Receivables

Receivables consisted of the following (in millions):



	June 30,			September 30,
	2017			2016
U.S. government:
Amounts billed	$	23.2		$	49.0
Costs and profits not billed	119.6			55.3
	142.8			104.3
Other trade receivables	992.8			881.8
Finance receivables	9.1			7.6
Notes receivable	35.9			36.1
Other receivables	44.9			38.6
	1,225.5			1,068.4
Less allowance for doubtful accounts	(19.0		)	(21.2		)
	$	1,206.5		$	1,047.2

Classification of receivables in the Condensed Consolidated Balance Sheets consisted of the following (in millions):



	June 30,		September 30,
	2017		2016
Current receivables	$	1,182.3	$	1,021.9
Long-term receivables (included in “Other long-term assets”)	24.2		25.3
	$	1,206.5	$	1,047.2

Finance and notes receivable aging and accrual status consisted of the following (in millions):



	Finance Receivables						Notes Receivable
	June 30, 2017			September 30, 2016			June 30, 2017			September 30, 2016
Aging of receivables that are past due:
Greater than 30 days and less than 60 days	$	—		$	—		$	—		$	—
Greater than 60 days and less than 90 days	—			—			—			—
Greater than 90 days	2.3			2.9			0.2			—

Receivables on nonaccrual status	4.1			4.5			22.1			25.1
Receivables past due 90 days or more and still accruing	—			—			—			—

Receivables subject to general reserves	2.0			3.1			—			—
Allowance for doubtful accounts	(0.1		)	(0.1		)	—			—
Receivables subject to specific reserves	7.1			4.5			35.9			36.1
Allowance for doubtful accounts	(1.6		)	(0.9		)	(10.9		)	(13.0		)

Finance Receivables: Finance receivables represent sales-type leases resulting from the sale of the Company's products and the purchase of finance receivables from lenders pursuant to customer defaults under program agreements with finance companies. Finance receivables originated by the Company generally include a residual value component. Residual values are determined based on the expectation that the underlying equipment will have a minimum fair market value at the end of the lease term. This residual value accrues to the Company at the end of the lease. The Company uses its experience and knowledge as an original equipment manufacturer and participant in end markets for the related products along with third-party studies to estimate residual values. The Company monitors these values for impairment on a periodic basis and reflects any resulting reductions in value in current earnings.

Delinquency is the primary indicator of credit quality of finance receivables. The Company maintains a general allowance for finance receivables considered doubtful of future collection based upon historical experience. Additional allowances are established based upon the Company’s perception of the quality of the finance receivables, including the length of time the receivables are past due, past experience of collectibility and underlying economic conditions. In circumstances where the Company believes collectibility is no longer reasonably assured, a specific allowance is recorded to reduce the net recognized receivable to the amount reasonably expected to be collected. Finance receivables are written off if management determines that the specific borrower does not have the ability to repay the loan amounts due in full. The terms of the finance agreements generally give the Company the ability to take possession of the underlying collateral. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers’ financial obligations is not realized.

Notes Receivable: Notes receivable include amounts related to refinancing of trade accounts and finance receivables. As of June 30, 2017, approximately 83% of the notes receivable balance outstanding was due from four parties. The Company routinely evaluates the creditworthiness of its customers and establishes reserves where the Company believes collectibility is no longer reasonably assured. Certain notes receivable are collateralized by a security interest in the underlying assets and/or other assets owned by the debtor. The Company may incur losses in excess of recorded allowances if the financial condition of its customers were to deteriorate or the full amount of any anticipated proceeds from the sale of the collateral supporting its customers' financial obligations is not realized.

Quality of Finance and Notes Receivable: The Company does not accrue interest income on finance and notes receivable in circumstances where the Company believes collectibility is no longer reasonably assured. Any cash payments received on nonaccrual finance and notes receivable are applied first to the principal balances. The Company does not resume accrual of interest income until the customer has shown that it is capable of meeting its financial obligations by making timely payments over a sustained period of time. The Company determines past due or delinquency status based upon the due date of the receivable.

Receivables subject to specific reserves also include loans that the Company has modified in troubled debt restructurings as a concession to customers experiencing financial difficulty. To minimize the economic loss, the Company may modify certain finance and notes receivable. Modifications generally consist of restructured payment terms and time frames in which no payments are required. At June 30, 2017, restructured finance and notes receivables were $3.3 million and $10.9 million, respectively. Losses on troubled debt restructurings were not significant during the three and nine months ended June 30, 2017 and 2016.

Changes in the Company’s allowance for doubtful accounts by type of receivable were as follows (in millions):



	Three Months Ended June 30, 2017												Three Months Ended June 30, 2016
	Finance			Notes			Trade and Other			Total			Finance		Notes			Trade and Other		Total
Allowance for doubtful accounts at beginning of period	$	2.5		$	11.3		$	5.7		$	19.5		$	0.4	$	13.2		$	8.3	$	21.9
Provision for doubtful accounts, net of recoveries	—			(0.6		)	0.7			0.1			0.4		0.1			0.6		1.1
Charge-off of accounts	(0.8		)	(0.5		)	(0.1		)	(1.4		)	—		—			—		—
Foreign currency translation	—			0.7			0.1			0.8			—		(0.3		)	—		(0.3		)
Allowance for doubtful accounts at end of period	$	1.7		$	10.9		$	6.4		$	19.0		$	0.8	$	13.0		$	8.9	$	22.7



	Nine Months Ended June 30, 2017												Nine Months Ended June 30, 2016
	Finance			Notes			Trade and Other			Total			Finance		Notes			Trade and Other			Total
Allowance for doubtful accounts at beginning of period	$	1.0		$	13.0		$	7.2		$	21.2		$	0.1	$	12.7		$	7.5		$	20.3
Provision for doubtful accounts, net of recoveries	1.5			(1.3		)	0.3			0.5			0.7		0.4			1.8			2.9
Charge-off of accounts	(0.8		)	(1.0		)	(1.1		)	(2.9		)	—		—			(0.4		)	(0.4		)
Foreign currency translation	—			0.2			—			0.2			—		(0.1		)	—			(0.1		)
Allowance for doubtful accounts at end of period	$	1.7		$	10.9		$	6.4		$	19.0		$	0.8	$	13.0		$	8.9		$	22.7