Company: THS
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001320695-25-000107
Chunk: 44

Company: TreeHouse Foods, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 Statements of Operations.

4. RECEIVABLES SALES PROGRAM  The Company has entered into an agreement to sell certain trade accounts receivable to an unrelated, third-party financial institution at a discount (collectively, the "Receivables Sales Program"). The agreement can be terminated by either party with 60 days' notice. The Receivables Sales Program is used by the Company to manage liquidity in a cost-effective manner. The Company has no retained interest in the receivables sold under the Receivables Sales Program; however, under the agreement, the Company does have collection and administrative responsibilities for the sold receivables. Under the Receivables Sales Program, the current operating limit of outstanding accounts receivables sold at any time is $397.5 million.The following table includes the outstanding amount of accounts receivable sold under the Receivables Sales Program and the receivables collected from customers and not remitted to the financial institution that is included within outstanding accounts receivables sold:September 30, 2025December 31, 2024 (In millions)Outstanding accounts receivable sold$221.7 $375.0 Receivables collected and not remitted to financial institution181.1 237.7 Receivables sold under the Receivables Sales Program are derecognized from the Company's Condensed Consolidated Balance Sheets at the time of the sale and the proceeds from such sales are reflected as a component of the change in receivables in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The receivables collected and not remitted to the financial institution are included in Accounts payable in the Condensed Consolidated Balance Sheets.The following table summarizes the cash flows of the Company's accounts receivable associated with the Receivables Sales Program:Nine Months Ended September 30,20252024 (In millions)Receivables sold$855.3 $891.6 Receivables collected and remitted to financial institution(1,008.6)(993.9)The loss on sale of receivables represents the discount taken by the third-party financial institution and was $1.5 million and $2.7 million for the three months ended September 30, 2025 and 2024, respectively, and $5.7 million and $6.6 million for the nine months ended September 30, 2025 and 2024, respectively, and is included in Other (