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Receivables | 9 Months Ended
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Sep. 30, 2020
Receivables [Abstract] |
Receivables | ReceivablesThe Company adopted ASU 2016-13 as of January 1, 2020, using a modified retrospective transition approach and has recorded a cumulative-effect transition adjustment to accumulated deficit as of January 1, 2020. The transition adjustment of $6.3 million to accumulated deficit included an $8.4 million increase in the allowance for credit losses, partially offset by a $2.1 million increase in deferred tax benefit. The transition had no impact to the condensed consolidated statement of operations. Prior to granting credit, the Company evaluates each client in an underwriting process, taking into consideration the prospective client’s financial condition, past payment experience, credit bureau information and other financial and qualitative factors that may affect the client’s ability to pay. Specific credit reviews and standard industry credit scoring models are used in performing this evaluation. Clients’ financial condition is continuously monitored as part of the normal course of business. Some of the Company’s clients are highly leveraged or otherwise subject to their own operating and regulatory risks. Specific client provisions are made when a review of significant outstanding amounts, utilizing information about client creditworthiness, as well as current and future economic trends based on reasonable forecasts, indicates that collection is doubtful. The Company also records a general provision based on the overall risk profile of the receivables and through the assessment of reasonable economic forecasts. The risk profile is assessed on a quarterly basis using various methods, including external resources and credit scoring models. Accounts that are deemed uncollectible are written off when all reasonable collection efforts have been exhausted. The Company has recorded a net credit loss recovery of $0.9 million and credit loss expense of $5.1 million during the three and nine months ended September 30, 2020, respectively, and credit loss expense of $0.9 million and $2.6 million during the three and nine months ended September 30, 2019, respectively, which is included in selling, general and administrative expenses in the condensed consolidated statements of operations. Receivables are stated net of allowances for credit losses in the condensed consolidated balance sheets. Based on the clients’ account reviews and the continued uncertainty of the global economy, the Company has established an allowance for credit losses of $33.8 million as of September 30, 2020, and $25.0 million as of December 31, 2019. Activity impacting the allowance for credit losses for the nine months ended September 30, 2020, was as follows:
| Allowance for Credit Losses
Balance at December 31, 2019 | $ | 25.0 |
Transition adjustment for adoption of ASU 2016-13 | 8.4 |
Balance at January 1, 2020 | 33.4 |
Provisions | 5.1 |
Write-offs | (4.5) |
Translation and other | (0.2) |
Balance at September 30, 2020 | $ | 33.8 |

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- Definition The entire disclosure for accounts receivable, contract receivable, receivable held-for-sale, and nontrade receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -URI http://asc.fasb.org/topic&trid=82887179 + Details
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- References No definition available. + Details
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