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Accounts Receivable Factoring
6 Months Ended
Jun. 30, 2011
Accounts Receivable Factoring  
Accounts Receivable Factoring

18. Accounts Receivable Factoring

As a part of its working capital management, the Company sells certain receivables through third party financial institutions without recourse. The amount sold varies each month based on the amount of underlying receivables and cash flow needs of the Company.

At June 30, 2011 and 2010 (excluding the FMEA arrangements discussed below), the Company had $43,254 and $37,619, respectively, outstanding under receivable transfer agreements entered into by various locations. The total amount of accounts receivable factored were $54,562 for the six months ended June 30, 2011, $7,043 for the one month ended June 30, 2010, and $40,592 for the five months ended May 31, 2010. The Company incurred a loss on the sale of receivables of $343 for the three months ended June 30, 2011, $81 for the one month ended June 30, 2010 and $174 for the two months ended May 31, 2010. Losses incurred on the sale of receivables were $617 and $377 for the six months ended June 30, 2011 and for the five months ended May 31, 2010, respectively; these amounts are recorded in other income (expense) in the condensed consolidated statements of operations. The Company continues to service the receivables for one of the locations. These are permitted transactions under the Company's credit agreement. The Company is also pursuing similar arrangements in various locations.

 

As part of the FMEA joint venture, SPBT had certain factoring arrangements with and without recourse, which are included in the Company's consolidated financial statements.

Recourse

At June 30, 2011, the Company had $19,641 outstanding under receivable transfer agreements with recourse. The recourse amount is recorded in debt payable within one year. The total amount of accounts receivable factored were $17,071 for the six months ended June 30, 2011. The Company incurred a loss on the sale of receivables of $39 for the three and six months ended June 30, 2011.

Without recourse

At June 30, 2011, the Company had $28,710 outstanding under receivable transfer agreements without recourse. The total amount of accounts receivable factored were $30,281 for the six months ended June 30, 2011. The Company incurred a loss on the sale of receivables of $57 for the three and six months ended June 30, 2011.