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Supply Chain Financing
12 Months Ended
Dec. 31, 2014
Supply Chain Financing [Abstract]  
Supply Chain Financing
Supply Chain Financing
We had a supply chain financing arrangement with a financing party. Under this arrangement, we essentially assigned our rights to purchase needle coke from a supplier to the financing party. The financing party purchased the product from a supplier under the standard payment terms and then immediately resold it to us under longer payment terms. The financing party paid the supplier the purchase price for the product and then we paid the financing party. Our payment to the financing party for this needle coke included a mark-up (the “Mark-Up”). The Mark-Up was a premium expressed as a percentage of the purchase price. Based on the terms of the arrangement, the total amount that we owed to the financing party could not exceed $49.3 million at any point in time.
We recorded the inventory once title and risk of loss transfered from the supplier to the financing party. We recorded our liability to the financing party as an accrued liability. Our liability under this arrangement was $9.5 million as of December 31, 2013 and we recognized Mark-Up of $0.5 million as interest expense in the twelve months ended December 31, 2013. We did not utilize this arrangement during 2014.