Finance Receivables (Tables)
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3 Months Ended |
Mar. 31, 2024 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
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Schedule of Finance Receivables, Net |
| | | | | | | | | | | | | March 31, 2024 | | December 31, 2023 | Retail finance receivables | | | | Retail finance receivables(a) | $ | 73,230 | | | $ | 72,729 | | Less: allowance for loan losses | (2,320) | | | (2,308) | | Total retail finance receivables, net | 70,911 | | | 70,421 | | Commercial finance receivables | | | | Commercial finance receivables(a)(b) | 14,895 | | | 14,251 | | Less: allowance for loan losses | (35) | | | (36) | | Total commercial finance receivables, net | 14,860 | | | 14,216 | | Total finance receivables, net | $ | 85,771 | | | $ | 84,637 | | Fair value utilizing Level 2 inputs | $ | 14,860 | | | $ | 14,216 | | Fair value utilizing Level 3 inputs | $ | 71,427 | | | $ | 70,911 | |
________________ (a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs. (b) Includes dealer financing of $14.1 billion and $13.4 billion, and other financing of $773 million and $830 million at March 31, 2024 and December 31, 2023. Commercial finance receivables are presented net of dealer cash management balances of $2.8 billion and $2.6 billion at March 31, 2024 and December 31, 2023.
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Schedule of 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 March 31, | | | | | | 2024 | | 2023 | Allowance for retail loan losses beginning balance | | | | | $ | 2,308 | | | $ | 2,062 | | Provision for loan losses | | | | | 205 | | | 137 | | Charge-offs | | | | | (405) | | | (322) | | Recoveries | | | | | 213 | | | 186 | | Foreign currency translation and other | | | | | (1) | | | 60 | | Allowance for retail loan losses ending balance | | | | | $ | 2,320 | | | $ | 2,123 | |
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Schedule of 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 March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | March 31, 2024 | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | | Percent | Prime - FICO Score 680 and greater | $ | 6,124 | | | $ | 21,739 | | | $ | 14,060 | | | $ | 8,080 | | | $ | 4,274 | | | $ | 1,055 | | | $ | 55,332 | | | 75.6 | % | Near-prime - FICO Score 620 to 679 | 902 | | | 2,981 | | | 2,076 | | | 1,566 | | | 787 | | | 380 | | | 8,692 | | | 11.9 | | Sub-prime - FICO Score less than 620 | 967 | | | 2,821 | | | 2,172 | | | 1,682 | | | 878 | | | 685 | | | 9,206 | | | 12.6 | | Retail finance receivables | $ | 7,993 | | | $ | 27,542 | | | $ | 18,308 | | | $ | 11,329 | | | $ | 5,938 | | | $ | 2,120 | | | $ | 73,230 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | December 31, 2023 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Total | | Percent | Prime - FICO Score 680 and greater | $ | 23,940 | | | $ | 15,581 | | | $ | 9,039 | | | $ | 4,926 | | | $ | 1,076 | | | $ | 320 | | | $ | 54,882 | | | 75.5 | % | Near-prime - FICO Score 620 to 679 | 3,234 | | | 2,281 | | | 1,746 | | | 906 | | | 350 | | | 129 | | | 8,647 | | | 11.9 | | Sub-prime - FICO Score less than 620 | 3,079 | | | 2,397 | | | 1,884 | | | 1,010 | | | 573 | | | 257 | | | 9,200 | | | 12.6 | | Retail finance receivables | $ | 30,253 | | | $ | 20,259 | | | $ | 12,670 | | | $ | 6,842 | | | $ | 2,000 | | | $ | 707 | | | $ | 72,729 | | | 100.0 | % |
Our dealer risk model and risk rating categories are as follows: | | | | | | | | | 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. |
The following tables summarize the dealer credit risk profile by dealer risk rating at March 31, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | March 31, 2024 | Dealer Risk Rating | | Revolving | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | | Percent | I | | $ | 12,192 | | | $ | 64 | | | $ | 263 | | | $ | 403 | | | $ | 289 | | | $ | 294 | | | $ | 72 | | | $ | 13,578 | | | 96.1 | % | II | | 274 | | | — | | | 3 | | | 7 | | | — | | | — | | | — | | | 284 | | | 2.0 | | III | | 217 | | | 4 | | | 5 | | | 15 | | | 12 | | | — | | | 7 | | | 261 | | | 1.8 | | IV | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Balance at end of period | | $ | 12,682 | | | $ | 68 | | | $ | 271 | | | $ | 425 | | | $ | 302 | | | $ | 294 | | | $ | 79 | | | $ | 14,122 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | | | December 31, 2023 | Dealer Risk Rating | | Revolving | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | | | Total | | Percent | I | | $ | 11,638 | | | $ | 295 | | | $ | 417 | | | $ | 297 | | | $ | 301 | | | $ | 85 | | | $ | 11 | | | | | $ | 13,043 | | | 97.2 | % | II | | 182 | | | — | | | 2 | | | 2 | | | — | | | — | | | — | | | | | 187 | | | 1.4 | | III | | 152 | | | 1 | | | 15 | | | 12 | | | — | | | 11 | | | — | | | | | 192 | | | 1.4 | | IV | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | — | | | — | | Balance at end of period | | $ | 11,971 | | | $ | 296 | | | $ | 435 | | | $ | 311 | | | $ | 301 | | | $ | 96 | | | $ | 11 | | | | | $ | 13,422 | | | 100.0 | % |
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Schedule of Past Due Financing Receivables |
The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at March 31, 2024 and December 31, 2023, as well as summary totals for March 31, 2023. The first table also presents our charge-offs by vintage for the three months ended March 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | March 31, 2024 | | March 31, 2023 | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total | | Percent | | Total | | Percent | 0 - 30 days | $ | 7,973 | | | $ | 27,054 | | | $ | 17,743 | | | $ | 10,856 | | | $ | 5,689 | | | $ | 1,911 | | | $ | 71,225 | | | 97.3 | % | | $ | 66,109 | | | 97.6 | % | | | | | | | | | | | | | | | | | | | | | 31 - 60 days | 19 | | | 342 | | | 406 | | | 352 | | | 188 | | | 156 | | | 1,463 | | | 2.0 | | | 1,188 | | | 1.8 | | Greater than 60 days | 1 | | | 125 | | | 140 | | | 109 | | | 56 | | | 50 | | | 482 | | | 0.7 | | | 363 | | | 0.5 | | Finance receivables more than 30 days delinquent | 20 | | | 467 | | | 547 | | | 461 | | | 245 | | | 206 | | | 1,945 | | | 2.7 | | | 1,551 | | | 2.3 | | In repossession | — | | | 21 | | | 19 | | | 12 | | | 4 | | | 3 | | | 60 | | | 0.1 | | | 44 | | | 0.1 | | Finance receivables more than 30 days delinquent or in repossession | 20 | | | 488 | | | 566 | | | 473 | | | 249 | | | 209 | | | 2,005 | | | 2.7 | | | 1,595 | | | 2.4 | | Retail finance receivables | $ | 7,993 | | | $ | 27,542 | | | $ | 18,308 | | | $ | 11,329 | | | $ | 5,938 | | | $ | 2,120 | | | $ | 73,230 | | | 100.0 | % | | $ | 67,704 | | | 100.0 | % | Charge-offs | $ | 18 | | | $ | 119 | | | $ | 123 | | | $ | 80 | | | $ | 34 | | | $ | 31 | | | $ | 405 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year of Origination | | | | December 31, 2023 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | | | Total | | Percent | 0 - 30 days | $ | 29,816 | | | $ | 19,602 | | | $ | 12,098 | | | $ | 6,533 | | | $ | 1,825 | | | $ | 599 | | | | | $ | 70,472 | | | 96.9 | % | | | | | | | | | | | | | | | | | | | 31 - 60 days | 318 | | | 470 | | | 415 | | | 227 | | | 130 | | | 78 | | | | | 1,637 | | | 2.3 | | Greater than 60 days | 102 | | | 168 | | | 142 | | | 76 | | | 42 | | | 29 | | | | | 559 | | | 0.8 | | Finance receivables more than 30 days delinquent | 421 | | | 637 | | | 557 | | | 302 | | | 172 | | | 107 | | | | | 2,196 | | | 3.0 | | In repossession | 17 | | | 20 | | | 14 | | | 6 | | | 3 | | | 1 | | | | | 61 | | | 0.1 | | Finance receivables more than 30 days delinquent or in repossession | 437 | | | 657 | | | 572 | | | 308 | | | 175 | | | 108 | | | | | 2,257 | | | 3.1 | | Retail finance receivables | $ | 30,253 | | | $ | 20,259 | | | $ | 12,670 | | | $ | 6,842 | | | $ | 2,000 | | | $ | 707 | | | | | $ | 72,729 | | | 100.0 | % |
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