XML 33 R22.htm IDEA: XBRL DOCUMENT

Financial Statement Information Receivables (Policies)

6 Months Ended

Jun. 30, 2021

During the three and six months ended June 30, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Cost of goods sold	$	219	$	469	$	363	$	469
Selling, general and administrative expenses	5,393		32,174		14,238		32,174
Total government assistance	$	5,612	$	32,643	$	14,601	$	32,643

For the six months ended June 30, 2021 and 2020, we received grants from European governments of $11 million and $28 million, respectively, with the remaining amounts related to Canada.

Financial assistance received from governments is recorded during the period in which we incur the costs that the assistance is intended to offset (and only if it is probable that we will meet the conditions required under the terms of the assistance).

Equity Method Investments [Policy Text Block]

Investments in Unconsolidated Subsidiaries

Our investment in unconsolidated subsidiaries was $168 million and $155 million as of June 30, 2021 and December 31, 2020, respectively.

Europe Segment

Our investment in unconsolidated subsidiaries in Europe was $147 million and $137 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $3 million and $9 million during the three and six months ended June 30, 2021, respectively, and equity in losses of an immaterial amount and equity in earnings of $1 million during the three and six months ended June 30, 2020, respectively, mainly related to our investment in Mekonomen AB ("Mekonomen").

We are accounting for our 26.6% equity interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of June 30, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $7 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of our acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag.

Mekonomen announced in March 2020 and February 2021, respectively, that the Mekonomen Board of Directors proposed no dividend payment in 2020 or 2021. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2021 was $245 million (using the Mekonomen share price of SEK 141 as of June 30, 2021) compared to a carrying value of $137 million.

North America Segment

Our investment in unconsolidated subsidiaries in the North America segment was $21 million and $19 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of an immaterial amount for each of the three and six months ended June 30, 2021, and equity in losses of $3 million during both the three and six months ended June 30, 2020, related to our North America equity method investments.

Receivable

Allowance for Credit Losses

Receivables, net are reported net of an allowance for credit losses. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the

amount of customer receivables that may not be collected in the future and records a provision it believes is appropriate. Our reserve for expected lifetime credit losses was $69 million and $70 million as of June 30, 2021 and December 31, 2020, respectively. Bad debt expense totaled $1 million and $14 million for the three months ended June 30, 2021 and 2020, respectively, and $4 million and $24 million for the six months ended June 30, 2021 and 2020, respectively.