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Accounts Receivable Factoring
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Accounts Receivable Factoring
Accounts Receivable Factoring
As a part of its working capital management, the Company sells certain receivables through third party financial institutions with and without recourse. The amount sold varies each month based on the amount of underlying receivables and cash flow needs of the Company. The Company continues to service the receivables. These are permitted transactions under the Company’s credit agreement governing the ABL Facility, the Term Loan Facility and the Senior Notes.
As of March 31, 2017 and December 31, 2016, the Company had $80,617 and $57,497, respectively, outstanding under receivable transfer agreements without recourse entered into by various locations. The total amount of accounts receivable factored without recourse was $148,924 and $133,297 for the three months ended March 31, 2017 and 2016, respectively. Costs incurred on the sale of receivables were $455 and $487 for the three months ended March 31, 2017 and 2016, respectively. These amounts are recorded in other expense, net and interest expense, net of interest income in the condensed consolidated statements of net income.
As of March 31, 2017 and December 31, 2016, the Company had $5,217 and $5,014, respectively, outstanding under receivable transfer agreements with recourse. The secured borrowings are recorded in debt payable within one year, and receivables are pledged equal to the balance of the borrowings. The total amount of accounts receivable factored with recourse was $7,651 and $6,894 for the three months ended March 31, 2017 and 2016, respectively. Costs incurred on the sale of receivables were $26 and $12 for the three months ended March 31, 2017 and 2016, respectively. These amounts are recorded in other expense, net and interest expense, net of interest income in the condensed consolidated statements of net income.