Contract Receivables, Net

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Contract Receivables, Net

NOTE 4 - CONTRACT RECEIVABLES, NET

Contract receivables, net consisted of the following as of December 31:

	2022			2021
Billed receivables	$	238,449		$	245,425
Allowance for expected credit losses		(6,112	)		(7,741	)
Contract receivables, net	$	232,337		$	237,684

On December 23, 2022, the Company entered into a Master Receivables Purchase Agreement (the “MRPA”) with MUFG Bank, Ltd. (“MUFG”) for the sale of certain eligible billed receivables from time to time. The purchase price of the receivables is equal to the net invoice amount minus a discount. The receivables are sold without recourse and the Company does not retain any ongoing financial interest in the transferred receivables other than providing servicing activities. The Company accounts for the transfers as sales under ASC 860, Transfers and Servicing, derecognizes the receivables from its consolidated balance sheets at the date of the

sale, and includes the cash received from MUFG as part of cash flows from operating activities on its consolidated statement of cash flows. During the year ended December 31, 2022, the Company sold $10.0 million in billed receivables. For the year ended December 31, 2022, the discount on the sale of receivables under the MRPA totaled less than $0.1 million and is included as part of “indirect and selling expenses” on the consolidated statements of comprehensive income.