Accounts Receivable

12 Months Ended

Dec. 31, 2017

We had accounts receivable of $2.7 billion and $2.3 billion, net of an allowance for bad debt of $27.8 million and $24.9 million, as of December 31, 2017 and 2016, respectively. Accounts receivable are written-off when it becomes apparent based upon customer circumstances that such amounts will not be collected.

We have Receivables Purchase Agreements (“RPAs”) with Wells Fargo and Citibank, that allows for the sale of our accounts receivable, in an amount equal to either 90% or 100%, depending on the customer, of total balance, less a discount margin equivalent to LIBOR plus 1% to 3% and certain other fees, as applicable. Receivables sold under the RPAs are excluded from accounts receivable, net on the accompanying consolidated balance sheet. Under the terms of the RPAs, we retain a beneficial interest in certain of the sold accounts receivable of 10%, which is included in accounts receivable, net in the accompanying consolidated balance sheet. Fees and interest paid under the RPAs is recorded within "Interest expense and other financing costs, net" in the Consolidated Statements of Comprehensive Income.

We had sold accounts receivable of $377.3 million and $235.5 million under the RPAs, as of December 31, 2017 and 2016, respectively. In addition, we have a $15.9 million and $11.4 million retained beneficial interest in the transferred receivables as of December 31, 2017 and 2016, respectively. The fees and interest paid under the RPA were $12.4 million, $4.8 million, and $2.8 million, for 2017, 2016 and 2015, respectively. Under the RPAs, we sold $6.1 billion and $3.0 billion of accounts receivable during 2017 and 2016, respectively and collected $5.9 billion and $2.9 billion of accounts receivables during 2017 and 2016, respectively.

The following table sets forth activities in our allowance for bad debt (in millions):



	2017			2016			2015
Balance as of beginning of period	$	24.9		$	25.0		$	25.7
Charges to provision for bad debt	9.3			15.4			7.5
Write-off of uncollectible accounts receivable	(8.7		)	(15.9		)	(8.3		)
Recoveries of bad debt	2.0			0.3			0.5
Translation Adjustments	0.3			0.2			(0.4		)
Balance as of end of period	$	27.8		$	24.9		$	25.0

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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