Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Jan. 01, 2022
Receivables [Abstract]  
The following table presents components of "accounts receivable, net" recorded in the Company's balance sheets:
(In thousands) December 2021 December 2020
Trade $ 290,830  $ 242,451 
Royalty and other 10,675  8,089 
Total accounts receivable 301,505  250,540 
Less: allowance for doubtful accounts (11,705) (19,143)
Accounts receivable, net $ 289,800  $ 231,397 
Allowance for Doubtful Accounts
The Company reviews the estimates used to calculate the allowance for doubtful accounts on a quarterly basis. At December 2021 and 2020, the Company updated its evaluation of expected losses and related assumptions used in the allowance for doubtful accounts, including the impact of COVID-19.
The following table presents a rollforward of the allowance for doubtful accounts:
(In thousands) Year Ended December
Balance, December 2019 $ 11,852 
Provision for expected credit losses 18,338 
Accounts receivable balances written off (1)
Other (2)
Balance, December 2020 $ 19,143 
Provision for expected credit losses 330 
Accounts receivable balances written off (1)
Other (2)
Balance, December 2021 $ 11,705 
(1) Accounts receivable balances written off against the allowance were primarily due to the bankruptcy of a major U.S. retail customer during the second quarter of 2020, the exit of our India business during 2021 as well as the impact of COVID-19 during the 2021 and 2020 periods.
(2) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant.
Sale of Trade Accounts Receivable
The Company is party to an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. Under this agreement, up to $377.5 million of the Company’s trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. The Company removes the sold balances from "accounts receivable, net" in its balance sheet at the time of sale. The Company does not retain any interests in the sold trade accounts receivable but continues to service and collect outstanding trade accounts receivable on behalf of the financial institution.
During 2021, 2020 and 2019, the Company sold total trade accounts receivable of $1,249.3 million, $981.9 million and $1,035.4 million, respectively. As of December 2021 and December 2020, $170.6 million and $127.1 million, respectively, of the sold trade accounts receivable had been removed from the Company's balance sheets but remained outstanding with the financial institution.
The funding fees charged by the financial institution for this program are reflected in the Company's statements of operations within "other expense, net" and were $1.8 million, $2.0 million and $5.3 million in 2021, 2020 and 2019, respectively. Net proceeds of this program are reflected as operating activities in the Company's statements of cash flows.