Trade Accounts Receivable, net

9 Months Ended

Dec. 23, 2022

Trade accounts receivable, net (including related party trade accounts receivable) consisted of the following:


	December 23, 2022		March 25, 2022
Trade accounts receivable	$	147,023	$	129,539
Less:
Provision for expected credit losses	(147)		(105)
Returns and sales allowances	(18,749)		(14,819)
Related party trade accounts receivable	(30,902)		(27,256)
Total	$	97,225	$	87,359

The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses an aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable are separated into two categories using a portfolio methodology to evaluate the allowance under the CECL impairment model based on sales categorization and similar credit quality and worthiness of the customers: original equipment manufacturers (“OEMs”) and distributors. The receivables in each category share similar risk characteristics. The Company increases the provision for expected credits losses when the Company determines all or a portion of a receivable is uncollectible, and the Company recognizes recoveries as a decrease to the provision for expected credit losses.

Changes in the Company’s expected credit losses and returns and sales allowances were as follows:


Description	Provision for Expected Credit Losses		Returns and Sales Allowances		Total
Balance at March 25, 2022	$	105	$	14,819	$	14,924
Charged to costs and expenses or revenue	42		78,737		78,779
Write-offs, net of recoveries	—		(74,807)		(74,807)
Balance at December 23, 2022	$	147	$	18,749	$	18,896

Balance at March 26, 2021	$	138	$	15,274	$	15,412
Charged to costs and expenses or revenue	(68)		114,047		113,979
Write-offs, net of recoveries	—		(113,377)		(113,377)
Balance at December 24, 2021	$	70	$	15,944	$	16,014