Belden BDC Accounts Receivable, Credit Loss Expense (Reversal)

We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. As of December 31, 2025 and 2024, the allowance for doubtful accounts totaled $24.5 million and $25.3 million, respectively. We also recognized bad debt expense, net of recoveries, in selling, general and administrative expenses of $0.6 million, $2.4 million, and $15.6 million in 2025, 2024, and 2023, respectively.