Accounts Receivable and Allowance for Credit Losses Accounts Receivable and Allowance for Credit Loss (Notes)

6 Months Ended

Jul. 01, 2021

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

. Accounts Receivable and Allowance for Credit Losses

Accounts Receivable, net

Accounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. Unbilled receivables are reflected under contract assets on the balance sheet. See also Allowance for Credit Losses, below.

Accounts receivable, net consists of the following:


	July 1, 2021		December 31, 2020
Trade receivables	$	493.4	$	458.9
Other	28.9		31.1
Less: allowance for credit losses	(6.0)		(5.6)
Accounts receivable, net	$	516.3	$	484.4

The Company has agreements (through its subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances, predominantly with Boeing and Airbus, to third party financial institutions. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and they continue to allow the Company to monetize the receivables prior to their payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of the applicable customer’s financial condition. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being derecognized from the Company's balance sheet. For the six months ended July 1, 2021, $920.8 of accounts receivable from Boeing and Airbus were sold via these arrangements. The proceeds from these sales of receivables are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows. The recorded net loss on sale of receivables is $3.0 for the six months ended July 1, 2021 and is included in Other Income and Expense. See Note 21, Other (Expense) Income, Net.

Allowance for Credit Losses

During the six months ended July 1, 2021, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses (“CECL”) methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material.