Allowance for Credit Losses

12 Months Ended

Dec. 31, 2021

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


(in thousands)	2021		2020		2019
Balance as of January 1	$	33,368	$	26,828	$	22,571
Thryv Australia Acquisition, balance as of March 1, 2021	2,733		—		—
Additions (1)	8,031		32,077		30,092
Deductions (2)	(26,657)		(25,537)		(25,835)
Balance as of December 31 (3)	$	17,475	$	33,368	$	26,828

(1) For the years ended December 31, 2021, 2020, and 2019, represents provision for bad debt expense of $8.0 million, $32.1 million, and $30.1 million, respectively, which is included in General and administrative expense.

(2) For the years ended December 31, 2021, 2020, and 2019, represents amounts written off as uncollectible, net of recoveries.

(3) As of December 31, 2021, $17.4 million of the allowance is attributable to Accounts receivable and $0.1 million is attributable to Contract assets. As of December 31, 2020, $33.0 million of the allowance is attributable to Accounts receivable and $0.3 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. The economic downturn caused by COVID-19 resulted in an incremental amount of $2.1 million recorded to allowance for credit losses for the year ended December 31, 2020, which was recognized within General and administrative expense. No incremental impact was recorded for the year ended December 31, 2021.