Knight-Swift Transportation Holdings Inc
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
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FY2023 · Filed Feb 22, 2024
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Trade Receivables, net
Note 7 —Trade Receivables, net
Trade receivables, net balances were comprised of the following:
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| (In thousands) | ||
| Trade customers | $807,458 | $731,546 |
| Equipment manufacturers | 24,903 | 15,783 |
| Insurance premiums | 33,000 | 61,696 |
| Other | 62,700 | 56,249 |
| Trade receivables | 928,061 | 865,274 |
| Less: Allowance for doubtful accounts | (39,458) | (22,980) |
| Trade receivables, net | $888,603 | $842,294 |
The following is a rollforward of the allowance for doubtful accounts for trade receivables:
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| (In thousands) | |||
| Beginning balance | $22,980 | $21,663 | $22,093 |
| Provision | 19,116 | 13,078 | 10,900 |
| Write-offs directly against the reserve | (2,431) | (994) | (776) |
| Write-offs for revenue adjustments | (1,520) | (11,517) | (11,504) |
| Other 1 | 1,313 | 750 | 950 |
| Ending balance | $39,458 | $22,980 | $21,663 |
1 Represents allowance for doubtful trade accounts receivable assumed in 2023 from the Company's acquisitions. Represents measurement period adjustment during 2022 related to the MME acquisition and allowance for doubtful trade accounts receivables assumed in 2021 from the Company's acquisitions. See Note 4 for further details regarding these acquisitions.
See Note 14 for a discussion of the Company's accounts receivable securitization program and the related accounting treatment.
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