Quarterly report pursuant to Section 13 or 15(d)

Accounts and Notes Receivable

v3.10.0.1
Accounts and Notes Receivable
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Accounts and Notes Receivable
ACCOUNTS AND NOTES RECEIVABLE
The following table presents accounts and note receivables, net of allowances:
 
June 30, 2018
 
December 31, 2017
Customer receivables
$
111.6

 
$
90.8

Miscellaneous receivables
5.5

 
4.0

Less: allowance for product claims, discounts, returns and losses
(18.2
)
 
(15.1
)
Total
$
98.9

 
$
79.7


Generally, we sell our products to select, pre-approved customers whose businesses are affected by changes in economic and market conditions. We consider these factors and the financial condition of each customer when establishing our allowance for losses from doubtful accounts.
Allowance for product claims represents expected reimbursements for cost associated with warranty repairs and customer accommodation claims, the majority of which is provided to our independent distributors through a credit against accounts receivable from the distributor to AFI.

The following table summarizes the activity for the allowance for product claims:
 
Six Months Ended June 30,
 
2018
 
2017
Balance as of January 1,
$
(7.7
)
 
$
(7.5
)
Cumulative effect of adoption of new revenue recognition standard as of January 1
(2.8
)
 

Reductions for payments
6.1

 
5.9

Current year claim accruals
(3.8
)
 
(6.4
)
Balance as of June 30,
$
(8.2
)
 
$
(8.0
)