Loans and finance receivables

12 Months Ended

Dec. 31, 2018

(7)

Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions).


	December 31,
	2018			2017
Loans and finance receivables before allowances and discounts	$	16,622		$	14,126
Allowances for uncollectible loans		(177	)		(180	)
Unamortized acquisition discounts		(165	)		(198	)

	$	16,280		$	13,748

Loans and finance receivables are predominantly installment loans originated or acquired by our manufactured housing business. Provisions for loan losses for 2018 and 2017 were $141 million and $160 million, respectively. Loan charge-offs, net of recoveries, were $144 million in 2018 and $162 million in 2017. At December 31, 2018, approximately 98% of the manufactured housing loan balances were evaluated collectively for impairment, with the remainder evaluated individually. As part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or non-performing. At December 31, 2018, we considered approximately 99% of the loan balances to be performing and approximately 95% of the loan balances to be current as to payment status.

Additionally, during 2018, an insurance subsidiary entered into an agreement with Seritage Growth Properties to provide a $2.0 billion term loan facility, which matures on July 31, 2023. As of December 31, 2018, the outstanding loans under the facility were approximately $1.6 billion.