Credit Losses

9 Months Ended

Oct. 02, 2022

Credit Loss [Abstract]

Credit Losses

Credit Losses We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible.

Estimates are used to determine the allowance, which is based upon an assessment of anticipated payments as well as other information that is reasonably available. The following table presents the activity in the trade receivables allowance for doubtful accounts for our continuing operations for the three and nine months ended October 2, 2022 and October 3, 2021, respectively:

	2022		2021
	(In thousands)
Beginning balance at January 1	$	4,864	$	5,085
Current period provision	846		52
Acquisitions	319		—
Write-offs	(667)		(47)
Recoveries collected	(50)		(23)
Fx impact	(19)		(17)
Q1 ending balance	$	5,293	$	5,050
Current period provision	656		224
Acquisitions	—		(192)
Write-offs	(64)		—
Recoveries collected	(12)		(36)
Fx impact	(81)		(24)
Q2 ending balance	$	5,792	$	5,022
Current period provision	92		94
Write-offs	(2,717)		(246)
Recoveries collected	(23)		(107)
Fx impact	(104)		(19)
Q3 ending balance	$	3,040	$	4,744