Annual report pursuant to Section 13 and 15(d)

ACCOUNTS RECEIVABLE

v3.20.1
ACCOUNTS RECEIVABLE
 12 Months Ended
Dec. 28, 2019
Receivables [Abstract]  
ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLE
(In thousands)
 
December 2019
 
 
December 2018
Trade
 
$
230,588

 
 
$
253,047

Royalty and other
 
9,723

 
 
10,468

Total accounts receivable
 
240,311

 
 
263,515

Less: allowance for doubtful accounts
 
(11,852
)
 
 
(10,549
)
Accounts receivable, net
 
$
228,459

 
 
$
252,966


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 sheet within "due from former parent." Refer to Note 22 to the Company's financial statements for additional information.
During 2019, 2018 and 2017, the Company sold total trade accounts receivable of $1,035.4 million, $1,057.0 million and $1,101.1 million, respectively. As of December 2019, $188.1 million of the sold trade accounts receivable had been removed from the Company's balance sheet but remained outstanding with the financial institution. As of December 2018, $544.9 million of the sold trade accounts receivable had been removed from "accounts receivable" and reflected in the Company's balance sheet 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 $5.3 million, $5.1 million and $3.6 million in 2019, 2018 and 2017, respectively. Net proceeds of these programs are reflected as operating activities in the Company's statements of cash flows.