RECEIVABLES (Notes)

9 Months Ended

Oct. 31, 2021

NOTE 4 - RECEIVABLES

The Company provides an allowance for expected credit losses on its nonrental receivables. To measure the expected credit losses, receivables have been grouped based on shared credit risk characteristics as shown in the table below.

Trade and unbilled receivables from contracts with customers have credit risk and the allowance is determined by applying expected credit loss percentages to aging categories based on historical experience that are updated each quarter. The rates may also be adjusted to the extent future events are expected to differ from historical results. In addition, the allowance is adjusted based on information obtained by continued monitoring of individual customer credit.

Trade receivables from finance companies, other receivables due from manufacturers, and other receivables have not historically resulted in any credit losses to the Company. These receivables are short-term in nature and deemed to be of good

credit quality and have no need for any allowance for expected credit losses. Management continually monitors these receivables and should information be obtained that identifies potential credit risk, an adjustment to the allowance would be made if deemed appropriate.

Trade and unbilled receivables from rental contracts are primarily in the United States and are specifically excluded from the accounting guidance in determining an allowance for expected losses. The Company provides an allowance for these receivables based on historical experience and using credit information obtained from continued monitoring of customer accounts.


	October 31, 2021		January 31, 2021
	(in thousands)
Trade and unbilled receivables from contracts with customers
Trade receivables due from customers	$	36,280	$	31,664
Unbilled receivables	21,842		12,909
Less allowance for expected credit losses	2,600		2,994
	55,522		41,579

Trade receivables due from finance companies	14,899		14,133

Trade and unbilled receivables from rental contracts
Trade receivables	5,520		4,329
Unbilled receivables	1,025		520
Less allowance for expected credit losses	1,892		1,939
	4,653		2,910
Other receivables
Due from manufacturers	9,200		8,720
Other	1,568		1,767
	10,768		10,487
Receivables, net of allowance for expected credit losses	$	85,842	$	69,109

Following is a summary of allowance for credit losses on trade and unbilled accounts receivable by segment:


	Agriculture		Construction		International		Total
	(in thousands)
Balance at January 31, 2021	$	228	$	1,074	$	1,690	$	2,992
Current expected credit loss provision	30		68		(2)		96
Write-offs charged against allowance	17		84		38		139
Credit loss recoveries collected	—		4		—		4
Foreign exchange impact	—		—		(50)		(50)
Balance at April 30, 2021	241		1,062		1,600		2,903
Current expected credit loss provision	84		50		(225)		(91)
Write-offs charged against allowance	33		64		21		118
Credit loss recoveries collected	7		1		—		8
Foreign exchange impact	—		—		19		19
Balance at July 31, 2021	299		1,049		1,373		2,721
Current expected credit loss provision	(3)		26		(8)		15
Write-offs charged against allowance	87		29		6		122
Credit loss recoveries collected	2		3		—		5
Foreign exchange impact	—		—		(19)		(19)
Balance at October 31, 2021	$	211	$	1,049	$	1,340	$	2,600


	Agriculture		Construction		International		Total
	(in thousands)
Balance at February 1, 2020	$	181	$	1,016	$	1,746	$	2,943
Current expected credit loss provision	14		113		226		353
Write-offs charged against allowance	5		71		133		209
Credit loss recoveries collected	40		4		6		50
Foreign exchange impact	—		—		(29)		(29)
Balance at April 30, 2020	230		1,062		1,816		3,108
Current expected credit loss provision	16		95		265		376
Write-offs charged against allowance	47		78		98		223
Credit loss recoveries collected	9		—		—		9
Foreign exchange impact	—		—		23		23
Balance at July 31, 2020	208		1,079		2,006		3,293
Current expected credit loss provision	30		12		(256)		(215)
Write-offs charged against allowance	44		21		48		114
Credit loss recoveries collected	2		18		—		20
Foreign exchange impact	—		—		67		67
Balance at October 31, 2020	$	196	$	1,088	$	1,769	$	3,053

The following table presents impairment losses (recoveries) on receivables arising from sales contracts with customers and receivables arising from rental contracts:


	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
	(in thousands)
Impairment losses (recoveries) on:
Receivables from sales contracts	$	20	$	(213)	$	340	$	307
Receivables from rental contracts	54		(59)		24		92
	$	74	$	(272)	$	364	$	399