Company: ICUI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000883984-25-000007
Chunk: 383

Company: ICU MEDICAL INC/DE
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 383
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 have payment terms ranging between 30 and 60 days, and are related to customer accounts with good credit history. The transfer of the purchased accounts receivable under the agreement is intended to be an absolute and irrevocable transfer constituting a true sale as the transferred receivables have been isolated beyond the reach of the Company and our creditors, even in bankruptcy or other receivership. We do not retain effective control over the sold receivables and BMO has the right upon purchase to pledge and/or exchange the transferred assets without restrictions. The Company acts as collection agent for BMO and collection services are undertaken by our accounts receivable personnel in their normal course of business and collected funds are remitted to BMO. We do not have any continuing involvement with the sold receivables other than the collection services which does not provide us with more than a trivial benefit. The discount rate has been negotiated net of consideration for the collection services, the cost of collection is immaterial to the Company; therefore, we did not separately record any related servicing assets or liabilities related to the sold receivables.The following table presents information in connection with the purchase program (in thousands):Year Ended December 31,20242023Trade receivables sold(1)$435,438 $629,065 Cash received in exchange for trade receivables sold(2)432,803 625,341 Loss on sale of receivables(3)2,635 3,724 _______________________________(1)    Represents carrying value of trade receivables sold to BMO.(2)    Cash proceeds received from BMO.(3)    Reflected in other expense, net in our condensed consolidated statement of operations.As of December 31, 2024, we are not actively utilizing the program and there are no outstanding balances to be collected on behalf of BMO. At December 31, 2023, cash remaining to be collected on behalf of BMO was $75.9 million which has been removed from our consolidated balance sheet as of December 31, 2023, and is reflected as cash provided by operating activities in the consolidated statement of cash flows in the same period. There were no such balances at December 31, 2022. The carrying value of the sold receivables approximated the fair value at December 31, 2023.

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