Receivables

9 Months Ended

Sep. 29, 2012

Receivables [Abstract]

Receivables

Receivables

A summary of net receivables is as follows:

(In thousands)	September 29, 2012		December 31, 2011
Gross accounts receivable	$	490,972	$	496,706
Less: Allowance for doubtful accounts	34,491		24,270
Accounts receivable, net of allowance	456,481		472,436
Contracts receivable	60,888		81,776
Current portion of lease receivables	25,046		8,997
Total receivables, net	$	542,415	$	563,209

During the second quarter of 2008, Fujitsu Services Limited’s (Fujitsu) contract as the prime contractor in the National Health Service (NHS) initiative to automate clinical processes and digitize medical records in the Southern region of England was terminated by the NHS. This had the effect of automatically terminating our subcontract for the project. We are in dispute with Fujitsu regarding Fujitsu’s obligation to pay the amounts comprised of accounts receivable and contracts receivable related to that subcontract, and we are working with Fujitsu to resolve these issues based on processes provided for in the contract. Part of that process requires resolution of disputes between Fujitsu and the NHS regarding the contract termination. As of September 29, 2012, it remains unlikely that the matter will be resolved in the next 12 months. Therefore, these receivables have been classified as long-term and represent less than the majority of other long-term assets as of the quarter ended September 29, 2012. While the ultimate collectability of the receivables pursuant to this process is uncertain, we believe that we have valid and equitable grounds for recovery of such amounts and that collection of recorded amounts is probable.

During the first nine months of 2012 and 2011, we received total client cash collections of $2.0 billion and $1.6 billion, respectively, of which $56.2 million and $53.4 million were received from third party arrangements with non-recourse payment assignments.