COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Credit Losses, Financial Assets and Other Instruments, Allowance for Credit Loss

The table below sets forth the activity for the allowance for credit losses (in thousands):


	For the Nine Months Ended September 30, 2020
	Investing Receivables		Tenant Notes Receivable (1)		Other Assets (2)		Off-Balance Sheet Credit Exposures (3)		Total
December 31, 2019	$	—	$	97	$	—	$	—	$	97
Cumulative effect of change for adoption of credit loss guidance	3,732		325		144		1,340		5,541
Credit loss expense (recoveries)	308		696		152		(1,317)		(161)


September 30, 2020	$	4,040	$	1,118	$	296	$	23	$	5,477

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

(2)The balance as of September 30, 2020 included $95,000 in the line entitled “accounts receivable, net” and $201,000 in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets.

(3)Included in the line entitled “other liabilities” on our consolidated balance sheets.

Accounts Receivable, Noncurrent, Credit Quality Indicator

The following table presents the amortized cost basis of our investing receivables and tenants notes receivable by credit risk classification, by origination year as of September 30, 2020 (in thousands):


	Origination Year
	2015 and Earlier		2016		2017		2018		2019		2020		Total
Investing receivables:
Credit risk classification:
Investment grade	$	62,842	$	—	$	948	$	—	$	—	$	219	$	64,009
Non-investment grade	3,020		—		—		—		11,147		—		14,167
Total	$	65,862	$	—	$	948	$	—	$	11,147	$	219	$	78,176

Tenant notes receivable:
Credit risk classification:
Investment grade	$	—	$	27	$	—	$	1,054	$	90	$	360	$	1,531
Non-investment grade	97		179		—		171		1,973		1,600		4,020
Total	$	97	$	206	$	—	$	1,225	$	2,063	$	1,960	$	5,551