Sales of Accounts Receivable

9 Months Ended

Sep. 24, 2022

Receivables [Abstract]

Sales of Accounts Receivable

3. Sales of Accounts Receivable

We have entered several customer-sponsored programs administered by unrelated financial institutions that permit us to sell (factor) certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable and the related accounts receivable were removed from our Condensed Consolidated Balance Sheets at the times of the sales transactions. Under these agreements, we sold $240.0 million and $256.3 million of accounts receivable during the three months ended September 24, 2022 and September 25, 2021, respectively, and $778.1 million and $690.0 million of accounts receivable during the nine months ended September 24, 2022 and September 25, 2021 respectively. Selling, general and administrative expenses include factoring costs associated with these accounts receivable sales programs of $9.8 million and $3.1 million during the three months ended September 24, 2022 and September 25, 2021, respectively, and $23.0 million and $8.6 million during the nine months ended September 24, 2022 and September 25, 2021, respectively. The increase in factoring costs for the three and nine months ended September 24, 2022 compared to the prior year periods was primarily driven by higher LIBOR and other reference rates, and higher accounts receivable sold under these programs during the nine months ended September 24, 2022.