Receivables

12 Months Ended

Dec. 31, 2020

ReceivablesClient receivables represent recorded revenues that have either been billed, or for which we have an unconditional right to invoice and receive payment in the future. We periodically provide long-term financing options to creditworthy clients through extended payment terms. Generally, these extended payment terms provide for date-based payments over a fixed period, not to exceed the term of the overall arrangement. Thus, our portfolio of client contracts contains a financing component, which is recognized over time as a component of "Other income, net" in our consolidated statements of operations. We perform ongoing credit evaluations of our clients and generally do not require collateral from our clients.

A summary of net receivables is as follows:


(In thousands)	2020		2019

Client receivables	$	1,322,278	$	1,245,670
Less: Provision for expected credit losses	153,566		106,075

Total receivables, net	$	1,168,712	$	1,139,595

In addition to the client receivables presented above, at December 31, 2020 and December 28, 2019, we had $17 million and $47 million, respectively, of non-current net client receivables, which are presented in "Other assets" in our consolidated balance sheets.

A reconciliation of the beginning and ending amount of our provision for expected credit losses is as follows:


(In thousands)	Current		Non-current		Total

Provision for expected credit losses - balance at December 30, 2017	$	52,786	$	18,747	$	71,533
Additions charged to costs and expenses	25,529		45,320		70,849
Deductions, foreign currency and other	(13,754)		(218)		(13,972)

Provision for expected credit losses - balance at December 29, 2018	64,561		63,849		128,410
Additions charged to costs and expenses	57,167		—		57,167
Deductions, foreign currency and other	(15,653)		1,490		(14,163)

Provision for expected credit losses - balance at December 28, 2019	106,075		65,339		171,414
Cumulative effect of accounting change (ASU 2016-13)	4,606		—		4,606
Additions charged to costs and expenses	65,099		20,703		85,802
Deductions, foreign currency and other	(22,214)		(47,478)		(69,692)
					$	—
Provision for expected credit losses - balance at December 31, 2020	$	153,566	$	38,564	$	192,130

During 2020 and 2019, we received total client cash collections of $5.70 billion and $5.79 billion, respectively.

Expected Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides a new impairment model for certain financial assets that is based on expected losses rather than incurred losses. Such guidance impacts how we determine our allowance for estimated uncollectible client receivables. The standard requires use of the modified retrospective (cumulative effect) transition approach as of the beginning of the first reporting period in which the guidance was effective, which for the Company was the first quarter of 2020. Under this transition method, the cumulative effect from prior periods upon applying this new guidance was recognized in our consolidated balance sheets as of December 29, 2019. We did not recast comparative periods.

A summary of such cumulative effect adjustment is as follows:


(In thousands)	Increase/(Decrease)

Receivables, net	$	(4,606)
Retained earnings	(4,606)

The cumulative effect adjustment is the result of providing an allowance on unbilled client receivables, for which we have an unconditional right to invoice and receive payment in the future.

Our estimates of expected credit losses for client receivables at both December 29, 2019 and December 31, 2020, were primarily based on historical credit loss experience and adjustments for certain asset-specific risk characteristics (i.e.

known client financial hardship or bankruptcy). Exposure to credit losses may increase if our clients are adversely affected by changes in health care laws; reimbursement or payor models; economic pressures or uncertainty associated with local or global economic recessions; disruption associated with the COVID-19 pandemic; or other client-specific factors. Although we have historically not experienced significant credit losses, it is possible that there could be an adverse impact from potential adjustments to the carrying amount of client receivables as clients' cash flows are impacted by the COVID-19 pandemic and related economic uncertainty, which may be material.