Allowance for Credit Losses

9 Months Ended

Sep. 30, 2022

Credit Loss [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

The following table sets forth the Company's allowance for credit losses:

(in thousands)	2022		2021
Balance as of January 1	$	17,475	$	33,368
Acquisitions	—		2,733
Additions (1)	10,669		3,211
Deductions (2)	(14,960)		(19,833)
Balance as of September 30 (3)	$	13,184	$	19,479

(1)    For the nine months ended September 30, 2022 and 2021, represents provision for bad debt expense of $10.7 million and $3.2 million, respectively, which is included in General and administrative expense. For the three months ended September 30, 2022 and 2021, the Company recorded a provision for bad debt expense of $2.8 million and $2.9 million, respectively, which is included in General and administrative expense.

(2)    For the nine months ended September 30, 2022 and 2021, represents amounts written off as uncollectible, net of recoveries.

(3)    As of September 30, 2022, $13.1 million of the allowance is attributable to Accounts receivable and less than $0.1 million is attributable to Contract assets. As of September 30, 2021, $19.4 million of the allowance is attributable to Accounts receivable and $0.1 million is attributable to Contract assets.

The Company’s exposure to expected credit losses depends on the financial condition of its clients and other macroeconomic factors. The Company maintains an allowance for credit losses based upon its estimate of potential credit losses. This allowance is based upon historical and current client collection trends, any identified client-specific collection issues, and current as well as expected future economic conditions and market trends.