The Company’s Wireless segment has entered into various agreements, agreement with recourse, to sell certain receivables to unrelated -party financial institutions. For the agreement with recourse, the Company is responsible for collecting payments on the sold receivables from its customers. Under this agreement, the -party financial institution advances the Company of the sold receivables and establishes a reserve of of the sold receivables until the Company collects the sold receivables. As the Company collects the sold receivables, the -party financial institution will remit the remaining to the Company. At the -party financial institution has a reserve against the sold receivables of million, which is reflected as restricted cash. For the receivables sold under the agreement with recourse, the agreement addresses events and conditions which obligate the Company to immediately repay the institution the outstanding purchase price of the receivables sold. The total amount of receivables uncollected by the institution was million at for which there is a limit of million. Although the sale of receivables is with recourse, the Company did record a recourse obligation at as the Company concluded that the sold receivables are collectible. The other agreements without recourse are under programs offered by certain customers in the Wireless segment.

 

For the months ended the Company received proceeds from the sold receivables under all of the various agreements of million and included the proceeds in net cash provided by operating activities in the Consolidated Condensed Statements of Cash Flows. The cost of selling these receivables ranges from to The Company recorded costs of million for the months ended in other expense in the Consolidated Condensed Statements of Operations.

 

The Company accounts for these transactions in accordance with ASC “Transfers and Servicing” (“ASC ). ASC allows for the ownership transfer of accounts receivable to qualify for sale treatment when the appropriate criteria is met, which permits the Company to present the balances sold under the program to be excluded from accounts receivable, net on the consolidated condensed balance sheets. Receivables are considered sold when they are transferred beyond the reach of the Company and its creditors, the purchaser has the right to pledge or exchange the receivables and the Company has surrendered control over the transferred receivables.