Annual report pursuant to Section 13 and 15(d)

Financing Receivables

Financing Receivables
12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Financing Receivables Financing Receivables
The Company has recorded financing receivables, which are defined as a contractual right to receive money, as assets on its Consolidated Balance Sheets as of December 31, 2023 and 2022. Substantially all of the Company’s financing receivables, which includes receivables sold to third-party finance companies (Third-Party Receivables) and customer notes and other (Other Receivables), stem from commercial customers. Third-Party Receivables are accounts that have been sold to third-party finance companies, but do not meet the definition of a true sale and are therefore recorded as an asset with an offsetting balance recorded as a secured obligation in Accrued expenses. Other Receivables are mostly comprised of notes from customers, which are originated by the Company in the normal course of business. Financing receivables are carried at their face amounts less an allowance for credit losses.

The Company sells a broad range of marine products to a worldwide customer base and extends credit to its customers based upon an ongoing credit evaluation program. The Company’s business units maintain credit departments to manage financial exposure and perform credit-risk assessments on an individual account basis. Accounts are not aggregated into categories for credit-risk determinations. Due to the composition of the account portfolio, the Company does not believe that the credit risk posed by the Company’s financing receivables is significant to its operations, financial condition or cash flows. There were no significant troubled debt restructurings during the years ended December 31, 2023, 2022 or 2021.
The Company’s financing receivables, excluding trade accounts receivable contractually due within one year, as of December 31, 2023 and December 31, 2022 were $6.3 million and $6.1 million, respectively.

The activity related to the allowance for credit loss on financing receivables during the years ended December 31, 2023 and December 31, 2022 was not material.