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Financing and Trade Receivables (Tables) | 9 Months Ended
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Sep. 29, 2023
Credit Loss [Abstract] |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
($ in millions) | September 29, 2023 |  | December 31, 2022
Gross current financing receivables: |  |  |
PSAs | $ | 98.3 |  |  | $ | 96.6 |
Franchisee Notes | 21.7 |  |  | 18.4 |
Current financing receivables, gross | $ | 120.0 |  |  | $ | 115.0 |
Allowance for credit losses: |  |  |
PSAs | $ | 13.8 |  |  | $ | 13.1 |
Franchisee Notes | 7.0 |  |  | 6.5 |
Total allowance for credit losses | $ | 20.8 |  |  | $ | 19.6 |
Net current financing receivables: |  |  |
PSAs, net | $ | 84.5 |  |  | $ | 83.5 |
Franchisee Notes, net | 14.7 |  |  | 11.9 |
Total current financing receivables, net | $ | 99.2 |  |  | $ | 95.4 |
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:
($ in millions) | September 29, 2023 |  | December 31, 2022
Gross long-term financing receivables: |  |  |
PSAs | $ | 240.2 |  |  | $ | 224.0 |
Franchisee Notes | 64.3 |  |  | 63.5 |
Long-term financing receivables, gross | $ | 304.5 |  |  | $ | 287.5 |
Allowance for credit losses: |  |  |
PSAs | $ | 27.5 |  |  | $ | 32.4 |
Franchisee Notes | 5.0 |  |  | 5.3 |
Total allowance for credit losses | $ | 32.5 |  |  | $ | 37.7 |
Net long-term financing receivables: |  |  |
PSAs, net | $ | 212.7 |  |  | $ | 191.6 |
Franchisee Notes, net | 59.3 |  |  | 58.2 |
Total long-term financing receivables, net | $ | 272.0 |  |  | $ | 249.8 |
Financing Receivable Credit Quality Indicators | The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the nine months ended September 29, 2023, is as follows:
($ in millions) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total
PSAs |  |  |  |  |  |  |  |  |  |  |  |  |
Credit Score: |  |  |  |  |  |  |  |  |  |  |  |  |
Less than 400 | $ | 13.6 |  |  | $ | 8.5 |  |  | $ | 4.5 |  |  | $ | 2.1 |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | 29.5 |
400-599 | 22.0 |  |  | 15.0 |  |  | 7.6 |  |  | 3.9 |  |  | 1.4 |  |  | 0.2 |  |  | 50.1 |
600-799 | 47.0 |  |  | 30.1 |  |  | 16.6 |  |  | 7.9 |  |  | 2.5 |  |  | 0.6 |  |  | 104.7 |
800+ | 75.5 |  |  | 45.1 |  |  | 20.8 |  |  | 9.7 |  |  | 2.7 |  |  | 0.4 |  |  | 154.2 |
Total PSAs | $ | 158.1 |  |  | $ | 98.7 |  |  | $ | 49.5 |  |  | $ | 23.6 |  |  | $ | 7.4 |  |  | $ | 1.2 |  |  | $ | 338.5 |
Franchisee Notes |  |  |  |  |  |  |  |  |  |  |  |  |
Active distributors | $ | 17.6 |  |  | $ | 19.4 |  |  | $ | 15.2 |  |  | $ | 7.9 |  |  | $ | 5.6 |  |  | $ | 6.7 |  |  | $ | 72.4 |
Separated distributors | 0.1 |  |  | 0.9 |  |  | 3.1 |  |  | 2.5 |  |  | 2.2 |  |  | 4.8 |  |  | 13.6 |
Total Franchisee Notes | $ | 17.7 |  |  | $ | 20.3 |  |  | $ | 18.3 |  |  | $ | 10.4 |  |  | $ | 7.8 |  |  | $ | 11.5 |  |  | $ | 86.0 |
Current Period Gross Write-offs |  |  |  |  |  |  |  |  |  |  |  |  |
PSAs | $ | 0.9 |  |  | $ | 11.2 |  |  | $ | 8.3 |  |  | $ | 4.6 |  |  | $ | 2.0 |  |  | $ | 1.1 |  |  | $ | 28.1 |
Franchisee Notes | — |  |  | 0.7 |  |  | 0.8 |  |  | 0.3 |  |  | 0.4 |  |  | 0.2 |  |  | 2.4 |
Total current period gross write-offs | $ | 0.9 |  |  | $ | 11.9 |  |  | $ | 9.1 |  |  | $ | 4.9 |  |  | $ | 2.4 |  |  | $ | 1.3 |  |  | $ | 30.5 |
Financing Receivable, Past Due | PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
($ in millions) |  | 30-59 days past due |  | 60-90 days past due |  | Greater than 90 days past due |  | Total past due |  | Total not considered past due |  | Total |  | Greater than 90 days past due and accruing interest
September 29, 2023 |  | $ | 3.5 |  |  | $ | 1.8 |  |  | $ | 6.8 |  |  | $ | 12.1 |  |  | $ | 326.4 |  |  | $ | 338.5 |  |  | $ | 6.8 |
December 31, 2022 |  | 3.6 |  |  | 1.8 |  |  | 6.9 |  |  | 12.3 |  |  | 308.3 |  |  | 320.6 |  |  | 6.9 |
Financing Receivable, Allowance for Credit Loss | The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
| September 29, 2023
($ in millions) | PSAs |  | Franchisee Notes |  | Total
Allowance for credit losses, beginning of year | $ | 45.5 |  |  | $ | 11.8 |  |  | $ | 57.3 |
Provision for credit losses | 22.2 |  |  | 2.3 |  |  | 24.5 |
Write-offs | (28.1) |  |  | (2.4) |  |  | (30.5) |
Recoveries of amounts previously charged off | 1.7 |  |  | 0.3 |  |  | 2.0 |
Allowance for credit losses, end of period | $ | 41.3 |  |  | $ | 12.0 |  |  | $ | 53.3 |
Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:
($ in millions) | September 29, 2023 |  |  |  |
Cost basis of trade accounts receivable | $ | 438.3 |  |  |  |  |
Allowance for credit losses balance, beginning of year | 14.6 |  |  |  |  |
Provision for credit losses | 4.2 |  |  |  |  |
Write-offs | (4.8) |  |  |  |  |
Foreign currency and other | (0.4) |  |  |  |  |
Allowance for credit losses balance, end of period | 13.6 |  |  |  |  |
Net trade accounts receivable balance | $ | 424.7 |  |  |  |  |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-29 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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