Receivables (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for doubtful trade receivables

The following table displays a roll forward of the allowance for doubtful trade receivables.


(in Millions)
Balance, December 31, 2021	$	37.4
Additions - charged to expense	0.7
Transfer from (to) allowance for credit losses (see below)	0.5
Net recoveries, write-offs and other	(4.7)
Balance, December 31, 2022	$	33.9
Additions - charged to expense	0.3
Transfer from (to) allowance for credit losses (see below)	(1.7)
Net recoveries, write-offs and other	0.3
Balance, March 31, 2023	$	32.8

Schedule of allowance for credit losses rollforward

The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables:


(in Millions)
Balance, December 31, 2021	$	27.7
Additions - charged (credited) to expense	(1.2)
Transfer from (to) allowance for doubtful accounts (see above)	(0.5)
Foreign currency adjustments	8.1
Net recoveries, write-offs and other	10.4
Balance, December 31, 2022	$	44.5
Additions - charged (credited) to expense	(0.8)
Transfer from (to) allowance for doubtful accounts (see above)	1.7
Foreign currency adjustments	—

Balance, March 31, 2023	$	45.4

Receivables Securitization Facility:

FMC entered into a trade receivables securitization program, primarily impacting our Brazilian operations during the third quarter of 2022. On a revolving basis, FMC may sell certain trade receivables into the facility in exchange for cash. A portion of the total receivables sold are deferred as an asset on our condensed consolidated balance sheets representing FMC’s beneficial interest in the securitization fund.

In all instances, the transferred financial assets are sold on a non-recourse basis and have met the true sale criteria under ASC Topic 860. FMC has surrendered control of the receivables and as a result they will no longer be recognized on the condensed consolidated balance sheets. FMC may be engaged to serve as a special servicer for any delinquent receivables. In that capacity, we are entitled to market rate compensation for those services.

Cash receipts from the sale of trade receivables under the securitization arrangement, received at the time of sale, are classified as cash flows from operating activities. There were no sales under the securitization program during the three months ended March 31, 2023.

Other Receivable Factoring:

In addition to the above, we may sell trade receivables on a non-recourse basis to third-party financial institutions. These sales are normally driven by specific market conditions, including, but not limited to, foreign exchange environments, customer credit management, as well as other factors where the receivables may lay.

We account for these transactions as true sales and as a result they will no longer be recognized on the condensed consolidated balance sheets because the agreements transfer effective control and risk related to the receivables to the buyers. The net cash proceeds received are presented within cash provided by operating activities within our condensed consolidated statements of cash flows. The cost of factoring these accounts receivables is recorded as an expense within the condensed consolidated statements of income (loss) and has been inconsequential during each reporting period. There was no non-recourse factoring during the three months ended March 31, 2023 and March 31, 2022.