
	June 30, 2022		December 31, 2021
Retail finance receivables
Retail finance receivables, net of fees(a)	$	61,208	$	58,093
Less: allowance for loan losses	(1,987)		(1,839)
Total retail finance receivables, net	59,220		56,254
Commercial finance receivables
Commercial finance receivables, net of fees(b)	7,666		6,772
Less: allowance for loan losses	(40)		(47)
Total commercial finance receivables, net	7,626		6,725
Total finance receivables, net	$	66,847	$	62,979
Fair value utilizing Level 2 inputs	$	7,626	$	6,725
Fair value utilizing Level 3 inputs	$	58,528	$	57,613


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Allowance for retail loan losses beginning balance	$	1,884	$	1,784	$	1,839	$	1,915
Provision for loan losses	202		67		328		54
Charge-offs	(247)		(204)		(521)		(457)
Recoveries	161		144		339		293
Foreign currency translation	(14)		14		4		—
Allowance for retail loan losses ending balance	$	1,987	$	1,805	$	1,987	$	1,805

Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at June 30, 2022 and December 31, 2021:


	Year of Origination												June 30, 2022
	2022		2021		2020		2019		2018		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	12,052	$	16,089	$	9,915	$	3,048	$	1,574	$	464	$	43,141	70.5	%
Near-prime - FICO Score 620 to 679	1,704		3,183		1,883		932		459		204		8,366		13.7
Sub-prime - FICO Score less than 620	1,826		3,323		1,986		1,356		699		512		9,701		15.8
Retail finance receivables, net of fees	$	15,582	$	22,595	$	13,784	$	5,337	$	2,732	$	1,179	$	61,208	100.0	%


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	19,729	$	12,408	$	4,078	$	2,298	$	763	$	143	$	39,419	67.9	%
Near-prime - FICO Score 620 to 679	3,856		2,388		1,229		648		274		84		8,479		14.6
Sub-prime - FICO Score less than 620	4,053		2,528		1,777		972		570		295		10,195		17.5
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522	$	58,093	100.0	%

We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at June 30, 2022 and December 31, 2021, as well as summary totals for June 30, 2021:


	Year of Origination												June 30, 2022				June 30, 2021
	2022		2021		2020		2019		2018		Prior		Total		Percent		Total		Percent
0 - 30 days	$	15,468	$	22,088	$	13,426	$	5,076	$	2,577	$	1,046	$	59,681	97.5	%	$	55,187	97.9	%

31 - 60 days	88		369		262		193		117		99		1,129		1.8		856		1.5
Greater than 60 days	23		118		87		62		35		31		355		0.6		286		0.5
Finance receivables more than 30 days delinquent	111		487		350		254		152		130		1,484		2.4		1,142		2.0
In repossession	3		19		9		6		3		3		43		0.1		28		0.1
Finance receivables more than 30 days delinquent or in repossession	114		506		358		260		155		133		1,527		2.5		1,170		2.1
Retail finance receivables, net of fees	$	15,582	$	22,595	$	13,784	$	5,337	$	2,732	$	1,179	$	61,208	100.0	%	$	56,357	100.0	%


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total		Percent
0 - 30 days	$	27,270	$	16,945	$	6,772	$	3,721	$	1,478	$	440	$	56,626	97.5	%

31 - 60 days	273		276		230		147		97		60		1,083		1.8
Greater than 60 days	83		93		76		46		30		21		349		0.6
Finance receivables more than 30 days delinquent	356		369		306		193		127		81		1,432		2.4
In repossession	12		10		6		4		2		1		35		0.1
Finance receivables more than 30 days delinquent or in repossession	368		379		312		197		129		82		1,467		2.5
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522	$	58,093	100.0	%

The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $583 million and $602 million at June 30, 2022 and December 31, 2021. Accrual of finance charge income on retail finance receivables is generally suspended on accounts that are more than 60 days delinquent, accounts in bankruptcy and accounts in repossession.

Impaired Retail Finance Receivables - TDRs The outstanding amortized cost of retail finance receivables that are considered TDRs were $1.9 billion at June 30, 2022 and December 31, 2021, including nonaccrual loans of $200 million at June 30, 2022 and $219 million at December 31, 2021. For definition and additional information on TDRs, see Note 1 in our 2021 Form 10-K. Additional TDR activity is presented below:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Number of loans classified as TDRs during the period	13,278		9,044		25,126		20,420
Outstanding amortized cost of loans classified as TDRs during the period	$	278	$	183	$	516	$	417

The unpaid principal balances, net of recoveries, of loans charged off during the reporting period and were within 12 months of being modified as a TDR were insignificant for the three and six months ended June 30, 2022 and 2021.

Commercial Credit Quality Our commercial finance receivables consist of dealer financings, primarily for dealer inventory purchases. Proprietary models are used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary.


Dealer Risk Rating						Description
I						Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II						Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III						Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IV						Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at June 30, 2022 and December 31, 2021:


	Year of Origination														June 30, 2022
Dealer Risk Rating	Revolving		2022		2021		2020		2019		2018		Prior		Total		Percent
I	$	6,024	$	353	$	395	$	406	$	110	$	49	$	38	$	7,374	96.2	%
II	190		15		3		—		12		—		8		229		3.0
III	59		1		2		—		1		—		—		63		0.8
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	6,273	$	368	$	400	$	406	$	123	$	49	$	47	$	7,666	100.0	%


	Year of Origination														December 31, 2021
Dealer Risk Rating	Revolving		2021		2020		2019		2018		2017		Prior		Total		Percent
I	$	5,296	$	433	$	426	$	131	$	57	$	50	$	10	$	6,403	94.6	%
II	213		5		16		12		1		10		—		257		3.8
III	81		8		15		2		—		2		4		112		1.6
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	5,590	$	446	$	457	$	145	$	58	$	62	$	14	$	6,772	100.0	%

Floorplan advances comprise 93% and 94% of the total revolving balances at June 30, 2022 and December 31, 2021. Dealer term loans are presented by year of origination.