Receivables

12 Months Ended

Dec. 31, 2021


	As of December 31
(Dollars in millions)	2021		2020
Receivables	$	269	$	295

Allowance at beginning of year	$	(3)	$	(3)
Current period provision for expected credit losses	—		(1)
Reversal of allowance	1		—

Write-off against allowance	—		1
Allowance at end of year	$	(2)	$	(3)
Total receivables, net of allowance	$	267	$	292

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.

As of December 31, 2021 and 2020, the Company had entered into arrangements with financial institutions and sold $276 million and $52 million, respectively, of factored trade receivables without recourse and $67 million and $25 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 December 31, 2021, the Company had $5 million of trade notes receivables which remain outstanding and will mature within the first quarter of 2022. 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. The fair value of the guaranteed notes receivables in China is determined based on Level 2 inputs including credit ratings and other criteria observable in the market. The fair value of these notes equal their carrying amounts of $5 million as of December 31, 2021.