Accounts Receivable, Allowance for Credit Losses

6 Months Ended

Jun. 30, 2020

Accounts Receivable, Allowance for Credit Losses

Trade accounts receivable are amounts due from customers for products sold or services performed in the ordinary course of business and are stated at their estimated net realizable value representing amounts expected to be collected. Allowance for credit losses is recorded upon the initial recognition of trade accounts receivable and reviewed during each reporting period over their contractual life. Allowance for credit losses is measured based on historical loss rates and the impact of current and future conditions, including an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The Company evaluates the allowance for credit losses for the entire portfolio of trade accounts receivable on an aggregate basis due to similar risk characteristics of its customers based on similar industry and historical loss patterns. Accounts receivable balances are written off against the allowance for credit losses when the Company determines that the balances are not recoverable. Provisions for expected credit losses are recorded in "Selling, general and administrative expenses" in the accompanying unaudited Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, allowance for credit losses was $7.3 million and $7.5 million, respectively.

The following table summarizes the activity for the allowance for credit losses during the three and six months ended June 30, 2020 and 2019:


(In millions)	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
Beginning balance	$	7.4	$	5.7	$	7.5	$	5.8
Provision for expected credit losses	0.3		1.0		0.7		1.5
Write offs	(0.4)		(0.5)		(0.5)		(1.0)
Foreign currency translation adjustments	—		0.1		(0.4)		—

Ending balance	$	7.3	$	6.3	$	7.3	$	6.3