Allowance for Doubtful Accounts (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Notes Receivable Disaggregated by Vintage Year

The following table presents the Company’s two tiers of notes receivable further disaggregated by year of origination as of March 31, 2020. The information is updated as of March 31, 2020:

	Notes Receivable
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in thousands)
Notes Receivable
Standard note receivable	$	6,810	$	16,058	$	17,745	$	27,066	$	1,989	$	1,606	$	71,274
Elevated risk note receivable	$	—	$	—	$	397	$	5,511	$	—	$	2,457	$	8,365
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current-period recoveries	—		—		—		—		—		—		—
Current-period net write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Age Analysis of Past-Due Note Receivable

The following table provides information as to the status of payment on the Company’s notes receivable in the manner in which the Company evaluates credit risk amongst the portfolio:

	Age Analysis of Past-Due Note Receivable as of March 31, 2020
	0-90 Days		91 - 180 Days		Greater than 181 Days		Total
	(in thousands)
Notes Receivable
Standard notes receivable	$	872	$	531	$	2,540	$	3,943
Elevated risk notes receivable	804		532		5,399		6,735
	$	1,676	$	1,063	$	7,939	$	10,678

Schedule of Cumulative Effect of Initially Applying New Guidance

The cumulative effect of initially applying the new ASC 326 guidance to the consolidated financial statements on January 1, 2020 was as follows:

Consolidated Statement of Financial Position	December 31, 2019		Cumulative Impact from Adopting ASC 326 Guidance		January 1, 2020
	(in thousands)
Assets
Short-term accounts and notes receivable, less allowance for doubtful accounts	$	340,930	$	(41,100)	$	299,830
Notes receivable – long–term portion, less allowance for doubtful accounts	$	46,992	$	(1,136)	$	45,856
Allowance for doubtful accounts on short-term accounts and notes receivables	$	(45,726)	$	(41,100)	$	(86,826)
Allowance for doubtful accounts on long-term notes receivables	$	(6,667)	$	(1,136)	$	(7,803)
Deferred income taxes	$	20,364	$	10,137	$	30,501
Stockholders’ equity
Retained earnings	$	195,455	$	(32,099)	$	163,356

The following table provides a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2020:

	Allowance for doubtful accounts
Portfolio Segment	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs		Bad Debt Expense		March 31, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(4,409)	$	2,186	$	74,389
Note receivable
Standard notes receivable	$	6,667	$	5,236	$	—	$	(249)	$	11,654
Elevated risk notes receivable	5,823		291		—		123		6,237
Total notes receivable	$	12,490	$	5,527	$	—	$	(126)	$	17,891
Total accounts and notes receivable	$	52,393	$	42,236	$	(4,409)	$	2,060	$	92,280

1.Represents a one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the accounting guidance.

Accounts Receivable, Allowance for Doubtful Accounts

The following table provides a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2020:

	Allowance for doubtful accounts
Portfolio Segment	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs		Bad Debt Expense		March 31, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(4,409)	$	2,186	$	74,389
Note receivable
Standard notes receivable	$	6,667	$	5,236	$	—	$	(249)	$	11,654
Elevated risk notes receivable	5,823		291		—		123		6,237
Total notes receivable	$	12,490	$	5,527	$	—	$	(126)	$	17,891
Total accounts and notes receivable	$	52,393	$	42,236	$	(4,409)	$	2,060	$	92,280

1.Represents a one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the accounting guidance.

Allowance for Doubtful Accounts

The following table provides a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2020:

	Allowance for doubtful accounts
Portfolio Segment	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs		Bad Debt Expense		March 31, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(4,409)	$	2,186	$	74,389
Note receivable
Standard notes receivable	$	6,667	$	5,236	$	—	$	(249)	$	11,654
Elevated risk notes receivable	5,823		291		—		123		6,237
Total notes receivable	$	12,490	$	5,527	$	—	$	(126)	$	17,891
Total accounts and notes receivable	$	52,393	$	42,236	$	(4,409)	$	2,060	$	92,280

1.Represents a one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the accounting guidance.