Accounts Receivable Factoring

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts Receivable Factoring

Accounts Receivable Factoring

As a part of its working capital management, the Company sells certain receivables through a third-party financial institution in a pan-European program (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 indentures governing the Senior Notes and Senior Secured Notes. The European factoring facility, which was renewed in March 2020, allows the Company to factor up to €120 million of its Euro-denominated accounts receivable, accelerating access to cash and reducing credit risk. The factoring facility expires in December 2023.

Costs incurred on the sale of receivables are recorded in other expense, net in the consolidated statements of operations. Liabilities related to the factoring program are recorded in accrued liabilities in the consolidated balance sheet. 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 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:

	December 31, 2020		December 31, 2019
Off-balance sheet arrangements	$	85,108	$	103,818

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

	Off-Balance Sheet Arrangements
	Year Ended December 31,
	2020		2019
Accounts receivable factored	$	476,405	$	556,102

	Off-Balance Sheet Arrangements
	Year Ended December 31,
	2020		2019		2018
Costs	$	776	$	1,007	$	1,248

During 2020, the Factor changed to an alternative remittance and settlement process provided for under the factoring agreement, which resulted in the Company having lower amounts due to the Factor. As of December 31, 2020, cash collections on behalf of the Factor that had yet to be remitted were $1,786 and are reflected in other current assets as restricted cash in the consolidated balance sheet. As of December 31, 2019, cash collections on behalf of the Factor that had yet to be remitted were $21,485 and are reflected in cash and cash equivalents in the consolidated balance sheet.