Finance Receivables (Tables)

6 Months Ended

Jun. 26, 2016

Receivables [Abstract]

Finance Receivables

Finance receivables, net, consisted of the following (in thousands):

	June 26, 2016			December 31, 2015			June 28, 2015
Retail	$	6,020,750		$	5,991,471		$	5,962,685
Wholesale	1,422,648			1,023,860			1,325,041
Total finance receivables	7,443,398			7,015,331			7,287,726
Allowance for credit losses	(161,353		)	(147,178		)	(139,231		)
Finance receivables, net	$	7,282,045		$	6,868,153		$	7,148,495

Changes in the Allowance for Credit Losses on Finance Receivables

The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):

	June 26, 2016
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	152,998		8,355		161,353
Total allowance for credit losses	$	152,998	$	8,355	$	161,353
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,020,750		1,422,648		7,443,398
Total finance receivables	$	6,020,750	$	1,422,648	$	7,443,398
	December 31, 2015
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	139,320		7,858		147,178
Total allowance for credit losses	$	139,320	$	7,858	$	147,178
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,991,471		1,023,860		7,015,331
Total finance receivables	$	5,991,471	$	1,023,860	$	7,015,331
	June 28, 2015
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	131,903		7,328		139,231
Total allowance for credit losses	$	131,903	$	7,328	$	139,231
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,962,685		1,325,041		7,287,726
Total finance receivables	$	5,962,685	$	1,325,041	$	7,287,726

Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):

	Three months ended June 26, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	146,727		$	9,457		$	156,184
Provision for credit losses	24,563			(1,102		)	23,461
Charge-offs	(26,460		)	—			(26,460		)
Recoveries	11,459			—			11,459
Other (a)	(3,291		)	—			(3,291		)
Balance, end of period	$	152,998		$	8,355		$	161,353
	Three months ended June 28, 2015
	Retail			Wholesale			Total
Balance, beginning of period	$	123,777		$	9,043		$	132,820
Provision for credit losses	16,890			(1,715		)	15,175
Charge-offs	(21,003		)	—			(21,003		)
Recoveries	12,239			—			12,239
Balance, end of period	$	131,903		$	7,328		$	139,231
	Six months ended June 26, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	139,320		$	7,858		$	147,178
Provision for credit losses	60,087			497			60,584
Charge-offs	(66,104		)	—			(66,104		)
Recoveries	22,986			—			22,986
Other (a)	(3,291		)	—			(3,291		)
Balance, end of period	$	152,998		$	8,355		$	161,353
	Six months ended June 28, 2015
	Retail			Wholesale			Total
Balance, beginning of period	$	122,025		$	5,339		$	127,364
Provision for credit losses	39,433			1,989			41,422
Charge-offs	(53,736		)	—			(53,736		)
Recoveries	24,181			—			24,181
Balance, end of period	$	131,903		$	7,328		$	139,231

(a) Related to the sale of finance receivables with a principal balance of $301.8 million through an off-balance sheet asset-backed securitization transaction (see Note 12 for additional information).

Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables

An analysis of the aging of past due finance receivables was as follows (in thousands):

	June 26, 2016
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,852,659	$	108,192	$	37,961	$	21,938	$	168,091	$	6,020,750
Wholesale	1,421,846		457		153		192		802		1,422,648
Total	$	7,274,505	$	108,649	$	38,114	$	22,130	$	168,893	$	7,443,398
	December 31, 2015
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,796,003	$	118,996	$	43,680	$	32,792	$	195,468	$	5,991,471
Wholesale	1,022,365		888		530		77		1,495		1,023,860
Total	$	6,818,368	$	119,884	$	44,210	$	32,869	$	196,963	$	7,015,331
	June 28, 2015
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,819,279	$	96,982	$	28,150	$	18,274	$	143,406	$	5,962,685
Wholesale	1,324,174		513		181		173		867		1,325,041
Total	$	7,143,453	$	97,495	$	28,331	$	18,447	$	144,273	$	7,287,726

Recorded Investment of Retail Finance Receivables by Credit Quality Indicator

The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):

	June 26, 2016		December 31, 2015		June 28, 2015
Prime	$	4,756,479	$	4,777,448	$	4,718,363
Sub-prime	1,264,271		1,214,023		1,244,322
Total	$	6,020,750	$	5,991,471	$	5,962,685

The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):

	June 26, 2016		December 31, 2015		June 28, 2015
Doubtful	$	—	$	5,169	$	—
Substandard	19,637		21,774		7,739
Special Mention	4,334		6,271		15,343
Medium Risk	6,350		11,494		3,245
Low Risk	1,392,327		979,152		1,298,714
Total	$	1,422,648	$	1,023,860	$	1,325,041