Securitizations and Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Select Information Related to VIEs

The following table presents the classifications of assets and liabilities on the Company’s Balance Sheet for its transactions with consolidated and unconsolidated VIEs. The Company’s transactions with VIEs include Structured Program transactions. The Company has also various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the assets and liabilities in the table below exclude intercompany balances that were eliminated in consolidation.


	September 30, 2023						December 31, 2022
	Consolidated		Unconsolidated		Total		Consolidated		Unconsolidated		Total
Assets

Restricted cash	$	3,813	$	—	$	3,813	$	8,048	$	—	$	8,048
Securities available for sale at fair value	—		443,460		443,460		—		17,717		17,717

Loans held for investment at fair value	1,095		—		1,095		3,994		—		3,994
Retail and certificate loans held for investment at fair value	637		—		637		1,946		—		1,946
Other assets	19		17,161		17,180		206		10,464		10,670
Total assets	$	5,564	$	460,621	$	466,185	$	14,194	$	28,181	$	42,375
Liabilities
Borrowings	$	3,329	$	—	$	3,329	$	8,085	$	—	$	8,085
Retail notes, certificates and secured borrowings at fair value	637		—		637		1,946		—		1,946
Other liabilities	5		980		985		29		—		29
Total liabilities	3,971		980		4,951		10,060		—		10,060
Total net assets (maximum loss exposure)	$	1,593	$	459,641	$	461,234	$	4,134	$	28,181	$	32,315

The following table summarizes activity related to unconsolidated VIEs where the transfers were accounted for as a sale on the Company’s financial statements:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022


Fair value of consideration received:
Cash	$	40,994	$	—	$	59,045	$	5,320
Asset-backed securities retained	301,602		—		454,831		2,180
Other assets (liabilities)	3,790		—		6,089		(3,794)
Total consideration	346,386		—		519,965		3,706
Deconsolidation of debt	—		—		—		36,072
Fair value of loans sold	(343,142)		—		(514,701)		(39,519)
Gain on sales of loans (1)	$	3,244	$	—	$	5,264	$	259

Cash proceeds from continuing involvement:
Servicing and other administrative fees	$	1,234	$	1,782	$	3,110	$	7,294


Interest received on asset-backed securities retained	$	5,142	$	1,294	$	8,736	$	6,373

(1) Consists primarily of servicing assets recognized at the time of sale, less any transaction costs, and excludes origination fees and fair value adjustments recognized prior to the sale. Prior period amounts have been reclassified to conform to the current period presentation.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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