Accounts Receivable, Allowance for Credit Loss, Recovery

  
Changes in our allowance for credit losses were as follows (in millions):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |
|  | March 31, |
|  | 2022 | 2021 |
| Balance at beginning of period | $ | 15.1  |  | $ | 19.8  |  |
| Provision for expected credit losses | (1.8) |  | (0.6) |  |
| Write-offs charged against the allowance | (0.5) |  | (0.6) |  |
|  Recoveries collected | 0.1  |  | —  |  |
| Balance at end of period | $ | 12.9  |  | $ | 18.6  |  |

  
Recent Accounting Pronouncements Adopted  
In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-10, "Government Assistance." The ASU includes tax credits but not within Topic 740, "Income Taxes," cash grants, grants of other assets and project grants. The ASU excludes transactions in which a government is a customer within Topic 606, "Revenue from Contracts with Customers." The ASU was effective for fiscal years beginning after December 15, 2021. The adoption of ASU 2021-10 did not have a material impact on our condensed consolidated financial statements.  In October 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. Under this approach, the acquirer applies the revenue model as if it had originated the contracts. This is a departure from the current requirement to measure contract assets and contract liabilities at fair value. ASU 2021-08 is applied to business combinations occurring on or after January 1, 2023. We early adopted ASU 2021-08 on January 1, 2022, which did not have any impact on our condensed consolidated financial statements as we did not have any new acquisitions.  
  
  
2.    FAIR VALUE MEASUREMENTS  
We determine the fair value of an asset or liability based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction between market participants at the measurement date.  The identification of market participant assumptions provides a basis for determining what inputs are to be used for pricing each asset or liability.  A fair value hierarchy has been established which gives precedence to fair value measurements calculated using observable inputs over those using unobservable inputs. This hierarchy prioritizes the inputs into three broad levels as follows:  
•Level 1: Quoted prices in active markets for identical instruments•Level 2: Other significant observable inputs (including quoted prices in active markets for similar instruments)•Level 3: Significant unobservable inputs (including assumptions in determining the fair value of certain investments)  
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