Accounts Receivable Factoring and Other Receivables

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Accounts Receivable Factoring and Other Receivables

Accounts Receivable Factoring

From time to time, we participate in factoring arrangements to sell accounts receivable to third-party financial institutions. In the nine months ended September 30, 2019, we sold accounts receivable of $199 million and recognized a loss of $1 million on these sales. We received cash proceeds totaling $186 million. In the nine months ended September 30, 2018, we sold accounts receivable of $284 million and recognized a loss of $2 million. We received cash proceeds totaling $278 million. Our factoring transactions in the nine months ended September 30, 2019 and 2018 were recognized as sales, and the proceeds are included as operating cash flows in our Condensed Consolidated Statements of Cash Flows.

Our accounts receivable factoring arrangements are subject to limitations as result of entering into the DIP Credit Agreement and Credit Agreement Forbearance Agreement, where (a) net cash proceeds from U.S. and Canadian entities will pay down the DIP Credit Agreement and (b) net cash proceeds from other countries up to $75 million in a calendar quarter can be retained for the Company (with any excess to prepay the DIP Credit Agreement). This factoring limitation began in the third quarter of 2019.