Receivables

Sale of Receivables Programs

Arconic has an arrangement with three financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables is completed through the use of a bankruptcy remote special purpose entity, which is a consolidated subsidiary of Arconic. This arrangement provides for minimum funding of $200 up to a maximum of $400 for receivables sold. On March 30, 2012, Arconic initially sold $304 of customer receivables in exchange for $50 in cash and $254 of deferred purchase program under this arrangement. Arconic has received additional net cash funding of $300 for receivables sold ($2,358 in draws and $2,058 in repayments) since the program’s inception, including $0 ($600 in draws and $600 in repayments) in 2017 and $100 ($500 in draws and $400 in repayments) in 2016.

As of December 31, 2017 and 2016, the deferred purchase program receivable was $187 and $83, respectively, which was included in Other receivables on the accompanying Consolidated Balance Sheet. The deferred purchase program receivable is reduced as collections of the underlying receivables occur; however, as this is a revolving program, the sale of new receivables will result in an increase in the deferred purchase program receivable. The net change in the deferred purchase program receivable was reflected in the (Increase) decrease in receivables line item on the accompanying Statement of Consolidated Cash Flows. This activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant, short-term interest rate risk. See Note A for additional information on new accounting guidance that will affect the Company during 2018.

In 2017 and 2016, the gross cash outflows and inflows associated with the deferred purchase program receivable were $5,471 and $5,367, respectively, and $5,340 and $5,406, respectively. The gross amount of receivables sold and total cash collected under this program since its inception was $35,409 and $34,872 respectively. Arconic services the customer receivables for the financial institutions at market rates; therefore, no servicing asset or liability was recorded.

Allowance for Doubtful Accounts

The following table details the changes in the allowance for doubtful accounts related to customer receivables and other receivables:



	Customer receivables									Other receivables
December 31,	2017			2016			2015			2017			2016			2015
Balance at beginning of year	$	13		$	8		$	6		$	32		$	34		$	24
Provision for doubtful accounts	1			7			4			9			6			8
Write off of uncollectible accounts	(5		)	(3		)	(2		)	(1		)	(1		)	2
Recoveries of prior write-offs	—			(1		)	—			(3		)	1			(1		)
Other	(1		)	2			—			(3		)	(8		)	1
Balance at end of year	$	8		$	13		$	8		$	34		$	32		$	34