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Energy Services Accounts Receivable Securitization Facility
9 Months Ended
Jun. 30, 2016
Transfers and Servicing of Financial Assets [Abstract]  
Energy Services Accounts Receivable Securitization Facility
Note 7 — Energy Services Accounts Receivable Securitization Facility

Energy Services has an accounts receivable securitization facility (“Receivables Facility”) with an issuer of receivables-backed commercial paper currently scheduled to expire in October 2016. The Receivables Facility provides Energy Services with the ability to borrow up to $150 of eligible receivables during the period November through April and up to $75 of eligible receivables during the period May through October. Energy Services uses the Receivables Facility to fund working capital, margin calls under commodity futures contracts, capital expenditures, dividends and for general corporate purposes.

Under the Receivables Facility, Energy Services transfers, on an ongoing basis and without recourse, its trade accounts receivable to its wholly owned, special purpose subsidiary, Energy Services Funding Corporation (“ESFC”), which is consolidated for financial statement purposes. ESFC, in turn, has sold and, subject to certain conditions, may from time to time sell, an undivided interest in some or all of the receivables to a major bank. ESFC was created and has been structured to isolate its assets from creditors of Energy Services and its affiliates, including UGI. Trade receivables sold to the bank remain on the Company’s balance sheet and the Company reflects a liability equal to the amount advanced by the bank. The Company records interest expense on amounts owed to the bank. Energy Services continues to service, administer and collect trade receivables on behalf of the bank, as applicable.

During the nine months ended June 30, 2016 and 2015, Energy Services transferred trade receivables to ESFC totaling $615.3 and $873.4, respectively. During the nine months ended June 30, 2016 and 2015, ESFC sold an aggregate $167.5 and $272.5, respectively, of undivided interests in its trade receivables to the bank. At June 30, 2016, the outstanding balance of ESFC receivables was $40.4, and there were no amounts sold to the bank. At June 30, 2015, the outstanding balance of ESFC receivables was $42.9, of which $20.0 was sold to the bank. Amounts sold to the bank are reflected as short-term borrowings on the Condensed Consolidated Balance Sheets. Losses on sales of receivables to the bank during the three and nine months ended June 30, 2016 and 2015, which are included in interest expense on the Condensed Consolidated Statements of Income, were not material.