ACCOUNTS AND OTHER RECEIVABLES

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

ACCOUNTS AND OTHER RECEIVABLES

ACCOUNTS AND OTHER RECEIVABLESEffective January 1, 2020, we adopted ASU 2016-13 “Financial Instruments—Credit Losses” (Topic 326), which amended the impairment model to require a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. In accordance with guidance, the new standard was adopted using the modified retrospective approach as of the effective date; prior periods were not restated. The increase to the allowance for doubtful accounts, net of the deferred tax impact, resulted in a $2.5 adjustment to beginning retained earnings as presented in Note 12.

Accounts and other receivables consisted of the following:

	June 30, 2021				December 31, 2020
	Current		Long-term		Current		Long-term
Trade accounts receivable 1	$	690.2	$	—	$	553.5	$	—
Trade notes receivable	1.6		.3		.9		.3
Total trade receivables	691.8		.3		554.4		.3
Other notes receivable 1	1.2		22.4		—		22.8
Taxes receivable, including income taxes	19.4		—		14.8		—
Other receivables	9.6		—		13.6		—
Subtotal other receivables	30.2		22.4		28.4		22.8
Total trade and other receivables	722.0		22.7		582.8		23.1
Allowance for doubtful accounts:
Trade accounts receivable 1	(17.1)		—		(19.2)		—
Trade notes receivable	(.1)		(.1)		—		—
Total trade receivables	(17.2)		(.1)		(19.2)		—
Other notes receivable 1	—		(22.4)		—		(22.8)
Total allowance for doubtful accounts	(17.2)		(22.5)		(19.2)		(22.8)
Total net receivables	$	704.8	$	.2	$	563.6	$	.3

1 The “Trade accounts receivable” and “Other notes receivable” line items above include $23.6 and $24.6 as of June 30, 2021 and December 31, 2020, respectively, from a customer in our Bedding Products segment who is experiencing financial difficulty and liquidity problems. This customer was placed on nonaccrual status in 2018 and was delinquent in their first quarter interest payment in 2020. As a result, we increased and fully reserved the balances for this customer in the first quarter of 2020. The reserve for this customer was $23.6 ($22.4 for the note and $1.2 for the trade receivable) at June 30, 2021, and $24.6 ($22.8 for the note and $1.8 for the trade receivable) at December 31, 2020.

Activity related to the allowance for doubtful accounts is reflected below:

 

	Balance at December 31, 2020		Add: Charges		Less: Net Charge-offs/ (Recoveries) and Other		Balance at June 30, 2021
Trade accounts receivable	$	19.2	$	(1.9)	$	.2	$	17.1
Trade notes receivable	—		.2		—		.2
Total trade receivables	19.2		(1.7)		.2		17.3
Other notes receivable	22.8		(.4)		—		22.4
Total allowance for doubtful accounts	$	42.0	$	(2.1)	$	.2	$	39.7