Allowance for Doubtful Accounts and Sales Reserves

9 Months Ended

Sep. 30, 2020

Credit Loss [Abstract]

Allowance for Doubtful Accounts and Sales Reserves

Allowance for Doubtful Accounts and Sales Reserves

The following table summarizes the changes in the allowances applied to accounts receivable and contract assets for the nine months ended September 30, 2020 (in thousands):

	Accounts Receivable Reserve		Contract Asset Reserve
Balance at December 31, 2019	$	2,662	$	205
Adoption of new accounting standard	—		609
Provision	1,600		1,832
Recoveries	(613)		(32)
Charge-offs	(721)		(67)
Balance at September 30, 2020	$	2,928	$	2,547

During the nine months ended September 30, 2020, we analyzed the risk associated with each portfolio segment within our accounts receivables and contract assets balances. As a result of the economic uncertainties caused by the impact of the COVID-19 pandemic, we aggregated our portfolio into pools using different risk profiles. We increased our expected credit loss rates for customers in industries that we expect will be more adversely impacted by the economic downturn caused by the COVID-19 pandemic, resulting in an increase to our expected credit losses during the nine months ended September 30, 2020.