Finance Receivables (Tables)

6 Months Ended

Jul. 01, 2018

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



	July 1, 2018			December 31, 2017			June 25, 2017
Retail	$	6,373,926		$	6,140,600		$	6,267,211
Wholesale	1,133,206			1,016,957			1,258,852
Total finance receivables	7,507,132			7,157,557			7,526,063
Allowance for credit losses	(193,930		)	(192,471		)	(193,528		)
Finance receivables, net	$	7,313,202		$	6,965,086		$	7,332,535

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):



	July 1, 2018
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	184	$	184
Collectively evaluated for impairment	187,502		6,244		193,746
Total allowance for credit losses	$	187,502	$	6,428	$	193,930
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	220	$	220
Collectively evaluated for impairment	6,373,926		1,132,986		7,506,912
Total finance receivables	$	6,373,926	$	1,133,206	$	7,507,132

	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

	June 25, 2017
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	185,899		7,629		193,528
Total allowance for credit losses	$	185,899	$	7,629	$	193,528
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,267,211		1,258,852		7,526,063
Total finance receivables	$	6,267,211	$	1,258,852	$	7,526,063

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



	Three months ended July 1, 2018
	Retail			Wholesale			Total
Balance, beginning of period	$	182,150		$	8,200		$	190,350
Provision for credit losses	20,652			(1,772		)	18,880
Charge-offs	(28,947		)	—			(28,947		)
Recoveries	13,647			—			13,647
Balance, end of period	$	187,502		$	6,428		$	193,930

	Three months ended June 25, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	176,068		$	7,962		$	184,030
Provision for credit losses	26,550			(333		)	26,217
Charge-offs	(30,374		)	—			(30,374		)
Recoveries	13,655			—			13,655
Balance, end of period	$	185,899		$	7,629		$	193,528

	Six months ended July 1, 2018
	Retail			Wholesale			Total
Balance, beginning of period	$	186,254		$	6,217		$	192,471
Provision for credit losses	48,721			211			48,932
Charge-offs	(74,028		)	—			(74,028		)
Recoveries	26,555			—			26,555
Balance, end of period	$	187,502		$	6,428		$	193,930

	Six months ended June 25, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	166,810		$	6,533		$	173,343
Provision for credit losses	68,710			1,096			69,806
Charge-offs	(76,298		)	—			(76,298		)
Recoveries	26,677			—			26,677
Balance, end of period	$	185,899		$	7,629		$	193,528

Impaired Financing Receivables

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



	As of July 1, 2018						Three months ended July 1, 2018				Six months ended July 1, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Wholesale:
No related allowance recorded	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Related allowance recorded	251		220		184		251		—		251		—
	$	251	$	220	$	184	$	251	$	—	$	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):



	July 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	$	6,198,906	$	116,828	$	35,763	$	22,429	$	175,020	$	6,373,926
Wholesale	1,132,472		516		134		84		734		1,133,206
Total	$	7,331,378	$	117,344	$	35,897	$	22,513	$	175,754	$	7,507,132

	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

	June 25, 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	$	6,086,592	$	118,616	$	36,914	$	25,089	$	180,619	$	6,267,211
Wholesale	1,257,301		281		142		1,128		1,551		1,258,852
Total	$	7,343,893	$	118,897	$	37,056	$	26,217	$	182,170	$	7,526,063

Recorded Investment of Finance Receivables by Credit Quality Indicator

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



	July 1, 2018		December 31, 2017		June 25, 2017
Doubtful	$	251	$	688	$	5,203
Substandard	803		3,837		10,458
Special Mention	2,154		26,866		4,953
Medium Risk	37,045		9,917		8,115
Low Risk	1,092,953		975,649		1,230,123
Total	$	1,133,206	$	1,016,957	$	1,258,852

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



	July 1, 2018		December 31, 2017		June 25, 2017
Prime	$	5,193,641	$	4,966,193	$	5,034,187
Sub-prime	1,180,285		1,174,407		1,233,024
Total	$	6,373,926	$	6,140,600	$	6,267,211