FEI Company (FEIC)

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.1 million, $0.9 million and $0.7 million, respectively, in 2008, 2007 and 2006. Our allowance for doubtful accounts totaled $3.1 million and $3.8 million, respectively, at December 31, 2008 and 2007.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.1 million, $0.9 million and $0.7 million, respectively, in 2008, 2007 and 2006. Our allowance for doubtful accounts totaled $3.1 million and $3.8 million, respectively, at December 31, 2008 and 2007.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.1 million, $0.9 million and $0.7 million, respectively, in 2008, 2007 and 2006. Our allowance for doubtful accounts totaled $3.1 million and $3.8 million, respectively, at December 31, 2008 and 2007.

Allowance for Doubtful Accounts

FACE="Times New Roman" SIZE="2">The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many
different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to
the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts
receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.1 million, $0.9 million and $0.7 million, respectively, in 2008, 2007 and 2006. Our allowance for
doubtful accounts totaled $3.1 million and $3.8 million, respectively, at December 31, 2008 and 2007.

Allowance for Doubtful Accounts

FACE="Times New Roman" SIZE="2">The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many
different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to
the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts
receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.1 million, $0.9 million and $0.7 million, respectively, in 2008, 2007 and 2006. Our allowance for
doubtful accounts totaled $3.1 million and $3.8 million, respectively, at December 31, 2008 and 2007.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve may occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in individual customers’ credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $0.9 million, $0.7 million and $1.7 million, respectively, in 2007, 2006 and 2005. Our

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Allowance for
Doubtful Accounts

The allowance for doubtful accounts is
estimated based on collection experience and known trends with current
customers. The large number of entities comprising our customer base and their
dispersion across many different industries and geographies somewhat mitigates
our credit risk exposure and the magnitude of our allowance for doubtful accounts.
Our estimates of the allowance for doubtful accounts are reviewed and updated
on a quarterly basis. Changes to the reserve may occur based upon changes in
revenue levels and associated balances in accounts receivable and estimated
changes in individual customers’ credit quality. Historically, we have not
incurred significant write-offs of accounts receivable, however, an individual
loss could be significant due to the relative size of our sales transactions.
Our bad debt expense totaled $0.9 million, $0.7 million and $1.7 million,
respectively, in 2007, 2006 and 2005. Our

41

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $0.7 million, $1.7 million and $22,000, respectively, in 2006, 2005 and 2004. Our allowance for doubtful accounts totaled $4.2 million and $3.3 million, respectively, at December 31, 2006 and 2005.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is estimated based on collection experience and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our bad debt expense totaled $1.7 million, $22,000 and $0.6 million, respectively, in 2005, 2004 and 2003. Our allowance for doubtful accounts totaled $3.3 million at both December 31, 2005 and 2004.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is estimated based on past collection problems and known trends with current customers. The large number of entities comprising our customer base and their dispersion across many different industries and geographies somewhat mitigates our credit risk exposure and the magnitude of our allowance for doubtful accounts. Our estimates of the allowance for doubtful accounts are reviewed and updated on a quarterly basis. Changes to the reserve occur based upon changes in revenue levels and associated balances in accounts receivable and estimated changes in credit quality. Historically, we have not incurred significant write-offs of accounts receivable, however, an individual loss could be significant due to the relative size of our sales transactions. Our allowance for doubtful accounts totaled $3.3 million and $5.0 million, respectively, at December 31, 2004 and 2003.