Accounts Receivable Factoring Agreements

12 Months Ended

Dec. 31, 2019

Transfers and Servicing [Abstract]

Accounts Receivable Factoring Agreement

Accounts Receivable Factoring Agreements

The Company has entered into factoring agreements and customers' supply chain financing arrangements, to sell certain trade receivables to unrelated third-party financial institutions. These programs are entered into in the normal course of business. We account for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for true-sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from Accounts receivable, net on the Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold.

Gross amounts factored under this program for the year ended December 31, 2019 and 2018 were $351.3 million and $249.8 million, respectively. The fees associated with transfer of receivables for all programs were approximately $3.5 million for the year ended December 31, 2019 and $2.0 million for the years ended December 31, 2018 and 2017.