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

9 Months Ended

Sep. 30, 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:


	September 30, 2021		December 31, 2020
Trade receivables	$	475.0	$	458.9
Other	59.2		31.1
Less: allowance for credit losses	(6.6)		(5.6)
Accounts receivable, net	$	527.6	$	484.4

Other receivables as of September 30, 2021 in the table above includes an amount related to the Department of Transportation’s approval of the Company’s grant claim filed under the Aviation Manufacturing Jobs Protection Program, a component of the American Rescue Plan Act of 2021. As of September 30, 2021, the Company has received payment for $37.8 of the total amount approved of $75.5. The remaining $37.7, recorded in Other receivables above, is to be received through the term of the agreement, which expires in March of 2022. The full amount of the award, less an insignificant amount amortized against Cost of sales on the Condensed Consolidated Statements of Operations in the three and nine-month period ended September 30, 2021, is recorded on the Condensed Consolidated Balance Sheets line item Deferred revenue and other deferred credits, short-term.

The Company has agreements (through its subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances, predominantly with Boeing, Airbus Group SE and its affiliates (collectively, “Airbus”), and Rolls-Royce PLC and its affiliates (collectively, 'Rolls-Royce") 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 nine months ended September 30, 2021, $1,487.7 of accounts receivable from Boeing, Airbus, and Rolls-Royce 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 $4.8 for the nine months ended September 30, 2021 and is included in other income (expense), net on the Condensed Consolidated Statements of Operations. See Note 21, Other (Expense) Income, Net.

Allowance for Credit Losses

During the nine months ended September 30, 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 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.