Allowance for Credit Losses

12 Months Ended

Dec. 31, 2020

Effective January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” prospectively. ASU 2016-13 replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The guidance requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due. Upon adoption, changes in the allowance were not material for the transition period starting January 1, 2020 through the year ended December 31, 2020.

The accounts receivable balance on the Company’s consolidated balance sheet as of December 31, 2020 was $47.8 million, net of $0.5 million of allowances. Changes in the allowance were not material for the year ended December 31, 2020. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (amounts in thousands):


Balance at December 31, 2019	$	1,864
Adjustment due to adoption of ASU 2016-13	751
Balance at January 1, 2020	2,615
Current period change for expected credit losses	(2,072)
Balance at December 31, 2020	$	543

In connection with the PIK note referenced in Note 7. Investments in Affiliates and Related Transactions , the company recorded a CECL adjustment of $1.4 million which offset the current year accretion of the interest of $1.4 million.