Sales of Accounts Receivable

9 Months Ended

Sep. 26, 2020

Receivables [Abstract]

Sales of Accounts Receivable

3. Sales of Accounts Receivable

We have entered several customer sponsored programs administered by unrelated financial institutions that permit us to sell certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable and the related accounts receivable were removed from our Condensed Consolidated Balance Sheet at the times of the sales transactions. Pursuant to these agreements, we sold $568.3 million and $530.7 million of accounts receivable during the nine months ended September 26, 2020 and September 28, 2019, respectively. All credit terms with our customers are 365 days or less. If receivables had not been sold over the previous twelve months, $489.5 million and $437.9 million of additional accounts receivable would have been outstanding at September 26, 2020 and December 28, 2019, respectively, based on our standard payment terms. Financing costs associated with these accounts receivable sales programs were $1.3 million and $4.3 million during the three months ended September 26, 2020 and September 28, 2019, respectively. Financing costs associated with these accounts receivable sales programs were $10.9 million and $13.6 million during the nine months ended September 26, 2020 and September 28, 2019, respectively. These costs were classified as selling, general and administrative expense in the Condensed Consolidated Statements of Operations.