ACCOUNTS RECEIVABLES

6 Months Ended

Jun. 30, 2022

NOTE 4. ACCOUNTS RECEIVABLES

We maintain a $300.0 million Receivables Financing Agreement (Receivables Financing Agreement) that is scheduled to mature on September 28, 2024. The Receivables Financing Agreement includes a minimum borrowing requirement of 50% of the facility limit or available borrowing capacity, whichever is less. Under the Receivables Financing Agreement, our eligible trade receivables are used for collateralized borrowings and continue to be serviced by us. In addition, the Receivables Financing Agreement incorporates the net leverage ratio covenant that is contained in the $1,615.0 million senior credit facility. As of June 30, 2022, $666.3 million of our trade receivables were pledged as collateral and we had $300.0 million drawn with no additional borrowing capacity available under the Receivables Financing Agreement. As of December 31, 2021 and June 30, 2021, we had $300.0 million and $125.0 million, respectively, drawn under the Receivables Financing Agreement.

Olin also has trade accounts receivable factoring arrangements (AR Facilities) and pursuant to the terms of the AR Facilities, certain of our domestic subsidiaries may sell their accounts receivable up to a maximum of $250.0 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €43.4 million. We will continue to service the outstanding accounts sold. These receivables qualify for sales treatment under ASC 860 “Transfers and Servicing” and, accordingly, the proceeds are included in net cash provided by operating activities in the condensed statements of cash flows. The following table summarizes the AR Facilities activity:


	June 30,
	2022		2021
	($ in millions)
Balance at beginning of year	$	83.3	$	48.8
Gross receivables sold	477.2		487.3
Payments received from customers on sold accounts	(450.6)		(450.4)
Balance at end of period	$	109.9	$	85.7

The factoring discount paid under the AR Facilities is recorded as interest expense on the condensed statements of operations. The factoring discount was $0.4 million and $0.3 million for the three months ended June 30, 2022 and 2021, respectively, and $0.9 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively. The agreements are without recourse and therefore no recourse liability had been recorded as of June 30, 2022, December 31, 2021 or June 30, 2021.

Our condensed balance sheets included an allowance for doubtful accounts receivables of $15.0 million, $12.3 million and $12.4 million and other receivables of $50.3 million, $65.3 million and $72.8 million at June 30, 2022, December 31, 2021 and June 30, 2021, respectively, which were included in receivables, net.