Sales of Accounts Receivable

6 Months Ended

Jul. 01, 2017

Receivables [Abstract]

Sales of Accounts Receivable

3. Sales of Accounts Receivable

We have entered into several customer sponsored programs administered by unrelated financial institutions that permit us to sell certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable and were removed from our Consolidated Balance Sheet at the time of the sales transactions. Pursuant to these agreements, we sold $299.1 million and $257.8 million of accounts receivable during the twenty-six weeks ended July 1, 2017 and June 25, 2016, respectively. If receivables had not been sold, $373.3 million and $338.3 million of additional accounts receivable would have been outstanding at July 1, 2017 and December 31, 2016, respectively, based on standard payment terms. Selling, general and administrative expenses for the twenty-six weeks ended July 1, 2017 and June 25, 2016 included $5.6 million and $4.4 million, respectively, in financing costs associated with these accounts receivable sales programs.