Receivables

3 Months Ended

Apr. 03, 2020

Receivables [Abstract]

Receivables

Note G — Receivables

Receivables are summarized below:

	April 3, 2020			January 3, 2020
	(In millions)
Accounts receivable	$	1,312		$	1,228
Less allowance for credit losses	(34		)	(12		)
	$	1,278		$	1,216

In the quarter ended April 3, 2020, we recorded a $10 million charge to our provision for doubtful accounts at our Aviation Systems business segment to reflect an increase in expected credit losses associated with the COVID-19-related downturn in the Commercial Aviation Solutions sector and its impact on customer operations.

We have a receivables sale agreement (“RSA”) with a third-party financial institution that permits us to sell, on a non-recourse basis, up to $100 million of outstanding receivables at any given time. From time to time, we have sold certain customer receivables under the RSA, which we continue to service and collect on behalf of the third-party financial institution and which we account for as sales of receivables with sale proceeds included in net cash from operating activities. Outstanding accounts receivable sold pursuant to the RSA were not material at April 3, 2020 or January 3, 2020.