Asset-Backed Financing (Tables)

6 Months Ended

Jun. 28, 2020

Assets and Liabilities Related to the On-Balance Sheet Financing

The assets and liabilities related to the on-balance sheet asset-backed financings included in the Consolidated balance sheets were as follows (in thousands):


	June 28, 2020
	Finance receivables		Allowance for credit losses		Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities:
Consolidated VIEs:
Asset-backed securitizations	$	2,780,217	$	(166,635)	$	161,257	$	1,235	$	2,776,074	$	2,461,107
Asset-backed U.S. commercial paper conduit facilities	584,153		(34,938)		38,491		1,195		588,901		540,840
Unconsolidated VIEs:
Asset-backed Canadian commercial paper conduit facility	220,286		(7,669)		11,201		142		223,960		144,661
	$	3,584,656	$	(209,242)	$	210,949	$	2,572	$	3,588,935	$	3,146,608

	December 31, 2019
	Finance receivables		Allowance for credit losses		Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities:
Consolidated VIEs:
Asset-backed securitizations	$	826,047	$	(24,935)	$	36,037	$	778	$	837,927	$	764,392
Asset-backed U.S. commercial paper conduit facilities	533,587		(16,076)		27,775		1,642		546,928		490,427
Unconsolidated VIEs:
Asset-backed Canadian commercial paper conduit facility	232,699		(2,786)		7,686		296		237,895		114,693
	$	1,592,333	$	(43,797)	$	71,498	$	2,716	$	1,622,750	$	1,369,512

	June 30, 2019
	Finance receivables		Allowance for credit losses		Restricted cash		Other assets		Total assets		Asset-backed debt
On-balance sheet assets and liabilities:
Consolidated VIEs:
Asset-backed securitizations	$	1,106,973	$	(32,426)	$	52,593	$	277	$	1,127,417	$	1,002,869
Asset-backed U.S. commercial paper conduit facilities	500,895		(14,651)		26,843		1,256		514,343		464,136
Unconsolidated VIEs:
Asset-backed Canadian commercial paper conduit facility	171,944		(3,058)		9,824		272		178,982		148,740
	$	1,779,812	$	(50,135)	$	89,260	$	1,805	$	1,820,742	$	1,615,745

Schedule of Servicing Activities

The unpaid principal balance of retail motorcycle finance receivables serviced by the Company was as follows (in thousands):


	June 28, 2020		December 31, 2019		June 30, 2019
On-balance sheet retail motorcycle finance receivables	$	6,362,139	$	6,274,551	$	6,441,261
Off-balance sheet retail motorcycle finance receivables	—		35,197		54,699
	$	6,362,139	$	6,309,748	$	6,495,960

The unpaid principal balance of retail motorcycle finance receivables serviced by the Company 30 days or more delinquent was as follows (in thousands):


	June 28, 2020		December 31, 2019		June 30, 2019
On-balance sheet retail motorcycle finance receivables	$	95,841	$	244,498	$	190,208
Off-balance sheet retail motorcycle finance receivables	—		885		1,065
	$	95,841	$	245,383	$	191,273

Credit losses, net of recoveries for the retail motorcycle finance receivables serviced by the Company were as follows (in thousands):


	Three months ended						Six months ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
On-balance sheet retail motorcycle finance receivables	$	15,660	$	22,259	$	58,768	$	55,763
Off-balance sheet retail motorcycle finance receivables	—		161		13		392
	$	15,660	$	22,420	$	58,781	$	56,155

Transfer of Financial Assets Accounted for as Sales

Quarterly transfers of U.S. retail motorcycle finance receivables to SPEs, the respective proceeds, and the respective proceeds, net of discounts and issuance costs were as follows (in thousands):


	2020										2019
	Transfers		Proceeds		Proceeds, net		Transfers		Proceeds		Proceeds, net
First quarter	$	580,200	$	525,000	$	522,700	$	—	$	—	$	—
Second quarter	1,840,500		1,550,200		$	1,541,800	1,120,000		1,025,000		1,021,300


	$	2,420,700	$	2,075,200	$	2,064,500	$	1,120,000	$	1,025,000	$	1,021,300

Quarterly transfers of U.S. retail motorcycle finance receivables to the U.S. Conduit Facilities and the respective proceeds were as follows (in thousands):


	2020						2019
	Transfers		Proceeds		Transfers		Proceeds
First quarter	$	195,300	$	163,600	$	—	$	—
Second quarter	—		—		—		—


	$	195,300	$	163,600	$	—	$	—

Quarterly transfers of Canadian retail motorcycle finance receivables to the Canadian Conduit and the respective proceeds were as follows (in thousands):


	2020						2019
	Transfers		Proceeds		Transfers		Proceeds
First quarter	$	77,900	$	61,600	$	—	$	—
Second quarter	—		—		28,200		23,400


	$	77,900	$	61,600	$	28,200	$	23,400