Allowance for Doubtful Accounts (Tables)

9 Months Ended

Sep. 30, 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 well as write-off activity for the current nine month period ending September 30, 2020:

	Notes Receivable
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in thousands)
Notes Receivable
Standard notes receivable	$	7,007	$	11,716	$	17,608	$	26,260	$	28	$	1,598	$	64,217
Elevated risk notes receivable	$	—	$	603	$	—	$	5,511	$	—	$	2,421	$	8,535
Current-period gross write-offs	$	—	$	—	$	411	$	—	$	1,970	$	40	$	2,421
Current-period recoveries	—		—		—		—		—		—		—
Current-period net write-offs	$	—	$	—	$	411	$	—	$	1,970	$	40	$	2,421

Age Analysis of Past-Due Note Receivable

The following table provides information as to the status of payment on the Company’s notes receivable which were past due as of September 30, 2020:

	Age Analysis of Past-Due Notes Receivable as of September 30, 2020
	0-90 Days		91 - 180 Days		Greater than 181 Days		Total
	(in thousands)
Notes Receivable
Standard notes receivable	$	3,979	$	606	$	3,425	$	8,010
Elevated risk notes receivable	613		1,035		6,864		8,512
	$	4,592	$	1,641	$	10,289	$	16,522

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 and nine months ended September 30, 2020:

	Allowance for doubtful accounts
Portfolio Segment:	June 30 2020		Write-Offs1		Bad Debt Expense		September 30 2020
	(in thousands)
Accounts Receivables	$	66,299	$	(2,475)	$	967	$	64,791
Notes Receivables
Standard notes receivable	$	11,869	$	(253)	$	(132)	$	11,484
Elevated risk notes receivable	5,818		—		—		5,818
	$	17,687	$	(253)	$	(132)	$	17,302
Total accounts and notes receivable	$	83,986	$	(2,728)	$	835	$	82,093

1.Write-offs are shown net of recoveries. During the three months ended September 30, 2020, the Company collected $0.1 million of accounts receivables that were recovered subsequent to being written-off.

	Allowance for doubtful accounts
Portfolio Segment:	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs2		Bad Debt Expense		September 30, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(16,871)	$	5,050	$	64,791
Notes receivable
Standard notes receivable	$	6,667	$	5,236	$	(1,974)	$	1,555	$	11,484
Elevated risk notes receivable	5,823		291		(447)		151		5,818
Total notes receivable	$	12,490	$	5,527	$	(2,421)	$	1,706	$	17,302
Total accounts and notes receivable	$	52,393	$	42,236	$	(19,292)	$	6,756	$	82,093

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

2.Write-offs are shown net of recoveries. During the nine months ended September 30, 2020, the Company collected $0.9 million of accounts receivables that were recovered subsequent to being written-off.

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 and nine months ended September 30, 2020:

	Allowance for doubtful accounts
Portfolio Segment:	June 30 2020		Write-Offs1		Bad Debt Expense		September 30 2020
	(in thousands)
Accounts Receivables	$	66,299	$	(2,475)	$	967	$	64,791
Notes Receivables
Standard notes receivable	$	11,869	$	(253)	$	(132)	$	11,484
Elevated risk notes receivable	5,818		—		—		5,818
	$	17,687	$	(253)	$	(132)	$	17,302
Total accounts and notes receivable	$	83,986	$	(2,728)	$	835	$	82,093

1.Write-offs are shown net of recoveries. During the three months ended September 30, 2020, the Company collected $0.1 million of accounts receivables that were recovered subsequent to being written-off.

	Allowance for doubtful accounts
Portfolio Segment:	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs2		Bad Debt Expense		September 30, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(16,871)	$	5,050	$	64,791
Notes receivable
Standard notes receivable	$	6,667	$	5,236	$	(1,974)	$	1,555	$	11,484
Elevated risk notes receivable	5,823		291		(447)		151		5,818
Total notes receivable	$	12,490	$	5,527	$	(2,421)	$	1,706	$	17,302
Total accounts and notes receivable	$	52,393	$	42,236	$	(19,292)	$	6,756	$	82,093

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

2.Write-offs are shown net of recoveries. During the nine months ended September 30, 2020, the Company collected $0.9 million of accounts receivables that were recovered subsequent to being written-off.

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 and nine months ended September 30, 2020:

	Allowance for doubtful accounts
Portfolio Segment:	June 30 2020		Write-Offs1		Bad Debt Expense		September 30 2020
	(in thousands)
Accounts Receivables	$	66,299	$	(2,475)	$	967	$	64,791
Notes Receivables
Standard notes receivable	$	11,869	$	(253)	$	(132)	$	11,484
Elevated risk notes receivable	5,818		—		—		5,818
	$	17,687	$	(253)	$	(132)	$	17,302
Total accounts and notes receivable	$	83,986	$	(2,728)	$	835	$	82,093

1.Write-offs are shown net of recoveries. During the three months ended September 30, 2020, the Company collected $0.1 million of accounts receivables that were recovered subsequent to being written-off.

	Allowance for doubtful accounts
Portfolio Segment:	December 31, 2019		Cumulative effect of ASC 326 adoption1		Write-Offs2		Bad Debt Expense		September 30, 2020
	(in thousands)
Accounts receivable	$	39,903	$	36,709	$	(16,871)	$	5,050	$	64,791
Notes receivable
Standard notes receivable	$	6,667	$	5,236	$	(1,974)	$	1,555	$	11,484
Elevated risk notes receivable	5,823		291		(447)		151		5,818
Total notes receivable	$	12,490	$	5,527	$	(2,421)	$	1,706	$	17,302
Total accounts and notes receivable	$	52,393	$	42,236	$	(19,292)	$	6,756	$	82,093

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

2.Write-offs are shown net of recoveries. During the nine months ended September 30, 2020, the Company collected $0.9 million of accounts receivables that were recovered subsequent to being written-off.