Accounts Receivable Factoring

As a part of its working capital management, the Company previously sold certain receivables through third party financial institutions in on- and off-balance sheet arrangements. In December 2017, the Company completed the transition from multiple factoring providers to a pan-European program under a single third party financial institution (the “Factor”). The amount sold varies each month based on the amount of underlying receivables and cash flow needs of the Company. These are permitted transactions under the Company’s credit agreements governing the ABL Facility and Term Loan Facility and the indenture governing 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 consolidated statements of net income. The sale of receivables under this contract is considered an off-balance sheet arrangement to the Company and is accounted for as a true sale and is excluded from accounts receivable in the consolidated balance sheet. Receivables sold prior to December 2017 that were considered on-balance sheet arrangements were accounted for as secured borrowings and were recorded in debt payable within one year.

Amounts outstanding under receivable transfer agreements entered into by various locations as of the period end were as follows:



	December 31, 2017		December 31, 2016
Off-balance sheet arrangements	$	96,588	$	56,936
On-balance sheet arrangements	$	—	$	5,258

Accounts receivable factored and related costs throughout the period were as follows:



	Off-Balance Sheet Arrangements				On-Balance Sheet Arrangements
	Year Ended December 31,				Year Ended December 31,
	2017		2016		2017		2016
Accounts receivable factored	$	544,060	$	507,321	$	23,794	$	24,053



	Off-Balance Sheet Arrangements						On-Balance Sheet Arrangements
	Year Ended December 31,						Year Ended December 31,
	2017		2016		2015		2017		2016		2015
Costs	$	1,904	$	1,575	$	2,144	$	99	$	257	$	179

The Company continues to service sold receivables and acts as collection agent for the Factor. As of December 31, 2017, cash collections on behalf of the Factor that have yet to be remitted were $36,248 and are reflected in cash and cash equivalents in the consolidated balance sheet.