Allowance Accounts

12 Months Ended

Dec. 31, 2022

Note 18 — Allowance Accounts

The following table sets forth the activity in our valuation accounts for each of the three years in the period ended December 31, 2022 (in thousands):


	Allowance for		Deferred Tax Asset
	Credit Losses		Valuation Allowance
Balance at December 31, 2019	$	—	$	18,631
Additions (reductions) ⁽¹⁾		2,684		—
Adjustments ⁽²⁾		785		1,091
Balance at December 31, 2020		3,469		19,722
Additions (reductions) ⁽¹⁾		(146)		—
Write-offs ⁽³⁾		(1,846)
Adjustments ⁽⁴⁾		—		(5,675)
Balance at December 31, 2021		1,477		14,047
Additions (reductions) ⁽¹⁾		800		—
Adjustments ⁽⁵⁾		—		8,110
Balance at December 31, 2022	$	2,277	$	22,157

(1)

Additions (reductions) in allowance for credit losses reflect credit loss reserves (releases) during the respective years, including a $1.7 million credit loss reserve in 2020 related to a receivable in our Robotics segment. Additions during 2022 primarily reflected adjustments to the allowance for credit losses due to increases in our expected credit losses as a result of the Alliance acquisition.

(2)	The adjustment in allowance for credit losses reflects provision for current expected credit losses upon the adoption of ASU No. 2016-13 on January 1, 2020.

(3)	The write-offs of allowance for credit losses reflect certain receivables related to our Robotics segment that were previously reserved and subsequently deemed to be uncollectible.

(4)	The decrease in valuation allowance primarily relates to the valuation allowance release for certain of our U.K. operations.

(5)	The increase in valuation allowance relates to current year activity and the related change in unrealizable net deferred tax assets.

See Note 2 for a detailed discussion regarding our accounting policy on accounts receivable and allowance for credit losses as well as the adoption of ASU No. 2016-13. See Note 8 for a detailed discussion of the valuation allowance related to our deferred tax assets.