Accounts Receivable Securitization

9 Months Ended

Sep. 30, 2019

Accounts Receivable Securitization [Abstract]

Accounts Receivable Securitization

11. Accounts Receivable Securitization

The Company is engaged in an accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo). As of September 30, 2019, the commitment size under the program was $70 million.

Between October 2016 and June 2018, the Company accounted for sales of trade receivables under the program as a reduction in accounts receivable on the Company’s Consolidated Condensed Balance Sheets in accordance with ASC 860, Transfers and Servicing (ASC 860).

In June 2018, the Company amended the program. Following the amendment, the Company no longer accounts for sales of trade receivables in accordance with ASC 860, and instead now maintains the trade receivables and related debt on its Consolidated Condensed Balance Sheets.

Under the amended program, Wells Fargo has extended a secured loan of up to $70 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. As of September 30, 2019, $70 million was borrowed under the program.

In October 2019, the Company amended this program. See Note 13, Subsequent Events, for additional information.