Note 3 - Credit Losses

6 Months Ended

Jun. 30, 2025

Credit Loss, Financial Instrument [Text Block]

3.	Credit Losses

The majority of the Company’s accounts receivable are due from distributors of truck equipment and dealers of completed upfit trucks. Credit is extended based on an evaluation of a customer’s financial condition. A receivable is considered past due if payments have not been received within agreed upon invoice terms. Accounts receivable are written off after all collection efforts have been exhausted. The Company takes a security interest in the inventory as collateral for the receivable but often does not have a priority security interest. The Company has short-term accounts receivable at its Work Truck Attachments and Work Truck Solutions segments subject to evaluation for expected credit losses. Expected credit losses are estimated based on the loss-rate and probability of default methods. On a periodic basis, the Company evaluates its accounts receivable and establishes the allowance for credit losses based on specific customer circumstances, past events including collections and write-off history, current conditions, and reasonable forecasts about the future.

The following table rolls forward the activity related to credit losses for trade accounts receivable at each segment, and on a consolidated basis for the six months ended June 30, 2025 and 2024:

	*Balance at December 31, 2024*		*Additions (reductions) charged to earnings*		*Writeoffs*			*Changes to reserve, net*			*Balance at June 30, 2025*
Six Months Ended June 30, 2025
Work Truck Attachments	$	1,768	$	200	$	(8	)	$	(3	)	$	1,957
Work Truck Solutions		604		115		(2	)		18			735
Total	$	2,372	$	315	$	(10	)	$	15		$	2,692

	*Balance at December 31, 2023*		*Additions (reductions) charged to earnings*		*Writeoffs*		*Changes to reserve, net*			*Balance at June 30, 2024*
Six Months Ended June 30, 2024
Work Truck Attachments	$	1,400	$	204	$	-	$	(1	)	$	1,603
Work Truck Solutions		246		148		-		73			467
Total	$	1,646	$	352	$	-	$	72		$	2,070

- Definition

The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
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-Name Accounting Standards Codification
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-Paragraph 42
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481962/310-10-50-42

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 310
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-Paragraph 44
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147479106/326-30-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479319/326-20-50-20

+ Details

DOUGLAS DYNAMICS, INC 10-Q