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Accounts and Notes Receivable and Credit Quality of Receivables
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Accounts and Notes Receivable and Credit Quality of Receivables
Accounts and Notes Receivable and Credit Quality of Receivables
Accounts and Notes Receivable
The following summarizes the components of current and long-term accounts and notes receivable, net:
 
September 30, 2017
 
December 31, 2016
Current:
 
 
 
Accounts receivable
$
502.4

 
$
508.1

Notes receivable
136.5

 
140.0

Allowance for doubtful accounts and notes
(27.9
)
 
(27.7
)
Current accounts and notes receivable, net
$
611.0

 
$
620.4

Long-term:
 
 
 
Notes receivable, net of allowance of $0.4 and $0.4
44.4

 
48.1

  Total accounts and notes receivable, net
$
655.4

 
$
668.5


Credit Quality of Receivables
The interest rates on our outstanding notes receivable ranged from 3.0% to 10.4% at September 30, 2017 and 3.3% to 10.4% at December 31, 2016.
We have certain concentrations of outstanding accounts and notes receivable in international locations that impact our assessment of the credit quality of those receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. We have not identified changes in the aforementioned factors during the nine months ended September 30, 2017 that require a reassessment of our receivable balances. The international locations with significant concentrations (generally deemed to be exceeding 10%) of our accounts and notes receivable are as follows:
•
Mexico - Our notes receivable, net, from certain customers in Mexico at September 30, 2017 was $27.4 million. We collected $28.7 million of outstanding receivables from these customers during the nine months ended September 30, 2017.
•
Peru - Our notes receivable, net, from certain customers in Peru at September 30, 2017 was $21.4 million. We collected $12.1 million of outstanding receivables from these customers during the nine months ended September 30, 2017.
•
Argentina - Our notes receivable, net, from customers in Argentina at September 30, 2017 was $21.6 million denominated in USD. Our customers are required to, and have continued to, pay us in pesos at the spot exchange rate on the date of payment. We collected $18.1 million of outstanding receivables from customers in Argentina during the nine months ended September 30, 2017.
In addition to the macroeconomic and political factors noted above, we also evaluated recent payments, receivables aging, any additional security or collateral we had (bills of exchange, pledge agreements, etc.) and other facts and circumstances relevant to our customers' ability to pay.
The following summarizes the components of total notes receivable, net:
 
September 30, 2017
 
Balances over 90 days past due
 
December 31, 2016
 
Balances over 90 days past due
Notes receivable:
 
 
 
 
 
 
 
Domestic
$
74.9

 
$
9.3

 
$
45.1

 
$
1.1

International
106.4

 
29.8

 
143.0

 
38.7

     Total notes receivable
181.3

 
39.1

 
188.1

 
39.8

 
 
 
 
 
 
 
 
Notes receivable allowance
 
 
 
 
 
 
 
Domestic
(3.4
)
 
(3.4
)
 
(1.0
)
 
(0.9
)
International
(15.2
)

(15.2
)
 
(14.0
)
 
(14.0
)
     Total notes receivable allowance
(18.6
)
 
(18.6
)
 
(15.0
)
 
(14.9
)
Notes receivable, net
$
162.7

 
$
20.5

 
$
173.1

 
$
24.9


At September 30, 2017, 12.6% of our total notes receivable, net, was past due by over 90 days, compared to 14.4% at December 31, 2016.
We evaluate our exposure to credit loss on notes receivable on both a collective and individual basis. In addition, we evaluate such notes receivable on a geographic basis and take into account any other factors (such as general economic conditions, other macroeconomic considerations, etc.) that could impact our collectability of notes receivable individually or in the aggregate. Accordingly, notes receivable may be evaluated under multiple methodologies, and the resulting allowance is not determined based on one specific methodology taking all factors into consideration. The activity in our allowance for notes receivable for each of the nine month periods ended September 30, 2017 and 2016 is as follows:
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
Beginning allowance for notes receivable
 
$
15.0

 
$
13.2

Provision
 
4.8

 
3.8

Charge-offs and recoveries
 
(1.2
)
 
(2.2
)
Ending allowance for notes receivable
 
$
18.6

 
$
14.8



The fair value of notes receivable is estimated by discounting expected future cash flows using current interest rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities. As of September 30, 2017 and December 31, 2016, the fair value of notes receivable, net, approximated the carrying value due to contractual terms of notes receivable generally being under 24 months.