Note 7
Receivables, net

“Receivables, net” consisted of the following:

December 31, ($ in millions)

2016

2015

Trade receivables

7,293

7,197

Other receivables

587

665

Allowance

(314)

(258)

 

7,566

7,604

Unbilled receivables, net:

 

 

Costs and estimated profits in excess of billings

3,058

3,385

Advance payments consumed

(928)

(928)

 

2,130

2,457

Total

9,696

10,061

“Trade receivables” in the table above includes contractual retention amounts billed to customers of $463 million and $545 million at December 31, 2016 and 2015, 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, 2016, 65 percent and 21 percent are expected to be collected in 2017 and 2018, 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)

2016

2015

2014

Balance at January 1,

258

279

317

Additions

163

118

103

Deductions

(96)

(113)

(118)

Exchange rate differences

(11)

(26)

(23)

Balance at December 31,

314

258

279