Finance Receivables (Tables)

3 Months Ended

Apr. 01, 2018

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



	April 1, 2018			December 31, 2017			March 26, 2017
Retail	$	6,064,192		$	6,140,600		$	6,002,550
Wholesale	1,252,600			1,016,957			1,327,602
Total finance receivables	7,316,792			7,157,557			7,330,152
Allowance for credit losses	(190,350		)	(192,471		)	(184,030		)
Finance receivables, net	$	7,126,442		$	6,965,086		$	7,146,122

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):



	April 1, 2018
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	184	$	184
Collectively evaluated for impairment	182,150		8,016		190,166
Total allowance for credit losses	$	182,150	$	8,200	$	190,350
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	220	$	220
Collectively evaluated for impairment	6,064,192		1,252,380		7,316,572
Total finance receivables	$	6,064,192	$	1,252,600	$	7,316,792

	December 31, 2017
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	186,254		6,217		192,471
Total allowance for credit losses	$	186,254	$	6,217	$	192,471
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,140,600		1,016,957		7,157,557
Total finance receivables	$	6,140,600	$	1,016,957	$	7,157,557

	March 26, 2017
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	176,068		7,962		184,030
Total allowance for credit losses	$	176,068	$	7,962	$	184,030
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,002,550		1,327,602		7,330,152
Total finance receivables	$	6,002,550	$	1,327,602	$	7,330,152

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



	Three months ended April 1, 2018
	Retail			Wholesale		Total
Balance, beginning of period	$	186,254		$	6,217	$	192,471
Provision for credit losses	28,069			1,983		30,052
Charge-offs	(45,081		)	—		(45,081		)
Recoveries	12,908			—		12,908
Balance, end of period	$	182,150		$	8,200	$	190,350

	Three months ended March 26, 2017
	Retail			Wholesale		Total
Balance, beginning of period	$	166,810		$	6,533	$	173,343
Provision for credit losses	42,160			1,429		43,589
Charge-offs	(45,924		)	—		(45,924		)
Recoveries	13,022			—		13,022
Balance, end of period	$	176,068		$	7,962	$	184,030

Impaired Financing Receivables

Additional information related to the wholesale finance receivables that are individually deemed to be impaired under ASC Topic 310, “Receivables,” at April 1, 2018 includes (in thousands):



	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Wholesale:
No related allowance recorded	$	—	$	—	$	—	$	—	$	—
Related allowance recorded	251		220		184		251		—
Total impaired wholesale finance receivables	$	251	$	220	$	184	$	251	$	—

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):



	April 1, 2018
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,897,632	$	105,366	$	33,275	$	27,919	$	166,560	$	6,064,192
Wholesale	1,247,175		549		4,705		171		5,425		1,252,600
Total	$	7,144,807	$	105,915	$	37,980	$	28,090	$	171,985	$	7,316,792

	December 31, 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	$	5,913,473	$	139,629	$	47,539	$	39,959	$	227,127	$	6,140,600
Wholesale	1,016,000		595		245		117		957		1,016,957
Total	$	6,929,473	$	140,224	$	47,784	$	40,076	$	228,084	$	7,157,557

	March 26, 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	$	5,840,164	$	100,471	$	33,403	$	28,512	$	162,386	$	6,002,550
Wholesale	1,325,575		1,129		273		625		2,027		1,327,602
Total	$	7,165,739	$	101,600	$	33,676	$	29,137	$	164,413	$	7,330,152

Recorded Investment of Finance Receivables by Credit Quality Indicator

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



	April 1, 2018		December 31, 2017		March 26, 2017
Prime	$	4,923,237	$	4,966,193	$	4,806,730
Sub-prime	1,140,955		1,174,407		1,195,820
Total	$	6,064,192	$	6,140,600	$	6,002,550

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



	April 1, 2018		December 31, 2017		March 26, 2017
Doubtful	$	1,582	$	688	$	1,133
Substandard	3,368		3,837		9,213
Special Mention	33,085		26,866		19,898
Medium Risk	10,512		9,917		14,648
Low Risk	1,204,053		975,649		1,282,710
Total	$	1,252,600	$	1,016,957	$	1,327,602