Receivables and Russian-Ukraine conflict related expenses

9 Months Ended

Apr. 02, 2022

Receivables and Russian-Ukraine conflict related expenses

Receivables and Russian-Ukraine conflict related expenses

2. Receivables and Russian-Ukraine conflict related expenses

The Company’s receivables and allowance for credit losses were as follows:

	April 2,		July 3,
	2022		2021
	(Thousands)
Receivables	$	4,279,564	$	3,664,290
Allowance for Credit Losses		(114,991)		(88,160)

The Company had the following activity in the allowance for credit losses during the first nine months of fiscal 2022 and 2021:

	April 2,		April 3,
	2022		2021
	(Thousands)
Balance at beginning of the period	$	88,160	$	65,018
Effect of adopting credit loss accounting standard		—		17,205
Credit Loss Provisions		21,746		7,370
Russian-Ukraine conflict Credit Loss Provisions		17,202		—
Credit Loss Recoveries		(300)		(192)
Receivables Write offs		(9,194)		(5,666)
Foreign Currency Effect and Other		(2,623)		2,054
Balance at end of the period	$	114,991	$	85,789

As a direct and incremental impact associated with the Russian invasion of Ukraine, the Company incurred $26.3 million of expense, primarily related to $17.2 million of credit loss provisions associated with accounts receivable from Russian customers that are no longer considered collectible. The remaining $9.1 million of expenses were related to product write downs and other costs associated with the wind-down of the Company’s business operations in Russia and Ukraine.