Receivables

Receivables consist of accounts receivable and the current portion of amounts due under sales-type leases. Accounts receivable primarily represent recorded revenues that have been billed. Billings and other consideration received on contracts in excess of related revenues recognized are recorded as deferred revenue. Substantially all receivables are derived from sales and related support and maintenance and professional services of our clinical, administrative and financial information systems and solutions to health care providers.

We perform ongoing credit evaluations of our clients and generally do not require collateral from our clients. We provide an allowance for estimated uncollectible accounts based on specific identification, historical experience and our judgment.

A summary of net receivables is as follows:



(In thousands)	2016		2015

Gross accounts receivable	$	958,843	$	1,043,069
Less: Allowance for doubtful accounts	43,028		48,119

Accounts receivable, net of allowance	915,815		994,950

Current portion of lease receivables	29,128		39,134

Total receivables, net	$	944,943	$	1,034,084

A reconciliation of the beginning and ending amount of our allowance for doubtful accounts is as follows:



(in thousands)	2016			2015			2014

Allowance for doubtful accounts - beginning balance	$	48,119		$	25,531		$	36,286
Additions charged to costs and expenses	5,060			2,317			5,274
Additions through acquisitions	—			34,159			—
Deductions^(a)	(10,151		)	(13,888		)	(16,029		)

Allowance for doubtful accounts - ending balance	$	43,028		$	48,119		$	25,531

^(a)Deductions in 2014 include a $14 million reclassification to other non-current assets.

Lease receivables represent our net investment in sales-type leases resulting from the sale of certain health care devices to our clients. The components of our net investment in sales-type leases are as follows:



(In thousands)	2016		2015

Minimum lease payments receivable	$	59,171	$	101,968
Less: Unearned income	2,253		5,593

Total lease receivables	56,918		96,375

Less: Long-term receivables included in other assets	27,790		57,241

Current portion of lease receivables	$	29,128	$	39,134

Future minimum lease payments to be received under existing sales-type leases for the next five years are as follows:



(In thousands)

2017	$	30,180
2018	14,155
2019	10,343
2020	3,983
2021	510

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 continue to be 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 final resolution of disputes between Fujitsu and the NHS regarding the contract termination. As of December 31, 2016, it remains unlikely that our matter with Fujitsu 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 at the end of 2016 and 2015. 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. Nevertheless, it is reasonably possible that our estimates regarding collectability of such amounts might materially change in the near term, considering that we do not have complete knowledge of the status of the proceedings between Fujitsu and NHS and their effect on our claim.

During 2016 and 2015, we received total client cash collections of $5.2 billion and $4.4 billion, respectively.