ACCOUNTS RECEIVABLE, NET

6 Months Ended

Jun. 30, 2020

The Company is exposed to credit losses primarily through the sale of products and services to commercial customers, which are recorded as Trade receivables. We evaluate a customer’s ability to pay by assessing creditworthiness, historical experience and current conditions. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. We evaluate the reasonableness of the allowance for credit losses on a quarterly basis or when events and circumstances warrant. In addition to credit quality indicators, factors considered in our evaluation of collectability include the underlying value of any collateral or security interests, past due balances, historical losses, existing economic conditions, and country and political risk. In certain circumstances, we may require collateral or prepayment to mitigate credit risk.

We determine receivables are impaired when, based on historical experience, current information and events and a reasonable forecast period, we may be unable to collect amounts due according to the contractual terms of an agreement. Estimated credit losses are written off in the period in which an accounts receivable is determined to no longer be collectible.

Accounts receivable, net consisted of the following:


(dollars in millions)	June 30, 2020		December 31, 2019
Trade receivables	$	2,328	$	2,444
Receivables from affiliates	219		143

Other receivables	194		184
Accounts receivable	2,741		2,771
Less: Allowance for expected credit losses	(76)		(45)
Accounts receivable, net	$	2,665	$	2,726

The changes in the allowance for expected credit losses related to Accounts receivable, net are as follows:


(dollars in millions)
Balance as of January 1, 2020	$	45
Current period provision for expected credit losses	27
Write-offs charged against the allowance for expected credit losses	(1)
Other (including impact of adoption of ASU 2016-13)	5
Balance as of June 30, 2020	$	76