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Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Credit Loss [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
The allowance for credit losses on trade receivables is determined based on the accounting standard that requires companies to estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. Upon adoption of the new standard on January 1, 2020, we recognized a credit loss adjustment related to adoption of this accounting standard as a cumulative adjustment to the allowance for credit losses. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the year ended December 31, 2021.
The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2021 and December 31, 2020 (in thousands):
Allowance for credit losses, January 1, 2020 (1)$1,843 
Current period provision2,130 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(1,216)
Allowance for credit losses, December 31, 20202,757 
Current period provision11 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(1,039)
Allowance for credit losses, December 31, 2021$1,729 
(1) As a result of the adoption of the credit losses accounting standard, we recorded a cumulative effect adjustment to increase the allowance for credit losses of $0.3 million as of January 1, 2020.
The allowances on trade receivables presented in the Consolidated Balance Sheets include $0.6 million and $0.4 million at December 31, 2021 and December 31, 2020, respectively, for reserves unrelated to credit losses.