailing market
conditions for similar types of loans plus 1%. At December 31,
2021, interest rates on loans outstanding ranged from 4.25% to
6.50%. The amount of the loan withdrawn from participant accounts
is allocated in proportion to the value of the participant’s salary
deferral and rollover account balances in each investment fund.
Repayments, including interest, are made in equal installments
through payroll deductions and are allocated to participant
accounts in accordance with current investment elections. No loan
may have a final maturity in excess of five years except that, if
the loan is used to purchase a principal residence for the
participant, the loan may have a final maturity longer than five
years. Participants are not permitted to have more than two loans
outstanding at any time.
Payment of Benefits.
The Plan benefit of a participant who terminates employment as a
result of retirement, death or total disability, as defined by the
Plan document, shall be equal to the proceeds of liquidation of
100% of the balance of his or her account. Participants may elect
to receive their interest in UGI Common Stock in the form of shares
of UGI Corporation Common Stock. The Plan benefit of a participant
who terminates employment for reasons other than retirement, death,
or total disability, shall be equal to the proceeds of liquidation
of the vested portion of his or her account.
Where the amount to be distributed exceeds $1,000, no distribution
shall be made to any Plan participant prior to his or her
retirement age or age 72 for Plan Years 2021 and 2020, unless the
participant elects to receive such distribution. Where the amount
to be distributed does not exceed $1,000, a Plan participant’s
benefit will be distributed as soon as practicable after the
participant becomes entitled to receive a distribution from the
Plan, but no later than April 1 of the Plan Year. A participant who
continues to work past age 72 for Plan Years 2021 and 2020 will
receive a mandatory required distribution upon termination of
employment.
Additionally, hardship withdrawals and certain in-service
withdrawals are permitted subject to Plan provisions.
Forfeited Accounts.
A participant who terminated employment prior to January 1, 2019,
and before he or she was fully vested, forfeited nonvested amounts
attributable to the Employers’ contributions. These forfeited
amounts remain in the Plan until a participant withdraws his or her
full account balance from the Plan or until five years after
termination at which time the forfeited amounts are available to
reduce future Employers' contributions or pay expenses incurred in
the administration of the Plan. For the 2021 and 2020 Plan Years,
forfeitures used to reduce the Employers’ contributions were
$235,597 and $50,550, respectively. During the 2021 and 2020 Plan
Years, $157,460 and $108,812, respectively, were forfeited from
participants’ accounts. As of December 31, 2021 and 2020,
there were $70,743 and $143,351, respectively, of forfeitures
remaining in the Plan.
Administrative Expenses.
Administrative expenses of the Plan are chargeable to the Plan
unless paid by the Employers. Other than the Plan fees described
below, the Employers currently pay such expenses, which are
excluded from these financial statements. During both Plan Years
2021 and 2020, each active Plan account was assessed a quarterly
recordkeeping fee of $10.75. This fee is automatically deducted in
the month following the end of the quarter and remitted to FIRSCO.
Loan administration and withdrawal fees are paid by Plan
participants. Investment related expenses are included in net
appreciation of the fair value of investments.
Voting Rights of UGI Common Stock Participants.
A participant has the right to instruct the trustee of the Plan how
to vote, at each meeting of shareholders, all shares of UGI
Corporation Common Stock (including fractional shares) represented
by the value of the participant’s interest in UGI Common Stock. A
participant also has the right to direct the trustee of the Plan
whether or not to tender shares in response to a tender
offer.
Plan Amendments.
UGI Utilities may amend the Plan at any time for any reason by
written action of the UGI Board of Directors. However, amendments
required to comply with the IRC to maintain compliance with current
laws or regulations or to correct errors or omissions in the Plan
document may be made by the UGI Corporation Retirement Plan
Committee without Board approval.
Plan Termination.
Although it has not expressed any intent to do so, UGI Utilities
has the right to terminate the Plan in whole or in part at any time
for any reason. In the event of a complete or partial termination
of the Plan, the affected participants will become fully vested in
their account balances.
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Impact of the CARES Act.
On March 27, 2020, the Coronavirus Aid, Relief and Economic
Security Act ("CARES Act") was signed into law in the U.S. to
provide certain relief to plan sponsors and plan participants as a
result of the COVID-19 pandemic. The Plan has voluntarily adopted
the following provisions of the CARES Act effective for the 2020
Plan Year:
–Qualified
plan participants were permitted to take a coronavirus-related
hardship distribution of up to $100,000 from the Plan without a 10
percent early withdrawal penalty. Eligible distributions were
permitted to be taken through December 30, 2020. Distributions may
be repaid within three years or a participant may elect these
distributions to be included in taxable income on a pro rata basis
over three years.
–Participants
with loans outstanding were permitted to defer payment on the loans
that were due during Plan Year 2020 to after January 1,
2021.
–Participants
were permitted to borrow up to $100,000 during Plan Year 2020 (an
increase from $50,000 previously permitted).
–A
temporary waiver of required minimum distributions permitted
participants that turned 72 in Plan Year 2020 to suspend their
required minimum distributions for Plan Year 2020.
2.
Accounting Policies
Use of Estimates and Basis of Accounting.
The accompanying financial statements are prepared in accordance
with the accounting principles generally accepted in the United
States of America (“GAAP”). GAAP requires the Plan Administrator to
make estimates and assumptions that affect the reported amounts of
net assets available for benefits and changes therein. Actual
results could differ from those estimates.
Investment Valuation and Income Recognition.
Investments are reported at fair value. Fair value is the price
that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at
the measurement date. The Plan Administrator determines the Plan's
valuation policies utilizing information provided by the investment
advisers and custodians. Refer to Note 3 for the fair value
measurement disclosures associated with the Plan’s
investments.
Purchases and sales of securities are recorded on a trade-date
basis. Interest earned on investments is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date. Net
appreciation includes the Plan's gains and losses on investments
purchased and sold as well as held during the year.
Distributions are made to Plan participants based upon the fair
value of each participant's investment account (except for
distributions from UGI Common Stock, to the extent not all shares
are sold on the same date) as of the dates of the distribution.
Distributions to participants are recorded when paid.
Transfers of Participants’ Balances.
Transfers of participant balances represent amounts transferred to
or from the AmeriGas Propane, Inc. Savings Plan, which is an
affiliated plan, and prior to April 12, 2021, amounts transferred
to or from the UGI HVAC Enterprises, Inc. Savings Plan, which was
an affiliated plan prior to its merger into the Plan. In September
2020, UGI Enterprises, Inc., (“Enterprises”), a wholly owned
subsidiary of UGI, entered into an agreement to sell UGI HVAC
Enterprises, Inc. a wholly owned subsidiary of Enterprises.
Effective April 12, 2021, the UGI HVAC Enterprises, Inc. Savings
Plan was merged into the Plan. As a result, all participant
balances, including notes receivable from participants, totaling
$19,202,788, were transferred into the Plan and invested in
accordance with transfer provisions provided by the
Plan.
Employers' contributions receivable.
Employer match true-up contributions are recorded as a receivable
for the period to which they are related. Participant accounts are
credited with the true-up contribution in the following
year.
Notes Receivable from Participants.
Notes receivable from participants are measured at their unpaid
principal balance plus any accrued but unpaid interest. Interest
income on notes receivable is recorded on an accrual basis. Related
fees are recorded as administrative expenses and are expensed when
they are incurred. As of December 31, 2021 and 2020, the Plan's
allowance for credit losses on notes receivable from participants
was $241,927 and $199,994, respectively.
Risks and Uncertainties.
The Plan invests in various investment securities. Investment
securities are exposed to various risks such as interest rate,
market and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible
that changes in risk in the near term could materially affect
participants’ account balances and the amounts reported in the
Statements of Net Assets Available for Benefits.
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Excess Contributions Payable.
Amounts payable to participants for contributions in excess of
amounts allowed by the IRS are recorded as a liability with a
corresponding reduction to participants' contributions. The Plan
distributed the 2021 excess contributions to the applicable
participants.
Concentration of Investments.
As of December 31, 2021 and 2020, the Plan had investments of
$107,902,180 and $88,213,815, respectively, that were concentrated
in one fund.
3.
Fair Value Measurements
The Plan applies fair value measurements in accordance with GAAP.
Fair value 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.
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. The Plan uses the following fair value
hierarchy, which prioritizes the inputs to valuation techniques
used to measure fair value into three broad
categories:
•Level
1 – Inputs to the valuation methodology are unadjusted quoted
prices for identical assets or liabilities in active markets that
the Plan has the ability to access.
•Level
2 – Inputs to the valuation methodology include quoted prices for
similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in inactive markets;
inputs other than quoted prices that are observable for the asset
or liability; inputs that are derived principally from or
corroborated by observable market data by correlation or other
means. If the asset or liability has a specified (contractual)
term, the level 2 input must be observable for substantially the
full term of the asset or liability.
•Level
3 – Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
The asset or liability's fair value measurement level within the
fair value hierarchy is based on the lowest level of any input that
is significant to the fair value measurement. Valuation techniques
maximize the use of relevant observable inputs and minimize the use
of unobservable inputs.
The following are descriptions of the valuation methodologies used
for assets measured at fair value. There have been no changes in
the methodologies used at December 31, 2021 and 2020.
Mutual funds:
Valued at the daily closing price as reported by the fund. Mutual
funds held by the Plan are open-end mutual funds that are
registered with the U.S. Securities and Exchange Commission. These
funds are required to publish their daily net asset value ("NAV")
and to transact at that price. The mutual funds held by the Plan
are deemed to be actively traded.
UGI Common Stock:
Valued at the closing price reported on the active market on which
the individual security is traded.
Brokerage Link:
Fidelity Brokerage Link accounts are reflected at their fair value
of associated investments which include mutual funds, money market
funds and cash and held by the Plan participants in their
individual self-directed brokerage accounts. Based upon closing
prices as reported by the funds, these funds are required to
publish this NAV and to transact at that price.
Collective investment trust fund:
Valued at the NAV of units of the collective trusts. The NAVs, as
provided by the trustee, are used as a practical expedient to
estimate fair value. The NAVs are based on the fair values of the
underlying investments held by the funds less their liabilities.
Participant transactions (purchases and sales) may occur daily.
Were the Plan to initiate a full redemption of the collective
trusts, the investment advisor reserves the right to temporarily
delay withdrawal from the trusts in order to ensure that securities
liquidations will be carried out in an orderly business
manner.
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Common collective trust funds:
Valued at the NAV of units of the collective trusts. The NAVs, as
provided by the trustee, are used as a practical expedient to
estimate fair value. The NAVs are based on the fair values of the
underlying investments held by the funds less their liabilities.
Participant transactions (purchases and sales) may occur daily.
Were the Plan to initiate a full redemption of the collective
trusts, the investment advisor reserves the right to temporarily
delay withdrawal from the trusts in order to ensure that securities
liquidations will be carried out in an orderly business
manner.
The Plan holds investments in Vanguard Target Retirement Trusts
("Vanguard Trusts"). The Vanguard Trusts are common collective
trust funds sponsored and maintained by Vanguard Fiduciary Trust
Company. The Vanguard Trusts invest in Vanguard mutual funds using
an asset allocation strategy designed for investors planning to
retire or leave the workforce in or within a few years of the
target year. The underlying mutual funds that the Vanguard Trusts
held may have included the Vanguard Total Stock Market Index Fund,
Vanguard Total Bond Market II Index Fund, Vanguard Total
International Stock Index Fund, Vanguard Total International Bond
Index Fund and Vanguard Short-Term Inflation-Protected Securities
Fund, among others. Each of the Vanguard Trusts’ indirect stock
holdings (through its mutual fund holdings) consisted substantially
of large-capitalization U.S. stocks and, to a lesser extent, mid-
and small-cap U.S. stocks and international stocks. Each of the
Vanguard Trusts’ indirect bond holdings through its mutual fund
holdings consisted of a diversified mix of investment-grade taxable
U.S. government, U.S. government agency and corporate bonds,
international bonds as well as inflation-protected and
mortgage-backed securities.
The trustee, Vanguard Fiduciary Trust Company, generally determines
the fair values of the Vanguard Trusts’ units each day the New York
Stock Exchange is open for trading. The underlying investments
of the Vanguard Trusts are valued based on quoted market prices as
substantially all of these underlying investments have active
markets. The values of the Vanguard Trusts are determined based
upon the values of these underlying investments held for benefit of
the Vanguard Trusts.
The following table presents the Plan’s investments that are
measured at fair value on a recurring basis, for each hierarchy
level, as of December 31, 2021 and 2020:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
Fair Value Measurement Using Input Types |
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Other |
|
Total |
|
Mutual funds |
|
$ |
149,190,341 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
149,190,341 |
|
|
UGI Common Stock |
|
37,352,590 |
|
|
— |
|
|
— |
|
|
— |
|
|
37,352,590 |
|
|
Brokerage Link |
|
18,716,543 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,716,543 |
|
|
Common collective trust funds (a) |
|
— |
|
|
— |
|
|
— |
|
|
197,484,481 |
|
|
197,484,481 |
|
|
Collective investment trust fund (a) |
|
— |
|
|
— |
|
|
— |
|
|
107,902,180 |
|
|
107,902,180 |
|
|
Total investments measured at fair value |
|
$ |
205,259,474 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
305,386,661 |
|
|
$ |
510,646,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
|
|
|
|
Fair Value Measurement Using Input Types |
|
|
|
|
|
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Other |
|
Total |
|
Mutual funds |
|
$ |
125,342,412 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
125,342,412 |
|
|
UGI Common Stock |
|
28,296,706 |
|
|
— |
|
|
— |
|
|
— |
|
|
28,296,706 |
|
|
Brokerage Link |
|
16,609,687 |
|
|
— |
|
|
— |
|
|
— |
|
|
16,609,687 |
|
|
Common collective trust funds (a) |
|
— |
|
|
— |
|
|
— |
|
|
161,780,814 |
|
|
161,780,814 |
|
|
Collective investment trust fund (a) |
|
— |
|
|
— |
|
|
— |
|
|
88,213,815 |
|
|
88,213,815 |
|
|
Total investments measured at fair value |
|
$ |
170,248,805 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
249,994,629 |
|
|
$ |
420,243,434 |
|
(a) Assets measured at NAV per share (or its equivalent), and
therefore excluded from the fair value hierarchy, and also
presented as "Other".
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Investments Measured Using the NAV per share Practical
Expedient
The following tables summarize investments for which fair value is
measured using the NAV per share practical expedient as of December
31, 2021 and 2020, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
Fair Value |
Unfunded Commitments |
Redemption Frequency (if currently eligible) |
Redemption Notice Period |
|
Common collective trust funds |
$ |
197,484,481 |
|
n/a |
Daily |
30 days |
|
Collective investment trust fund |
$ |
107,902,180 |
|
n/a |
Daily |
30 days |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
Fair Value |
Unfunded Commitments |
Redemption Frequency (if currently eligible) |
Redemption Notice Period |
|
Common collective trust funds |
$ |
161,780,814 |
|
n/a |
Daily |
30 days |
|
Collective investment trust fund |
$ |
88,213,815 |
|
n/a |
Daily |
30 days |
4.
Related Party and Party-in-Interest Transactions
Shares of UGI Corporation Common Stock are offered as an investment
option to Plan participants. Additionally, the Plan issues notes to
participants, which are secured by the participant’s account
balances. These transactions qualify as party-in-interest
transactions, but are exempt from the prohibited transaction rules
of ERISA and the IRC under statutory or governmental agency
exemptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan Year |
|
|
2021 |
|
2020 |
|
Fair value of UGI Common Stock held by the Plan |
|
$ |
37,352,590 |
|
|
$ |
28,296,706 |
|
|
Original cost of UGI Common Stock held by the Plan |
|
$ |
24,157,334 |
|
|
$ |
23,023,314 |
|
|
Shares held of UGI Corporation Common Stock |
|
806,422 |
|
|
800,105 |
|
|
Total sales at market value related to UGI Common Stock |
|
$ |
2,490,813 |
|
|
$ |
2,039,469 |
|
|
Total contributions into UGI Common Stock |
|
$ |
1,337,601 |
|
|
$ |
1,390,805 |
|
Certain of the Plan's investments are managed by Vanguard Fiduciary
Trust Company, the trustee, and therefore, these transactions
qualify as party-in-interest transactions. Fees incurred by the
Plan for investment manager services are included in net
appreciation in the fair value of the investments.
5.
Federal Income Tax Status
In August 2017, the Internal Revenue Service ("IRS") issued a
favorable determination letter concerning the qualified status of
the Plan in effect as of December 22, 2015 under Section 401(a) of
the IRC. The Plan has since been amended. The Plan Administrator
believes that the Plan is designed and is currently being operated
in compliance with the applicable requirements of the IRC. No U.S.
income taxes are required to be paid by the trust created under the
Plan (the “Trust”) and participants are not taxed on Employers'
contributions to the Trust or income earned by the Trust. When a
participant, or his or her beneficiary or estate, receives a
distribution under the Plan, the taxability of the value of such
distribution depends on the form and time of payment.
GAAP requires plan management to evaluate tax positions taken by
the Plan and recognize a tax liability (or asset) if the Plan has
taken an uncertain position that more likely than not would not be
sustained upon examination by the IRS. The Plan Administrator has
analyzed the tax positions taken by the Plan and has concluded that
as of December 31, 2021 there are no uncertain positions taken
or expected to be taken that would require recognition of a
liability (or asset) or disclosure in the financial statements. The
Plan is subject to routine audits by taxing jurisdictions; however,
there are currently no audits for any
UGI UTILITIES, INC.
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
tax periods in progress. The Plan Administrator believes it is no
longer subject to income tax examinations for years prior to
2018.
UGI UTILITIES, INC.
SAVINGS PLAN
EIN 23-1174060, Plan #008
Schedule H, Line 4(i)—SCHEDULE OF ASSETS (HELD AT END OF
YEAR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
Name of Issuer and Title of Issue |
|
Number of
Shares or
Principal
Amount |
|
Cost |
|
Current
Value |
|
Mutual Funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fidelity U.S. Bond Index Fund (1) |
|
854,678 |
|
$ |
9,865,261 |
|
|
$ |
10,239,044 |
|
|
Fidelity International Index Fund (1) |
|
210,766 |
|
10,388,651 |
|
|
10,388,651 |
|
|
T. Rowe Price Equity Income Fund |
|
599,397 |
|
18,034,455 |
|
|
21,572,287 |
|
|
PIMCO Total Return Fund Institutional Class |
|
643,586 |
|
6,742,351 |
|
|
6,609,627 |
|
|
American Funds EuroPacific Growth Fund Class R-6 |
|
101,527 |
|
5,815,888 |
|
|
6,571,872 |
|
|
Vanguard Federal Money Market Fund (1) |
|
20,701,809 |
|
20,701,809 |
|
|
20,701,809 |
|
|
Champlain Small Company Fund Institutional Class |
|
178,989 |
|
3,475,963 |
|
|
4,487,259 |
|
|
Vanguard Institutional Index Fund Institutional Class
(1) |
|
112,208 |
|
25,835,904 |
|
|
45,533,066 |
|
|
Vanguard Extended Market Index Fund Institutional Class
(1) |
|
166,463 |
|
12,990,817 |
|
|
23,086,726 |
|
|
Total Mutual Funds |
|
|
|
113,851,099 |
|
|
149,190,341 |
|
|
Assets in Fidelity Brokerage Link Accounts (1) |
|
Various (3) |
|
15,210,665 |
|
|
18,716,543 |
|
|
Common Collective Trust Funds (1): |
|
|
|
|
|
|
|
Vanguard Retirement Savings Trust III |
|
19,432,308 |
|
19,432,308 |
|
|
19,432,308 |
|
|
Vanguard Target Retirement Income Trust II |
|
76,028 |
|
2,565,101 |
|
|
3,321,669 |
|
|
Vanguard Target Retirement 2015 Trust II |
|
151,580 |
|
4,714,917 |
|
|
6,405,770 |
|
|
Vanguard Target Retirement 2020 Trust II |
|
279,387 |
|
8,908,786 |
|
|
12,583,594 |
|
|
Vanguard Target Retirement 2025 Trust II |
|
787,181 |
|
25,062,588 |
|
|
36,698,381 |
|
|
Vanguard Target Retirement 2030 Trust II |
|
467,688 |
|
16,167,969 |
|
|
22,196,462 |
|
|
Vanguard Target Retirement 2035 Trust II |
|
566,018 |
|
18,749,364 |
|
|
27,955,651 |
|
|
Vanguard Target Retirement 2040 Trust II |
|
258,401 |
|
9,089,572 |
|
|
13,480,796 |
|
|
Vanguard Target Retirement 2045 Trust II |
|
380,724 |
|
13,084,858 |
|
|
20,448,683 |
|
|
Vanguard Target Retirement 2050 Trust II |
|
327,237 |
|
12,181,678 |
|
|
17,719,896 |
|
|
Vanguard Target Retirement 2055 Trust II |
|
147,161 |
|
7,702,173 |
|
|
10,672,099 |
|
|
Vanguard Target Retirement 2060 Trust II |
|
98,199 |
|
4,315,037 |
|
|
5,617,952 |
|
|
Vanguard Target Retirement 2065 Trust II |
|
27,000 |
|
792,989 |
|
|
951,220 |
|
|
Total Common Collective Trust Funds |
|
|
|
142,767,340 |
|
|
197,484,481 |
|
|
Collective Investment Trust Fund: |
|
|
|
|
|
|
|
Fidelity Growth Company Commingled Pool (1) |
|
2,052,153 |
|
38,468,312 |
|
|
107,902,180 |
|
|
UGI Common Stock (1): |
|
|
|
|
|
|
|
UGI Corporation Common Stock |
|
806,422 |
|
23,827,576 |
|
|
37,022,832 |
|
|
Dividends receivable |
|
$ |
329,758 |
|
|
329,758 |
|
|
329,758 |
|
|
|
|
|
|
24,157,334 |
|
|
37,352,590 |
|
|
Participant Loans: |
|
|
|
|
|
|
|
Loan principal outstanding (4.25% –
6.50%) (1) (2)
|
|
|
|
— |
|
|
4,711,763 |
|
|
Total – all funds |
|
|
|
$ |
334,454,750 |
|
|
$ |
515,357,898 |
|
(1)Party
in interest.
(2)Range
of interest rates for loans outstanding as of December 31,
2021.
(3)Various investments including
mutual funds, money
market funds and cash.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on
its behalf by the undersigned hereunto duly
authorized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UGI Utilities, Inc. Savings Plan |
|
|
|
|
|
Date: June 9, 2022 |
|
|
|
By: |
|
/s/ Chris Ballard |
|
|
|
|
Name: |
|
Chris Ballard |
|
|
|
|
Title: |
|
Vice President, Total Rewards and HR Services |
|
|
|
|
|
|
of UGI Corporation |
EXHIBIT INDEX
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit No. |
|
Description |
|
23 |
|
|
|
UGI (NYSE:UGIC)
Historical Stock Chart
Von Jul 2022 bis Aug 2022
UGI (NYSE:UGIC)
Historical Stock Chart
Von Aug 2021 bis Aug 2022
