TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS

3 Months Ended

Sep. 29, 2018

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 $25.0 million. This agreement may be cancelled at any time by either party. The Company also has an Account Purchase Agreement with Orbian Financial Services (“Orbian”). This agreement allows the Company to sell accounts receivable of certain customers to Orbian and the agreement may be cancelled at any time by either party.

Total accounts receivables sold during the three months ended September 29, 2018 and September 30, 2017 was approximately $22.2 million and $28.0 million, respectively. Accounts receivables sold and not yet collected were $2.0 million and $2.0 million as of September 29, 2018 and June 30, 2018, 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. Cash receipts related to the deferred purchase price from receivables factored by the Company is reflected as cash provided by investing activities.