Credit Losses

6 Months Ended

Jul. 03, 2022

Credit Loss [Abstract]

Credit Losses

Credit Losses

The rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):

	June Year to Date
	2022		2021
Allowance for credit losses:
Beginning balance	$	9.4	$	9.8
Current period provision	0.9		(0.2)
Currency exchange effects	(0.3)		0.1
Write-offs	(1.6)		(0.8)
Ending balance	$	8.4	$	8.9

Write-offs are presented net of recoveries, which were not material for June year-to-date 2022 and 2021.

We were engaged in litigation with a customer over a disputed accounts receivable balance for certain services rendered more than five years ago, which was recorded as a long-term receivable in other assets in the consolidated balance sheet as of second quarter-end 2021. The related allowance for credit losses on this long-term customer receivable was $10.9 million and represented the likelihood of collection as of second quarter-end 2021. Based on a final ruling in the case in favor of the customer, we wrote off the entire receivable balance in the third quarter of 2021. No other allowances related to other receivables were material for second quarter-end 2022.