Accounts Receivable, net

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Accounts Receivable, net

Note 3: Accounts Receivable, net

Our accounts receivables, net, consists of the following:

	March 31,			December 31,
	2014			2013
	(In Thousands)
Trade receivables	$	89,755		$	77,899
Insurance claims		—			1,865
Other		1,414			1,633
		91,169			81,397
Allowance for doubtful accounts		(559	)		(827	)
	$	90,610		$	80,570

One of our subsidiaries, El Dorado Chemical Company (“EDC”), is a party to 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 term of this agreement matures in August 2014, 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 March 31, 2014, 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.