Trade Accounts Receivable Sale Programs

9 Months Ended

Jul. 03, 2021

Receivables [Abstract]

Trade Accounts Receivable Sale Programs

Trade Accounts Receivable Sale Programs

The Company has Master Accounts Receivable Purchase Agreements with MUFG Bank, New York Branch (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (the "MUFG RPA"), and HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA"), under which the Company may elect to sell receivables; at a discount. These facilities are uncommitted facilities. The maximum facility amount under the MUFG RPA as of July 3, 2021 is $340.0 million. The maximum facility amount under the HSBC RPA as of July 3, 2021 is $60.0 million. The MUFG RPA will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended. The contract length terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA previously discussed.

Transfers of receivables under the programs are accounted for as sales and, accordingly, receivables sold under the programs are excluded from accounts receivable on the Condensed Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. Proceeds from the transfer reflect the face value of the receivables less a discount. The sale discount is recorded within "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income in the period of the sale.

The Company sold $180.6 million and $189.9 million of trade accounts receivable under these programs, or their predecessors, during the three months ended July 3, 2021 and July 4, 2020, respectively, in exchange for cash proceeds of $180.1 million and $189.4 million, respectively.

The Company sold $574.6 million and $606.0 million of trade accounts receivable under these programs, or their predecessors, during the nine months ended July 3, 2021 and July 4, 2020, respectively, in exchange for cash proceeds of $573.0 million and $603.4 million, respectively.