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

3 Months Ended

Dec. 31, 2015

Receivables from customers and notes receivable, net [Abstract]

Financing Receivables [Text Block]

Receivables From Customers, Net and Notes Receivable, Net

The allowance for doubtful accounts related to receivables from customers was $12.0 million as of December 31, 2015 and $10.2 million as of September 30, 2015. The allowance for doubtful accounts related to notes receivable was $1.0 million as of December 31, 2015 and September 30, 2015.

During the three months ended December 31, 2015, the Company recorded bad debt expense of $2.0 million, including provision increases of $1.9 million and direct write-offs of $0.1 million. The provision for bad debts is primarily related to $1.7 million of customer deficits in the Company’s Commercial Hedging segment.

The Company originates short-term notes receivable from customers with the outstanding balances typically being insured 90% to 98% by a third party, including accrued interest, subject to applicable deductible amounts. The total balance outstanding under insured notes receivable was $29.2 million and $41.4 million as of December 31, 2015 and September 30, 2015, respectively. The Company has sold $25.2 million and $30.7 million of the insured portion of the notes through non-recourse participation agreements with other third parties as of December 31, 2015 and September 30, 2015, respectively. The Company is actively seeking to exit this activity during the current fiscal year, and believes the exit will have a minimal impact on the Company.

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