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REVENUES
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
The Company’s revenues by geography for the three months ended March 31, 2024 and 2023 are as follows:
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
North AmericaEuropeOtherTotalNorth AmericaEuropeOtherTotal
Revenues
$305.9 $208.3 $147.9 $662.1 $353.7 $196.0 $144.2 $693.9 
Revenue from the United States comprises substantially all revenue in North America.
Contract Costs
The following table provides information about contract asset balances:
March 31, 2024December 31, 2023
Sales commission assets$16.7 $15.8 
Deferred contract costs1.9 2.0
Total$18.6 $17.8 
Amortization related to sales commission assets for the three months ended March 31, 2024 and 2023 was $2.6 and $4.1, respectively. Amortization related to deferred contract costs for the three months ended March 31, 2024 and 2023 was $0.4 and $0.6, respectively. The Company applies the practical expedient to not recognize the effect of financing in its contracts with customers, when the difference in timing of payment and performance is one year or less.
Accounts Receivable, Unbilled Services and Unearned Revenue
The following table provides information about accounts receivable, unbilled services and unearned revenue from contracts with customers:
March 31, 2024December 31, 2023
Accounts receivable$389.9 $420.2 
Unbilled services587.1 600.0 
Less: allowance for credit losses(36.0)(31.7)
Total$941.0 $988.5 
Unearned revenue$236.9 $214.2 
Revenue recognized during the period that was included in the unearned revenue balance at the beginning of the period was $92.4 and $103.2 for the three months ended March 31, 2024 and 2023, respectively.
Credit Loss Rollforward
The Company estimates future expected losses on accounts receivable and unbilled services over the remaining collection period of the instrument.
The rollforward for the allowance for credit losses for the three months ended March 31, 2024 is as follows:
Accounts Receivable
Allowance for credit losses as of December, 2023$31.7 
Credit loss expense5.8 
Write-offs(1.5)
Allowance for credit losses as of March 31, 2024$36.0 
Performance Obligations Under Long-Term Contracts
As of March 31, 2024, approximately $4,302 of revenues are expected to be recognized from remaining long-term performance obligations. The Company expects to recognize approximately 30% of the existing performance
obligations as of March 31, 2024 as revenue over the next 12 months and the remaining balance thereafter. The Company’s long-term contracts generally range from one to eight years.
During the three months ended March 31, 2024, there were reductions of approximately $34 in revenue related to performance obligations partially satisfied in previous periods. Of this reduction, approximately half was associated with changes in scope or price, and approximately half was related to changes in estimated effort to complete customer contract obligations. The change in estimate resulted in an estimated reduction to revenue of $17, and an increase in loss from continuing operations of $16 and in loss per share of $0.18.
During the three months ended March 31, 2023, there were reductions of approximately $11 from performance obligations which were partially satisfied in previous periods; such amounts were primarily related to changes in estimate and to a much lesser extent, changes in scope. The change in estimate resulted in an estimated reduction to revenue of $10, and a decrease in income from continuing operations of $8 and in income per share of $0.09.
Accounts Receivable Purchase Program
On June 23, 2023, Fortrea entered into an accounts receivable purchase program (“ARPP”) with a financial institution (the “Financial Institution”). The ARPP establishes a receivables factoring facility whereby the Company may sell up to $80.0 in customer receivables based on the availability of certain eligible receivables and the satisfaction of certain conditions. Under the facility, the Company may sell eligible receivables and retains no interest in the transferred receivables other than collection and administrative functions for the Financial Institution.
The Company accounts for these receivable transfers as sales and derecognizes the sold receivables from its balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature. The Company continues to service, administer and collect the receivables on behalf of the Financial Institution and does not receive a servicing fee as part of the arrangement. As of March 31, 2024, the Company had no outstanding factored customer receivables, and the ARPP was terminated in May 2024.