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Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets (Tables) | 12 Months Ended
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Dec. 31, 2022
Credit Loss [Abstract] |
Schedule of Cumulative Allowance for Changes in Expected Cash Flows | 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 Year
Balance at December 31, 2019 | $ | (868,418) |
Cumulative adjustment for adoption of ASU 2016-13 | (192,705) |
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets | (645,612) |
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets | 570,959 |
Write-off of cumulative allowance | 2,964 |
Write-off of credit loss allowance (1) | 25,174 |
Provision for credit losses, net (2) | (156,186) |
Balance at December 31, 2020 | $ | (1,263,824) |
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets | (912,710) |
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets | 446,955 |
Write-off of cumulative allowance | 21,721 |
Provision for credit losses, net (2) | 12,913 |
Balance at December 31, 2021 | $ | (1,694,945) |
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets | (1,394,679) |
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets | 296,637 |
Write-off of cumulative allowance | 5,723 |
Write-off of credit loss allowance | 1,584 |
Provision for credit losses, net (2) | 193,798 |
Balance at December 31, 2022 | $ | (2,591,882) |
(1)Relates to amounts reversed out of the credit loss allowance associated with omecamtiv mecarbil as a result of the gross write-off of the related financial royalty asset balance of $90.2 million. (2)For 2020, the provision for credit losses was primarily related to certain additions to our portfolio of financial royalty assets with limited protective rights, mainly the final tranche of Tazverik. For 2021, the provision income for credit losses was primarily related to a significant decline in value of Tazverik, which was offset by increases in the value of zavegepant. For 2022, the provision income for credit losses was primarily related to further declines in the value of Tazverik and changes in the payors for certain products with stronger credit profiles, which were partially offset by the addition of Trelegy to our portfolio of financial royalty assets with limited protective rights.

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- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
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