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Current Expected Credit Losses (CECL) | 3 Months Ended
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Mar. 31, 2020
Credit Loss [Abstract] |
Current Expected Credit Losses (CECL) | 26.Current Expected Credit Losses (CECL) The Company manages its receivable portfolios using past-due status as a key credit quality indicator. The below table presents portfolio segmentation of the Company’s receivables disaggregated by credit quality indicators and origination periods as of March 31, 2020 (in thousands):
|  | Amortized Cost Basis by Origination Year and Past-Due Status |
|  | Total |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | Prior |
Accrued commissions receivable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Past-due status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less than 1 year |  | $ | 371,270 |  |  | $ | 272,074 |  |  | $ | 99,196 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
1 year - less than 2 years |  |  | 34,468 |  |  |  | — |  |  |  | 14,183 |  |  |  | 20,285 |  |  |  | — |  |  |  | — |
2 years and greater |  |  | 16,156 |  |  |  | — |  |  |  | — |  |  |  | 5,114 |  |  |  | 6,878 |  |  |  | 4,164 |
Total Accrued commissions receivable |  | $ | 421,894 |  |  | $ | 272,074 |  |  | $ | 113,379 |  |  | $ | 25,399 |  |  | $ | 6,878 |  |  | $ | 4,164 |
Employee-related receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Past-due status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less than 1 year |  | $ | 3,009 |  |  | $ | 605 |  |  | $ | 2,404 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
1 year - less than 2 years |  |  | 1,888 |  |  |  | — |  |  |  | 919 |  |  |  | 969 |  |  |  | — |  |  |  | — |
2 years and greater |  |  | 1,325 |  |  |  | — |  |  |  | — |  |  |  | 83 |  |  |  | 375 |  |  |  | 867 |
Total Employee-related receivables |  | $ | 6,222 |  |  | $ | 605 |  |  | $ | 3,323 |  |  | $ | 1,052 |  |  | $ | 375 |  |  | $ | 867 |
The CECL reserve reflects management’s current estimate of potential credit losses related to the receivable balances included in the Company’s unaudited condensed consolidated statements of financial condition. See Note 3—“Summary of Significant Accounting Policies” for further discussion of the CECL reserve methodology. The following table presents the activity in the CECL reserve by receivable class for the three months ended March 31, 2020 (in thousands):
|  | Allowance Rollforward by Portfolio Segment |
|  | Accrued commissions receivable |  |  | Employee-related receivables |  |  | Total |
Beginning balance, January 1, 2020 |  | $ | 811 |  |  | $ | 1,133 |  |  | $ | 1,944 |
Current-period provision for expected credit losses |  |  | 179 |  |  |  | 586 |  |  |  | 765 |
Write-offs charged against the allowance |  |  | — |  |  |  | — |  |  |  | — |
Recoveries collected |  |  | — |  |  |  | — |  |  |  | — |
Ending balance, March 31, 2020 |  | $ | 990 |  |  | $ | 1,719 |  |  | $ | 2,709 |
As described in Note 1—“Organization and Basis of Presentation” upon adoption of the new credit losses guidance on January 1, 2020, the Company recognized an initial CECL reserve of approximately $1.9 million against its receivables portfolio with a corresponding charge to retained deficit on unaudited condensed consolidated statements of changes in equity. As required, any subsequent changes to the CECL reserve are recognized in Net income (loss) available to common stockholders in the Company’s unaudited condensed consolidated statements of operations. During the three months ended March 31, 2020, the Company recorded an approximately $0.8 million increase in the expected credit loss reserve against the receivables portfolio, bringing the Company’s total CECL reserve to approximately $2.7 million as of March 31, 2020. The increase in the CECL reserve against Accrued commissions receivable reflects the updated macroeconomic assumptions resulting from the COVID-19 pandemic and downward credit rating migration of certain receivables in the portfolio. The increase in the CECL reserve pertaining to Employee-related receivables is a result of employee terminations.

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- Definition The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=118955579&loc=SL82922895-210455 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919272-210447 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919236-210447 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919269-210447 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=118955579&loc=SL82922888-210455 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919244-210447 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919230-210447 + Details
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