Accounts Receivable Factoring Agreements

In the ordinary course of business, the Company may utilize accounts receivable factoring agreements with third-party financial institutions in order to accelerate its cash collections from product sales. In addition, these agreements provide the Company with the ability to limit credit exposure to potential bad debts, to better manage costs related to collections as well as to enable customers to extend their credit terms. These agreements involve the ownership transfer of eligible trade accounts receivable, without recourse or discount, to a third party financial institution in exchange for cash.

The Company accounts for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from Accounts receivable, net on the Consolidated Balance Sheet. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has surrendered control over the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. Amounts due from financial institutions are recorded with Other current assets in the Consolidated Balance Sheet.

The Company has a U.S. based program where certain U.S. based receivables are sold to an unrelated third-party financial institution. Under the current terms of the U.S. agreement, the maximum amount of outstanding advances at any one time is $20.0 million, which limitation is subject to change based on the level of eligible receivables, restrictions on concentrations of receivables and the historical performance of the receivables sold. In addition, the Company's subsidiaries in Mexico, Colombia, Spain and the Netherlands have entered into factoring agreements to sell certain receivables to an unrelated third-party financial institutions. Under the terms of the non-U.S. agreements, the maximum amount of outstanding advances at any one time is $54.4 million, which limitation is subject to change based on the level of eligible receivables, restrictions on concentrations of receivables and the historical performance of the receivables sold.

In connection with the acquisition of Fiberweb, the Company acquired an accounts receivable factoring agreement currently in use at a manufacturing location in France. Under the terms of the agreement, the maximum amount of outstanding advances at any one time is $8.3 million, which limitation is subject to change by the third-party financial institution based on the Company's needs. The Company determined that accounts receivable sold under this agreement qualify for sale treatment under ASC 860 as all of the appropriate criteria has been met as of the Acquisition Date.

The following is a summary of receivables sold to the third-party financial institutions that existed at the following balance sheet dates:



In thousands	December 28, 2013		December 29, 2012
Trade receivables sold to financial institutions	$	68,091	$	48,767
Net amounts advanced from financial institutions	60,216		41,937
Amounts due from financial institutions	$	7,875	$	6,830

The Company sold $414.0 million and $394.7 million of receivables under the terms of the factoring agreements during the fiscal years ended December 28, 2013 and December 29, 2012, respectively. The Netherlands, which entered into a factoring agreement in March 2012, contributed to the year-over-year increase in receivables sold. The Company pays a factoring fee associated with the sale of receivables based on the dollar of the receivables sold. Amounts incurred for the Successor was $1.2 million during the fiscal year ended December 28, 2013, $1.1 million for the fiscal year ended December 29, 2012, and $0.9 million for the eleven months ended December 31, 2011. The Predecessor incurred fees of $0.1 million for the one month ended January 28, 2011. These amounts are recorded within Foreign currency and other, net in the Consolidated Statements of Operations.