Note 3 - Allowance for Credit Losses

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

(3) ALLOWANCE FOR CREDIT LOSSES

Expected credit losses are recognized on the initial recognition of our trade accounts receivable and contract assets.  In each subsequent reporting period, even if a loss has not yet been incurred, credit losses are recognized based on the history of credit losses and current conditions, as well as reasonable and supportable forecasts affecting collectability. We developed an expected credit loss model applicable to our trade accounts receivable and contract assets that considers our historical performance and the economic environment, as well as the credit risk and its expected development for each segmented group of customers that share similar risk characteristics. It is our practice to write off receivables when all legal options for collection have been exhausted.

Activity in the allowance for credit losses for the nine months ended September 30, 2021 is as follows:

	Trade			Due
	and Other			from
(In thousands)	Receivables			Affiliates
Balance at January 1, 2021	$	1,516		$	71,800
Current period provision for expected credit losses		707			(1,000	)
Write offs		(89	)		—
Other		—			(162	)
Balance at September 30, 2021	$	2,134		$	70,638