Accounts Receivable, Net

12 Months Ended

Dec. 31, 2022

Accounts receivable, net is summarized as follows (in millions):


	December 31,
	2022		2021
Trade receivables	$	219.0	$	208.9
Business tax credits, including VAT	14.3		7.8
Hedge contracts receivable	3.6		0.4
Other receivables	32.3		22.3
Less allowance for doubtful accounts and sales discounts	(2.4)		(1.4)
Total accounts receivable, net	$	266.8	$	238.0

The following is the activity related to the allowance for doubtful accounts (in millions):


	Years Ended December 31,
	2022		2021		2020
Beginning balance	$	1.4	$	1.1	$	1.5

Bad debt expense	1.7		0.3		1.0
Recoveries	(0.1)		(0.1)		—
Write-offs and discounts	(0.6)		0.1		(1.4)

Ending balance	$	2.4	$	1.4	$	1.1

Transfer of Receivables

The Company participates in uncommitted trade accounts receivable sales programs ("Reverse Receivables Programs") under which certain trade receivables are sold, without recourse, to a third-party financial institution in exchange for cash. The Company does not retain any interest in or continuing involvement with the invoices after they are sold. The invoices are sold at face value, less a transaction fee.

On December 23, 2022, the Company entered into an accounts receivable sales agreement (the “Receivables Sales Agreement”) to sell certain trade receivables arising from revenue transactions of the Company's U.S. subsidiaries on a revolving basis. The maximum funding commitment of the Receivables Sales Agreement is $175.0 million. The agreement has an initial term of three years and can be renewed. Upon entry into the Receivables Sales Agreement, the Company sold $139.3 million of trade receivables.

In connection with the Receivables Sales Agreement, the Company formed a separate bankruptcy-remote special purpose entity (“SPE”), which is a wholly owned and controlled subsidiary. The Company continuously transfers receivables to the SPE and the SPE transfers ownership and control of certain receivables that met certain qualifying conditions to a third-party financial institution in exchange for cash. Certain receivables are held by the SPE and are pledged to secure the collectability of the sold receivables. The amount of receivables pledged as collateral as of December 31, 2022 was $94.2 million. The SPE incurs fees due to the third-party financial institution related to accounts receivable sales transactions.

The Company has continuing involvement with the receivables transferred by the SPE to the third-party financial institution by providing collection services.

The Company accounts for transactions under the Reverse Receivables Programs and Receivables Sales Agreement as sales of financial assets, with the associated receivables derecognized from the Company’s Consolidated Balance Sheets. Total fees related to the Reverse Receivables Programs and Receivables Sales Agreement are considered to be a loss on the sale of financial assets and were immaterial for the year ended December 31, 2022. Continuous cash activity related to the Reverse Receivables Programs and Receivables Sales Agreement is reflected in cash from operating activities in the Consolidated Statement of Cash Flows.

The following table summarizes the activity under the Reverse Receivables Programs and Receivables Sales Agreement (in millions):


	Year ended
	December 31, 2022
Trade accounts receivable sold to financial institutions	$	244.3
Cash proceeds from financial institutions	242.7

There were no material trade accounts receivable sales for the year ended December 31, 2021.

The Company accounts for transactions under the Reverse Receivables Programs and Receivables Sales Agreement as sales of financial assets, with the associated receivables derecognized from the Company’s Consolidated Balance Sheets. Total fees related to the Reverse Receivables Programs and Receivables Sales Agreement are recorded within Other income (expense), net in the Consolidated Statements of Income (Loss). Continuous cash activity related to the Reverse Receivables Programs and Receivables Sales Agreement is reflected in cash from operating activities in the Consolidated Statement of Cash Flows.