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Revenue Recognition | 9 Months Ended
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Sep. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue The following table presents our disaggregated revenues by revenue source. We sell products within all product categories in each operating segment. For additional information on the disaggregated revenues by geographic regions, see Note 14 to the Consolidated Condensed Financial Statements.
|  | Three Months Ended September 30, |  |  |  | Nine Months Ended September 30, |  |
Millions of dollars |  | 2020 |  | 2019 |  | 2020 |  | 2019
Major product categories: |  |  |  |  |  |  |  |
Laundry |  | $ | 1,588 |  |  | $ | 1,576 |  |  | $ | 3,989 |  |  | $ | 4,531 |
Refrigeration |  | 1,701 |  |  | 1,673 |  |  | 4,368 |  |  | 4,694 |
Cooking |  | 1,159 |  |  | 1,183 |  |  | 3,011 |  |  | 3,289 |
Dishwashing |  | 509 |  |  | 414 |  |  | 1,320 |  |  | 1,169 |
Total major product category net sales |  | $ | 4,957 |  |  | $ | 4,846 |  |  | $ | 12,688 |  |  | $ | 13,683 |
Compressors(1) |  | — |  |  | — |  |  | — |  |  | 557 |
Spare parts and warranties |  | 247 |  |  | 227 |  |  | 681 |  |  | 749 |
Other |  | 87 |  |  | 18 |  |  | 289 |  |  | 48 |
Total net sales |  | $ | 5,291 |  |  | $ | 5,091 |  |  | $ | 13,658 |  |  | $ | 15,037 |
(1)Change in compressors compared to the prior year is due to the divestiture of the Embraco compressor business. The impact to revenue related to prior period performance obligations was not material for the three and nine months ended September 30, 2020. Allowance for Expected Credit Losses and Bad Debt Expense We estimate our expected credit losses primarily by using an aging methodology and establish customer-specific reserves for higher risk trade customers. Our expected credit losses are evaluated and controlled within each geographic region considering the unique credit risk specific to the country, marketplace and economic environment. We take into account past events, current conditions and reasonable and supportable forecasts in developing the reserve. The adoption of the new credit loss standard did not have a material impact on the Consolidated Condensed Financial Statements. The following table summarizes our allowance for doubtful accounts by operating segment for the nine months ended September 30, 2020.
Millions of dollars | December 31, 2019 | Charged to Earnings | Write-offs | Foreign Currency | September 30, 2020
North America | $ | 4 |  | $ | 5 |  | $ | — |  | $ | — |  | $ | 9 |
EMEA | 83 |  | 5 |  | (13) |  | — |  | 75 |
Latin America | 33 |  | 13 |  | (3) |  | (6) |  | 37 |
Asia | 12 |  | 11 |  | — |  | — |  | 23 |
Consolidated | $ | 132 |  | $ | 34 |  | $ | (16) |  | $ | (6) |  | $ | 144 |
We also have an allowance on certain financing receivables that are recorded in prepaid and other current assets and other noncurrent assets on our Consolidated Condensed Balance Sheets. The allowance at September 30, 2020 and December 31, 2019 was approximately $45 million and $48 million, respectively. The amount charged to earnings and write-offs for the nine months ended September 30, 2020 were not material.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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