XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Accounts Receivable | 6 Months Ended
--- | ---
Jun. 30, 2021
Receivables [Abstract] |
Accounts Receivable | 2. Accounts Receivable Accounts receivable and allowance for credit losses When we extend credit on an unsecured basis, our exposure to credit losses depends on the financial condition of our customers and other macroeconomic factors beyond our control, such as global economic conditions or adverse impacts in the industries we serve, changes in oil prices and political instability. We actively monitor and manage our credit exposure and work to respond to both changes in our customers’ financial conditions or macroeconomic events. Based on the ongoing credit evaluations of our customers, we adjust credit limits based upon payment history and our customers' current creditworthiness. However, because we extend credit on an unsecured basis to most of our customers, there is a possibility that any accounts receivable not collected may ultimately need to be written off. We had accounts receivable of $1.8 billion and $1.2 billion and an allowance for expected credit losses, primarily related to accounts receivable, of $39.8 million and $57.3 million, as of June 30, 2021 and December 31, 2020, respectively. Changes to the expected credit loss provision during the six months ended June 30, 2021 include global economic outlook considerations as a result of the Company’s assessment of reasonable and supportable forward-looking information, including the expected overall impact of the ongoing pandemic and global recovery, primarily in the aviation segment. Write-offs of uncollectible receivables during the six months ended June 30, 2021 resulted from negative impacts of the pandemic combined with pre-existing financial difficulties experienced by certain customers. Based on an aging analysis as of June 30, 2021, 96% of our net accounts receivable were outstanding less than 60 days. The following table sets forth activities in our allowance for expected credit losses (in millions):
| 2021 |  | 2020
Balance as of January 1, | $ | 57.3 |  |  | $ | 46.6 |
Charges to allowance for credit losses | 2.4 |  |  | 34.6 |
Write-off of uncollectible receivables | (21.2) |  |  | (32.9) |
Recoveries of credit losses | 1.1 |  |  | 0.4 |
Translation adjustments | 0.1 |  |  | (0.1) |
Balance as of June 30, | $ | 39.8 |  |  | $ | 48.6 |
Receivable sales programs We have receivables purchase agreements (“RPAs”) with Wells Fargo Bank, N.A. and Citibank, N.A. that allow for the sale of our accounts receivable in an amount up to 100% of our outstanding qualifying balances in exchange for cash consideration equal to the total balance, less a discount margin equal to LIBOR plus 1.00% to 3.25%, depending on the outstanding accounts receivable at any given time and assuming maximum utilization of the RPA facilities. Accounts receivable sold under the RPAs are accounted for as sales and excluded from Accounts receivable, net of allowance for credit losses on the accompanying Condensed Consolidated Balance Sheets. Fees paid under the RPAs are recorded within Interest expense and other financing costs, net on the Condensed Consolidated Statements of Income and Comprehensive Income. During the six months ended June 30, 2021 and 2020, we sold receivables under the RPAs with an aggregate face value of $4.3 billion and $2.2 billion, respectively, and paid fees of $9.4 million and $5.5 million, respectively.

X
- 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration