RECEIVABLES

9 Months Ended

Sep. 30, 2022

RECEIVABLESWe manage our trade and loans receivables portfolios using published default risk as a key credit quality indicator. Our loans receivable and security deposits were related to sales of long-lived assets or businesses, loans to related parties for capital expenditure purposes, or security deposits for lease arrangements.

We manage our held-to-maturity debt securities using published credit ratings as a key credit quality indicator as our held-to-maturity debt securities consist of government bonds.

The table below summarizes the amortized cost basis of financial assets by years of origination and credit quality.


	September 30, 2022				December 31, 2021
(In millions)	Credit rating	Year of origination	Balance		Credit rating	Year of origination	Balance
Loans receivables and other	Moody’s rating A3 - Ba2	2020-2022	$	53.9	Moody’s rating Ba2	2019-2020	$	50.9
Debt securities at amortized cost	Moody’s rating Caa1	2021	16.1		Moody’s rating B3	2019-2021	24.0
Total financial assets			$	70.0			$	74.9

Credit Losses

For contract assets, trade receivables, loans receivables, and other, we have elected to calculate an expected credit loss based on loss rates from historical data. We develop loss-rate statistics on the basis of the amount written-off over the life of the financial assets and contract assets and adjust these historical credit loss trends for forward-looking factors specific to the debtors and the economic environment to determine lifetime expected losses.

For held-to-maturity debt securities at amortized cost, we evaluate whether the debt securities are considered to have low credit risk at the reporting date using available and supportable information.

The table below shows the roll-forward of allowance for credit losses as of September 30, 2022 and 2021, respectively.


	Balance as of September 30, 2022
(In millions)	Trade receivables		Contract assets		Loans receivable and other		Held-to-maturity debt securities
Allowance for credit losses at December 31, 2021	$	38.1	$	1.1	$	0.6	$	2.7
Current period provision (release) for expected credit losses	—		0.1		(0.1)		(1.5)

Recoveries	(2.2)		—		—		—
Allowance for credit losses at September 30, 2022	$	35.9	$	1.2	$	0.5	$	1.2


	Balance as of September 30, 2021
(In millions)	Trade receivables		Contract assets		Loans receivable and other		Held-to-maturity debt securities
Allowance for credit losses at December 31, 2020	$	40.2	$	2.4	$	7.9	$	0.5
Current period provision (release) for expected credit losses	(0.7)		(0.5)		(0.2)		2.2

Recoveries	(1.2)		(0.7)		—		—
Allowance for credit losses at September 30, 2021	$	38.3	$	1.2	$	7.7	$	2.7

Certain trade receivables are due in one year or less. We do not have any financial assets that are past due or are on non-accrual status.