If you're adjusting debt for a company and they have a securitized A/R facility that is non-recourse to the borrower, this implies that the investors are responsible for losses on bad debt/non-collection, right? In this case, would you exclude the A/R facility from debt since the company isn't on the hook?
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If you include all associated costs of the facility in your free cash flow, you dont include it in your WACC nor in your bridge and the other way around.
What about for the purposes of calculating an adjusted leverage ratio (e.g. take debt outstanding + capitalized operating leases + pension underfunding)?
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