Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2019

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



	June 30, 2019			December 31, 2018			July 1, 2018
Retail	$	6,549,707		$	6,328,201		$	6,373,926
Wholesale	1,239,694			1,083,615			1,133,206
Total finance receivables	7,789,401			7,411,816			7,507,132
Allowance for credit losses	(194,996		)	(189,885		)	(193,930		)
Finance receivables, net	$	7,594,405		$	7,221,931		$	7,313,202

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 June 30, 2019
	Retail			Wholesale			Total
Balance, beginning of period	$	181,426		$	9,446		$	190,872
Provision for credit losses	27,555			(1,172		)	26,383
Charge-offs	(35,741		)	—			(35,741		)
Recoveries	13,482			—			13,482
Balance, end of period	$	186,722		$	8,274		$	194,996

	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

	Six months ended June 30, 2019
	Retail			Wholesale			Total
Balance, beginning of period	$	182,098		$	7,787		$	189,885
Provision for credit losses	60,387			487			60,874
Charge-offs	(80,462		)	—			(80,462		)
Recoveries	24,699			—			24,699
Balance, end of period	$	186,722		$	8,274		$	194,996

	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

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 30, 2019
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	186,722		8,274		194,996
Total allowance for credit losses	$	186,722	$	8,274	$	194,996
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,549,707		1,239,694		7,789,401
Total finance receivables	$	6,549,707	$	1,239,694	$	7,789,401

	December 31, 2018
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	182,098		7,787		189,885
Total allowance for credit losses	$	182,098	$	7,787	$	189,885
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,328,201		1,083,615		7,411,816
Total finance receivables	$	6,328,201	$	1,083,615	$	7,411,816

	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

Impaired Financing Receivables

Additional information related to the wholesale finance receivables that were individually deemed to be impaired at July 1, 2018 includes (in thousands):



	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		—
Total	$	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):



	June 30, 2019
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	6,359,499	$	119,770	$	40,015	$	30,423	$	190,208	$	6,549,707
Wholesale	1,236,747		577		320		2,050		2,947		1,239,694
Total	$	7,596,246	$	120,347	$	40,335	$	32,473	$	193,155	$	7,789,401

	December 31, 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	$	6,100,186	$	136,945	$	49,825	$	41,245	$	228,015	$	6,328,201
Wholesale	1,081,729		522		273		1,091		1,886		1,083,615
Total	$	7,181,915	$	137,467	$	50,098	$	42,336	$	229,901	$	7,411,816

	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

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):



	June 30, 2019		December 31, 2018		July 1, 2018
Doubtful	$	6,850	$	2,210	$	251
Substandard	7,643		9,660		803
Special Mention	12,642		10,299		2,154
Medium Risk	6,170		25,802		37,045
Low Risk	1,206,389		1,035,644		1,092,953
Total	$	1,239,694	$	1,083,615	$	1,133,206

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



	June 30, 2019		December 31, 2018		July 1, 2018
Prime	$	5,372,712	$	5,183,754	$	5,193,641
Sub-prime	1,176,995		1,144,447		1,180,285
Total	$	6,549,707	$	6,328,201	$	6,373,926