SALE OF ACCOUNTS RECEIVABLE |
9 Months Ended |
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Sep. 28, 2019 | |
| Receivables [Abstract] | |
| SALE OF ACCOUNTS RECEIVABLE | SALE OF ACCOUNTS RECEIVABLE
On April 1, 2019, the Company entered into an agreement with a financial institution to sell selected trade accounts receivable on a recurring, nonrecourse basis. Under this agreement, up to $377.5 million of the Company’s trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. The Company removes the sold balances from "accounts receivable" in its balance sheet at the time of sale. The Company does not retain any interests in the sold accounts receivable but continues to service and collect outstanding accounts receivable on behalf of the financial institution.
Prior to April 1, 2019, the Company had a separate agreement with VF, pursuant to which the Company’s trade accounts receivable were sold as part of VF’s agreement with a financial institution. Under this agreement, the Company did not retain any interests in the sold accounts receivable but continued to service and collect outstanding accounts receivable on behalf of VF. Prior to the Separation, the amount due from VF for these sales was separately reflected in the Company's balance sheets within "due from former parent." Refer to Note 16 to the Company's financial statements for additional information.
During the nine months ended September 2019 and 2018, the Company sold total trade accounts receivable of $758.0 million and $777.3 million, respectively. As of September 2019, $172.1 million of the sold accounts receivable had been removed from the Company's balance sheets but remained outstanding with the financial institution. As of December 2018 and September 2018, $544.9 million and $263.5 million, respectively, of the sold trade accounts receivable had been removed from "accounts receivable" and reflected in the Company's balance sheets within "due from former parent."
The funding fees charged by the financial institution for these programs are reflected in the Company's statements of income within "other expense, net" and were $1.2 million and $4.1 million for the three and nine months ended September 2019, respectively, and $1.2 million and $3.6 million for the three and nine months ended September 2018, respectively. Net proceeds of these programs are reflected as operating activities in the Company's statements of cash flows.
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