The Company sells its accounts receivable to a nonconsolidated multi-seller securitization vehicle and receives proceeds that consist of cash and a beneficial interest in the transferred receivables (which the Company classified as an available-for-sale security). The Company uses securitization as a financing technique (e.g., to reduce more expensive bank debt the interest cost on the securitization financing is less than the Company could get on its own bank debt). The Company services, administers, and collects the receivables on behalf of the purchaser. The agreement includes certain covenants and provides for various events of termination. The agreement also requires that the Company use the proceeds from securitization to pay down debt. During the current year, the Company sold $11 million of receivables under the agreement that it generated from sales of inventory. Assume that the sale of receivables qualifies for derecognition under ASC 860, Transfers and Servicing (formerly FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, as amended by Statement 166); therefore, the Company did not report sold receivables are in the accounts receivable balance on the Companys balance sheet