Allowance For Doubtful Accounts Disclosures

9 Months Ended

Oct. 01, 2022

Receivables [Abstract]

Allowance For Doubtful Accounts

ALLOWANCE FOR DOUBTFUL ACCOUNTSThe Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information. Collections and payments from customers are continuously monitored. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for doubtful accounts based on a combination of factors. The Company maintains an allowance for doubtful accounts, which is based upon historical experience, future expected losses, as well as specific customer collection issues that have been identified. The Company uses specific criteria to determine uncollectible receivables to be written off, including bankruptcy, accounts referred to outside parties for collection, and accounts past due over specified periods.

Activity in the allowance for doubtful accounts for both the 13 weeks ended October 1, 2022 and October 2, 2021 was de minimis. A summary of the activity in the allowance for doubtful accounts for the 39 weeks ended October 1, 2022 and October 2, 2021 was as follows:

	October 1, 2022		October 2, 2021
Balance as of beginning of year	$	33	$	67
Charged (benefit) to costs and expenses, net	3		(18)
Customer accounts written off—net of recoveries	(4)		(10)
Balance as of end of period	$	32	$	39

This table excludes the vendor receivable related allowance for doubtful accounts of $10 million and $7 million as of October 1, 2022 and January 1, 2022, respectively and $6 million and $5 million as of October 2, 2021 and January 2, 2021, respectively