ACCOUNTS RECEIVABLES

12 Months Ended

Dec. 31, 2023

NOTE 7. ACCOUNTS RECEIVABLES

We maintain a $425.0 million Receivables Financing Agreement (Receivables Financing Agreement) that is scheduled to mature on October 14, 2025. 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 $1,550.0 million Senior Credit Facility. As of December 31, 2023 and 2022, we had $328.5 million and $300.0 million drawn under the agreement. As of December 31, 2023, $456.6 million of our trade receivables were pledged as collateral and we had $33.3 million of additional borrowing capacity under the Receivables Financing Agreement, which was limited by our borrowing base.

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 $175.5 million and certain of our foreign subsidiaries may sell their accounts receivable up to a maximum of €22.0 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 consolidated statements of cash flows. The following table summarizes the AR Facilities activity:


	December 31,
	2023		2022
AR Facilities	($ in millions)
Beginning balance	$	111.8	$	83.3
Gross receivables sold	899.0		1,049.7
Payments received from customers on sold accounts	(947.5)		(1,021.2)
Ending balance	$	63.3	$	111.8

The factoring discount paid under the AR Facilities is recorded as interest expense on the consolidated statements of operations. The factoring discount for the years ended December 31, 2023 and 2022 was $4.7 million and $3.1 million, respectively. The agreements are without recourse, and therefore, no recourse liability has been recorded as of December 31, 2023.

Our consolidated balance sheets included an allowance for doubtful accounts receivables of $13.1 million and $12.6 million and other receivables of $85.3 million and $71.6 million at December 31, 2023 and 2022, respectively, which were included in receivables, net.