Accounts Receivable, Net

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Accounts Receivable, Net

Accounts Receivable, Net

Accounts receivable, net consisted of the following at September 30, 2021 and December 31, 2020:

(dollars in millions)	September 30, 2021		December 31, 2020
Trade receivables	$	3,073	$	2,987
Unbilled receivables	120		104
Customer financing notes receivable	106		130
Miscellaneous receivables	95		88
	3,394		3,309
Less: allowance for expected credit losses	177		161
Accounts receivable, net	$	3,217	$	3,148

The changes in allowance for credit losses related to Accounts receivable, net for the nine months ended September 30, 2021 and 2020, respectively, are as follows:

	Nine Months Ended September 30,
(dollars in millions)	2021		2020
Balance as of January 1	$	161	$	83
Impact of credit standard adoption	—		28
Provision for expected credit losses	27		28
Write-offs charged against the allowance for expected credit losses	(8)		(9)
Foreign exchange and other	(3)		26
Balance as of September 30	$	177	$	156

The current period provision for expected credit losses for the nine months ended September 30, 2021 was primarily the result of reserves recorded on trade receivables and customer financing receivables in New Equipment.

For the nine months ended September 30, 2020, there was approximately $22 million of previously reserved balances reclassified to allowance for credit losses. As a result, there was no impact to the Consolidated Statements of Operations for the nine months ended September 30, 2020.