Expected Credit Losses

12 Months Ended

Dec. 31, 2021

Expected Credit Losses

Expected Credit Losses

Note 4 - Expected Credit Losses

We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, notes receivable, and contract assets is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible.

We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and reversed our previously-recorded additional reserve for credit losses of approximately $1.3 million during the year ended December 31, 2021.

We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions.

The following table provides a roll-forward of the allowance for expected credit losses that is deducted from the amortized cost basis of accounts receivable, notes receivable, and contract assets to present the net amount expected to be collected (in thousands):

	Year Ended December 31, 2021						December 31, 2020
		United States		Other countries		Total		United States		Other countries		Total
Balance, beginning of period	$	2,902	$	474	$	3,376	$	1,395	$	172	$	1,567
Adoption of Topic 326, cumulative-effect adjustment to retained earnings		—		—		—		767		1		768
Provision for (recovery of) expected credit losses		245		(291)		(46)		824		391		1,215
Amounts written off charged against the allowance		(54)		—		(54)		(84)		(33)		(117)
Other, including dispositions and foreign currency translation		78		(5)		73		—		(57)		(57)
Balance, end of period	$	3,171	$	178	$	3,349	$	2,902	$	474	$	3,376

As of December 31, 2021 and December 31, 2020, the allowance for expected credit losses for each type of customer receivable was as follows (in thousands):

	December 31,		December 31,
	2021		2020
Accounts receivable and notes receivable, current	$	2,203	$	2,105
Contract assets, net		1,010		794
Long-term notes receivable, net of current portion		136		477
Total allowance for expected credit losses on customer receivables	$	3,349	$	3,376