(4)ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands):


	December 31,
	2019		2018
Accounts receivable	$	336,548	$	356,554
Less: Allowance for doubtful accounts		(5,452)		(5,592)
Accounts receivable, net	$	331,096	$	350,962

Activity in the Company’s Allowance for doubtful accounts consists of the following (in thousands):


	December 31,
	2019		2018		2017
Balance, beginning of year	$	5,592	$	921	$	662
Provision for doubtful accounts		1,711		3,679		458
Uncollectible receivables written-off		(1,311)		(429)		(180)
Effect of foreign currency and other		(540)		1,421		(19)
Balance, end of year	$	5,452	$	5,592	$	921

On October 15, 2018, Sears Holding Corporation (“Sears”) announced that it had filed a petition for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. As of December 31, 2019 and 2018, TTEC had approximately $2.7 million in pre-petition accounts receivables outstanding related to Sears; during the fourth quarter of 2018 a $2.7 million allowance for uncollectible accounts was recorded and included in Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income (Loss). TTEC continues to provide post-petition services to Sears and has assessed these receivables for collection risk and has determined that these will be collectible.

Significant Clients

The Company had no clients that contributed in excess of 10% of total revenue for the year ended December 31, 2019. The Company has one client that contributed in excess of 10% of total revenue for the year ended December 31, 2018; this client operates in the healthcare industry and is included in the Engage segment. The revenue from this client as a percentage of total revenue was as follows:


	Year Ended December 31,
	2019		2018		2017

Healthcare client	8	%	10	%	7	%

Accounts receivable from this client was as follows (in thousands):


	Year Ended December 31,
	2019		2018		2017

Healthcare client	$	18,385	$	49,245	$	56,802

The Company does have clients with aggregate revenue exceeding $100 million annually and the loss of one or more of these significant clients could have a material adverse effect on the Company’s business, operating results, or financial condition. To mitigate this risk, the Company has multiple contracts with these larger clients, where each individual contract is for an amount below the $100 million aggregate. To limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for uncollectible accounts and may require pre-payment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of December 31, 2019.

Accounts Receivable Factoring Agreement

On March 5, 2019, the Company entered into an Uncommitted Receivables Purchase Agreement (“Agreement”) with Bank of the West (“Bank”), whereby from time-to-time the Company may elect to sell, on a revolving basis, U.S. accounts receivables of certain clients at a discount to the bank for cash on a limited recourse basis. The maximum amount of receivables that the Company may sell to the Bank at any given time shall not exceed $75 million. The sales of accounts receivable in accordance with the Agreement are reflected as a reduction of Accounts Receivable, net on the Consolidated Balance sheets. The Company has retained no interest in the sold receivables but retains all collection responsibilities on behalf of the Bank. The discount on the accounts receivable sold will be recorded within Other expense, net in the Consolidated Statements of Comprehensive Income (Loss). The cash proceeds from this Agreement are included in the change in accounts receivable within the operating activities section of the Consolidated Statements of Cash Flows.

As of December 31, 2019, the Company had factored $52.0 million of accounts receivable; under the Agreement discounts on these receivables were not material during the quarter. As of December 31, 2019, the Company had collected $23.2 million of cash from customers which had not been remitted to the Bank. The unremitted cash is Restricted Cash and is included within Prepaid and Other Current Assets with the corresponding liability included in Accrued Expenses on the Consolidated Balance Sheet. The Company has not recorded any servicing assets or liabilities as of December 31, 2019 as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements.