Accounts Receivable

9 Months Ended

Sep. 30, 2011

Accounts Receivable [Abstract]

Accounts Receivable

2. Accounts Receivable

The Company maintains a $500 million revolving trade accounts receivable securitization facility (the Facility). Pursuant to the terms of the Facility, the Company transfers certain of its domestic receivables, on a revolving basis, to FleetCor Funding LLC (Funding) a wholly-owned bankruptcy remote subsidiary. In turn, Funding sells, without recourse, on a revolving basis, up to $500 million of undivided ownership interests in this pool of accounts receivable to a multi-seller, asset-backed commercial paper conduit (Conduit). Funding maintains a subordinated interest, in the form of over-collateralization, in a portion of the receivables sold to the Conduit. Purchases by the Conduit are financed with the sale of highly-rated commercial paper. On February 24, 2011, the Company extended the term of its asset securitization facility to February 23, 2012. There were no other significant changes related to the extension. The Company capitalized $0.6 million in deferred financing fees in connection with this extension. On June 22, 2011, the Company amended the terms of the Facility to remove the compliance certification reporting requirement and financial covenant requirements.

The Company utilizes proceeds from the sale of its accounts receivable as an alternative to other forms of debt, effectively reducing its overall borrowing costs. The Company has agreed to continue servicing the sold receivables for the financial institution at market rates, which approximates the Company's cost of servicing. The Company retains a residual interest in the accounts receivable sold as a form of credit enhancement. The residual interest's fair value approximates carrying value due to its short-term nature.

Funding determines the level of funding achieved by the sale of trade accounts receivable, subject to a maximum amount.

The Company's accounts receivable and securitized accounts receivable include the following at September 30, 2011 and December 31, 2010 (in thousands):

	September 30, 2011			December 31, 2010
Gross domestic accounts receivable	$	260,938		$	160,641
Gross securitized accounts receivable		150,000			144,000
Gross foreign receivables		173,558			113,778
Total gross receivables		584,496			418,419
Less allowance for doubtful accounts		(14,966	)		(14,256	)
Net accounts and securitized accounts receivable	$	569,530		$	404,163

A rollforward of the Company's allowance for doubtful accounts related to accounts receivable for the nine months ended September 30, is as follows (in thousands):

	2011			2010
Allowance for doubtful accounts beginning of period	$	14,256		$	14,764
Add:
Provision for bad debts		13,600			15,097
Less:
Write-offs		(12,890	)		(14,819	)
Allowance for doubtful accounts end of period	$	14,966		$	15,042

All foreign receivables are Company owned receivables and are not included in the Company's accounts receivable securitization program. At September 30, 2011 and December 31, 2010, there was $150 million and $144 million, respectively, of short-term debt outstanding under the Company's accounts receivable securitization facility.