Receivables, net

9 Months Ended

Dec. 28, 2019

Receivables, net, consist of (in millions):


	December 28, 2019		March 30, 2019
Trade receivables⁽¹⁾	$	404	$	459
Receivables due from licensees	31		23
	435		482
Less: allowances	(114)		(99)
	$	321	$	383

⁽¹⁾As of December 28, 2019 and March 30, 2019, $73 million and $317 million, respectively, of trade receivables were insured.

Receivables are presented net of allowances for discounts, markdowns, operational chargebacks and doubtful accounts. Discounts are based on open invoices where trade discounts have been extended to customers. Markdowns are based on wholesale customers’ sales performance, seasonal negotiations with customers, historical deduction trends and an evaluation of current market conditions. Operational chargebacks are based on deductions taken by customers, net of expected recoveries. Such provisions, and related recoveries, are reflected in revenues.

The Company’s allowance for doubtful accounts is determined through analysis of periodic aging of receivables that are not covered by insurance and assessments of collectability based on an evaluation of historic and anticipated trends, the financial condition of the Company’s customers and the impact of general economic conditions. The past due status of a receivable is based on its contractual terms. Amounts deemed uncollectible are written off against the allowance when it is probable the amounts will not be recovered. Allowance for doubtful accounts was $14 million and $18 million as of December 28, 2019 and March 30, 2019, respectively. The Company had bad debt expense of $3 million and $1 million for the nine months ended December 28, 2019 and December 29, 2018, respectively. All other periods presented were immaterial.