Trade Accounts Receivable Sale Programs

12 Months Ended

Sep. 28, 2019

Receivables [Abstract]

Trade Accounts Receivable Sale Programs

Trade Accounts Receivable Sale Programs

The Company has Master Accounts Receivable Purchase Agreements with MUFG Bank, New York Branch (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (the "MUFG RPA"), and HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA"), under which the Company may elect to sell receivables; at a discount. These facilities are uncommitted facilities. The MUFG RPA was amended in fiscal 2019 to increase the maximum facility amount from $260.0 million to $280.0 million. The maximum facility amount under the HSBC RPA as of September 28, 2019 is $60.0 million. The MUFG RPA is subject to expiration on December 13, 2019, but will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended. The terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA discussed above.

The Company sold receivables under a former trade accounts receivable sale program that expired during the first fiscal quarter of 2017.

Transfers of receivables under the programs are accounted for as sales and, accordingly, receivables sold under the programs are excluded from accounts receivable on the Consolidated Balance Sheets and are reflected as cash provided by operating activities on the Consolidated Statements of Cash Flows. Proceeds from the transfer reflect the face value of the receivables less a discount. The sale discount is recorded within "Miscellaneous, net" in the Consolidated Statements of Comprehensive Income in the period of the sale.

The Company sold $919.3 million, $712.9 million and $418.0 million of trade accounts receivable under these programs, or their predecessors, during fiscal years 2019, 2018 and 2017, respectively, in exchange for cash proceeds of $913.6 million, $708.6 million and $415.8 million, respectively.