Credit Losses

9 Months Ended

Oct. 02, 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):

	September Year to Date
	2022		2021
Allowance for credit losses:
Beginning balance	$	9.4	$	9.8
Current period provision	1.3		0.8
Currency exchange effects	(0.4)		(0.4)
Write-offs	(1.8)		(0.7)
Ending balance	$	8.5	$	9.5

Write-offs are presented net of recoveries, which were not material for September 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 had been recorded as a long-term receivable in other assets in the consolidated balance sheet. The related allowance for credit losses on this long-term customer receivable was $10.9 million and represented the likelihood of collection. In September 2021, a final ruling in the case was entered in favor of the customer. As a result, in the third quarter of 2021, we wrote off the entire receivable balance with this customer, including $0.6 million not previously reserved. The unreserved portion was recorded in SG&A expenses in the consolidated statements of earnings. The 2021 September year-to-date rollforward of our allowance for credit losses related to the long-term customer receivable, which was recorded in other assets in the consolidated balance sheet, is as follows (in millions of dollars):

	September Year to Date
	2021
Allowance for credit losses:
Beginning balance	$	10.9
Current period provision	0.6
Write-offs	(11.5)
Ending Balance	$	—

There were no allowances for long-term customer receivables during September year-to-date 2022. No other allowances related to other receivables were material for September year-to-date 2022.