Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 91

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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ables and cash flow needs of the Company. These are permitted transactions under the Company’s credit agreements governing the ABL Facility and the indentures governing the First Lien Notes, Third Lien Notes, and 2026 Secured Notes. The European factoring facility allows the Company to factor up to €75,000 of its Euro-denominated accounts receivable, accelerating access to cash and reducing credit risk. The factoring facility expires on December 31, 2026.

15

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(Unaudited)(Dollar amounts in thousands except per share and share amounts)

Costs incurred on the sale of receivables are recorded in other expense, net in the condensed consolidated statements of operations. The sale of receivables under this contract is considered an off-balance sheet arrangement to the Company and is accounted for as a true sale and is excluded from accounts receivable in the condensed consolidated balance sheets.Amounts outstanding under the European factoring facility as of September 30, 2025 and December 31, 2024 were as follows:September 30, 2025December 31, 2024Off-balance sheet arrangements$63,126 $53,377 Accounts receivable factored and related costs associated with the European factoring facility were as follows:Off-Balance Sheet ArrangementsThree Months Ended September 30,Nine Months Ended September 30,2025202420252024Accounts receivable factored$109,388 $122,449 $378,021 $367,736 Costs472 696 1,729 2,116 As of September 30, 2025 and December 31, 2024, cash collections on behalf of the Factor that have yet to be remitted were $4,691 and $838, respectively, and are reflected in other current assets as restricted cash in the condensed consolidated balance sheets.

8. Fair Value Measurements and Financial Instruments

Fair Value MeasurementsFair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based upon assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy is utilized, which prioritizes the inputs used in measuring fair value as follows:Level 1: