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Credit Losses

12 Months Ended

Dec. 31, 2022

CREDIT LOSSES

We account for credit losses under ASC 326 using an expected credit loss impairment model for financial instruments, including trade receivables, retainage receivables and contract assets (unbilled receivables). We consider information such as historical experience, present economic conditions and other relevant factors management considers relevant to estimate expected credit losses.

Upon adoption of ASC 326 on January 1, 2020 under the modified retrospective approach, we recorded a cumulative effect adjustment to retained earnings of $1.2 million, net of $0.4 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020. The adoption of the credit loss standard had no impact to cash from or used in operating, financing or investing activities on our consolidated cash flow statements.

Changes in our allowance for credit losses were as follows (in thousands):


January 1, 2020	$	6,878
Cumulative effect of change in accounting principle	1,600
Current period provision	4,444
Recoveries collected and additions	503
Amounts written off	(4,636)
December 31, 2020	$	8,789
Current period provision	2,227
Recoveries collected and additions	574
Amounts written off	(2,873)
December 31, 2021	$	8,717

Current period provision	4,129
Recoveries collected and additions	334
Amounts written off	(3,631)
December 31, 2022	$	9,549