Note 7
Receivables, net

“Receivables, net” consisted of the following:

December 31, ($ in millions)

2017

2016

Trade receivables

7,883

7,293

Other receivables

714

587

Allowance

(330)

(314)

 

8,267

7,566

Unbilled receivables, net:

 

 

Costs and estimated profits in excess of billings

3,024

3,058

Advance payments consumed

(875)

(928)

 

2,149

2,130

Total

10,416

9,696

“Trade receivables” in the table above includes contractual retention amounts billed to customers of $541 million and $463 million at December 31, 2017 and 2016, respectively. Management expects that the substantial majority of related contracts will be completed and the substantial majority of the billed amounts retained by the customer will be collected. Of the retention amounts outstanding at December 31, 2017, 69 percent and 26 percent are expected to be collected in 2018 and 2019, respectively.

“Other receivables” in the table above consists of value added tax, claims, rental deposits and other non-trade receivables.

“Costs and estimated profits in excess of billings” in the table above represents revenues earned and recognized for contracts under the percentage-of-completion or completed-contract method of accounting. Management expects that the majority of the amounts will be collected within one year of the respective balance sheet date.

The reconciliation of changes in the allowance for doubtful accounts is as follows:

($ in millions)

2017

2016

2015

Balance at January 1,

314

258

279

Additions

109

163

118

Deductions

(111)

(96)

(113)

Exchange rate differences

18

(11)

(26)

Balance at December 31,

330

314

258