Quarterly report pursuant to Section 13 or 15(d)

Credit Losses, Financial Assets and Other Instruments

v3.22.2.2
Credit Losses, Financial Assets and Other Instruments
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 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 expense (recoveries) 2,129  (112) (415) 1,602 
September 30, 2022 $ 3,728  $ 945  $ 498  $ 5,171 
December 31, 2020 $ 2,851  $ 1,203  $ 643  $ 4,697 
Credit loss (recoveries) expense (1,436) (114) 510  (1,040)
September 30, 2021 $ 1,415  $ 1,089  $ 1,153  $ 3,657 
(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.
(2)The balance as of September 30, 2022 and December 31, 2021 included $370,000 and $218,000, respectively, in the line entitled “accounts receivable, net” and $128,000 and $695,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets. The balance as of September 30, 2021 and December 31, 2020 included $705,000 and $257,000, respectively, in the line entitled “accounts receivable, net” and $448,000 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 September 30, 2022 (in thousands):
Origination Year
2017 and Earlier 2018 2019 2020 2021 2022 Total
Investing receivables:
Credit risk classification:
Investment grade $ 75,293  $ —  $ —  $ 1,801  $ 6,542  $ —  $ 83,636 
Non-investment grade —  —  5,033  —  —  17,609  22,642 
Total $ 75,293  $ —  $ 5,033  $ 1,801  $ 6,542  $ 17,609  $ 106,278 
Tenant notes receivable:
Credit risk classification:
Investment grade $ —  $ 836  $ 46  $ 215  $ —  $ —  $ 1,097 
Non-investment grade 166  107  99  1,605  —  —  1,977 
Total $ 166  $ 943  $ 145  $ 1,820  $ —  $ —  $ 3,074 
Sales-type lease receivables:
Credit risk classification:
Investment grade $ —  $ —  $ —  $ 5,801  $ —  $ —  $ 5,801 

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 September 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 September 30, 2022 and December 31, 2021 were not significant. We did not recognize any interest income on notes receivable on nonaccrual status during the three or nine months ended September 30, 2022 and 2021.