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Schedule II: Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II: Valuation and Qualifying Accounts

Schedule II: Valuation and Qualifying Accounts

Medical Properties Trust, Inc. and MPT Operating Partnership, L.P.

December 31, 2023

 

 

 

 

 

 

Additions

 

 

 

Deductions

 

 

 

 

 

Year Ended December 31,

 

Balance at
Beginning of
Year(1)

 

 

Charged
Against
Operations(1)

 

 

 

Charged to
Other Accounts

 

 

 

Net
Recoveries/
Write-offs(1)

 

 

 

Balance at
End of Year(1)

 

 

 

(In thousands)

 

2023

 

$

393,057

 

 

$

755,627

 

(2)

 

$

—

 

 

 

$

(270,366

)

(3)

 

$

878,318

 

2022

 

$

154,161

 

 

$

294,861

 

(4)

 

$

—

 

 

 

$

(55,965

)

(5)

 

$

393,057

 

2021

 

$

146,637

 

 

$

69,131

 

(6)

 

$

7,340

 

(7)

 

$

(68,947

)

(8)

 

$

154,161

 

 

(1)
Includes real estate impairment reserves, allowances for doubtful accounts, straight-line rent reserves, credit loss reserves, tax valuation allowances, and other reserves.
(2)
Represents $261 million increase in accounts receivable reserves, $259 million increase in straight-line rent receivable reserves, $90 million increase to equity investment impairment reserves, and $89 million increase to real estate impairment reserves, as further described in Note 3 to Item 8 of this Annual Report on Form 10-K. Also includes an increase of $10 million in credit loss reserves and an approximately $47 million increase in valuation allowances to reserve against our net deferred tax assets in 2023.
(3)
Includes a $170 million decrease in real estate impairment reserves, an approximately $35 million decrease in credit loss reserves related to transitioning properties back to a tenant in exchange for a first-lien mortgage, and a $50 million recovery of previously reserved interest satisfied as part of the “Prospect Transaction” as disclosed in Note 3 to Item 8 of this Annual Report on Form 10-K. Also includes an approximately $11 million write-off of previously reserved accounts receivable.
(4)
Represents a $170.6 million increase to real estate impairment reserves, $0.5 million increase in accounts receivable and other reserves, $114.0 million increase in credit loss reserves on financing-type receivables, and a $9.8 million increase in valuation allowance to reserve against our net deferred tax assets in 2022.
(5)
Includes a $2.9 million decrease in real estate impairment reserves related to disposals in 2022, a $11.7 million decrease in accounts receivable and other reserves, a net credit loss recovery of approximately $15 million on the Watsonville loans, and a $26.4 million decrease of credit loss reserves related to financial instruments sold, repaid, or satisfied in 2022.
(6)
Represents a $41.7 million increase in credit loss reserves on financing-type receivables, $8 million increase in accounts receivable and other reserves, and an approximately $20 million increase in valuation allowances to reserve against our net deferred tax assets in 2021.
(7)
Represents $7.3 million of tax valuation allowances recorded as part of the purchase price allocation of the Priory Transaction as disclosed in Note 3 to Item 8 of this Annual Report on Form 10-K.
(8)
Includes a $22.4 million decrease in real estate impairment reserves related to disposals in 2021, a $38.7 million decrease in accounts receivable and other reserves, $6.0 million decrease of equity investment impairment reserves related to disposals in 2021, and $1.9 million of credit loss recovery related to loan paydowns in 2021.