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Allowance for Expected Credit Losses
 12 Months Ended
Dec. 31, 2022
Credit Loss [Abstract]  
Allowance for Expected Credit Losses ALLOWANCE FOR EXPECTED CREDIT LOSSES
The allowance for credit losses is an estimate of the credit losses expected over the life of our financial assets and instruments. We assess and measure expected credit losses on a collective basis when similar risk characteristics exist, including market, geography, credit risk and remaining duration. Financial assets and instruments that do not share risk characteristics are evaluated on an individual basis. Our estimate of the allowance balance is assessed and quantified using internal and external valuation information relating to past events, current conditions and reasonable and supportable forecasts over the contractual terms of an asset.
Our primary exposure to expected credit losses is through our accounts receivable and contract assets. For these financial assets, we record an allowance for expected credit losses that, when deducted from the gross asset balance, presents the net amount expected to be collected. Primarily, our experience of historical credit losses provides the basis for our estimation of the allowance. We estimate the allowance based on an aging schedule and according to historical losses as determined from our history of billings and collections. Additionally, we adjust the allowance for factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and geopolitical risks. We also consider both the current and forecasted macroeconomic conditions as of the reporting date. As identified and needed, we adjust the allowance and recognize adjustments in the income statement each period. Accounts receivable are written off against the allowance in the period when the receivable is deemed to be uncollectible and further collection efforts have ceased. Subsequent recoveries of previously written off amounts are reflected as a reduction to credit impairment losses in the consolidated statements of income.
Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Generally, contract assets are recorded when contractual billing schedules differ from revenue recognition based on timing and are managed through the revenue recognition process. Based on our historical credit loss experience, the current expected credit loss for contract assets is estimated to be approximately 1% of the asset balance.

The following table presents the changes in the allowance for expected credit losses for our accounts receivable and short-term contract assets as of December 31, 2022, 2021 and 2020:
(Amounts in thousands)Accounts receivableShort-term contract assets
Beginning balance, January 1, 2022$74,336 $2,393 
Charges to cost and expenses, net of recoveries12,530 2,785 
Write-offs(3,188)— 
Currency effects and other, net(616)641 
Ending balance, December 31 , 2022$83,062 $5,819 
Beginning balance, January 1, 2021$75,176 $3,205 
Charges to cost and expenses, net of recoveries3,934 — 
Write-offs(2,015)— 
Currency effects and other, net(2,759)(812)
Ending balance, December 31 , 2021$74,336 $2,393 
Beginning balance, January 1, 2020$53,412 $206 
Adoption of ASU 2016-136,970 2,779 
Charges to cost and expenses, net of recoveries9,326 — 
Currency effects and other, net5,468 220 
Ending balance, December 31 , 2020$75,176 $3,205 

Our allowance on long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of reserved receivables associated with the national oil company in Venezuela. The following table presents the changes in the allowance for long-term receivables as of December 31, 2022, 2020 and 2020:

(Amounts in thousands)202220212020
Beginning balance, January 1,$67,696 $67,842 $68,555 
Adoption of ASU 2016-13— — (679)
Currency effects and other, net(1,319)(146)(34)
Ending balance, December 31,$66,377 $67,696 $67,842 
We also have exposure to credit losses from off-balance sheet exposures, such as financial guarantees and standby letters of credit, where we believe the risk of loss is immaterial to our financial statements as of December 31, 2022.