Note 7 Receivables, net

“Receivables, net” consisted of the following:

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December 31, ($ in millions)

2013

2012

Trade receivables

8,360

8,233

Other receivables

802

801

Allowance

(317)

(271)

 

8,845

8,763

Unbilled receivables, net:

 

 

Costs and estimated profits in excess of billings

4,552

3,955

Advance payments consumed

(1,251)

(1,143)

 

3,301

2,812

Total

12,146

11,575

“Trade receivables” in the table above includes contractual retention amounts billed to customers of $552 million and $390 million at December 31, 2013 and 2012, 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, 2013, 71 percent and 21 percent are expected to be collected in 2014 and 2015, 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:

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($ in millions)

2013

2012

2011

Balance at January 1,

271

227

215

Additions

147

155

157

Deductions

(92)

(113)

(131)

Exchange rate differences

(9)

2

(14)

Balance at December 31,

317

271

227