Trade and other receivables

12 Months Ended

Dec. 31, 2018

Trade and other receivables

Trade and other receivables

6.  TRADE AND OTHER RECEIVABLES

Trade and other receivables, net consisted of the following:

	Year ended December 31,
	2018		2017
U.S. government receivables:
Billed	$	96	$	63
Unbilled		60		34
		156		97
Other governments and commercial receivables:
Billed		146		213
Unbilled		112		125
		258		338
Total trade receivables		414		435
Orbital receivables, current portion		34		30
Other		17		21
Allowance for doubtful accounts		(1)		(10)
Total trade and other receivables, net	$	464	$	476

Orbital receivables relate to performance incentives due under certain satellite construction contracts that are paid over the in-orbit life of the satellite. As of December 31, 2018 and 2017, long-term orbital receivables were $407 million and $424 million, respectively and are included in Non-current assets on the Consolidated Balance Sheets. Orbital receivables are recognized as revenue when measuring progress under the cost-to-cost method during the construction period and are discounted to present value using discount rates ranging from 6% - 10% for the years ended December 31, 2018 and 2017. During the year ended December 31, 2018, the Company recognized a $22 million impairment to the Company’s Space Systems segment’s long-term orbital receivables, which is included in Impairment losses, net in the Company’s Consolidated Statements of Operations.

The expected timing of total contractual cash flows, including principal and interest payments for orbital receivables is as follows:

	2019		2020		2021		2022		2023		Thereafter		Total
Contractual cash flows from satellites	$	50	$	67	$	68	$	72	$	72	$	413	$	742

During 2018 the Company sold orbital receivables for net proceeds of $18 million. These orbital receivables were purchased in tranches that span multiple years and include longer-term maturities. The orbital receivables that were securitized remain recognized on the consolidated balance sheets as the Company did not meet the accounting criteria for surrendering control of the receivables. The net proceeds received have been recognized as a securitization liability and are subsequently measured at amortized cost using the effective interest rate method. The securitized orbital receivables and the securitization liabilities are being drawn down as payments are received from the customers and passed on to the purchaser of the tranche. The Company continues to recognize orbital interest revenue on the orbital receivables that are subject to the securitization transactions and recognizes interest expense to accrete the securitization. The amount of securitization liabilities was $109 million and $106 million at December 31, 2018 and 2017, respectively, of which $15 million and $16 million, respectively, was included in Other current liabilities on the Consolidated Balance Sheets.