TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS

3 Months Ended

Oct. 01, 2016

Receivables [Abstract]

TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS

Trade Accounts Receivable Purchase Programs

Sale Programs

The Company utilizes an Account Purchase Agreement with Wells Fargo Bank, N.A. (“WFB”) which allows the Company to sell and assign to WFB and WFB may purchase from the Company the accounts receivable of certain Company customers in a maximum aggregate amount outstanding of $20.0 million. The initial term of the agreement is set to mature in June 2017 and there are successive 12 month renewal periods available. The Company also has an Account Purchase Agreement with Orbian Financial Services (“Orbian”). This agreement may be cancelled at any time by either party.

Total accounts receivables sold during the three months ended October 1, 2016 and September 26, 2015 was approximately $17.4 million and $13.6 million, respectively. Accounts receivables sold and not yet collected were $1.4 million and $1.7 million as of October 1, 2016 and July 2, 2016, respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows.