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Table of Contents Anthropic, PBC Notes to Consolidated Financial Statements (Continued) Accounts Receivable and Allowances Accounts receivable represent uncollected payments from customers and payments collected by channel partners from customers on the Company’s behalf which have not yet been remitted to the Company. Accounts receivable are recorded at the invoiced amount net of the allowance for credit losses and do not bear interest. The Company’s accounts receivable balances as of December 31, 2023, 2024, and 2025 and June 30, 2026 (unaudited) were $10 million, $95 million, $909 million, and $5.8 billion, respectively. The Company regularly monitors collections and payments from customers and maintains an allowance for credit losses for estimated losses resulting from the inability of customers or channel partners to make or remit required payments. Management estimates the Company’s allowance for credit losses by considering factors such as historical credit loss experience and current conditions, the length of time accounts receivable are past due, customer payment histories, any specific customer collection issues identified, and current market conditions which may affect customer financial condition. This assessment is performed on an aggregate basis when similar characteristics exist within a customer group and on an individual basis when specific customers with collectability risks are identified. The Company writes off accounts receivable against the allowance when management determines a balance is uncollectible and no longer actively pursues collection of the receivable. Changes in the allowance for credit losses were as follows (in millions): Balance at beginning of period Change in allowance for credit losses Write-off of uncollectible accounts receivable Balance at end of period Property and Equipment, Net Year Ended December 31, 2024 2025 Six Months Ended June 30, 2026 (unaudited) $ $ — $ 5 $ 5 — 20 (8) 5 $ 17 $ 17 57 (3) 71 Property and equipment is stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related asset, ranging from three to five years. Leasehold improvements are amortized over the shorter of estimated useful life or the remaining lease term. The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives. Maintenance and repair costs that do not extend the useful life of the assets are expensed as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Software Development Costs Software development costs include costs to develop advanced AI models and related software solutions used to deliver the Company’s services to external users. Software development costs also include costs to develop software solely for internal use and applications used to support the Company’s operations. Model development costs are generally expensed as incurred due to the significant development uncertainty inherent in the development process. The Company capitalizes qualifying software development costs when (i) management, with relevant authority, has authorized and committed to fund the software project and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Software development costs capitalized were not significant for the years presented. F-18
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