Account Receivable Factoring

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Account Receivable Factoring

Accounts Receivable Factoring

The Company's wholly-owned subsidiaries Plasticos Novel Do Nordeste S.A. and Plasticos Novel Do Parana S.A. (collectively, "Novel") entered into a factoring agreement to sell, without recourse, certain of their Brazilian real-based trade accounts receivables to an unrelated third party financial institution as part of its working capital management. The sale of these receivables accelerated the collection of cash and reduced credit exposure. Under the terms of the factoring agreement, the Company retains no rights or interest and has no obligations with respect to the sold receivables. As such, the factoring of trade receivables under this agreement is accounted for as a sale. The Company accounts for its trade receivable factoring program as required under ASC 860, Transfers and Servicing. During the quarter ended September 30, 2015, $3.9 million of trade accounts receivables had been sold under the terms of the factoring agreement for cash proceeds of $3.7 million. During the quarter ended September 30, 2014, $8.1 million of trade accounts receivables had been sold under the terms of the factoring agreement for cash proceeds of $7.9 million. The receivables sold pursuant to the factoring agreement have been recorded as a reduction of trade accounts receivable and as cash provided by operating activities in the Condensed Consolidated Statement of Cash Flows (Unaudited). The Company pays an administrative fee based on the dollar value of the receivables sold. Administrative fees related to the program for both periods ended September 30, 2015 and September 30, 2014 were approximately $0.2 million and are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Income (Unaudited).