Customer Notes Receivable (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Fair values of notes receivable and corresponding carrying amounts

The following table presents the detail of customer notes receivable as recorded in the unaudited condensed consolidated balance sheets and the corresponding fair values:

	As of   September 30, 2020		As of   December 31, 2019
	(in thousands)
Customer notes receivable	$	463,436	$	312,823
Allowance for credit losses	(14,767)		(1,091)
Customer notes receivable, net (1)	$	448,669	$	311,732
Estimated fair value, net	$	453,321	$	314,222

(1) Of this amount, $20.1 million and $13.8 million is recorded in other current assets as of September 30, 2020 and December 31, 2019, respectively.

Changes in the allowance for doubtful accounts

The following table presents the changes in the

allowance for credit losses recorded against accounts receivable—trade, net in the unaudited condensed consolidated balance sheets:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2020		2019		2020		2019
	(in thousands)
Balance at beginning of period	$	773	$	746	$	960	$	723
Impact of ASC 326 adoption	—		—		(240)		—
Provision for current expected credit losses	458		—		1,337		—
Bad debt expense	—		511		—		1,149
Write off of uncollectible accounts	(419)		(412)		(1,267)		(1,076)
Recoveries	17		16		39		65
Balance at end of period	$	829	$	861	$	829	$	861

The following table presents the changes in the allowance for credit losses related to customer notes receivable as recorded in the unaudited condensed consolidated balance sheets:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2020		2019		2020		2019
	(in thousands)
Balance at beginning of period	$	13,543	$	944	$	1,091	$	710
Impact of ASC 326 adoption	—		—		9,235		—
Provision for current expected credit losses (1)	1,483		—		4,701		—
Bad debt expense	—		5		—		278
Write off of uncollectible accounts	(258)		—		(258)		(39)
Other, net	(1)		—		(2)		—
Balance at end of period	$	14,767	$	949	$	14,767	$	949

(1) In addition, we recognized $61,000 and $123,000 of provision for current expected credit losses during the three and nine months ended September 30, 2020, respectively, related to our long-term receivables for our leases.

Financing receivable, past due

The following table presents the aging of the amortized cost of customer notes receivable as of September 30, 2020:

	As of   September 30, 2020		As of   December 31, 2019
	(in thousands)
1-90 days past due	$	6,546	$	5,741
91-180 days past due	1,716		1,714
Greater than 180 days past due	5,747		3,331
Total past due	14,009		10,786
Not past due	449,427		302,037
Total	$	463,436	$	312,823

Financing receivable amortized cost of customer notes receivable

The following table presents the amortized cost by origination year of our customer notes receivable based on payment activity.

	Amortized Cost by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in thousands)
Payment performance:
Performing	$	168,507	$	138,644	$	88,587	$	31,939	$	19,788	$	10,224	$	457,689
Nonperforming (1)	84		975		1,564		1,628		1,275		221		$	5,747
Total	$	168,591	$	139,619	$	90,151	$	33,567	$	21,063	$	10,445	$	463,436

(1) A nonperforming loan is a loan in which the customer is in default and has not made any scheduled principal or interest payments for 180 days or more.