Accounts Receivable (Notes)

3 Months Ended

Mar. 31, 2022

Accounts and Nontrade Receivable [Text Block]

Accounts Receivable and Note Receivable

Accounts receivable consist of the following:


(In thousands)	March 31 2022		December 31 2021
Trade accounts receivable	$	392,198	$	385,143
Less: Allowance for expected credit losses	(6,327)		(7,262)

Trade accounts receivable, net	$	385,871	$	377,881

Other receivables (a)	$	26,128	$	33,059

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

The provision for expected credit losses related to trade accounts receivable was as follows:


	Three Months Ended
	March 31
(In thousands)		2022		2021
Provision for expected credit losses and doubtful accounts related to trade accounts receivable		$	325	$	654

At March 31, 2022, $6.5 million of the Company's trade accounts receivable were past due by twelve months or more, with $3.5 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 as of March 31, 2022 and is included in the caption Other assets on the Condensed Consolidated Balance Sheet. 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. At March 31, 2022 the amortized cost of the note receivable was $31.4 million, compared with a fair value of $31.8 million.


(In thousands)	March 31 2022		December 31 2021
Note receivable	$	31,425	$	31,025