Energy Services Accounts Receivable Securitization Facility

6 Months Ended

Mar. 31, 2019

Energy Services Accounts Receivable Securitization Facility

Note 9 — Energy Services Accounts Receivable Securitization Facility

Energy Services has a Receivables Facility currently scheduled to expire in October 2019. The Receivables Facility, as amended, provides Energy Services with the ability to borrow up to $150 of eligible receivables during the period November to April and up to $75 of eligible receivables during the period May to 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, 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. Amounts sold to the bank are reflected as “Short-term borrowings” on the Condensed Consolidated Balance Sheets. 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. Losses on sales of receivables to the bank during the three and six months ended March 31, 2019 and 2018, which are included in “Interest expense” on the Condensed Consolidated Statements of Income, were not material.

Information regarding the trade receivables transferred to ESFC and the amounts sold to the bank for the six months ended March 31, 2019 and 2018, as well as the balance of ESFC trade receivables at March 31, 2019, September 30, 2018 and March 31, 2018, is as follows:



	Six Months Ended March 31,
	2019		2018
Trade receivables transferred to ESFC during the period	$	884.8	$	806.9
ESFC trade receivables sold to the bank during the period	$	41.0	$	128.0



	March 31, 2019		September 30, 2018		March 31, 2018
ESFC trade receivables - end of period (a)	$	117.0	$	65.0	$	99.6


(a)	At March 31, 2019, there were no ESFC trade receivables sold to the bank. At September 30, 2018 and March 31, 2018, the amounts of ESFC trade receivables sold to the bank were $2.0 and $10.0, respectively. Amounts sold to the bank are reflected as “Short-term borrowings” on the Condensed Consolidated Balance Sheets.