RECEIVABLES

12 Months Ended

Dec. 31, 2023

We manage our receivables portfolios using published default risk as a key credit quality indicator for our loans and receivables. Our loans receivables 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. The key credit quality indicator is updated as of December 31, 2023.


	December 31, 2023				December 31, 2022
(In millions)	Credit rating	Year of origination	Balance		Credit rating	Year of origination	Balance
Loans receivables and other	Moody’s rating A3 - Ba2	2020-2023	$	138.1	Moody’s rating Aa3-Ba2	2020-2022	$	51.0
Debt securities at amortized cost	Moody’s rating B3	2021	1.4		Moody’s rating B3	2021	16.2
Total financial assets			$	139.5			$	67.2

Credit Losses

For contract assets and trade receivables, 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 loans receivable, held-to-maturity debt securities at amortized cost, and security deposits and other, we evaluate whether these securities are considered to have low credit risk at the reporting date using available, reasonable and supportable information.

The table below shows the roll-forward of allowance for credit losses as of December 31, 2023 and 2022, respectively.


	Balance as of December 31, 2023
(In millions)	Trade receivables		Contract assets		Loans receivables and other		Held-to-maturity debt securities
Allowance for credit losses at December 31, 2022	$	34.1	$	1.1	$	0.3	$	0.2
Current period provision (release) for expected credit losses	1.3		0.3		2.0		(0.2)

Recoveries	(1.0)		—		—		—
Allowance for credit losses at December 31, 2023	$	34.4	$	1.4	$	2.3	$	—


	Balance as of December 31, 2022
(In millions)	Trade receivables		Contract assets		Loans receivables 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	0.7		—		(0.3)		(2.5)

Recoveries	(4.7)		—		—		—
Allowance for credit losses at December 31, 2022	$	34.1	$	1.1	$	0.3	$	0.2