Accounts Receivable and Note Receivable (Notes)

12 Months Ended

Dec. 31, 2021

Accounts receivable consist of the following:



(In thousands)	December 31 2021		December 31 2020
Trade accounts receivable	$	385,143	$	362,801
Less: Allowance for expected credit losses	(7,262)		(7,488)
Trade accounts receivable, net	$	377,881	$	355,313

Other receivables (a)	$	33,059	$	31,208

(a)Other receivables include employee receivables, insurance receivable, tax claims and refunds and other miscellaneous receivables not included in Trade accounts receivable, net.

The provision for doubtful accounts related to trade accounts receivable was as follows:


	Years Ended December 31
(In thousands)	2021		2020		2019
Provision for expected credit losses and doubtful accounts related to trade accounts receivable	$	589	$	1,961	$	7,123

The provision for doubtful accounts in 2019 primarily included a provision in the Harsco Environmental Segment related to a customer in the U.K entering administration which was subsequently written off in 2020.

At December 31, 2021 $8.0 million of the Company's trade accounts receivable were past due by twelve months or more, with $5.4 million of this amount reserved. Collection of the remaining balance is still ultimately expected.

In January 2020, the Company sold IKG for $85.0 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40.0 million, bearing interest at 2.50%, that is paid in kind and matures on January 31, 2027. Any unpaid principal, along with any accrued but unpaid interest is payable at maturity. Prepayment is required in case of a change in control or a percentage of excess cash flow, as defined in the note receivable agreement. Because there are no scheduled payments under the terms of the note receivable, the balance is not classified as current and is included in the caption Other assets on the Consolidated Balance Sheets. The initial fair value of the note receivable was $34.3 million which was calculated using an average of various discounted cash flow scenarios based on anticipated timing of repayments (Level 3) and was a non-cash transaction. The note receivable is subsequently measured at amortized cost. Key inputs into the valuation model include: projected timing and amount of cash flows, pro forma debt rating, option-adjusted spread and U.S. Treasury spot rate. During the twelve months ended December 31, 2021, the Company received a payment of $6.4 million related to excess cash flow. At December 31, 2021 the amortized cost of the note receivable was $31.0 million, compared with a fair value of $32.3 million.


(In thousands)	December 31 2021		December 31 2020
Note receivable	$	31,025	$	35,806