Payment terms clause samples

1. We note from your response to comment 7 that subsequent to fiscal year end 2016, you amended certain provisions of your revenue recognition policy as it relates to agreements with extended payment terms. Please revise your critical accounting policy discussion in future filings to identify and discuss any significant areas of judgment, specific uncertainties, or assumptions used when accounting for revenues related to agreements with extended payment terms. Response: We will revise our critical accounting policy discussion in future filings to identify and discuss any significant areas of judgment, specific uncertainties, or assumptions used when accounting for revenues related to agreements with extended payment terms.

In a telephone discussion with the Staff, you also asked us whether the recognition of the revenue from the Extended Payment Terms Transactions in accordance with GAAP, notwithstanding the fact that the revenue was recognized prematurely based on the Deferral Provision of the Policy as then in effect, was inconsistent with prior disclosures related to the Company’s revenue recognition as set forth in its Annual Report on Form 10-K for the fiscal year ended January31, 2015 (the “2015 Form 10-K”). The Company disclosed in its critical accounting policies and estimates section and in Note 1 to the Consolidated Financial Statements that it recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable and collection is reasonably assured. The Company has not described in detail in its public filings the terms of the Policy relating to extended payment terms. For the reasons discussed above, it was concluded that, notwithstanding the extensions granted in the Extended Payment Terms Transactions, the related fees were fixed and determinable and collection was reasonably assured. Therefore, the Company concluded that the recognition of the revenue from the Extended Payment Terms Transactions in accordance with GAAP is consistent with prior disclosures made by the Company regarding its revenue recognition policies.

2. We note from your response to comment 16 that certain of your surgical equipment sales arrangements include usage-based payment terms. Please describe to us these arrangements in greater detail, including the types of equipment usually involved, and explain to us the option under which the customer may instead elect to make direct cash payments.

As of March31, 2018, we had no past due accounts receivable balances according to our payment terms. We advise the Staff that in future filings with the Commission, we intend to include disclosure with respect to amounts considered past due, as and when appropriate.

1.Please expand your disclosure to provide company-specific information for your performance obligations, including (a) the nature of the goods or services promised; (b) the timing of when you recognize revenue (i.e., point in time or over time); and (c) the typical payment terms. Also, provide disclosure for each type of variable consideration included in the transaction price and significant judgment used in the application of IFRS15.

In response to the Staff’s comments, beginning with the Company’s Form 10-Q filing for the quarter ended September30, 2018, Aon will supplement its disclosure in our Revenue from Contracts with Customers Note to the Condensed Consolidated Financial Statements to indicate that significant financing components are typically not present in Aon’s arrangements and to describe payment terms, including the timing of payment terms. For example, for the Commercial Risk Solutions revenue line, the Company will disclose “Commissions and fees for brokerage services may be invoiced at the effective date of the underlying policy or over the term of the arrangement in instalments during the policy period.” Similar language outlining typical payment terms for each revenue line will be included in the Revenue from Contracts with Customers Note beginning with the Company’s Form 10-Q filing for the quarter ended September30, 2018.

Paragraph 606-10-50-12(b) requires disclosure of significant payment terms. For example, we are required to disclose information regarding when payment is typically due, whether there are significant financing components, and whether consideration is variable. With the exception of Bluegreen’s sales of vacation ownership interest (“VOI”), we do not have any material significant payment terms as we generally receive cash when the performance obligation is satisfied or within a short period thereafter.

●A decrease in accounts receivable of $84.9 million primarily as a result of the collection of receivables related to Levothyroxine sales as well as of the timing of receipts. The Company’s days sales outstanding (“DSO”) at June30, 2019, based on gross sales for the fiscal year ended June30, 2019 and gross accounts receivable at June30, 2019 was 78 days. The level of DSO at June30, 2019 was comparable to the Company’s expectations that DSO will be in the 70 to 85-day range based on customer payment terms.●A decrease in accounts payable totaling $43.3 million primarily due to a lower balance as of June30, 2019 related to the expiration of the JSP Distribution Agreement. The timing of payments also contributed to the decrease in accounts payable.●An increase in royalties payable of $10.3 million primarily due to an increase in business development deals and product revenues royalties.●A decrease in prepaid income taxes totaling $18.3 million primarily due to receipt of approximately $15.2 million in tax refunds from the Internal Revenue Service (“IRS”).●An increase in accrued payroll and payroll-related costs of $12.1 million primarily due to higher accrued incentive compensation-related costs and, to a lesser extent, the timing of payroll payments.Net cash used in investing activities of $40.0 million for the fiscal year ended June30, 2020 was mainly the result of purchases of intangible assets of $28.8 million and purchases of property, plant and equipment of $18.3 million, partially offset by proceeds from the sale of property, plant and equipment of $7.4 million. Net cash used in investing activities of $7.3 million for the fiscal year ended June30, 2019 was primarily due to purchases of property, plant and equipment of $24.3 million and purchases of intangible assets of $3.0 million, partially offset by proceeds from the sale of property, plant and equipment of $14.4 million and proceeds from the sale of an outstanding variable interest entity (“VIE”) loan to a third party of $5.6 million.

Payment Terms.Any specific payment terms, if any, that are applicable to a Project shall be included in the exhibit to the respective Project Agreement.

Payment Terms. The Payment Terms, as described in Section 2.B(6) of the Agreement, are attached hereto as Exhibit F.

8. We note your response to comment 11 of our letter dated June 19, 2017. Please disclose the nature and terms of the receivables included in other receivables, including why you entered into the underlying transaction as well as the repayment terms. For example, you note that the business purpose of loaning Customer B $10.9 million USD was to maximize collection. It is unclear why you would enter into a transaction to provide a loan to your customer to maximize collection from that customer. In addition, our understanding is that Customer B only has another receivable of $10.9 million so it is not clear what collection you are referring to that you would like to maximize. In this regard, please provide us with a breakdown of other receivables as of June 30, 2016 by significant customer which provides a more detailed explanation of the nature of the receivable, the repayment terms, and any subsequent payments received.

4. We note your response to comment 9. Please disclose your typical payment terms with customers (i.e., 30 days, 60 days). Tell us when the amounts included in your accounts receivable balance as of December 31, 2017 were actually collected in relation to the negotiated payment terms. In addition, please tell us if there are any penalties for late payment.

Trade accounts receivable are recorded at the invoiced amount and typically non‑interest bearing. We maintain allowances for estimated losses resulting from the inability of our customers to make required payments and other accounts receivable allowances. We evaluate all accounts aged over 60days past payment terms. If the financial condition of our customers deteriorates or if other conditions arise that result in an impairment of their ability or intention to make payments, additional allowances may be required.

financing component. In certain instances, we enter into contracts that deviate from our standard payment terms. We evaluated these contracts and calculated the impact of the financing component, concluding that the impact was not significant. This evaluation and calculation will be assessed on future contacts with non-standard payment terms, and the amount of consideration will be adjusted if the amount is deemed significant.

The delivered cost of cigarettes does not include any discounts due to manufacturer’s payment terms. The delivered cost does reflect any manufacturer’s invoice allowances, as outlined in “Exhibit B.” Manufacturer invoice allowances are subject to change, at any time, by the manufacturer.

10.Terms of Agreement and Termination: This AGREEMENT shall be effective on 01-Mar-17 and shall continue for one year until 01-Mar-18. This AGREEMENT may be terminated by either party giving thirty (30) days written notice to the other. The AGREEMENT is automatically renewed for a period of one (1) year on the anniversary date unless one party notifies the other, in writing, thirty (30) days prior to automatic renewal. Upon termination of this AGREEMENT for any reason, Distributor shall, regardless of when orders are shipped, be entitled to: Products purchased on all orders calling for a shipment to Distributor’s territory, if the shipment date AND the products are available from Principal prior to the effective date of termination. Payment terms, after termination of this agreement, for open purchase orders, shall be via pre payment terms. Products in transit and in the possession of the distributor will remain the property of the distributor in the event of termination of this agreement. Principal bears no responsibility to accept return of stock.

The Lessor has the right to waive part of the aforementioned payment conditions at its sole discretion. Notwithstanding the foregoing, the lessor is still given the right to require the buyer to satisfy all of the above payment terms in accordance with this Agreement after paying the purchase price for the lease items. Unless otherwise stipulated in this Agreement, the buyer shall ensure that the payment terms stipulated in this Agreement are always satisfied and that all documents and information provided to the buyer shall remain in force and no description is changed or any description is changed but the buyer has made a reasonable statement on the approval of the lessor before the lessor pays the first batch of price for the lease items. At the same time, each party confirms that the lessor has formally reviewed the documents and materials required by Article 3.2 of the payment terms. If any document or material does not meet the payment terms stipulated in the Contract on Procurement of Equipment, the lessor will bear no responsibility for any delay of payment.

XML 67 R48.htm IDEA: XBRL DOCUMENT /* Do Not Remove This Comment */ function toggleNextSibling (e) { if (e.nextSibling.style.display=='none') { e.nextSibling.style.display='block'; } else { e.nextSibling.style.display='none'; } } v3.8.0.1 OTHER NON-CURRENT ASSETS (Tables) 12 Months Ended Dec. 31, 2017 Other Assets, Noncurrent [Abstract] Schedule of other non-current assets Other non-current assets consist of the following:December 31,(US$ in millions)20172016Recoverable taxes, net (1)$155$139Judicial deposits (1)140129Other long-term receivables1223Income taxes receivable (1)307261Long-term investments6654Affiliate loans receivable2425Long-term receivables from farmers in Brazil, net (1)131133Other193163Total$1,028$927(1)These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. Summary of recorded investment in long-term receivables and the related allowance amounts from Brazilian farmers The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.December 31, 2017December 31, 2016(US$ in millions)RecordedInvestmentAllowanceRecordedInvestmentAllowanceFor which an allowance has been provided:Legal collection process (1)$98$91$84$78Renegotiated amounts (2)25223631For which no allowance has been provided:Legal collection process (1)76—60—Renegotiated amounts (2)17—16—Other long-term receivables28—46—Total$244$113$242$109(1)All amounts in legal process are considered past due upon initiation of legal action.(2)All renegotiated amounts are current on repayment terms. Summary of the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.December 31,(US$ in millions)20172016Beginning balance$109$100Bad debt provisions193Recoveries(12)(12)Write-offs(1)(1)Foreign currency translation(2)19Ending balance$113$109 X - DefinitionTabular disclosure of financing receivables (examples of financing receivables include loans, trade accounts receivable and notes receivable) and activity in the allowance for credit losses account.

ii)The customer is deemed credit worthy by Zscaler Finance, and customer payment(s) for the order must begin within 30days per the Company’s standard payment terms. Payment terms greater than 30 days are acceptable only if approved in writing by the Chief Revenue Officer and Finance or as provided explicitly in the agreement with the customer. If customer payment terms exceed 60days, a Participant will not receive Quota Credit on the transaction until the end of the month in which the initial customer payment is made in accordance with the terms of the contract, unless specifically approved by Zscaler’s revenue-ops team.

● Disclose your Days Sales Outstanding as of June 30, 2020 and provide an explanation for increases as compared to prior periods. ● Disclose information regarding the aging of your receivable balances and provide explanations for changes as compared to prior periods. ● Clarify the typical payment terms of your sales to customers and whether you have provided any extended payment terms. ● Disclose more specifically how you determined the allowance for doubtful accounts and how you took into account the above factors.

5.1 Prices and Payment Terms. The prices of the Products and the terms of payment shall be as set forth on Exhibit A to this Agreement.

During the nine months ended September 30, 2020, three customers accounted for approximately 77.8% (or $6,016,000) of our total revenue, and during the year ended December 31, 2019, two customers accounted for approximately 99% (or $4,047,000) of our total revenue. This concentration of customers leaves us exposed to the risks associated with the loss of one or more of these significant customers, which would materially and adversely affect our revenues and results of operations. In addition, some of these customers have experienced construction delays in building out their facilities and we have been assisting these customers in addressing these delays, including in certain cases extending their payment terms. Any continued delays will likely result in a negative impact on our revenues. Further, if these customers were to significantly reduce their relationship with us, or in the event that we are unable to replace the revenue through the sale of our products to additional customers, our financial condition and results from operations could be negatively impacted, and such impact would likely be significant.

c.Taxes and Payment Terms. Buyer shall pay sales or use tax, if any is due. Unless otherwise stated, the prices do not include sales or use taxes applicable to the Products. Any government-imposed taxes or tariffs applicable to procured Material imposed after the date of relevant Purchase Order will be passed on to Buyer. Payment terms and Credit limit shall be as set forth on Exhibit B hereto, as may be updated by mutual written agreement of the parties from time to time. Payment terms and credit line shall be established based on financial reporting and net worth. Buyer will provide financial reporting (balance sheet, net worth, profit and loss statement as available) at agreed upon frequency however no less than [****] per year. Supplier reserves the right to alter payment terms in the future based on payment history and any credit line in such a way that disfavors Buyer if Supplier believes, in its sole and reasonable discretion, that Buyer’s business or financial condition has changed in a materially adverse manner.