Credit Losses

9 Months Ended

Oct. 01, 2023

Credit Loss [Abstract]

Credit Losses

Credit Losses

We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Provisions and recoveries are included in selling, general and administrative expenses. The following table presents the activity in the trade receivables allowance for doubtful accounts for our continuing operations for the three and nine months ended October 1, 2023 and October 2, 2022, respectively:

	2023		2022
	(In thousands)
Beginning balance at January 1	$	7,954	$	4,864
Current period provision	4,004		846
Acquisitions	—		319
Recoveries collected	—		(50)
Write-offs	(3)		(667)
Fx impact	(25)		(19)
Q1 ending balance	$	11,930	$	5,293
Current period provision	4,194		656
Acquisitions	19		—
Fx impact	11		(81)
Write-offs	—		(64)
Recoveries collected	(8)		(12)
Q2 ending balance	$	16,146	$	5,792
Current period provision	4,933		92
Write-offs	(31)		(2,717)
Recoveries collected	(824)		(23)
Fx impact	(72)		(104)
Q3 ending balance	$	20,152	$	3,040