Accounts Receivable and Credit Losses

12 Months Ended

Dec. 31, 2023

Accounts receivable


	December 31,
(In millions)	2023		2022

Trade	$	684.6	759.5
Other	124.8		141.0
Total accounts receivable	809.4		900.5
Allowance for doubtful accounts	(30.4)		(38.3)
Accounts receivable, net	$	779.0	862.2

Credit losses

We are exposed to credit losses primarily through sales of our Cash and Valuable Management services and DRS and AMS services to customers with operations in the U.S. as well as customers in more than 100 countries outside the U.S. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days.

We assess currently expected credit losses in our financial assets on a pool basis by aggregating financial assets with similar risk characteristics. We have pooled financial assets by geographic location because of the similarities within each location such as customers, payment terms, and services offered. Loss experience is monitored for each pool and we determine historical loss rates for each pool. These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets. We also considered current and expected economic conditions, particularly the effects of the pandemic, in determining an appropriate allowance.

We monitor the aging of accounts receivable by country and write off any accounts that are deemed uncollectible. We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivable balances that were not contemplated or relevant during a previous period.

In the first quarter of 2022, as many of our regions began to recover from the COVID-19 pandemic, we re-assessed earlier assumptions and estimates, and we further refined our methodology of estimating the allowance for doubtful accounts. Our updated method now also includes an estimated allowance for accounts receivable significantly past due in order to adjust for at-risk receivables not captured in our previous method. As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the U.S., and we recorded an additional allowance of $16.7 million. In the subsequent quarters of 2022, the additional allowance was reduced by $1.1 million as a result of collections.

The following table is a rollforward of the allowance for doubtful accounts:


	Years Ended December 31,
(In millions)	2023		2022	2021

Allowance for doubtful accounts:
Beginning of year	$	38.3	16.9	30.7

Provision for uncollectible accounts receivable	12.8		22.3	3.4
Write offs and recoveries	(21.1)		(3.4)	(16.2)
Other	—		3.2	—
Foreign currency exchange effects	0.4		(0.7)	(1.0)
End of year	$	30.4	38.3	16.9