Sho CA 8. taxc The Company reports as part of Note 1) the balances of its allowance for doubtful accounts at yearends (see page 9). Assume that the company is using the aging of accounts and that the bad debt expense for 2018 was $5.0 million, what was the amount of write-offs of accounts receivable due to bad debt in 2018? Table of Contents Net Investment Hedges For derivative instruments that are designated and qualify as a net investment hedge. a component of OCI and recorded in AOC designated and qualify as a net investment hedge the effective portion of the derivative's gain or loss is reported as The r e he subsequently reclassified into net earnings we either sold or substantially liquidated. subsequently reclassified into net earnings when the hedged net investment is To the extent that the change in the fair value of the forward contract corresponds to ne fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and received as described above. The remaining change ecognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in Live portion, which is immediately recognized in interest income and other net on cur consolidated statements of earnings. Fair Value Hedges For derivative instruments that are designated and qualify as a fait wat are designated and qualify as a fair value hedge, the changes in fair value of the derivative instruments and the offsetting changes in fair values of the underlying hedged item are recorded in values of the underlying hedged item are recorded in interest income and other, net or interest expense on our consolidated statements of earnings. Derivatives Not Designated As Hedging Instruments we also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not oeste instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in interest income our consolidated statements of earnings. ontracts is immediately recognized in interest income and other, not on Normal Purchase Normal Sale we enter into fixed price and price to be fixed green coffee purchase commitments, which are described further at Note 3, Inventories. For both mixed price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets. Refer to Note 3, Derivative Financial Instruments, and Note 5, Inventories, for further discussion of our derivative instruments and green coffee purchase commitments. Receivables, net of Allowance for Doubtful Accounts Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 30, 2018 and October 1, 2017, our allowance for doubtful accounts was $8.0 million and 59.8 million, respectively. Inventories Inventories are stated at the lower of cost (primarily moving average cost) or net realizable value. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 30, 2018 and October 1, 2017, inventory reserves were $41.5 million and $38.4 million, respectively. Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives. The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs on our consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the low their carrying amount or fair value less estimated costs to sell. We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the