Receivables and Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 2024

Receivables and Allowance for Doubtful Accounts [Abstract]

Receivables

Receivables consist of the following:

(in thousands)	September 30, 2024		December 31, 2023
Installment sales receivables	$	58,566	$	62,901
Trade and notes receivables(1)	76,852		62,358
Total receivables	135,418		125,259
Less allowance for doubtful accounts(2)	(13,773)		(14,254)
Total receivables, net of allowance for doubtful accounts	$	121,645	$	111,005

(1) Trade and notes receivables includes accrued revenue, adjusted for the probability of collection, related to our lease-to-own agreements of $44.3 million and $36.8 million at September 30, 2024 and December 31, 2023, respectively.

(2) Lease receivables are accrued on a net basis, adjusted for the probability of collection based on our assessment of historical collection rates, as described above. Therefore, we do not maintain a separate allowance for doubtful accounts related to our lease receivables.

Changes in Allowance for Doubtful Accounts

Changes in our allowance for doubtful accounts are as follows:

(in thousands)	September 30, 2024
Beginning allowance for doubtful accounts	$	14,254
Bad debt expense(1)	14,968
Accounts written off, net of recoveries	(15,449)
Ending allowance for doubtful accounts	$	13,773

(1) Uncollectible installment payments, franchisee obligations, and other corporate receivables are recognized in non-labor operating expenses in our condensed consolidated financial statements.