Receivables, Loans, Notes Receivable, and Others (Notes)

6 Months Ended

Mar. 31, 2021

Accounts Receivable, Net

Receivables consist of amounts billed and currently due from customers and unbilled costs and accrued profits related to revenues on long-term contracts that have been recognized for accounting purposes but not yet billed to customers. The Company extends credit to customers in the normal course of business and maintains an allowance for expected credit losses resulting from the inability or unwillingness of customers to make required payments. The allowance for expected credit losses is based on historical experience, existing economic conditions, reasonable and supportable forecasts, and any specific customer collection issues the Company has identified. The Company evaluates the reasonableness of the allowance for credit losses on a quarterly basis. The Company enters into supply chain financing programs to sell certain accounts receivable without recourse to third-party financial institutions. Sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated statements of financial position and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows.

Accounts receivable, net consisted of the following (in millions):


	March 31, 2021		September 30, 2020
Accounts receivable	$	5,315	$	5,467
Less: Allowance for expected credit losses (1)	(148)		(173)
Accounts receivable, net	$	5,167	$	5,294

(1) Allowance for doubtful accounts as of September 30, 2020, prior to the adoption of ASU 2016-13.

The changes in the allowance for expected credit losses related to accounts receivable for the six month period ended March 31, 2021 were as follows (in millions):


	Six Months Ended March 31, 2021
Balance as of September 30, 2020	$	173
Provision for expected credit losses	3
Write-offs charged against the allowance for expected credit losses	(32)
Other (including impact of adoption of ASU 2016-13)	4
Balance as of March 31, 2021	$	148