Receivables, net

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Receivables, net

3. Receivables, net

The Company is exposed to credit losses relating to sales to its customers. Receivables are recorded and carried at the original invoiced amount less the allowance for doubtful accounts. With the adoption of ASU 2016-13 on January 1, 2020, the estimated AFDA reflects the Company’s immediate recognition of current expected credit losses by incorporating the historical loss experience, as well as current and future market conditions that are reasonably available. Judgements in the estimate of AFDA include global economic and business conditions, oil and gas industry and market conditions, customer’s financial conditions and account receivables past due.

Activity in the allowance for doubtful accounts are as follows (in millions):

	Allowance for Doubtful Accounts
Balance at December 31, 2019	$	16
Cumulative effect of accounting change		6
Additions charged to expenses		8
Charge-offs and other		(1	)
Balance at September 30, 2020	$	29