Note 5 Accounts Receivable Sale Program

9 Months Ended

Jun. 30, 2018

Transfers and Servicing [Abstract]

Transfers and Servicing of Financial Assets [Text Block]

Accounts Receivable Sale Program

During the third quarter of 2018, the Company entered into an amended Revolving Master Receivable Purchase Agreement (the “RPA”) with certain third-party banking institutions for the sale of trade receivables generated from sales of the Company's U.S. entities to certain customers. A maximum of $455 million of sold receivables can be outstanding at any point in time under this program. Trade receivables sold pursuant to the RPA are serviced by the Company.

In addition to the RPA, the Company has the option to participate in trade receivables sales programs that have been implemented by certain of the Company's customers, as in effect from time to time. The Company does not service trade receivables sold under these other programs.

Under each of the programs noted above, the Company sells its entire interest in a trade receivable for 100% of face value, less a discount. For the nine months ended June 30, 2018 and July 1, 2017, the Company sold $558 million and $336 million, respectively, of accounts receivable under these programs. Upon sale, these receivables are removed from the condensed consolidated balance sheets and cash received is presented as cash provided by operating activities in the condensed consolidated statement of cash flows. Discounts on sold receivables were not material for any period presented. As of June 30, 2018 and September 30, 2017, $217 million and $140 million, respectively, of sold accounts receivable remained outstanding and had not yet been collected.