Energy Services Accounts Receivable Securitization Facility

12 Months Ended

Sep. 30, 2011

Energy Services Accounts Receivable Securitization Facility [Abstract]

Energy Services Accounts Receivable Securitization Facility

Note 18 — Energy Services Accounts Receivable Securitization Facility

Energy Services has a $200 receivables purchase facility (“Receivables Facility”) with an issuer of receivables-backed commercial paper currently scheduled to expire in April 2012, although the Receivables Facility may terminate prior to such date due to the termination of commitments of the Receivables Facility’s back-up purchasers.

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 the receivables to a commercial paper conduit of a major bank. ESFC was created and has been structured to isolate its assets from creditors of Energy Services and its affiliates, including UGI. This two-step transaction is accounted for as a sale of receivables following the FASB’s guidance for accounting for transfers of financial assets and extinguishments of liabilities. Energy Services continues to service, administer and collect trade receivables on behalf of the commercial paper issuer and ESFC.

Effective October 1, 2010, the Company adopted a new accounting standard that changes the accounting for the Receivables Facility on a prospective basis (see Note 3). Effective October 1, 2010, trade receivables sold to the commercial paper conduit remain on the Company’s balance sheet; the Company reflects a liability equal to the amount advanced by the commercial paper conduit; and the Company records interest expense on amounts sold to the commercial paper conduit. Prior to October 1, 2010, trade accounts receivable sold to the commercial paper conduit were removed from the balance sheet and any losses on sales of accounts receivable were reflected in “other income, net.”

During Fiscal 2011, Fiscal 2010 and Fiscal 2009, Energy Services transferred trade receivables totaling $1,134.9, $1,147.3 and $1,247.1, respectively, to ESFC. During Fiscal 2011, Fiscal 2010 and Fiscal 2009, ESFC sold an aggregate $88.0, $254.6 and $596.9, respectively, of undivided interests in its trade receivables to the commercial paper conduit. At September 30, 2011, the outstanding balance of ESFC trade receivables was $52.1 and there was $14.3 sold to the commercial paper conduit and reflected on the balance sheet as bank loans. At September 30, 2010, the outstanding balance of ESFC trade receivables was $44.0 which is net of $12.1 that was sold to the commercial paper conduit and removed from the balance sheet. Losses on sales of receivables to the commercial paper conduit during Fiscal 2011, which amounts are included in “Interest expense,” totaled $1.2. Losses on sales of receivables to the commercial paper conduit during Fiscal 2010 and Fiscal 2009, which amounts are included in “Other income, net,” were $1.5 and $2.3, respectively.