CAPITAL CONSTRUCTION FUND

9 Months Ended

Sep. 30, 2014

CAPITAL CONSTRUCTION FUND

CAPITAL CONSTRUCTION FUND

3.CAPITAL CONSTRUCTION FUND

During the three-months ended September 30, 2014, the Company made an additional deposit of $65.5 million to its Capital Construction Fund (“CCF”), comprising a cash deposit of $27.5 million and the assignment of an additional $38.0 million of undivided interest in eligible accounts receivable.  The cash deposit of $27.5 million is included in other long-term assets, while the accounts receivable that have been assigned to the CCF continue to be classified as accounts receivable in the Condensed Consolidated Balance Sheets.  As of September 30, 2014 and December 31, 2013, the Company had assigned to the CCF $150.5 million and $112.0 million of eligible accounts receivable, respectively.  In addition, cash on deposit in the CCF was $27.5 million at September 30, 2014.  There was no cash on deposit in the CCF at December 31, 2013.

The CCF is described in Note 7 to the consolidated financial statements included in Item 8 of the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2013.