REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Disaggregation of Revenue

The following table presents our disaggregated revenues by revenue source. We sell products within all product categories in each operating segment. For additional information on the disaggregated revenues by geographic regions, see Note 12 to the Consolidated Condensed Financial Statements.

	Three Months Ended September 30,				Nine Months Ended September 30,
Millions of dollars	2023		2022		2023		2022
Major product categories:
Laundry	$	1,360	$	1,187	$	3,949	$	3,807
Refrigeration	1,484		1,560		4,334		4,821
Cooking	1,199		1,234		3,392		3,762
Dishwashing	423		469		1,300		1,384
Total major product category net sales	$	4,466	$	4,450	$	12,975	$	13,774
Spare parts and warranties	243		225		718		695
Other	217		109		674		332
Total net sales	$	4,926	$	4,784	$	14,367	$	14,801

Other revenue sources include primarily the revenues from the InSinkErator business, subscription arrangements and licenses.

The impact to revenue related to prior period performance obligations is less than 1% of global consolidated revenues for the three and nine months ended September 30, 2023.

Allowance for Expected Credit Losses and Bad Debt Expense

We estimate our expected credit losses primarily by using an aging methodology and establish customer-specific reserves for higher risk trade customers. Our expected credit losses are evaluated and controlled within each geographic region considering the unique credit risk specific to the country, marketplace and economic environment. We take into account past events, current conditions and reasonable and supportable forecasts in developing the reserve.

The following table summarizes our allowance for expected credit losses and bad debt by operating segment for the nine months ended September 30, 2023:

Millions of dollars	December 31, 2022		Charged to Earnings		Write-offs		Foreign Currency		Other (1)		September 30, 2023
Accounts receivable allowance
North America	$	6	$	(1)	$	(1)	$	—	$	—	$	4
EMEA	2		(2)		(2)		(1)		5		2
Latin America	38		3		(3)		3		—		41
Asia	3		(1)		—		—		—		2
Consolidated	$	49	$	(1)	$	(6)	$	2	$	5	$	49
Financing receivable allowance
Latin America	$	27	$	—	$	—	$	1	$	—	$	28
Consolidated	$	76	$	(1)	$	(6)	$	3	$	5	$	77

(1) Starting from the fourth quarter of 2022, accounts receivable allowance of our European major domestic appliance business is transferred to assets held for sale. For additional information, see Note 13 to the Consolidated Condensed Financial Statements.

We recorded an immaterial amount of bad debt expense for the periods ended September 30, 2023 and December 31, 2022, respectively.