VSE Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Receivables and Unbilled Receivables

Receivables and Unbilled Receivables

12 Months Ended

Dec. 31, 2020

Receivables, net and unbilled receivables, net as of December 31, 2020 and 2019, respectively, were as follows (in thousands):


	2020		2019
Receivables, net	$	55,471	$	70,630
Unbilled receivables, net	22,358		46,279
Total	$	77,829	$	116,909

Receivables, net are recorded at face value less an allowance for credit losses of approximately $1.5 million and $396 thousand as of December 31, 2020 and 2019, respectively.

The allowance for credit loss is determined using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are judgmental determined using loss rates based on historical write-offs and consideration of recent forecasted information, including underlying economic expectations. The credit loss reserves are updated quarterly for most recent write-offs and collections information and underlying expectations, which for the year ended December 31, 2020 included consideration of the current and expected future economic and market conditions surrounding the COVID-19 pandemic.

A summary of activity in our allowance for credit losses for the year ended December 31, 2020 is as follows (in thousands):


Balance as of December 31, 2019	$	396
Change in estimates	1,767
Write-offs	(441)
Recoveries	(229)
Balance as of December 31, 2020	$	1,493

The unbilled receivables balance includes certain costs for work performed at risk but which we believe will be funded by the government totaling approximately $2.6 million and $15.2 million as of December 31, 2020 and 2019, respectively. We expect to invoice substantially all unbilled receivables during 2021.