Finance Receivables (Tables)

9 Months Ended

Sep. 26, 2021

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


	September 26, 2021		December 31, 2020		September 27, 2020
Retail finance receivables	$	6,727,956	$	6,344,195	$	6,585,298
Wholesale finance receivables	491,136		489,749		666,896
	7,219,092		6,833,944		7,252,194
Allowance for credit losses	(355,834)		(390,936)		(408,702)
	$	6,863,258	$	6,443,008	$	6,843,492

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 September 26, 2021						Nine months ended September 26, 2021
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	342,490	$	16,321	$	358,811	$	371,738	$	19,198	$	390,936
Provision for credit losses	13,861		(2,653)		11,208		10,465		(5,530)		4,935
Charge-offs	(24,670)		—		(24,670)		(76,366)		—		(76,366)
Recoveries	10,335		150		10,485		36,179		150		36,329
Balance, end of period	$	342,016	$	13,818	$	355,834	$	342,016	$	13,818	$	355,834
	Three months ended September 27, 2020						Nine months ended September 27, 2020
	Retail		Wholesale		Total		Retail		Wholesale		Total
Balance, beginning of period	$	389,758	$	21,257	$	411,015	$	188,501	$	10,080	$	198,581
Cumulative effect of change in accounting(a)	—		—		—		95,558		5,046		100,604
Provision for credit losses	8,024		(189)		7,835		172,491		5,942		178,433
Charge-offs	(20,378)		(2,442)		(22,820)		(105,452)		(2,442)		(107,894)
Recoveries	12,672		—		12,672		38,978		—		38,978
Balance, end of period	$	390,076	$	18,626	$	408,702	$	390,076	$	18,626	$	408,702

(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):


	September 26, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
U.S. Retail:
Super prime	$	896,163	$	551,078	$	367,490	$	206,333	$	83,674	$	38,494	$	2,143,232
Prime	1,228,335		805,349		538,440		323,554		171,308		107,715		3,174,701
Sub-prime	428,238		312,163		207,139		119,730		72,026		64,890		1,204,186
	2,552,736		1,668,590		1,113,069		649,617		327,008		211,099		6,522,119
Canadian Retail:
Super prime	50,110		36,596		31,173		16,701		6,265		2,239		143,084
Prime	16,166		13,904		10,336		7,026		4,228		2,350		54,010
Sub-prime	2,345		2,436		1,694		1,090		704		474		8,743
	68,621		52,936		43,203		24,817		11,197		5,063		205,837
	$	2,621,357	$	1,721,526	$	1,156,272	$	674,434	$	338,205	$	216,162	$	6,727,956


	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


	September 27, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
U.S. Retail:
Super prime	$	730,539	$	649,174	$	408,201	$	196,050	$	90,179	$	39,749	$	2,113,892
Prime	993,429		877,714		570,851		336,134		187,067		101,403		3,066,598
Sub-prime	387,766		326,537		196,001		124,312		82,975		64,537		1,182,128
	2,111,734		1,853,425		1,175,053		656,496		360,221		205,689		6,362,618
Canadian Retail:
Super prime	48,974		51,939		31,351		16,013		6,526		2,723		157,526
Prime	17,053		14,681		10,630		7,285		3,555		2,489		55,693
Sub-prime	2,790		2,630		1,706		1,171		685		479		9,461
	68,817		69,250		43,687		24,469		10,766		5,691		222,680
	$	2,180,551	$	1,922,675	$	1,218,740	$	680,965	$	370,987	$	211,380	$	6,585,298

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


	September 26, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Medium Risk	—		—		—		—		—		—		—
Low Risk	432,088		19,082		22,821		11,218		4,222		1,705		491,136
	$	432,088	$	19,082	$	22,821	$	11,218	$	4,222	$	1,705	$	491,136


	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


	September 27, 2020
	2020		2019		2018		2017		2016		2015 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		14		—		—		—		14
Substandard	277		238		—		—		—		—		515
Special Mention	2,316		1,213		160		—		—		1,139		4,828
Medium Risk	1,283		448		33		—		—		—		1,764
Low Risk	505,328		118,466		18,602		8,551		5,525		3,303		659,775
	$	509,204	$	120,365	$	18,809	$	8,551	$	5,525	$	4,442	$	666,896

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

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


	September 26, 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	$	6,561,412	$	101,157	$	35,273	$	30,114	$	166,544	$	6,727,956
Wholesale finance receivables	490,974		46		92		24		162		491,136
	$	7,052,386	$	101,203	$	35,365	$	30,138	$	166,706	$	7,219,092

	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

	September 27, 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	$	6,434,642	$	96,243	$	31,467	$	22,946	$	150,656	$	6,585,298
Wholesale finance receivables	666,335		244		3		314		561		666,896
	$	7,100,977	$	96,487	$	31,470	$	23,260	$	151,217	$	7,252,194