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Receivables, Allowance for Credit Losses and Credit Quality of Receivables | 6 Months Ended
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Jun. 30, 2021
Receivables [Abstract] |
Receivables, Allowance for Credit Losses and Credit Quality of Receivables | Receivables, Allowance for Credit Losses and Credit Quality of Receivables Receivables The following table summarizes the components of current and long-term receivables, net:
| As of
| June 30, 2021 |  | December 31, 2020
Current: |  |  |
Receivables | $ | 703 |  |  | $ | 697 |
Allowance for credit losses | (67) |  |  | (81) |
Current receivables, net | 636 |  |  | 616 |
Long-term: |  |  |
Receivables | 22 |  |  | 25 |
Allowance for credit losses | (2) |  |  | (5) |
Long-term receivables, net | 20 |  |  | 20 |
Total receivables, net | $ | 656 |  |  | $ | 636 |
Allowance for Credit Losses We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following summarizes geographical delinquencies of total receivables, net:
| As of
| June 30, 2021 |  | Balances over 90 days past due |  | December 31, 2020 |  | Balances over 90 days past due
Receivables: |  |  |  |  |  |  |
U.S. and Canada | $ | 478 |  |  | $ | 81 |  |  | $ | 443 |  |  | $ | 88 |
International | 247 |  |  | 60 |  |  | 279 |  |  | 52 |
Total receivables | 725 |  |  | 141 |  |  | 722 |  |  | 140 |
Receivables allowance: |  |  |  |  |  |  |
U.S. and Canada | (26) |  |  | (11) |  |  | (43) |  |  | (26) |
International | (43) |  |  | (24) |  |  | (43) |  |  | (24) |
Total receivables allowance | (69) |  |  | (35) |  |  | (86) |  |  | (50) |
Receivables, net | $ | 656 |  |  | $ | 106 |  |  | $ | 636 |  |  | $ | 90 |
Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote. The activity in our allowance for receivable credit losses for each of the three and six months ended June 30, 2021 and 2020 is as follows:
| 2021 |  | 2020
| Total |  | U.S. and Canada |  | International |  | Total
Beginning allowance for credit losses(1) | $ | (86) |  |  | $ | (43) |  |  | $ | (43) |  |  | $ | (42) |
Provision | — |  |  | — |  |  | — |  |  | (28) |
Charge-offs and recoveries | 2 |  |  | 1 |  |  | 1 |  |  | — |
Allowance for credit losses as of March 31 | (84) |  |  | (42) |  |  | (42) |  |  | (70) |
Provision | (2) |  |  | (1) |  |  | (1) |  |  | (12) |
Charge-offs | 17 |  |  | 17 |  |  | — |  |  | — |
Allowance for credit losses as of June 30 | $ | (69) |  |  | $ | (26) |  |  | $ | (43) |  |  | $ | (82) |
(1) Reflects $6 million related to implementation of ASC 326 for the 2020 beginning balance.
At June 30, 2021, 16% of our total receivables, net, were past due by over 90 days compared to 14% at December 31, 2020. Credit Quality of Receivables We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables:
| As of June 30, 2021 |  |
| Total |  |  |  | Current or Not Yet Due |  | Balances Over 90 days Past Due |  |  |  |  |  |
Receivables | 119 |  |  |  |  | $ | 45 |  |  | $ | 74 |  |  |  |  |  |  |
Allowance for credit losses | (52) |  |  |  |  | (19) |  |  | (33) |  |  |  |  |  |  |
Receivables, net | $ | 67 |  |  |  |  | $ | 26 |  |  | $ | 41 |  |  |  |  |  |  |
We increased our allowance for credit losses by $12 million and $40 million for the three and six months ended June 30, 2020, respectively. These increases were primarily related to Gaming customers in LATAM (which transact with both domestic and international subsidiaries) as those customers were particularly affected by COVID-19 closures of gaming operations establishments with COVID-related closures lasting longer than in other geographic regions. We did not have material credit losses during the first half of 2021. We continuously review receivables and as information concerning credit quality arise, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however future expectations could change as the ultimate impact of the COVID-19 disruption remains uncertain, particularly as to the financial stability of our customers during and after the COVID-19 disruption period. The fair value of receivables is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of June 30, 2021 and December 31, 2020, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.

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