Receivables, net

9 Months Ended

Dec. 26, 2020

Receivables, net, consist of (in millions):


	December 26, 2020		March 28, 2020
Trade receivables (1)	$	398	$	432
Receivables due from licensees	32		14
	430		446
Less: allowances	(61)		(138)
	$	369	$	308

(1)As of December 26, 2020 and March 28, 2020, $75 million and $80 million, respectively, of trade receivables were insured.

Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and credit losses. 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 credit losses is determined through analysis of periodic aging of receivables and assessments of collectibility 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 credit losses was $29 million and $39 million as of December 26, 2020 and March 28, 2020, respectively, including the impact related to COVID-19. The Company had a credit loss of $(3) million and $(5) million, respectively, for the three and nine months ended December 26, 2020. The Company had bad debt expense of $0 million and $3 million for the three and nine months ended December 28, 2019, respectively.