Receivables From Customers, Net and Notes Receivable, Net (Notes)

9 Months Ended

Jun. 30, 2015

Receivables from customers and notes receivable, net [Abstract]

Financing Receivables [Text Block]

Receivables From Customers, Net and Notes Receivable, Net

Receivables from customers, net and notes receivable, net include an allowance for bad debts, which reflects the Company’s best estimate of probable losses inherent in the receivables from customers and notes receivable. The Company provides for an allowance for doubtful accounts based on a specific-identification basis. The Company continually reviews its allowance for bad debts. The allowance for doubtful accounts related to receivables from customers was $7.5 million as of June 30, 2015 and $5.7 million as of September 30, 2014. The allowance for doubtful accounts related to notes receivable was $1.0 million as of June 30, 2015 and $0.1 million as of September 30, 2014.

During the three months ended June 30, 2015, the Company recorded bad debt expense of $0.4 million, including provision increases for OTC customer deficits, partially offset by provision decreases for LME customer deficits collected. During the nine months ended June 30, 2015, the Company recorded bad debt expense of $3.2 million, including provision increases of $2.8 million and direct write-offs of $0.4 million. The provision increases are primarily related to OTC and LME customer deficits and notes receivable related to loans pertaining to a former acquisition. During the nine months ended June 30, 2014, the Company recorded bad debt expense of $0.8 million, including provision increases of $0.4 million and direct write-offs of $0.5 million, net of recoveries of $0.1 million.

The Company originates short-term notes receivable from customers with the outstanding balances being insured 90% to 98% by a third party, including accrued interest. The total balance outstanding under insured notes receivable was $39.2 million and $33.8 million as of June 30, 2015 and September 30, 2014, respectively. The Company has sold $28.9 million and $25.8 million of the insured portion of the notes through non-recourse participation agreements with other third parties as of June 30, 2015 and September 30, 2014, respectively.

See discussion of notes receivable related to commodity repurchase agreements in Note 10.