The Company’s trade accounts receivable balances relate to amounts due from students or customers occurring in the normal course of business. Trade accounts receivable balances have a term of less than one year and are included in accounts receivable, net on the Company’s condensed consolidated balance sheets. The following table presents the Company’s trade accounts receivable in each segment as of each of the dates indicated.


	September 30, 2023		December 31, 2022

	(in thousands)
Degree Program Segment accounts receivable	$	38,730	$	14,212
Degree Program Segment unbilled revenue	42,161		14,896
Alternative Credential Segment accounts receivable	39,294		51,360
Total	120,185		80,468
Less: Provision for credit losses	(6,983)		(17,642)
Trade accounts receivable, net	$	113,202	$	62,826

The Company regularly reviews its portfolio of offerings for alignment with its business objectives, including cost to operate, expected enrollments, and other factors, and from time to time, the Company has entered into, and may in the future enter into, agreements to strategically exit certain programs. As of September 30, 2023 and December 31, 2022, the Company had balances of $23.4 million and $6.4 million, respectively, of unbilled revenue associated with portfolio management activities within accounts receivable, net on the condensed consolidated balance sheets. In addition, as of September 30, 2023 and December 31, 2022, the Company had balances of $18.6 million and $6.3 million, respectively, of non-current accounts receivable associated with portfolio management activities within other assets, non-current on the condensed consolidated balance sheets. These non-current accounts receivable are typically due within 12 to 24 months.


	Provision for Credit Losses
	(in thousands)
Balance as of December 31, 2022	$	17,642
Current period provision	3,393
Amounts written off	(14,038)
Foreign currency translation adjustments	(14)
Balance as of September 30, 2023	$	6,983

The Company’s other receivables are comprised of amounts due under tuition payment plans with extended payment terms from students enrolled in certain of the Company’s alternative credential offerings. These payment plans, which are managed and serviced by third-party providers, are designed to assist students with paying tuition costs after all other student financial assistance and scholarships have been applied. The associated receivables generally have payment terms that range from 12 to 42 months and are recorded net of any implied pricing concessions, which are determined based on collections history, market data and any time value of money component. There are no fees or origination costs included in these receivables. The carrying value of these receivable balances approximate their fair value. The following table presents the components of the Company’s other receivables, net, as of each of the dates indicated.


	September 30, 2023		December 31, 2022

	(in thousands)
Other receivables, amortized cost	$	54,326	$	52,180
Less: Provision for credit losses	(6,742)		(3,579)
Other receivables, net	$	47,584	$	48,601
Other receivables, net, current	$	29,196	$	33,813
Other receivables, net, non-current	$	18,388	$	14,788

The Company considers receivables to be past due when amounts contractually due under the extended payment plans have not been paid. As of September 30, 2023, 78% of other receivables, net due under extended payment plans were current.

At the time of origination, the Company categorizes its other receivables using a credit quality indicator based on the credit tier rankings obtained from the third-party providers that manage and service the payment plans. The third-party providers utilize credit rating agency data to determine the credit tier rankings. The Company monitors the collectability of its other receivables on an ongoing basis. The adequacy of the allowance for credit losses is determined through analysis of multiple factors, including industry trends, portfolio performance, and delinquency rates. The following tables present other receivables, at amortized cost including interest accretion, by credit quality indicator and year of origination, as of the dates indicated.


	September 30, 2023
	Year of Origination
	2023		2022		2021		2020		2019 & Prior		Total

	(in thousands)
Credit Quality Tier
High	$	11,506	$	3,730	$	206	$	837	$	547	$	16,826
Mid	12,130		4,935		1,996		1,823		1,753		22,637
Low	5,692		2,942		2,304		1,822		2,103		14,863
Total	$	29,328	$	11,607	$	4,506	$	4,482	$	4,403	$	54,326


	December 31, 2022
	Year of Origination
	2022		2021		2020		2019		2018		Total

	(in thousands)
Credit Quality Tier
High	$	15,737	$	2,285	$	48	$	18	$	115	$	18,203
Mid	14,005		3,773		1,239		1,363		392		20,772
Low	6,160		3,099		1,677		1,939		330		13,205
Total	$	35,902	$	9,157	$	2,964	$	3,320	$	837	$	52,180

The Company’s deferred revenue represents contract liabilities. The Company generally receives payments from Degree Program Segment university clients early in each academic term and from Alternative Credential Segment students, either in full upon registration for the course or in full before the end of the course based on a payment plan, prior to completion of the service period. These payments are recorded as deferred revenue until the services are delivered or until the Company’s obligations are otherwise met, at which time revenue is recognized. The following table presents the Company’s contract liabilities in each segment as of each of the dates indicated.


	September 30, 2023		December 31, 2022

	(in thousands)

Degree Program Segment deferred revenue	$	24,400	$	1,245
Alternative Credential Segment deferred revenue	91,876		88,916
Total contract liabilities	$	116,276	$	90,161

For the Degree Program Segment, revenue recognized related to the deferred revenue balances that existed at the end of each preceding year was insignificant for each of the three months ended September 30, 2023 and 2022. Revenue recognized in this segment during the nine months ended September 30, 2023 and 2022 that was included in the deferred revenue balance that existed at the end of each preceding year was $1.2 million and $1.5 million, respectively.

For the Alternative Credential Segment, during the three months ended September 30, 2023 and 2022 the Company recognized $1.4 million and $7.3 million of revenue related to its deferred revenue balances that existed at the end of each preceding year. Revenue recognized in this segment during the nine months ended September 30, 2023 and 2022 that was included in the deferred revenue balance that existed at the end of each preceding year was $72.4 million and $73.8 million, respectively.

The Degree Program Segment had $0.5 million and $0.5 million of net capitalized contract acquisition costs recorded primarily within other assets, non-current on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively. For each of the nine months ended September 30, 2023 and 2022, the Company capitalized an immaterial amount of contract acquisition costs and recorded an immaterial amount of associated amortization expense in the Degree Program Segment.