Trade Accounts Receivable

12 Months Ended

Dec. 31, 2022

Allowances for Trade Accounts Receivable

The changes in the Company’s allowance for doubtful accounts and allowance for chargebacks and other deductions are as follows:


	Allowance for Doubtful Accounts		Allowance for Chargebacks and Other Deductions		Total
Balance at December 28, 2019	$	16,277	$	10,213	$	26,490
Charged to expenses	31,661		14,631		46,292
Deductions, write-offs and adjustments	(14,986)		(9,864)		(24,850)
Currency translation	651		162		813
Balance at January 2, 2021	$	33,603	$	15,142	$	48,745
Charged to expenses	2,279		24,501		26,780
Deductions, write-offs and adjustments	2,663		(15,245)		(12,582)
Currency translation	(707)		(288)		(995)
Balance at January 1, 2022	$	37,838	$	24,110	$	61,948
Charged to expenses	6,721		20,432		27,153
Deductions, write-offs and adjustments	(19,753)		(16,180)		(35,933)
Currency translation	(658)		(487)		(1,145)
Balance at December 31, 2022	$	24,148	$	27,875	$	52,023

Charges to the allowance for doubtful accounts are reflected in the “Selling, general and administrative expenses” line and charges to the allowance for customer chargebacks and other customer deductions are primarily reflected as a reduction in the “Net sales” line in the Consolidated Statements of Income. Deductions and write-offs, which do not increase or decrease income, represent write-offs of previously reserved accounts receivable and allowed customer chargebacks and deductions against gross accounts receivable.

Sales of Accounts Receivable

The Company has entered into agreements to sell selected trade accounts receivable to financial institutions based on programs offered by certain of the Company’s largest customers as well as programs sponsored by the Company. As a result of the strong credit worthiness of these customers, the discount taken on most of these programs is less than the marginal borrowing rate on the Company’s variable rate credit facilities. In all agreements, after the sale, the Company does not retain any beneficial interests in the receivables. The applicable financial institution services and collects the accounts receivable directly from the customer for programs offered by the Company’s customers. For programs sponsored by the Company, the Company maintains continued involvement as the servicer to collect the accounts receivable from the customer and remit payment to the financial institution. Net proceeds of these accounts receivable sale programs are recognized in the Consolidated Statements of Cash Flows as part of operating cash flows.

The Company recognized total funding fees of $8,823, $3,312 and $4,932 in 2022, 2021 and 2020, respectively, for sales of accounts receivable to financial institutions in the “Other expenses” line in the Consolidated Statements of Income.