Accounts Receivable, Net

12 Months Ended

Dec. 31, 2023

Accounts receivable, net, primarily represent customer receivables, recorded at invoiced amount, net of a sales allowance and an allowance for doubtful accounts. A sales allowance is determined based on various factors, including the overall business environment, historical trends and information from customers, such as agreed upon customer contract terms as well as historical experience from the customer. An allowance for doubtful accounts is determined based on various factors, including specific identification of balances at risk for not being collected, historical experience, existing economic conditions and supportable forecasted changes.

The Company evaluates its general portion of the allowance for doubtful accounts based on historical loss information and applies reserve percentages based on aging schedule. Days past due is calculated from contractual due date of the trade receivable contract. The composition of the trade receivables is consistent with that used in developing the historical credit-loss percentages and evaluated to reflect current conditions and supportable forecasted changes. The trade receivables are generally due in 30 to 90 days.

In addition to the general portion of the allowance for doubtful accounts, certain doubtful accounts are evaluated for a specific reserve. These accounts generally include significantly past due or other factors known where a substantial portion or all of the balance is deemed to be uncollectible. Receivables are written-off when all reasonable collection efforts have been exhausted and it is probable the balance will not be collected.

Accounts receivable, net consisted of the following (in thousands):


	December 31,
	2023		2022
Accounts receivable	$	180,000	$	232,816
Less: Allowance for sales discounts	(44,121)		(57,332)
Less: Allowance for doubtful accounts	(5,048)		(7,589)
Accounts receivable, net	$	130,831	$	167,895

Accounts receivable includes a $0.8 million and $1.5 million tenant improvement receivable from a lessor as of December 31, 2023 and 2022. In addition, accounts receivable as of December 31, 2023 and 2022 includes an income tax receivable of $0.3 million and $7.8 million. The remaining balance is customer receivables. Bad debt expense was $0.3 million, $6.1 million and $0.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Activity in our allowance for doubtful accounts was as follows (in thousands):


	December 31,
	2023		2022
Allowance for doubtful accounts - beginning	$	7,589	$	3,156
Charged to costs	294		6,127
Write offs	(2,835)		(1,694)
Allowance for doubtful accounts - ending	$	5,048	$	7,589