Inventories

Inventories comprise the following:



	December 31, 2012		September 30, 2012		December 31, 2011
Gas Utility natural gas	$	51,838	$	57,663	$	87,735
Materials, supplies and other	10,023		9,671		9,716
Total inventories	$	61,861	$	67,334	$	97,451

At December 31, 2012, UGI Utilities is a party to three storage contract administrative agreements (“SCAAs”) with Energy Services, Inc. (“Energy Services”), a second-tier, wholly owned subsidiary of UGI, one of which expires in October 2013 and two of which expire in October 2015 (see Note 9). Pursuant to these and predecessor SCAAs, UGI Utilities has, among other things, released certain storage and transportation contracts for the terms of the SCAAs. UGI Utilities also transferred certain associated storage inventories upon commencement of the SCAAs, will receive a transfer of storage inventories at the end of the SCAAs, and makes payments associated with refilling storage inventories during the terms of the SCAAs. The historical cost of natural gas storage inventories released under the SCAAs, which represents a portion of Gas Utility’s total natural gas storage inventories, and any exchange receivable (representing amounts of natural gas inventories used by the other parties to the agreement but not yet replenished), are included in the caption “Gas Utility natural gas” in the table above.

The carrying value of gas storage inventories released under the SCAAs at December 31, 2012, September 30, 2012 and December 31, 2011 comprising 9.1 billion cubic feet (“bcf”), 11.4 bcf and 10.8 bcf of natural gas, was $27,251, $32,627 and $50,912, respectively. In conjunction with the SCAAs, UGI Utilities held a total of security deposits received from its SCAA counterparties of $16,500 at December 31, 2012, and $22,500 at September 30, 2012 and December 31, 2011. These amounts are included in other current liabilities on the Condensed Consolidated Balance Sheets.