Credit Losses

12 Months Ended

Dec. 31, 2022

Credit Loss [Abstract]

Credit Losses

8. Credit Losses

Effective January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments prospectively. This ASU replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due. Upon adoption, the Company recorded a noncash cumulative effect adjustment to retained earnings of $2.1 million, net of $0.6 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020.

The Company is exposed to credit losses primarily through sales of products and services. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and other historical and forward-looking information on the financial condition of the customers. Balances are written off when determined to be uncollectible.

Estimates are used to determine the allowance, based on assessment of anticipated payment and all other historical, current and forward-looking information that is reasonably available.

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected.

	2022		2021		2020
Beginning Balance, January 1,	$	40,126	$	40,474	$	29,381
Adoption of ASU No. 2016-13, cumulative-effect adjustment to retained earnings	—		—		2,706
Provision for expected credit losses, net of recoveries	5,552		5,053		11,171
Amounts written off charged against the allowance	(4,462)		(5,307)		(3,863)
Other, including dispositions and foreign currency translation	(1,817)		(94)		1,079
Ending balance, December 31	$	39,399	$	40,126	$	40,474