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Accounts Receivable | 9 Months Ended
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Sep. 30, 2021
Receivables [Abstract] |
Accounts Receivable |
5. | Accounts Receivable
Accounts receivable consists of amounts billed to and due from customers across a wide range of industries and other third parties. The Company often extends short-term credit to cardholders and pays the merchant for the purchase price, less the fees it retains and records as revenue. The Company subsequently collects the total purchase price from the cardholder. In general, the Company’s trade receivables provide for payment terms of 30 days or less. Receivables not paid in full by payment due dates as stated within the terms of the agreement are generally considered past due and subject to late fees and interest based upon the outstanding receivables balance. The Company discontinues late fee and interest income accruals on outstanding receivables once customers are 90 and 120 days past the invoice due date, respectively. Payments received subsequent to discontinuing late fee and interest income accruals are first applied to outstanding late fees and interest, and the Company resumes accruing interest and late fee income as earned on future receivables balances. Receivables are generally written off when they are 180 days past invoice origination date or upon declaration of bankruptcy of the customer, subject to local regulatory restrictions. The Company extends revolving credit to certain small fleets. These accounts are also subject to late fees, and balances that are not paid in full are subject to interest charges based on the revolving balance. The Company had approximately $87.7 million and $60.2 million in receivables with revolving credit balances as of September 30, 2021 and December 31, 2020, respectively. The allowance for accounts receivable consists primarily of reserves for credit losses, reflecting management’s current estimate of uncollectible balances on its accounts receivable. Accounts receivable are evaluated for impairment on a pooling basis based on similar risk characteristics including industry of the borrower, historical or expected credit loss patterns, risk ratings or classification, and geographic location. The following tables present changes in the accounts receivable allowances by portfolio segment:
| Three Months Ended September 30, 2021
(In thousands) | Fleet Solutions |  | Travel and Corporate Solutions |  | Health and Employee Benefit Solutions |  | Total
Balance, beginning of period | $ | 49,716 |  |  | $ | 7,519 |  |  | $ | 536 |  |  | $ | 57,771 |
Provision for credit losses 1 | 10,231 |  |  | 3,816 |  |  | 80 |  |  | 14,127 |
Charges to other accounts 2 | 4,046 |  |  | 5 |  |  | — |  |  | 4,051 |
Charge-offs | (10,872) |  |  | (602) |  |  | (92) |  |  | (11,566) |
Recoveries of amounts previously charged-off | 1,691 |  |  | 163 |  |  | 53 |  |  | 1,907 |
Currency translation | (392) |  |  | (206) |  |  | — |  |  | (598) |
Balance, end of period | $ | 54,420 |  |  | $ | 10,695 |  |  | $ | 577 |  |  | $ | 65,692 |
| Three Months Ended September 30, 2020
(In thousands) | Fleet Solutions |  | Travel and Corporate Solutions |  | Health and Employee Benefit Solutions |  | Total
Balance, beginning of period | $ | 47,109 |  |  | $ | 16,142 |  |  | $ | 592 |  |  | $ | 63,843 |
Provision for credit losses 1,3 | 8,526 |  |  | 3,725 |  |  | 32 |  |  | 12,283 |
Charges to other accounts 2 | 3,200 |  |  | — |  |  | — |  |  | 3,200 |
Charge-offs | (18,334) |  |  | (10,149) |  |  | (63) |  |  | (28,546) |
Recoveries of amounts previously charged-off | 3,213 |  |  | — |  |  | — |  |  | 3,213 |
Currency translation | 504 |  |  | 31 |  |  | (263) |  |  | 272 |
Balance, end of period | $ | 44,218 |  |  | $ | 9,749 |  |  | $ | 298 |  |  | $ | 54,265 |
| Nine Months Ended September 30, 2021
(In thousands) | Fleet Solutions |  | Travel and Corporate Solutions |  | Health and Employee Benefit Solutions |  | Total
Balance, beginning of period | $ | 49,267 |  |  | $ | 9,610 |  |  | $ | 270 |  |  | $ | 59,147 |
Provision for credit losses 1 | 26,359 |  |  | 5,568 |  |  | 221 |  |  | 32,148 |
Charges to other accounts 2 | 12,267 |  |  | 5 |  |  | — |  |  | 12,272 |
Charge-offs | (37,239) |  |  | (4,462) |  |  | (120) |  |  | (41,821) |
Recoveries of amounts previously charged-off | 4,572 |  |  | 176 |  |  | 206 |  |  | 4,954 |
Currency translation | (806) |  |  | (202) |  |  | — |  |  | (1,008) |
Balance, end of period | $ | 54,420 |  |  | $ | 10,695 |  |  | $ | 577 |  |  | $ | 65,692 |
| Nine Months Ended September 30, 2020
(In thousands) | Fleet Solutions |  | Travel and Corporate Solutions |  | Health and Employee Benefit Solutions |  | Total
Balance, beginning of period | $ | 50,010 |  |  | $ | 5,765 |  |  | $ | 8,076 |  |  | 63,851 |
Provision for credit losses 1,3 | 47,418 |  |  | 19,230 |  |  | 203 |  |  | 66,851 |
Charges to other accounts 2 | 13,930 |  |  | — |  |  | — |  |  | 13,930 |
Charge-offs | (75,711) |  |  | (15,214) |  |  | (5,381) |  |  | (96,306) |
Recoveries of amounts previously charged-off | 8,101 |  |  | 28 |  |  | 17 |  |  | 8,146 |
Currency translation | 470 |  |  | (60) |  |  | (2,617) |  |  | (2,207) |
Balance, end of period | $ | 44,218 |  |  | $ | 9,749 |  |  | $ | 298 |  |  | $ | 54,265 |
1 The provision is comprised of estimated credit losses based on the Company’s loss-rate experience and adjustments required for forecasted credit loss information. The provision for credit losses reported within this table also includes the provision for fraud losses. 2 The Company earns revenue by assessing monthly finance fees on accounts with overdue balances. These fees are recognized as revenue at the time the fees are assessed. The finance fee is calculated using the greater of a minimum charge or a stated late fee rate multiplied by the outstanding balance that is subject to a late fee charge. On occasion, these fees are waived to maintain customer relationship goodwill. Charges to other accounts represents the offset against the late fee revenue recognized when the Company establishes a reserve for such waived amounts. 3 The provision for the three and nine months ended September 30, 2020 reflects an increase in expected credit losses as a result of COVID-19. Concentration of Credit Risk The receivables portfolio consists of a large group of homogeneous smaller balances across a wide range of industries, which are collectively and individually evaluated for impairment. No one customer receivable balance represented 10 percent or more of the outstanding receivables balance at September 30, 2021 or December 31, 2020. The following table presents the outstanding balance of trade accounts receivable that are less than 30 and 60 days past due, in each case, as a percentage of total trade accounts receivable:
Delinquency Status | September 30, 2021 |  | December 31, 2020
29 days or less past due | 99 | % |  | 97 | %
59 days or less past due | 99 | % |  | 98 | %

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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