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Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
June 30, 2022December 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, net59,220 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, net7,626 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 
________________
(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.
(b) Net of dealer cash management balances of $1.3 billion and $1.0 billion at June 30, 2022 and December 31, 2021.
Allowance for Credit Losses on Financing Receivables A summary of the activity in the allowance for retail loan losses is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Allowance for retail loan losses beginning balance$1,884 $1,784 $1,839 $1,915 
Provision for loan losses202 67 328 54 
Charge-offs(247)(204)(521)(457)
Recoveries161 144 339 293 
Foreign currency translation(14)14 4 — 
Allowance for retail loan losses ending balance$1,987 $1,805 $1,987 $1,805 
Financing Receivable Credit Quality Indicators 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 OriginationJune 30, 2022
 20222021202020192018PriorTotalPercent
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 6791,704 3,183 1,883 932 459 204 8,366 13.7 
Sub-prime - FICO Score less than 6201,826 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 OriginationDecember 31, 2021
 20212020201920182017PriorTotalPercent
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 6793,856 2,388 1,229 648 274 84 8,479 14.6 
Sub-prime - FICO Score less than 6204,053 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 %
Our commercial risk model and risk rating categories are as follows:
Dealer Risk RatingDescription
IPerforming accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
IIPerforming accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
IIINon-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IVNon-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.
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 OriginationJune 30, 2022
Dealer Risk RatingRevolving20222021202020192018PriorTotalPercent
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 OriginationDecember 31, 2021
Dealer Risk Rating
Revolving20212020201920182017PriorTotalPercent
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.
Past Due Financing Receivables 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 OriginationJune 30, 2022June 30, 2021
20222021202020192018PriorTotalPercentTotalPercent
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 days88 369 262 193 117 99 1,129 1.8 856 1.5 
Greater than 60 days23 118 87 62 35 31 355 0.6 286 0.5 
Finance receivables more than 30 days delinquent111 487 350 254 152 130 1,484 2.4 1,142 2.0 
In repossession3 19 9 6 3 3 43 0.1 28 0.1 
Finance receivables more than 30 days delinquent or in repossession114 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 OriginationDecember 31, 2021
20212020201920182017PriorTotalPercent
0 - 30 days$27,270 $16,945 $6,772 $3,721 $1,478 $440 $56,626 97.5 %
31 - 60 days273 276 230 147 97 60 1,083 1.8 
Greater than 60 days83 93 76 46 30 21 349 0.6 
Finance receivables more than 30 days delinquent356 369 306 193 127 81 1,432 2.4 
In repossession12 10 6 4 2 1 35 0.1 
Finance receivables more than 30 days delinquent or in repossession368 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 %
Troubled Debt Restructurings on Financing Receivables Additional TDR activity is presented below:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Number of loans classified as TDRs during the period13,278 9,044 25,126 20,420 
Outstanding amortized cost of loans classified as TDRs during the period$278 $183 $516 $417