XML 51 R38.htm IDEA: XBRL DOCUMENT v3.20.4
Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Finance Receivables
Finance receivables, net at December 31, were as follows (in thousands): 
20202019201820172016
Retail finance receivables:
United States$6,128,269 $6,180,236 $6,103,378 $5,901,002 $5,769,410 
Canada215,926 236,192 224,823 239,598 212,801 
6,344,195 6,416,428 6,328,201 6,140,600 5,982,211 
Wholesale finance receivables:
United States459,495 1,067,880 1,007,956 939,621 961,150 
Canada30,254 88,639 75,659 77,336 65,440 
489,749 1,156,519 1,083,615 1,016,957 1,026,590 
6,833,944 7,572,947 7,411,816 7,157,557 7,008,801 
Allowance for credit losses(390,936)(198,581)(189,885)(192,471)(173,343)
$6,443,008 $7,374,366 $7,221,931 $6,965,086 $6,835,458 
Contractual Maturities Of Finance Receivables As of December 31, 2020, contractual maturities of total finance receivables were as follows (in thousands): 
United StatesCanadaTotal
2021$1,505,981 $76,190 $1,582,171 
20221,194,078 49,038 1,243,116 
20231,340,552 53,037 1,393,589 
20241,465,470 57,515 1,522,985 
20251,001,327 10,400 1,011,727 
Thereafter80,356 — 80,356 
$6,587,764 $246,180 $6,833,944 
Changes In The Allowance For Finance Credit Losses On Finance Receivables
The allowance for credit losses on finance receivables is comprised of individual components relating to wholesale and retail finance receivables. Changes in the allowance for credit losses on finance receivables by portfolio for the year ended December 31, were as follows (in thousands): 
 2020
RetailWholesaleTotal
Balance, beginning of period$188,501 $10,080 $198,581 
Cumulative effect of change in accounting(a)
95,558 5,046 100,604 
Provision for credit losses175,225 6,645 181,870 
Charge-offs(137,371)(2,573)(139,944)
Recoveries49,825 — 49,825 
Balance, end of period$371,738 $19,198 $390,936 

 2019
RetailWholesaleTotal
Balance, beginning of period$182,098 $7,787 $189,885 
Provision for credit losses132,243 2,293 134,536 
Charge-offs(173,358)— (173,358)
Recoveries47,518 — 47,518 
Balance, end of period$188,501 $10,080 $198,581 
 2018
RetailWholesaleTotal
Balance, beginning of period$186,254 $6,217 $192,471 
Provision for credit losses105,292 1,578 106,870 
Charge-offs(154,433)(8)(154,441)
Recoveries44,985 — 44,985 
Balance, end of period$182,098 $7,787 $189,885 
(a)On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings, net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption.
The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, at December 31, was as follows (in thousands):
 2019
 RetailWholesaleTotal
Allowance for credit losses, ending balance:
Individually evaluated for impairment$— $2,100 $2,100 
Collectively evaluated for impairment188,501 7,980 196,481 
$188,501 $10,080 $198,581 
Finance receivables, ending balance:
Individually evaluated for impairment$— $4,601 $4,601 
Collectively evaluated for impairment6,416,428 1,151,918 7,568,346 
$6,416,428 $1,156,519 $7,572,947 
Financing Receivable Credit Quality Indicators
The amortized cost of the Company's U.S. and Canadian retail finance receivables by vintage and credit quality indicator, at December 31, 2020, was as follows (in thousands):
202020192018201720162015 & PriorTotal
U.S. Retail:
Super prime$822,631 $575,977 $355,529 $165,436 $71,360 $29,181 $2,020,114 
Prime1,133,637 794,058 508,713 293,358 156,688 77,046 2,963,500 
Sub-prime435,875 295,403 177,598 111,163 72,556 52,060 1,144,655 
2,392,143 1,665,438 1,041,840 569,957 300,604 158,287 6,128,269 
Canadian Retail:
Super prime53,465 48,692 28,581 13,818 5,018 2,011 151,585 
Prime18,568 14,257 10,269 6,727 3,198 2,025 55,044 
Sub-prime3,172 2,498 1,560 1,095 607 365 9,297 
75,205 65,447 40,410 21,640 8,823 4,401 215,926 
$2,467,348 $1,730,885 $1,082,250 $591,597 $309,427 $162,688 $6,344,195 
The recorded investment in retail finance receivables, by credit quality indicator at December 31, was as follows (in thousands):
2019
Prime$5,278,093 
Sub-prime1,138,335 
$6,416,428 
The amortized cost of wholesale financial receivables, by vintage and credit quality indicator, was as follows as of December 31, 2020 (in thousands):
202020192018201720162015 & PriorTotal
Non-Performing$— $— $— $— $— $— $— 
Doubtful— — — — — — — 
Substandard— — — — — — — 
Special Mention658 365 31 — — — 1,054 
Medium Risk1,925 242 — — — — 2,167 
Low Risk388,568 71,441 13,412 7,887 2,297 2,923 486,528 
$391,151 $72,048 $13,443 $7,887 $2,297 $2,923 $489,749 
The recorded investment in wholesale finance receivables, by internal credit quality indicator at December 31, was as follows (in thousands):
2019
Doubtful$11,664 
Substandard6,122 
Special Mention16,125 
Medium Risk16,800 
Low Risk1,105,808 
$1,156,519 
Past Due Financing Receivables
The aging analysis of finance receivables at December 31, was as follows (in thousands): 
 2020
 Current31-60 Days
Past Due		61-90 Days
Past Due		Greater than
90 Days
Past Due		Total
Past Due		Total
Finance
Receivables
Retail finance receivables$6,164,369 $106,818 $39,933 $33,075 $179,826 $6,344,195 
Wholesale financial receivables489,556 166 23 4 193 489,749 
$6,653,925 $106,984 $39,956 $33,079 $180,019 $6,833,944 

 2019
 Current31-60 Days
Past Due		61-90 Days
Past Due		Greater than
90 Days
Past Due		Total
Past Due		Total
Finance
Receivables
Retail finance receivables$6,171,930 $142,479 $53,995 $48,024 $244,498 $6,416,428 
Wholesale financial receivables1,152,416 1,145 384 2,574 4,103 1,156,519 
$7,324,346 $143,624 $54,379 $50,598 $248,601 $7,572,947 
The recorded investment of retail and wholesale finance receivables, excluding non-accrual status finance receivables, that were contractually past due 90 days or more at December 31, for the past five years was as follows (in thousands): 
20202019201820172016
United States$32,599 $47,138 $41,285 $39,051 $39,399 
Canada480 888 1,051 1,025 1,326 
$33,079 $48,026 $42,336 $40,076 $40,725 
Impaired Financing Receivables Under ASC 310
Additional information related to the wholesale finance receivables that were individually deemed to be impaired under ASC Topic 310, Receivables at December 31, 2019 included (in thousands):
Recorded InvestmentUnpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
Wholesale:
No related allowance recorded$— $— $— $— $— 
Related allowance recorded4,994 4,601 2,100 4,976 — 
$4,994 $4,601 $2,100 $4,976 $—