Allowance For Doubtful Accounts

6 Months Ended

Jun. 29, 2024

Receivables [Abstract]

Allowance For Doubtful Accounts

ALLOWANCE FOR DOUBTFUL ACCOUNTS

The 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.

A summary of the activity in the allowance for doubtful accounts for the 26 weeks ended June 29, 2024 and July 1, 2023 was as follows:

	June 29, 2024		July 1, 2023
Balance as of beginning of year	$	18	$	30
Charged to costs and expenses, net	15		16
Customer accounts written off—net of recoveries	(13)		(14)
Balance as of end of period	$	20	$	32

This table excludes the vendor receivable related allowance for doubtful accounts of $6 million as of June 29, 2024, $5 million as of December 30, 2023, $7 million as of July 1, 2023 and $8 million as of December 31, 2022, respectively.