Credit Losses, Financial Assets and Other Instruments

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

Credit Losses, Financial Assets and Other Instruments

Credit Losses, Financial Assets and Other Instruments

The table below sets forth the allowance for credit losses activity for the three months ended March 31, 2022 and 2021 (in thousands):

	Investing Receivables		Tenant Notes Receivable (1)		Other Assets (2)		Total
December 31, 2021	$	1,599	$	1,057	$	913	$	3,569
Credit loss (recoveries) expense	77		(34)		(359)		(316)
March 31, 2022	$	1,676	$	1,023	$	554	$	3,253
December 31, 2020	$	2,851	$	1,203	$	643	$	4,697
Credit loss recoveries	(771)		(7)		(129)		(907)
March 31, 2021	$	2,080	$	1,196	$	514	$	3,790

(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.

(2)The balance as of March 31, 2022 and December 31, 2021 included $154,000 and $218,000, respectively, in the line entitled “accounts receivable, net” and $400,000 and $695,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets. The balance as of March 31, 2021 and December 31, 2020 included $40,000 and $257,000, respectively, in the line entitled “accounts receivable, net” and $474,000 and $386,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets.

The following table presents the amortized cost basis of our investing receivables, tenant notes receivable and sales-type lease receivables by credit risk classification, by origination year as of March 31, 2022 (in thousands):

	Origination Year
	2017 and Earlier		2018		2019		2020		2021		Total
Investing receivables:
Credit risk classification:
Investment grade	$	71,682	$	—	$	—	$	1,715	$	5,656	$	79,053
Non-investment grade	—		—		5,040		—		—		5,040
Total	$	71,682	$	—	$	5,040	$	1,715	$	5,656	$	84,093
Tenant notes receivable:
Credit risk classification:
Investment grade	$	—	$	888	$	58	$	252	$	—	$	1,198
Non-investment grade	194		124		126		1,685		—		2,129
Total	$	194	$	1,012	$	184	$	1,937	$	—	$	3,327
Sales-type lease receivables:
Credit risk classification:
Investment grade	$	—	$	—	$	—	$	6,065	$	—	$	6,065

Our investment grade credit risk classification represents entities with investment grade credit ratings from ratings agencies (such as Standard & Poor’s Ratings Services, Moody’s Investors Service, Inc. or Fitch Ratings Ltd.), meaning that they are considered to have at least an adequate capacity to meet their financial commitments, with credit risk ranging from minimal to moderate. Our non-investment grade credit risk classification represents entities with either no credit agency credit ratings or ratings deemed to be sub-investment grade; we believe that there is significantly more credit risk associated with this classification. The credit risk classifications of our investing receivables and tenant notes receivable were last updated in March 2022.

An insignificant portion of the investing and tenant notes receivables set forth above was past due, which we define as being delinquent by more than three months from the due date.

Notes receivable on nonaccrual status as of March 31, 2022 and December 31, 2021 were not significant. We did not recognize any interest income on notes receivable on nonaccrual status during the three months ended March 31, 2022 and 2021.