Energy Services Accounts Receivable Securitization Facility

3 Months Ended

Dec. 31, 2014

Transfers and Servicing of Financial Assets [Abstract]

Energy Services Accounts Receivable Securitization Facility

Note 7 — Energy Services Accounts Receivable Securitization Facility

Energy Services has a receivables purchase facility (“Receivables Facility”) with an issuer of receivables-backed commercial paper currently scheduled to expire in October 2015. The Receivables Facility provides Energy Services with the ability to borrow up to $150 of eligible receivables during the period November to May and up to $75 of eligible receivables during the period June 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, Energy Services Funding Corporation (“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. 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 or the commercial paper conduit. The Company records interest expense on amounts owed to the bank or the commercial paper conduit. Energy Services continues to service, administer and collect trade receivables on behalf of the bank or commercial paper issuer, as applicable.

During the three months ended December 31, 2014 and 2013, Energy Services transferred trade receivables to ESFC totaling $286.4 and $269.0, respectively. During the three months ended December 31, 2014 and 2013, ESFC sold an aggregate $105.0 and $92.0, respectively, of undivided interests in its trade receivables to the bank. At December 31, 2014, the outstanding balance of ESFC receivables was $96.5 of which $43.0 was sold to the bank. At December 31, 2013, the outstanding balance of ESFC receivables was $88.5 of which $35.5 was sold to the bank. Losses on sales of receivables to the bank during the three months ended December 31, 2014 and 2013, which are included in interest expense on the Condensed Consolidated Statements of Income, were not material.