XML 44 R34.htm IDEA: XBRL DOCUMENT

Finance Receivables (Tables)

6 Months Ended

Jun. 27, 2021

Finance receivables, net were as follows (in thousands):


	June 27, 2021		December 31, 2020		June 28, 2020
Retail finance receivables	$	6,663,518	$	6,344,195	$	6,520,919
Wholesale finance receivables	584,247		489,749		870,087
	7,247,765		6,833,944		7,391,006
Allowance for credit losses	(358,811)		(390,936)		(411,015)
	$	6,888,954	$	6,443,008	$	6,979,991

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 27, 2021						Six months ended June 27, 2021
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	327,060	$	19,173	$	346,233	$	371,738	$	19,198	$	390,936
Provision for credit losses	19,053		(2,852)		16,201		(3,396)		(2,877)		(6,273)
Charge-offs	(17,107)		—		(17,107)		(51,696)		—		(51,696)
Recoveries	13,484		—		13,484		25,844		—		25,844
Balance, end of period	$	342,490	$	16,321	$	358,811	$	342,490	$	16,321	$	358,811
	Three months ended June 28, 2020						Six months ended June 28, 2020
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	311,368	$	24,128	$	335,496	$	188,501	$	10,080	$	198,581
Cumulative effect of change in accounting(a)	—		—		—		95,558		5,046		100,604
Provision for credit losses	94,050		(2,871)		91,179		164,467		6,131		170,598
Charge-offs	(29,859)		—		(29,859)		(85,074)		—		(85,074)
Recoveries	14,199		—		14,199		26,306		—		26,306
Balance, end of period	$	389,758	$	21,257	$	411,015	$	389,758	$	21,257	$	411,015

(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.

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 was as follows (in thousands):


	June 27, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
U.S. Retail:
Super prime	$	632,627	$	634,661	$	429,884	$	250,679	$	106,124	$	53,347	$	2,107,322
Prime	876,007		911,265		619,597		380,662		208,176		140,807		3,136,514
Sub-prime	313,302		352,221		233,934		137,060		83,886		81,538		1,201,941
	1,821,936		1,898,147		1,283,415		768,401		398,186		275,692		6,445,777
Canadian Retail:
Super prime	38,562		42,967		37,461		20,709		8,625		3,374		151,698
Prime	12,468		15,872		11,990		8,254		5,007		3,182		56,773
Sub-prime	1,856		2,727		1,998		1,263		819		607		9,270
	52,886		61,566		51,449		30,226		14,451		7,163		217,741
	$	1,874,822	$	1,959,713	$	1,334,864	$	798,627	$	412,637	$	282,855	$	6,663,518


	December 31, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
U.S. Retail:
Super prime	$	822,631	$	575,977	$	355,529	$	165,436	$	71,360	$	29,181	$	2,020,114
Prime	1,133,637		794,058		508,713		293,358		156,688		77,046		2,963,500
Sub-prime	435,875		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 prime	53,465		48,692		28,581		13,818		5,018		2,011		151,585
Prime	18,568		14,257		10,269		6,727		3,198		2,025		55,044
Sub-prime	3,172		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


	June 28, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
U.S. Retail:
Super prime	$	486,327	$	737,419	$	474,280	$	234,239	$	114,496	$	54,661	$	2,101,422
Prime	670,363		973,046		644,846		388,039		223,960		131,367		3,031,621
Sub-prime	271,843		360,812		217,720		138,998		95,630		79,754		1,164,757
	1,428,533		2,071,277		1,336,846		761,276		434,086		265,782		6,297,800
Canadian Retail:
Super prime	34,715		57,818		35,786		19,265		8,508		3,687		159,779
Prime	11,548		15,741		11,598		7,932		4,093		3,187		54,099
Sub-prime	1,970		2,720		1,881		1,289		782		599		9,241
	48,233		76,279		49,265		28,486		13,383		7,473		223,119
	$	1,476,766	$	2,147,556	$	1,386,111	$	789,762	$	447,469	$	273,255	$	6,520,919

The amortized cost of wholesale financial receivables, by vintage and credit quality indicator, was as follows (in thousands):


	June 27, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Medium Risk	—		—		—		—		—		—		—
Low Risk	500,490		38,408		26,449		11,888		4,581		2,431		584,247
	$	500,490	$	38,408	$	26,449	$	11,888	$	4,581	$	2,431	$	584,247


	December 31, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Special Mention	658		365		31		—		—		—		1,054
Medium Risk	1,925		242		—		—		—		—		2,167
Low Risk	388,568		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


	June 28, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
Non-Performing	$	—	$	2,376	$	1,774	$	107	$	25	$	43	$	4,325
Doubtful	579		1,009		188		—		—		—		1,776
Substandard	944		966		53		—		—		—		1,963
Special Mention	5,345		5,281		564		—		—		1,805		12,995
Medium Risk	6,690		3,587		301		63		—		—		10,641
Low Risk	517,708		273,408		29,301		8,965		6,006		2,999		838,387
	$	531,266	$	286,627	$	32,181	$	9,135	$	6,031	$	4,847	$	870,087

Impaired Financing Receivables

Additional information related to the wholesale finance receivables on non-accrual status was as follows (in thousands):


	Amortized Cost January 1, 2020		Amortized Cost June 28, 2020		Interest Income Recognized in the six months ended June 28, 2020
No related allowance recorded	$	—	$	—	$	—
Related allowance recorded	4,994		4,325		—
	$	4,994	$	4,325	$	—

Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables

The aging analysis of finance receivables was as follows (in thousands):


	June 27, 2021
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total
Retail finance receivables	$	6,531,560	$	87,853	$	27,300	$	16,805	$	131,958	$	6,663,518
Wholesale finance receivables	584,154		39		—		54		93		584,247
	$	7,115,714	$	87,892	$	27,300	$	16,859	$	132,051	$	7,247,765

	December 31, 2020
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total
Retail finance receivables	$	6,164,369	$	106,818	$	39,933	$	33,075	$	179,826	$	6,344,195
Wholesale finance receivables	489,556		166		23		4		193		489,749
	$	6,653,925	$	106,984	$	39,956	$	33,079	$	180,019	$	6,833,944

	June 28, 2020
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total
Retail finance receivables	$	6,425,078	$	63,190	$	16,631	$	16,020	$	95,841	$	6,520,919
Wholesale finance receivables	864,911		1,261		413		3,502		5,176		870,087
	$	7,289,989	$	64,451	$	17,044	$	19,522	$	101,017	$	7,391,006