Allowance for Credit Losses

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

The allowance for credit losses on trade receivables is determined based on a number of factors such as recent and historical write-off and delinquency trends, a specific analysis of significant receivable balances that are past due, the concentration of trade receivables among clients and the current state of the U.S. economy. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the three and six months ended June 30, 2022.

The following table presents the activity within the allowance for credit losses on trade receivables for the six months ended June 30, 2022 (in thousands):

Allowance for credit losses, January 1, 2022	$	1,729
Current period provision (credit)	(172)
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(201)
Allowance for credit losses, June 30, 2022	$	1,356

The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.6 million and $0.6 million at June 30, 2022 and December 31, 2021, respectively, for reserves unrelated to credit losses.