CREDIT LOSSES |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Credit Loss [Abstract] | |
| CREDIT LOSSES | CREDIT LOSSES We are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses for potentially uncollectible receivables. Additional allowances may be required if the financial condition of our customers was to deteriorate or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us for their U.S. dollar-denominated purchases. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates, timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. Accounts Receivable The allowance for credit losses associated with accounts receivable was $14.3 million and $11.3 million as of March 31, 2026, and December 31, 2025, respectively. The amount of accounts receivable reflected on the balance sheet is net of this allowance. As of March 31, 2026, approximately 88% of our accounts receivable had not yet reached the invoice due date and approximately 12% were considered past due. As of December 31, 2025, approximately 87% of our accounts receivable had not yet reached the invoice due date and approximately 13% were considered past due. Contract Assets and Lease Receivables The allowance for credit losses associated with contract assets and lease receivables was $8.8 million and $8.6 million as of March 31, 2026, and December 31, 2025, respectively. The assets reflected on the balance sheet are net of these allowances.
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