Trade and other receivables

12 Months Ended

Dec. 31, 2019

Trade and other receivables

Trade and other receivables

6.  TRADE AND OTHER RECEIVABLES

	December 31,		December 31,
	2019		2018
U.S. government receivables:
Billed	$	88	$	96
Unbilled		46		60
		134		156
Other governments and commercial receivables:
Billed		123		99
Unbilled		54		59
		177		158
Total trade receivables		311		314
Orbital receivables, current portion		43		34
Other		4		3
Allowance for doubtful accounts		(1)		(1)
Trade and other receivables, net	$	357	$	350

Orbital receivables are recognized as revenue when measuring progress under the cost-to-cost method during the construction period and were discounted to present value using discount rates ranging from 6% - 10% for the years ended December 31, 2019 and 2018. The Company has orbital receivables from 14 customers and the largest customer represents 27% of the orbital receivables. During the years ended December 31, 2019 and December 31, 2018, the Company recognized orbital impairments of $14 million and $22 million, respectively, primarily due to a decrease in customer credit ratings.

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

	2020		2021		2022		2023		2024		Thereafter		Total
Contractual cash flows from satellites	$	65	$	69	$	73	$	74	$	72	$	370	$	723

During the year ended December 31, 2019, the Company did not sell any eligible orbital receivables and repurchased $24 million of specifically identified orbital receivables. The orbital receivables were repurchased as a result of its customer transferring the obligation to another entity which did not meet the credit criteria of its lenders. During the year ended December 31, 2018, the Company sold orbital receivables for net proceeds of $18 million and did not repurchase any receivables. These sold 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 liability. The amount of securitization liabilities was $65 million and $109 million at December 31, 2019 and 2018, respectively, of which $17 million and $15 million, respectively, was included in Other current liabilities on the Consolidated Balance Sheets. Non-current securitization liabilities of $48

million and $94 million are included in Other non-current liabilities on the Consolidated Balance Sheets at December 31, 2019 and 2018, respectively.