Quarterly report pursuant to Section 13 or 15(d)

Accounts and Notes Receivable

v3.19.3
Accounts and Notes Receivable
9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Accounts and Notes Receivable ACCOUNTS AND NOTES RECEIVABLE
The following table presents accounts and note receivables, net of allowances:
 
September 30, 2019
 
December 31, 2018
Customer receivables
$
56.8

 
$
45.4

Miscellaneous receivables
4.3

 
6.2

Less: allowance for product claims, discounts, returns and losses
(17.9
)
 
(12.6
)
Total
$
43.2

 
$
39.0


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:
 
Nine Months Ended September 30,
 
2019
 
2018
Balance as of January 1
$
(6.4
)
 
$
(5.6
)
Cumulative effect of adoption of new revenue recognition standard as of January 1

 
(1.7
)
Reductions for payments
5.2

 
5.6

Current year claim accruals
(7.5
)
 
(4.6
)
Balance as of September 30
$
(8.7
)
 
$
(6.3
)