Company: TDDWW
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001437749-25-014565
Chunk: 22

Company: TIDEWATER INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 22
---
 after  December 15, 2024. We are currently evaluating the effect of the standard on our disclosures in our consolidated financial statements.
    
   In  November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures to improve disclosures about certain types of expenses including purchases of inventory, employee compensation and depreciation, depletion and amortization included in commonly presented captions in the Consolidation Statements of Operations. This guidance is effective for annual periods beginning after  December 15, 2026 and interim periods beginning after  December 15, 2027. We are currently evaluating the effect of the standard on our disclosures in our consolidated financial statements.

       8

       (3) 
       ALLOWANCE FOR CREDIT LOSSES 

   Expected credit losses are recognized on the initial recognition of our trade accounts receivable and contract assets. In each subsequent reporting period, even if a loss has not yet been incurred, credit losses are recognized based on the history of credit losses and current conditions, as well as reasonable and supportable forecasts affecting collectability. We utilize a model to estimate the expected credit losses applicable to our trade accounts receivable and contract assets. This model considers our historical performance and the economic environment, as well as the credit risk and its expected development for each segmented group of customers that share similar risk characteristics. It is our practice to write off receivables when all legal options for collection have been exhausted.
    
   Activity in the allowance for credit losses for the three months ended  March 31, 2025 is as follows:

        Trade 

        (In Thousands) 
        
        and Other 

        Receivables 

        Balance at January 1, 2025 
        
       $
       3,184

        Current period credit for expected credit losses 

       (40
       )

        Balance at March 31, 2025 
        
       $
       3,144

       (4) 
       REVENUE RECOGNITION 

   See “Note (12) Segment and Geographic Distribution of Operations” for revenue by segment and in total for the worldwide fleet.
    
   Contract Balances
    
   At  March 31, 2025, we had $0.6 million of deferred mobilization costs included within Prepaid expenses and other current assets and $0.4 million of deferred mobilization costs included in Other