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Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets
 6 Months Ended
Jun. 30, 2022
Credit Loss [Abstract]  
Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets
The cumulative allowance for changes in expected future cash flows from financial royalty assets is presented net within the non-current portion of financial royalty assets on the condensed consolidated balance sheets and includes the following activities:

•the movement in the cumulative allowance related to changes in forecasted royalty payments expected to be received based on projected product sales for royalty bearing products as estimated by sell-side equity research analysts’ consensus sales forecasts, and
•the movement in the cumulative allowance for current expected credit losses, primarily associated with new financial royalty assets with limited protective rights and changes in the underlying cash flow forecasts of financial royalty assets with limited protective rights.

The following table sets forth the activity in the cumulative allowance for changes in expected cash flows from financial royalty assets, inclusive of the cumulative allowance for credit losses, as of the dates indicated (in thousands):
Activity for the Period
Balance at December 31, 2021 (1)$(1,694,945)
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets(556,020)
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets202,726 
Current period provision for credit losses, net (2)62,959 
Balance at June 30, 2022$(1,985,280)
(1)Includes $310.8 million related to cumulative allowance for credit losses.
(2)In the six months ended June 30, 2022, the provision income for credit losses was primarily related to a significant decline in the value of the Tazverik financial royalty asset.