Accounts Receivable Factoring

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Accounts Receivable Factoring

Accounts Receivable Factoring

The Company 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. As of June 30, 2013, the Company's credit facility agreements permit the factoring of up to €23.0 million, or $29.5 million, worth of receivables in operations outside of the United States. The factoring of accounts receivable under these agreements is accounted for as a sale in accordance with ASC 860 Transfers and Servicing. Proceeds on the transfer reflect the face value of the account less a discount. The discount is recorded as a charge in "interest" in the consolidated statement of income in the period of the sale. Net funds received reduced accounts receivable outstanding while increasing cash. The Company has no significant retained interests or servicing liabilities related to the accounts receivable that have been sold in Italy.

At June 30, 2013, and December 31, 2012, the face amount of total outstanding accounts receivable pursuant to these agreements was $26.3 million and $29.5 million, respectively. The related outstanding balances due from the factor were $14.4 million and $13.3 million as of June 30, 2013 and December 31, 2012, respectively. The related losses on sale were $0.1 million and $0.1 million for the three months ended June 30, 2013 and June 30, 2012, and $0.1 million and $0.1 million for the six months ended June 30, 2013 and June 30, 2012.