XML 34 R25.htm IDEA: XBRL DOCUMENT v2.4.1.9
Accounts Receivable Factoring
12 Months Ended
Dec. 31, 2014
Accounts Receivable Factoring [Abstract]  
Accounts Receivable Factoring
Accounts Receivable Factoring
The Company's Italian subsidiary has agreements with unrelated third-parties for the factoring of specific accounts receivable in Italy in order to reduce the amount of working capital required to fund such receivables. At December 31, 2014, Tecnonet's factoring facility agreements permitted the factoring of up to €15.0 million, or $18.2 million, worth of receivables outside of the United States. The factoring of accounts receivable under these agreements is accounted for as a sale, as the Company has no retained interests or servicing liabilities related to the accounts receivable that have been sold in Italy.
As of December 31, 2014 and 2013, the face amount of total outstanding accounts receivables sold by the Company pursuant to these agreements was $10.5 million and $17.2 million, respectively. Receivables transferred to the factor are derecognized at the date of sale and the proceeds are recorded at fair value. Proceeds consist of a receivable due from the factor. Cash received from the factor is recorded as a reduction of the receivable due from the factor. The related outstanding balances due from the factor were $10.4 million and $7.7 million as of December 31, 2014 and 2013, respectively, and are included in other receivables on the accompanying balance sheets. The related losses on the sale were $0.2 million and $0.3 million for the years ended December 31, 2014 and 2013, respectively, and is included in interest expense on the accompanying Consolidated Statements of Operations.