Accounts Receivable and Notes Receivable and Credit Quality of Receivables

3 Months Ended

Mar. 31, 2024

Receivables

The following table summarizes the components of current and long-term receivables, net:


	As of
	March 31, 2024		December 31, 2023
Current:
Receivables	$	537	$	544
Allowance for credit losses	(33)		(38)
Current receivables, net	504		506
Long-term:
Receivables	64		40
Allowance for credit losses	(7)		(3)
Long-term receivables, net	57		37
Total receivables, net	$	561	$	543

Allowance for Credit Losses

We manage our receivable portfolios using both geography and delinquency as key credit quality indicators. The following table summarizes geographical delinquencies of total receivables, net:


	As of
	March 31, 2024		Balances over 90 days past due		December 31, 2023		Balances over 90 days past due
Receivables:
U.S. and Canada	$	316	$	4	$	344	$	13
International	285		41		240		50
Total receivables	601		45		584		63
Receivables allowance:
U.S. and Canada	(16)		(3)		(17)		(3)
International	(24)		(11)		(24)		(12)
Total receivables allowance	(40)		(14)		(41)		(15)
Receivables, net	$	561	$	31	$	543	$	48

Account balances are charged against the allowances after all internal and external collection efforts have been exhausted and the potential for recovery is considered remote.

The activity in our allowance for receivable credit losses for each of the three months ended March 31, 2024 and 2023 is as follows:


	2024						2023
	Total		U.S. and Canada		International		Total
Beginning allowance for credit losses	$	(41)	$	(17)	$	(24)	$	(40)









Provision	(1)		—		(1)		(1)
Charge-offs and recoveries	2		1		1		1
Allowance for credit losses as of March 31	$	(40)	$	(16)	$	(24)	$	(40)

As of March 31, 2024, 6% of our total receivables, net, were past due by over 90 days, compared to 9% as of December 31, 2023.

Credit Quality of Receivables

We have certain concentrations of outstanding receivables in international locations that impact our assessment of the credit quality of our receivables. We monitor the macroeconomic and political environment in each of these locations in our assessment of the credit quality of our receivables. The international customers with significant concentrations (generally deemed to be exceeding 10%) of our receivables with terms longer than one year are in the Latin America region (“LATAM”) and are primarily comprised of Mexico, Peru and Argentina. The following table summarizes our LATAM receivables:


	As of March 31, 2024
	Total		Current		Balances over 90 days past due
Receivables	$	61	$	47	$	14
Allowance for credit losses	(18)		(11)		(7)
Receivables, net	$	43	$	36	$	7

We continuously review receivables and, as information concerning credit quality and/or overall economic environment arises, reassess our expectations of future losses and record an incremental reserve if warranted at that time. Our current allowance for credit losses represents our current expectation of credit losses; however, future expectations could change as international unrest or other macro-economic factors impact the financial stability of our customers.

The fair value of receivables 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 March 31, 2024 and December 31, 2023, the fair value of receivables, net, approximated the carrying value due to contractual terms of receivables generally being less than 24 months.