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Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets
 12 Months Ended
Dec. 31, 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 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 which are estimated using sell-side equity research analysts’ consensus sales forecasts,
•the write-off of cumulative allowance at the end of a royalty asset’s life which only impacts the consolidated balance sheets, 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 Year
Balance at December 31, 2019$(868,418)
Cumulative adjustment for adoption of ASU 2016-13(192,705)
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets(645,612)
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets570,959 
Write-off of cumulative allowance2,964 
Write-off of credit loss allowance (1)25,174 
Provision for credit losses, net (2)(156,186)
Balance at December 31, 2020$(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 assets446,955 
Write-off of cumulative allowance21,721 
Provision for credit losses, net (2)12,913 
Balance at December 31, 2021$(1,694,945)
Increases to the cumulative allowance for changes in expected cash flows from financial royalty assets(1,394,679)
Decreases to the cumulative allowance for changes in expected cash flows from financial royalty assets296,637 
Write-off of cumulative allowance5,723 
Write-off of credit loss allowance1,584 
Provision for credit losses, net (2)193,798 
Balance at December 31, 2022$(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.