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

3 Months Ended

Dec. 31, 2016

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 $11.8 million as of December 31, 2016 and $9.5 million as of September 30, 2016. The allowance for doubtful accounts related to notes receivable was $0.2 million as of December 31, 2016 and September 30, 2016, respectively.

During the three months ended December 31, 2016, the Company recorded bad debt expense of $2.5 million. The provision for bad debts is primarily related to $2.5 million of LME Metals customer deficits in the Company’s Commercial Hedging segment.

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 OTC 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 $2.3 million and $5.0 million as of December 31, 2016 and September 30, 2016, respectively. The Company has sold $2.1 million and $4.6 million of the insured portion of the notes through non-recourse participation agreements with other third parties as of December 31, 2016 and September 30, 2016, respectively. The Company completed its exit of the majority of this activity during fiscal 2016. The Company believes the run-off of the remaining activity will have a minimal impact on the Company.

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