Sales of Accounts Receivable and Receivable Discount Program

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Sales of Accounts Receivable and Receivable Discount Program

3. Sales of Accounts Receivable and Receivable Discount Program

The Company is party to an agreement to sell selected trade accounts receivable to a financial institution from time to time since March 2012. After the sale, the Company does not retain any interest in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. There was no sale of accounts receivable for the nine months ended September 30, 2020. For the nine months ended September 30, 2019, the proceeds from the sales of these accounts receivable totaled $14,474 thousand and these sales resulted in pre-tax losses of $45 thousand, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net proceeds of this accounts receivable sale program are recognized in the consolidated statements of cash flows as part of operating cash flows.

The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables.