Finance Receivables (Tables)

9 Months Ended

Sep. 25, 2016

Receivables [Abstract]

Finance Receivables

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

	September 25, 2016			December 31, 2015			September 27, 2015
Retail	$	6,165,999		$	5,991,471		$	6,194,332
Wholesale	1,155,483			1,023,860			1,029,397
Total finance receivables	7,321,482			7,015,331			7,223,729
Allowance for credit losses	(171,516		)	(147,178		)	(145,383		)
Finance receivables, net	$	7,149,966		$	6,868,153		$	7,078,346

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):

	September 25, 2016
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	164,761		6,755		171,516
Total allowance for credit losses	$	164,761	$	6,755	$	171,516
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,165,999		1,155,483		7,321,482
Total finance receivables	$	6,165,999	$	1,155,483	$	7,321,482
	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
	September 27, 2015
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	139,131		6,252		145,383
Total allowance for credit losses	$	139,131	$	6,252	$	145,383
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,194,332		1,029,397		7,223,729
Total finance receivables	$	6,194,332	$	1,029,397	$	7,223,729

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

	Three months ended September 25, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	152,998		$	8,355		$	161,353
Provision for credit losses	38,143			(1,600		)	36,543
Charge-offs	(35,749		)	—			(35,749		)
Recoveries	9,369			—			9,369
Balance, end of period	$	164,761		$	6,755		$	171,516
	Three months ended September 27, 2015
	Retail			Wholesale			Total
Balance, beginning of period	$	131,903		$	7,328		$	139,231
Provision for credit losses	28,309			(1,076		)	27,233
Charge-offs	(30,203		)	—			(30,203		)
Recoveries	9,122			—			9,122
Balance, end of period	$	139,131		$	6,252		$	145,383
	Nine months ended September 25, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	139,320		$	7,858		$	147,178
Provision for credit losses	98,230			(1,103		)	97,127
Charge-offs	(101,853		)	—			(101,853		)
Recoveries	32,355			—			32,355
Other (a)	(3,291		)	—			(3,291		)
Balance, end of period	$	164,761		$	6,755		$	171,516
	Nine months ended September 27, 2015
	Retail			Wholesale			Total
Balance, beginning of period	$	122,025		$	5,339		$	127,364
Provision for credit losses	67,742			913			68,655
Charge-offs	(83,939		)	—			(83,939		)
Recoveries	33,303			—			33,303
Balance, end of period	$	139,131		$	6,252		$	145,383

(a) Related to the sale of finance receivables during the second quarter of 2016 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):

	September 25, 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	$	5,973,108	$	119,709	$	41,866	$	31,316	$	192,891	$	6,165,999
Wholesale	1,154,617		366		114		386		866		1,155,483
Total	$	7,127,725	$	120,075	$	41,980	$	31,702	$	193,757	$	7,321,482
	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
	September 27, 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	$	6,024,620	$	111,393	$	34,511	$	23,808	$	169,712	$	6,194,332
Wholesale	1,028,981		106		162		148		416		1,029,397
Total	$	7,053,601	$	111,499	$	34,673	$	23,956	$	170,128	$	7,223,729

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):

	September 25, 2016		December 31, 2015		September 27, 2015
Prime	$	4,900,752	$	4,777,448	$	4,936,438
Sub-prime	1,265,247		1,214,023		1,257,894
Total	$	6,165,999	$	5,991,471	$	6,194,332

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

	September 25, 2016		December 31, 2015		September 27, 2015
Doubtful	$	—	$	5,169	$	—
Substandard	16,244		21,774		14,949
Special Mention	—		6,271		3,706
Medium Risk	7,667		11,494		6,496
Low Risk	1,131,572		979,152		1,004,246
Total	$	1,155,483	$	1,023,860	$	1,029,397