Accounts Receivable Factoring

9 Months Ended

Sep. 30, 2017

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. Costs incurred on the sale of receivables are recorded in other expense, net and interest expense, net of interest income in the condensed consolidated statements of net income. Receivables sold with recourse are accounted for as secured borrowings and are recorded in debt payable within one year, and receivables are pledged equal to the balance of the borrowings. Receivables sold without recourse are accounted for as true sales and are excluded from accounts receivable in the condensed consolidated balance sheet.

Amounts outstanding under receivable transfer agreements entered into by various locations were as follows:



	September 30, 2017		December 31, 2016
Without recourse	$	62,594	$	56,936
With recourse	5,018		5,258

Accounts receivable factored and related costs were as follows:



	Without Recourse								With Recourse
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016		2017		2016		2017		2016
Accounts receivable factored	$	98,244	$	120,220	$	390,354	$	381,190	$	6,326	$	7,550	$	20,432	$	18,078
Costs	452		391		1,517		1,286		29		55		74		185

Repurchase of accounts receivable

During the three months ended September 30, 2017, the Company repurchased $12,043 of its accounts receivable in Europe that were previously sold to certain third party financial institutions through receivable purchase agreements. In addition, the Company repurchased $19,378 of its receivables in Europe in October 2017. The repurchases were made as part of the Company’s transition to a pan-European program under a single third party financial institution, which is expected to be completed in the fourth quarter of 2017.