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Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2022

Finance receivables, net at December 31, were as follows (in thousands):


	2022		2021
Retail finance receivables:
United States	$	6,582,316	$	6,303,293
Canada	165,885		190,226
	6,748,201		6,493,519
Wholesale finance receivables:
United States	724,126		400,160
Canada	24,822		17,621
	748,948		417,781
	7,497,149		6,911,300
Allowance for credit losses	(358,711)		(339,379)


	$	7,138,438	$	6,571,921

Schedule of Contractual Maturities Of Finance Receivables

As of December 31, 2022, contractual maturities of total finance receivables were as follows (in thousands):


	United States		Canada		Total
2023	$	1,785,960	$	59,159	$	1,845,119
2024	1,219,299		36,464		1,255,763
2025	1,376,733		39,794		1,416,527
2026	1,482,118		43,432		1,525,550
2027	1,200,396		11,858		1,212,254
Thereafter	241,936		—		241,936
	$	7,306,442	$	190,707	$	7,497,149

Schedule of 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):


	2022
	Retail		Wholesale		Total
Balance, beginning of period	$	326,320	$	13,059	$	339,379
Provision for credit losses	144,756		377		145,133
Charge-offs	(176,718)		—		(176,718)
Recoveries	50,917		—		50,917
Balance, end of period	$	345,275	$	13,436	$	358,711


	2021
	Retail		Wholesale		Total
Balance, beginning of period	$	371,738	$	19,198	$	390,936

Provision for credit losses	31,338		(6,289)		25,049
Charge-offs	(122,637)		—		(122,637)
Recoveries	45,881		150		46,031

Balance, end of period	$	326,320	$	13,059	$	339,379


	2020
	Retail		Wholesale		Total
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 losses	175,225		6,645		181,870
Charge-offs	(137,371)		(2,573)		(139,944)
Recoveries	49,825		—		49,825

Balance, end of period	$	371,738	$	19,198	$	390,936

(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.

Schedule of 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):


	December 31, 2022
	2022		2021		2020		2019		2018		2017 & Prior		Total
U.S. Retail:
Super prime	$	1,118,198	$	612,890	$	276,492	$	159,550	$	69,652	$	26,701	$	2,263,483
Prime	1,433,141		887,817		425,401		260,458		135,454		79,611		3,221,882
Sub-prime	420,660		298,153		164,946		108,372		57,993		46,827		1,096,951
	2,971,999		1,798,860		866,839		528,380		263,099		153,139		6,582,316
Canadian Retail:
Super prime	49,033		30,090		17,553		12,215		4,975		1,527		115,393
Prime	16,094		10,705		7,283		5,098		3,068		1,787		44,035
Sub-prime	2,223		1,402		1,173		869		475		315		6,457
	67,350		42,197		26,009		18,182		8,518		3,629		165,885
	$	3,039,349	$	1,841,057	$	892,848	$	546,562	$	271,617	$	156,768	$	6,748,201


	December 31, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
U.S. Retail:
Super prime	$	1,010,636	$	484,479	$	316,390	$	171,763	$	65,753	$	27,424	$	2,076,445
Prime	1,391,385		712,858		470,177		277,206		142,288		82,169		3,076,083
Sub-prime	476,688		273,787		182,002		105,330		61,923		51,035		1,150,765
	2,878,709		1,471,124		968,569		554,299		269,964		160,628		6,303,293
Canadian Retail:
Super prime	51,779		32,724		27,073		13,984		4,619		1,614		131,793
Prime	16,882		12,675		9,244		6,230		3,628		1,779		50,438
Sub-prime	2,356		2,134		1,571		947		606		381		7,995
	71,017		47,533		37,888		21,161		8,853		3,774		190,226
	$	2,949,726	$	1,518,657	$	1,006,457	$	575,460	$	278,817	$	164,402	$	6,493,519

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


	December 31, 2022
	2022		2021		2020		2019		2018		2017 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Medium Risk	—		—		—		—		—		—		—
Low Risk	714,238		11,478		6,646		8,457		7,938		191		748,948
	$	714,238	$	11,478	$	6,646	$	8,457	$	7,938	$	191	$	748,948


	December 31, 2021
	2021		2020		2019		2018		2017		2016 & Prior		Total
Non-Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Doubtful	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Medium Risk	—		—		—		—		—		—		—
Low Risk	380,211		11,379		11,047		10,565		3,662		917		417,781
	$	380,211	$	11,379	$	11,047	$	10,565	$	3,662	$	917	$	417,781

Schedule of Past Due Financing Receivables

The aging analysis of finance receivables at December 31, was as follows (in thousands):


	2022
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail finance receivables	$	6,473,462	$	152,343	$	60,446	$	61,950	$	274,739	$	6,748,201
Wholesale finance receivables	748,682		222		44		—		266		748,948
	$	7,222,144	$	152,565	$	60,490	$	61,950	$	275,005	$	7,497,149


	2021
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail finance receivables	$	6,298,485	$	115,942	$	44,326	$	34,766	$	195,034	$	6,493,519
Wholesale finance receivables	417,720		9		1		51		61		417,781
	$	6,716,205	$	115,951	$	44,327	$	34,817	$	195,095	$	6,911,300

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, was as follows (in thousands):


	2022		2021
United States	$	60,945	$	33,850
Canada	1,005		967
	$	61,950	$	34,817