Company: MATV
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001000623-25-000009
Chunk: 122

Company: Mativ Holdings, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 122
---
 necessarily indicative of consolidated results of continuing operations of the combined business had the Merger occurred as of January 1, 2022 (in millions):Year Ended December 31,2022Net sales$2,238.0 Net loss$(13.6)

Note 6. Accounts Receivable, Net

Accounts receivable, net is summarized as follows (in millions):Years Ended December 31,20242023Trade receivables$132.2 $147.2 Business tax credits, including VAT10.0 10.2 Hedge contracts receivable7.4 2.6 Other receivables16.1 19.7 Less allowance for credit losses(3.3)(3.2)Total accounts receivable, net$162.4 $176.5 The following is the activity related to the allowance for credit losses (in millions):Years Ended December 31, 202420232022Beginning balance$3.2 $2.0 $0.8 Bad debt expense0.8 1.0 1.6 Recoveries(0.5)— (0.1)Write-offs and discounts(0.3)0.2 (0.3)Currency translation0.1 — — Ending balance$3.3 $3.2 $2.0 Transfer of ReceivablesOn December 23, 2022, the Company entered into an accounts receivable sales agreement (the “Receivables Sales Agreement”) to sell certain trade receivables arising from revenue transactions of the Company's U.S. subsidiaries on a revolving basis. The maximum funding commitment of the Receivables Sales Agreement is $175.0 million. The agreement has an initial term of 3 years and can be renewed. Upon entry into the Receivables Sales Agreement, the Company sold $126.0 million of trade receivables. In connection with the Receivables Sales Agreement, the Company formed a separate bankruptcy-remote special purpose entity (“SPE”), which is a wholly owned and controlled subsidiary. The Company continuously transfers receivables to the SPE and the SPE transfers ownership and control of certain receivables that meet certain qualifying conditions to a third-party financial institution in exchange for cash. Certain receivables are held by the SPE and are pledged to secure the collectability of the sold receivables. 

72

MATIV HOLDINGS, INC. AND SUBS