Accounts Receivable, net

9 Months Ended

Sep. 30, 2012

Accounts Receivable, net [Abstract]

Accounts Receivable, net

Note 3: Accounts Receivable, net Our accounts receivables, net, consists of the following:

	September 30, 2012			December 31, 2011
	(In Thousands)
Trade receivables	$	90,765		$	87,303
Insurance claims		20,000			—
Other		944			1,003
		111,709			88,306
Allowance for doubtful accounts		(710	)		(955	)
	$	110,999		$	87,351

During August 2012, El Dorado Chemical Company (“EDC”) entered into an agreement with Bank of America, N.A. (the “Bank”) to sell our accounts receivables generated from product sales to a certain customer. We agreed to enter into this agreement as a courtesy to this customer. The initial term of this agreement is for one year, with renewal options, but either party has an option to terminate the agreement pursuant to the terms of the agreement. In addition, we amended our sales agreement with the customer to offer extended payment terms under the condition that they pay an extended payment terms premium equal to the discount taken by the Bank when the accounts receivables are sold. Thus, there is no gain or loss from the sale of these receivables to the Bank. We have no continuing involvement or risks associated with the transferred accounts receivable. Pursuant to the terms of the agreement, EDC is to receive payment from the Bank no later than one business day after the Bank’s acceptance of EDC’s offer to sell the accounts receivables. As of September 30, 2012, EDC has been paid by the Bank for the accounts receivables sold to the Bank. We account for these transfers as sales under ASC 860 – Transfers and Servicing.