Financing Receivables and Allowance for Credit Losses

9 Months Ended

Jun. 27, 2014

Financing Receivables and Allowance for Credit Losses

4. Financing Receivables and Allowance for Credit Losses

A financing receivable represents a financing arrangement with a contractual right to receive money, on demand or on fixed or determinable dates, and that is recognized as an asset on the Company’s Condensed Consolidated Balance Sheets.

The Company’s financing receivables, consisting of its accounts receivable with contractual maturities of more than one year, and the related allowance for doubtful accounts are presented in the following table:

	June 27,			September 27,
(In millions)	2014			2013
Accounts receivable with contractual maturities of more than one year:
Gross amount	$	41.3		$	28.0
Allowance for doubtful accounts		(3.0	)		(3.0	)
Net amount	$	38.3		$	25.0
Amount past due	$	3.5		$	3.1

During the three and nine months ended June 27, 2014, the Company sold without recourse $8.3 million and $11.3 million, respectively, of accounts receivable with contractual maturities of more than one year. During the three months ended June 28, 2013, no accounts receivable with contractual maturities of more than one year were sold. During the nine months ended June 28, 2013, the Company sold without recourse $1.1 million of accounts receivable with contractual maturities of more than one year.