Factoring

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Factoring

Factoring

The Company receives bank notes generally maturing within six months from certain of its customers in China to settle trade accounts receivable. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third party financial institutions in exchange for cash.

For the nine months ended September 30, 2021 and 2020, the Company entered into arrangements with financial institutions and sold $190 million and $38 million, respectively, of trade receivables without recourse and $47 million and $10 million, respectively, of bank notes without recourse, which qualify as sales as all rights to the trade and notes receivable have passed to the financial institution.

As of September 30, 2021, the Company had $1 million of trade notes receivables that remain outstanding and will mature within the fourth quarter of 2021. The collections of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature.