XML 28 R13.htm IDEA: XBRL DOCUMENT v3.6.0.2
Accounts Receivable Factoring
12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Accounts Receivable Factoring
Accounts Receivable Factoring and Other Receivables

From time to time, we participate in factoring arrangements to sell accounts receivable to third-party financial institutions. In 2016, we sold accounts receivables of $156 million, received cash totaling $154 million and recognized a loss of $0.7 million. In 2015, we sold accounts receivables of $78 million, received cash totaling $77 million and recognized a loss of $0.2 million. Our factoring transactions were recognized as sales, and the proceeds are included as operating cash flows in our Consolidated Statements of Cash Flows. We did not sell any accounts receivable during 2014.

During the second quarter of 2016, we accepted a note with a face value of $120 million from PDVSA in exchange for $120 million in net trade receivables. The note had a three year term at a 6.5% stated interest rate. We carried the note at lower of cost or fair value and recognized a loss in the second quarter of 2016 of $84 million to adjust the note to fair value. In the fourth quarter of 2016, we sold the economic rights in the note receivable for $44 million and recognized a gain of $8 million.