Accounts Receivable Factoring

12 Months Ended

Dec. 31, 2019

As a part of its working capital management, the Company previously sold certain receivables through third-party financial institutions in on- and off-balance sheet arrangements. In December 2017, the Company completed the transition from multiple factoring providers to a pan-European program under a single third party financial institution (the “Factor”). The amount sold varies each month based on the amount of underlying receivables and cash flow needs of the Company. These are permitted transactions under the Company’s credit agreements governing the ABL Facility and Term Loan Facility and the indenture governing the Senior Notes. Costs incurred on the sale of receivables are recorded in other expense, net in the consolidated statements of net income. Liabilities related to the factoring program are recorded in accrued liabilities in the consolidated balance sheet. The sale of receivables under this contract is considered an off-balance sheet arrangement to the Company and is accounted for as a true sale and excluded from accounts receivable in the consolidated balance sheet.

Amounts outstanding under receivable transfer agreements entered into by various locations as of the period end were as follows:



	December 31, 2019		December 31, 2018
Off-balance sheet arrangements	$	103,818	$	100,409

Accounts receivable factored and related costs throughout the period were as follows:



	Off-Balance Sheet Arrangements
	Year Ended December 31,
	2019		2018
Accounts receivable factored	$	556,102	$	626,618



	Off-Balance Sheet Arrangements						On-Balance Sheet Arrangements
	Year Ended December 31,						Year Ended December 31,
	2019		2018		2017		2019		2018		2017
Costs	$	1,007	$	1,248	$	1,904	$	—	$	—	$	99

The Company continues to service sold receivables and acts as collection agent for the Factor. As of December 31, 2019 and 2018, cash collections on behalf of the Factor that had yet to be remitted were $21,485 and $14,542, respectively, and are reflected in cash and cash equivalents in the consolidated balance sheet.