Supply Chain Finance Program

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

The Company has an agreement with a third-party financial institution to facilitate a supply chain finance program (“SCF program”), which allows qualifying suppliers to sell their receivables from the Company to the financial institution. The participating suppliers negotiate their outstanding receivable arrangements and associated fees directly with the financial institution, and the Company is not party to those agreements. Once a qualifying supplier elects to participate in the SCF program and reaches an agreement with the financial institution, the supplier elects which individual Company invoices it sells to the financial institution. The supplier invoices that have been confirmed as valid under the SCF program require payment in full by the financial institution to the supplier by the original maturity date of the invoice, or discounted payment at an earlier date as agreed upon with the supplier. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a supplier’s participation in the SCF program.

All outstanding amounts related to suppliers participating in the SCF program are recorded in accounts payable, trade in the consolidated balance sheets, and associated payments are included in operating activities in the consolidated statements of cash flows. The Company’s outstanding confirmed obligations included in accounts payable, trade in the consolidated balance sheets were $52.2 million as of December 31, 2024 and $55.1 million as of December 31, 2023.

The following table is a rollforward of the Company’s outstanding obligations confirmed as valid under its SCF program for 2024 and 2023:


	Fiscal Year
(in thousands)	2024		2023
Confirmed obligations outstanding at the beginning of the year	$	55,105	$	44,174
Invoices confirmed during the year	230,346		221,231
Confirmed invoices paid during the year	(233,284)		(210,300)
Confirmed obligations outstanding at the end of the year	$	52,167	$	55,105