Receivables, net

3 Months Ended

Jun. 27, 2020

Receivables, net, consist of (in millions):


	June 27, 2020		March 28, 2020
Trade receivables⁽¹⁾	$	263	$	432
Receivables due from licensees	21		14
	284		446
Less: allowances	(101)		(138)
	$	183	$	308

⁽¹⁾As of June 27, 2020 and March 28, 2020, $56 million and $80 million, respectively, of trade receivables were insured.

Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues.

The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowance for doubtful accounts was $31 million and $39 million as of June 27, 2020 and March 28, 2020, respectively, including the impact related to COVID-19. The Company had a credit loss of $(6) million for the three months ended June 27, 2020. All other periods presented were immaterial.