ALLOWANCE FOR CREDIT LOSSES

Trade Receivables The Company evaluates the collectability of trade receivables based on a percentage of sales related to historical loss experience. The Company will also record periodic adjustments for known events such as specific customer circumstances and changes in the aging of accounts receivable balances. After all efforts at collection have been unsuccessful, the account is deemed uncollectible and is written off.

Financing Receivables The Company evaluates the collectability of notes and finance lease receivables (collectively, financing receivables) on a customer-by-customer basis and evaluates specific customer circumstances, aging of invoices, credit risk changes, payment patterns and historical loss experience. When the collectability is determined to be at risk based on the above criteria, the Company records the allowance for credit losses, which represents the Company’s current exposure less estimated reimbursement from insurance claims. After all efforts at collection have been unsuccessful, the account is deemed uncollectible and is written off.

The following table summarizes the Company’s allowance for credit losses for the three months ended March 31, 2014 and 2013:



	Finance Leases			Notes Receivable			Total
Allowance for credit losses
Balance at January 1, 2014	$	439		$	4,134		$	4,573
Provision for credit losses	8			—			8
Balance at March 31, 2014	$	447		$	4,134		$	4,581

Balance at January 1, 2013	$	525		$	2,047		$	2,572
Provision for credit losses	7			—			7
Recoveries	3			—			3
Write-offs	(75		)	(426		)	(501		)
Balance at March 31, 2013	$	460		$	1,621		$	2,081

The Company's allowance of $4,581 and $2,081 at March 31, 2014 and 2013, respectively, all resulted from individual impairment evaluation. As of March 31, 2014, finance leases and notes receivable individually evaluated for impairment were $202,559 and $14,128, respectively. As of March 31, 2013, balances of finance leases and notes receivable individually evaluated for impairment were $89,845 and $15,790, respectively. As of March 31, 2014 and December 31, 2013, the Company’s finance lease receivables in Brazil were $117,310 and $33,283, respectively. The increase related to customer financing arrangements within the education ministry.

The Company records interest income and any fees or costs related to financing receivables using the effective interest method over the term of the lease or loan. The Company reviews the aging of its financing receivables to determine past due and delinquent accounts. Credit quality is reviewed at inception and is re-evaluated as needed based on customer-specific circumstances. Receivable balances 60 days to 89 days past due are reviewed and may be placed on nonaccrual status based on customer-specific circumstances. Receivable balances are placed on nonaccrual status upon reaching greater than 89 days past due. Upon receipt of payment on nonaccrual financing receivables, interest income is recognized and accrual of interest is resumed once the account has been made current or the specific circumstances have been resolved.

As of March 31, 2014 and December 31, 2013, the recorded investment in past-due financing receivables on nonaccrual status was $2,924 and $1,670, respectively, and there were no recorded investments in finance receivables past due 90 days or more and still accruing interest. The recorded investment in impaired notes receivable was $4,134 as of March 31, 2014 and December 31, 2013, respectively, and was fully reserved. The following table summarizes the Company’s aging of past-due notes receivable balances:



	March 31, 2014		December 31, 2013
30-59 days past due	$	—	$	85
60-89 days past due	—		—
> 89 days past due (1)	759		—
Total past due	$	759	$	85

(1) past-due notes receivable balances greater than 89 days as of March 31, 2014 are fully reserved.