Accounts Receivable

12 Months Ended

Dec. 31, 2021

Accounts receivable as of December 31, 2021 and 2020 are summarized as follows:


	December 31,
	2021		2020
Accounts receivable	$	56,458	$	59,242
Allowance for credit losses	(547)		(944)
Accounts receivable - net	$	55,911	$	58,298

On January 1, 2020, the Company adopted ASU 2016-13 and all the related amendments using the modified retrospective approach, which did not result in any changes to the previously reported financial information. The updates related to ASU 2016-13 were applied to assets held as of January 1, 2020.

In accordance with adoption of the new standard, the Company evaluated and revised its policies surrounding the allowance for credit losses for trade receivables. The Company established the allowance for credit losses by calculating the amount to reserve based on the age of a given trade receivable and considering historical collection patterns and bad debt expense experience, in addition to any other relevant subjective adjustments to individual receivables made by management. The Company also considered current and expected future market and other conditions. Trade receivables are pooled within the calculation based on a range of ages, which appropriately groups receivables of similar credit risk together.

The established reserve thresholds to calculate the allowance for credit loss are based on and supported by historic collection patterns and bad debt expense incurred by the Company, as well as the expectation that collection patterns and bad debt expense will continue to adhere to patterns observed in recent years, which was formed based on trends observed as well as current and expected

future conditions. Management maintains high-quality credit review practices as well as positive customer relationships that further mitigate credit risk. Management monitors and reviews the contributing factors to the Company’s reserve, and makes any appropriate revisions as they become necessary.

The Company’s adoption of ASU 2016-13 did not require material changes to the allowance for credit losses and no adjustment was recorded to opening retained earnings as of January 1, 2020.

Changes in reserves for uncollectible accounts are recorded as part of “Selling and administrative expenses” in the Consolidated Statements of Operations, and were income of $87, and expense of $365 for the years ended December 31, 2021 and 2020, respectively.

The following table sets forth the Company’s allowance for credit losses:


	Allowance for Credit Losses
December 31, 2020	$	944
Current period provision	(87)
Write-off against allowance	(310)

December 31, 2021	$	547

The Company’s customers are principally in the rail, transportation, heavy civil, agricultural, energy, commercial, and residential infrastructure sectors. As of December 31, 2021 and 2020, trade receivables, net of allowance for credit losses, from customers were as follows:


	December 31,
	2021		2020
Rail, Technologies, and Services	$	34,827	$	33,960
Precast Concrete Products	10,809		11,119
Steel Products and Measurement	10,275		13,133
Trade accounts receivable - net	$	55,911	$	58,212

Credit is extended based upon an evaluation of the customer’s financial condition and, while collateral is not required, the Company periodically receives surety bonds that guarantee payment. Credit terms are consistent with industry standards and practices.