Accounts Receivable

3 Months Ended

Mar. 31, 2012

Accounts Receivable [Abstract]

Accounts Receivable

2. Accounts Receivable

The Company maintains a $500 million revolving trade accounts receivable Securitization Facility. Pursuant to the terms of the Securitization 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.

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.

On February 6, 2012, the Company extended the term of its asset Securitization Facility to February 4, 2013. The Company capitalized $0.6 million in deferred financing fees in connection with this extension.

The Company's accounts receivable and securitized accounts receivable include the following at March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012			December 31, 2011
Gross domestic accounts receivable	$	82,296		$	84,087
Gross securitized accounts receivable		341,000			280,000
Gross foreign receivables		535,256			413,019
Total gross receivables		958,552			777,106
Less allowance for doubtful accounts		(17,742	)		(15,315	)
Net accounts and securitized accounts receivable	$	940,810		$	761,791

A rollforward of the Company's allowance for doubtful accounts related to accounts receivable for three months ended March 31 is as follows (in thousands):

	2012			2011
Allowance for doubtful accounts beginning of period	$	15,315		$	14,256
Add:
Provision for bad debts		4,957			3,847
Less:
Write-offs		(2,530	)		(2,916	)
Allowance for doubtful accounts end of period	$	17,742		$	15,187

All foreign receivables are Company owned receivables and are not included in the Company's accounts receivable securitization program. At March 31, 2012 and December 31, 2011, there was $341 million and $280 million, respectively, of short-term debt outstanding under the Company's accounts receivable Securitization Facility.