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Provision for Credit Losses
9 Months Ended
Sep. 30, 2022
Credit Loss [Abstract]  
Provision for Credit Losses

NOTE 16: PROVISION FOR CREDIT LOSSES

Provisions for allowances and claims on accounts receivables and contract assets are based upon historical rates, expected trends, and estimates of potential returns, allowances, customer discounts, and incentives. The Company considers all available information when assessing the adequacy of the provision for allowances, claims, and doubtful accounts.

The Company performs ongoing credit evaluations of customers and sets credit limits based upon review of the customers’ current credit information, payment history, and the current economic and industry environments. The Company’s credit loss reserve consists of two parts: a) a provision for estimated credit losses based on historical experience and b) a reserve for specific customer collection issues that the Company has identified. Estimation of credit losses requires adjusting historical loss experience for current economic conditions and judgments about the probable effects of economic conditions on certain customers.

The following table provides a reconciliation of the provision for credit losses reported within the Condensed Consolidated Balance Sheets as of September 30, 2022:

 

 

Changes in Provision for Expected Credit Losses

 

 

(In millions)

 

Balance at January 1, 2022

$

2.2

 

Current period provision

 

1.5

 

Write-offs charged against allowance

 

(0.5

)

Recoveries

 

0.4

 

Translation

 

0.1

 

Balance at September 30, 2022

$

3.7