Allowance for Credit Losses

6 Months Ended

Jun. 30, 2023

In 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.

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


	Six Months Ended June 30,
	2023		2022


Opening balance at January 1	$	5.8	$	2.9
Charges to expense, net of recoveries	(0.3)		1.7
Other (1)	(2.0)		(0.1)
Balance at June 30	$	3.5	$	4.5

(1) Other is primarily related to uncollected balances written off, business acquisitions, and currency translation adjustments.