Accounts Receivable and Allowance for Credit Losses Accounts Receivable and Allowance for Credit Loss (Notes)

9 Months Ended

Sep. 26, 2024

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

. Accounts Receivable and Allowance for Credit Losses

Accounts Receivable, net

Accounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. Unbilled receivables are reflected under contract assets on the Condensed Consolidated Balance Sheets. See also Allowance for Credit Losses, below.

Accounts receivable, net consists of the following:


	September 26, 2024		December 31, 2023
Trade receivables	$	552.6	$	555.8
Other	33.2		42.0
Less: allowance for credit losses	(13.2)		(12.3)
Accounts receivable, net	$	572.6	$	585.5

The Company has agreements (through Holdings’ subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus, and Rolls-Royce PLC and its affiliates (collectively, “Rolls-Royce”) to third-party financial institutions. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and they continue to allow the Company to monetize the receivables prior to their payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company’s ability to continue using such agreements is primarily dependent upon the strength of the applicable customer’s financial condition. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being derecognized from the Company’s Condensed Consolidated Balance Sheets. For the nine months ended September 26, 2024, $2,569.4 of accounts receivable were sold via these arrangements. The proceeds from these sales of receivables are included in cash from operating activities in the

Condensed Consolidated Statements of Cash Flows. The recorded net loss on sale of receivables was $35.1 for the nine months ended September 26, 2024 and is included in other income and expense. See Note 20 Other Income (Expense), Net.

Allowance for Credit Losses

During the nine months ended September 26, 2024, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material.