Receivables, Loans, Notes Receivable, and Others

3 Months Ended

Mar. 31, 2021

Loans, Notes, Trade and Other Receivables Disclosure

Accounts Receivable, Net

Accounts receivable, net consisted of the following:


(dollars in millions)	March 31, 2021		December 31, 2020
Accounts receivable	$	10,557	$	9,800
Allowance for expected credit losses	(520)		(546)
Total accounts receivable, net	$	10,037	$	9,254

The Company enters into various factoring agreements with third-party financial institutions to sell certain of its receivables. Under these arrangements, the Company factored receivables of $1.6 billion and $2.7 billion during the quarters ended March 31, 2021 and 2020, respectively. The cash received from these arrangements is reflected as cash provided by operating activities in the Condensed Consolidated Statement of Cash Flows. In certain of these factoring arrangements, for ease of administration, the Company will collect customer payments related to the factored receivables, which it then remits to the financial institutions. At March 31, 2021 and December 31, 2020, the Company had $16 million and $10 million, respectively, that was collected on behalf of the financial institutions and recorded as restricted cash and accrued liabilities. The net cash flows relating to these collections are reported as financing activities in the Condensed Consolidated Statement of Cash Flows.

The changes in the allowance for expected credit losses related to Accounts receivable were as follows:


	Quarter Ended March 31,
(dollars in millions)	2021		2020
Balance as of January 1	$	546	$	254
Current period provision for expected credit losses, net of recoveries (1)	(20)		47
Write-offs charged against the allowance for expected credit losses	(5)		(2)
Other, net(2)	(1)		9
Balance as of March 31,	$	520	$	308

(1) The current provision for expected credit losses for the quarter ended March 31, 2020 includes $38 million of reserves driven by customer bankruptcies and additional reserves for credit losses primarily due to the current economic environment primarily caused by the COVID-19 pandemic.

(2) Other, net for the quarter ended March 31, 2020 includes a $34 million impact related to the January 1, 2020 adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.