Accounts Receivable

12 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Accounts and Nontrade Receivable

ACCOUNTS RECEIVABLEReceivables 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 various factoring agreements to sell certain accounts receivable to third-party financial institutions. For ease of administration, the Company collects customer payments related to certain factored receivables on behalf of the financial institutions but otherwise maintains no other continuing involvement with respect to the factored receivables. During the year ended September 30, 2021, the Company sold $129 million of accounts receivable under such factoring agreements, and the costs of factoring such receivables were not material. As of September 30, 2021, the outstanding amount of accounts receivable sold under the factoring agreements was $127 million. No receivables were factored under such agreements in fiscal 2020. 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):

	September 30,
	2021		2020
Accounts receivable	$	5,723	$	5,467
Less: Allowance for expected credit losses (1)	(110)		(173)
Accounts receivable, net	$	5,613	$	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 year ended September 30, 2021 were as follows (in millions):

	Year Ended September 30, 2021
Balance as of September 30, 2020	$	173
Provision for expected credit losses	(3)
Write-offs charged against the allowance for expected credit losses	(65)
Currency translation	1
Other (including impact of adoption of ASU 2016-13)	4
Balance as of September 30, 2021	$	110