Finance Receivables (Tables)

9 Months Ended

Sep. 24, 2017

Receivables [Abstract]

Finance Receivables

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

	September 24, 2017			December 31, 2016			September 25, 2016
Retail	$	6,336,447		$	5,982,211		$	6,165,999
Wholesale	960,160			1,026,590			1,155,483
Total finance receivables	7,296,607			7,008,801			7,321,482
Allowance for credit losses	(195,582		)	(173,343		)	(171,516		)
Finance receivables, net	$	7,101,025		$	6,835,458		$	7,149,966

Changes in the Allowance for Credit Losses on Finance Receivables

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

	Three months ended September 24, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	185,899		$	7,629		$	193,528
Provision for credit losses	30,964			(1,711		)	29,253
Charge-offs	(37,783		)	—			(37,783		)
Recoveries	10,584			—			10,584
Balance, end of period	$	189,664		$	5,918		$	195,582
	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
	Nine months ended September 24, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	166,810		$	6,533		$	173,343
Provision for credit losses	99,674			(615		)	99,059
Charge-offs	(114,081		)	—			(114,081		)
Recoveries	37,261			—			37,261
Balance, end of period	$	189,664		$	5,918		$	195,582
	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

(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 10 for additional information).

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 24, 2017
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	189,664		5,918		195,582
Total allowance for credit losses	$	189,664	$	5,918	$	195,582
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,336,447		960,160		7,296,607
Total finance receivables	$	6,336,447	$	960,160	$	7,296,607
	December 31, 2016
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	166,810		6,533		173,343
Total allowance for credit losses	$	166,810	$	6,533	$	173,343
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,982,211		1,026,590		7,008,801
Total finance receivables	$	5,982,211	$	1,026,590	$	7,008,801
	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

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 24, 2017
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	6,132,997	$	126,705	$	44,083	$	32,662	$	203,450	$	6,336,447
Wholesale	958,429		329		95		1,307		1,731		960,160
Total	$	7,091,426	$	127,034	$	44,178	$	33,969	$	205,181	$	7,296,607
	December 31, 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	$	5,760,818	$	131,302	$	49,642	$	40,449	$	221,393	$	5,982,211
Wholesale	1,024,995		1,000		319		276		1,595		1,026,590
Total	$	6,785,813	$	132,302	$	49,961	$	40,725	$	222,988	$	7,008,801
	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

Recorded Investment of Retail Finance Receivables by Credit Quality Indicator

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

	September 24, 2017		December 31, 2016		September 25, 2016
Doubtful	$	4,666	$	1,333	$	—
Substandard	8,724		1,773		16,244
Special Mention	5,261		30,152		—
Medium Risk	4,987		14,620		7,667
Low Risk	936,522		978,712		1,131,572
Total	$	960,160	$	1,026,590	$	1,155,483

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

	September 24, 2017		December 31, 2016		September 25, 2016
Prime	$	5,107,718	$	4,768,420	$	4,900,752
Sub-prime	1,228,729		1,213,791		1,265,247
Total	$	6,336,447	$	5,982,211	$	6,165,999