Quarterly report pursuant to Section 13 or 15(d)

Accounts and Notes Receivable

v3.20.1
Accounts and Notes Receivable
3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Accounts and Notes Receivable ACCOUNTS AND NOTES RECEIVABLE
The following table presents accounts and note receivables, net of allowances:
 
March 31, 2020
 
December 31, 2019
Customer receivables
$
53.3

 
$
47.1

Miscellaneous receivables
4.2

 
7.2

Less: allowance for product claims, discounts, returns and losses
(17.4
)
 
(18.2
)
Total
$
40.1

 
$
36.1


On January 1, 2020 we adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." The guidance requires immediate recognition of estimated credit losses that are expected to occur over the remaining life of many financial assets. 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. We adopted this ASU using the modified retrospective transition method. The adoption of the standard did not have a material impact on our results of operations or cash flows.
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:
 
Three Months Ended March 31,
 
2020
 
2019
Balance as of January 1
$
(9.0
)
 
$
(6.4
)
Reductions for payments
2.1

 
1.5

Current year claim accruals
(1.9
)
 
(1.8
)
Balance as of March 31
$
(8.8
)
 
$
(6.7
)