XML 25 R12.htm IDEA: XBRL DOCUMENT v3.26.1
Credit Losses
 3 Months Ended
Mar. 31, 2026
Credit Loss [Abstract]  
Credit Losses Credit Losses
We are exposed to credit losses primarily through our accounts receivable from revenue transactions, investments held at amortized cost and other notes receivable. We estimate expected credit losses based on past events, current conditions and reasonable and supportable forecasts. Expected credit losses are measured over the remaining contractual life of these assets. As part of our consideration of current and forward-looking economic conditions, current inflationary pressures on our customers’ and other third parties’ ability to pay, we observed an increase in our current trade accounts receivable offset by a higher provision for certain customers due to their credit risk profile and timing of payments for the year ended December 31, 2025.

Accounts Receivable from Revenue Transactions
Accounts receivable represent the amounts owed to the Company for goods or services provided to customers or third parties. Current accounts receivables are classified within accounts receivable, net on the Company’s consolidated balance sheets, while non-current accounts receivables are classified within prepaid expenses and other noncurrent assets on the Company’s consolidated balance sheets.

We monitor our ongoing credit exposure through active review of counterparty balances against contract terms, due dates and business strategy. Our activities include timely account reconciliation, dispute resolution and payment confirmation. In addition, the Company will establish a general reserve based on delinquency rates. Historical loss rates are determined for each delinquency bucket in 30-day past-due intervals and then applied to the composition of the reporting date balance based on delinquency. The allowance implied from application of the historical loss rates is then adjusted, as necessary, for current conditions and reasonable and supportable forecasts.

The following table compiles the percentages of outstanding accounts receivable based on our aging analysis of our trade accounts receivable, non-trade accounts receivable and contract assets (in thousands):
March 31, 2026December 31, 2025
Current 85 %87 %
Past due 1-60 days6 %4 %
Past due 61+ days 9 %9 %
Accounts receivable, net of allowance$315,050 $310,990 

The following table summarizes the changes in allowance for credit losses on our accounts receivables, certain non-trade accounts receivable and contract assets (in thousands):
For the Three Months Ended March 31,
20262025
Balance as of beginning of period$(20,720)$(15,368)
Provision for credit losses(2,588)(1,774)
Charge-offs(1)
811 591 
Balance as of end of period$(22,497)$(16,551)
————————
(1) Charge-offs for the three months ended March 31, 2026 and 2025 are primarily related to balances written-off that were previously reserved.