Accounts Receivable Factoring

6 Months Ended

Jun. 30, 2018

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 condensed 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.

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



	June 30, 2018		December 31, 2017
Off-balance sheet arrangements	$	118,698	$	96,588

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



	Off-Balance Sheet Arrangements								On-Balance Sheet Arrangements
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017		2018		2017		2018		2017
Accounts receivable factored	$	152,996	$	143,186	$	369,567	$	292,110	$	—	$	6,455	$	—	$	14,106
Costs	333		610		717		1,065		—		19		—		45

The Company continues to service sold receivables and acts as collection agent for the Factor. As of June 30, 2018 and December 31, 2017, cash collections on behalf of the Factor that have yet to be remitted were $18,325 and $36,248, respectively, and are reflected in cash and cash equivalents in the condensed consolidated balance sheet.