Allowance for Credit Losses

3 Months Ended

Mar. 31, 2021

Allowance for Credit LossesIn accordance with ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the Company evaluates its allowance based on expected losses rather than incurred losses, which is known as the current expected credit loss model. The allowance is determined using the loss rate approach and is measured on a collective (pool) basis when similar risk characteristics exist. Where financial instruments do not share risk characteristics, they are evaluated on an individual basis. The allowance is based on relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.

A higher allowance for credit losses on customers within certain industries was recorded during the three months ended March 31, 2020 due to the potential adverse impact the COVID-19 pandemic may have on the estimate of future credit losses. As of March 31, 2021, the Company reassessed its allowance and determined that a higher loss rate was no longer necessary based on the Company's loss experience over the past year, the Company's risk assessment of customers, and its expectations for continued successful collection of its accounts receivable balances.

Activity in the allowance for credit losses is summarized as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Balance at December 31	$	1,065	$	464
Impact of ASU No. 2016-13 adoption	—		423
Opening balance at January 1	1,065		887
Charges to expense, net of recoveries	(10)		830
Uncollected balances written off	(65)		(94)
Balance at March 31	$	990	$	1,623