Transfers Of Financial Assets

6 Months Ended

Jun. 30, 2017

Transfers of Financial Assets

Columbia of Ohio, NIPSCO and Columbia of Pennsylvania each maintain a receivables agreement whereby they transfer their customer accounts receivables to third party financial institutions through wholly-owned and consolidated special purpose entities. The three agreements expire between August 2017 and March 2018 and may be further extended if mutually agreed to by the parties thereto.

All receivables transferred to third parties are valued at face value, which approximates fair value due to their short-term nature. The amount of the undivided percentage ownership interest in the accounts receivables transferred is determined in part by required loss reserves under the agreements.

Transfers of accounts receivable are accounted for as secured borrowings resulting in the recognition of short-term borrowings on the Condensed Consolidated Balance Sheets (unaudited). As of June 30, 2017, the maximum amount of debt that could be recognized related to NiSource’s accounts receivable programs is $300.0 million.

The following table reflects the gross receivables balance and net receivables transferred as well as short-term borrowings related to the securitization transactions as of June 30, 2017 and December 31, 2016:



(in millions)	June 30, 2017		December 31, 2016
Gross Receivables	$	445.9	$	618.3
Less: Receivables not transferred	147.6		308.3
Net receivables transferred	$	298.3	$	310.0
Short-term debt due to asset securitization	$	298.3	$	310.0

For the six months ended June 30, 2017 and 2016, $11.7 million and $26.8 million was recorded as cash flows used for financing activities related to the change in short-term borrowings due to securitization transactions. Fees associated with the securitization transactions were $0.6 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively, and $1.3 million and $1.2 million for the six months ended June 30, 2017 and 2016, respectively. NiSource remains responsible for collecting on the receivables securitized and the receivables cannot be transferred to another party.