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Loans Receivable (Tables)
 9 Months Ended
Sep. 30, 2015
Receivables [Abstract]  
Schedule of Loans Receivable
Loans receivable consists of the following:
(In millions)
As of September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
2,726.5

 
$
463.2

 
$
3,189.7

Allowance for credit losses
(221.8
)
 
(8.4
)
 
(230.2
)
Loans receivable, net
$
2,504.7

 
$
454.8

 
$
2,959.5

 
 
 
 
 
 
(In millions)
As of December 31, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
2,389.8

 
$
330.0

 
$
2,719.8

Allowance for credit losses
(198.1
)
 
(8.8
)
 
(206.9
)
Loans receivable, net
$
2,191.7

 
$
321.2

 
$
2,512.9
Summary of Changes in Loans Receivable
A summary of changes in Loans receivable is as follows:

(In millions)
For the Three Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
2,634.8

 
$
417.8

 
$
3,052.6

New Consumer Loan assignments (1)
427.9

 
92.6

 
520.5

Principal collected on Loans receivable
(383.3
)
 
(48.8
)
 
(432.1
)
Accelerated Dealer Holdback payments
13.0

 
—

 
13.0

Dealer Holdback payments
36.6

 
—

 
36.6

Transfers (2)
(1.5
)
 
1.5

 
—

Write-offs
(1.3
)
 
—

 
(1.3
)
Recoveries (3)
0.3

 
0.1

 
0.4

Balance, end of period
$
2,726.5

 
$
463.2

 
$
3,189.7

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
2,279.0

 
$
283.8

 
$
2,562.8

New Consumer Loan assignments (1)
342.9

 
48.8

 
391.7

Principal collected on Loans receivable
(344.7
)
 
(36.9
)
 
(381.6
)
Accelerated Dealer Holdback payments
9.7

 
—

 
9.7

Dealer Holdback payments
33.7

 
—

 
33.7

Transfers (2)
(4.6
)
 
4.6

 
—

Write-offs
(1.1
)
 
(0.1
)
 
(1.2
)
Recoveries (3)
0.4

 
0.1

 
0.5

Balance, end of period
$
2,315.3

 
$
300.3

 
$
2,615.6


(In millions)
For the Nine Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
2,389.8

 
$
330.0

 
$
2,719.8

New Consumer Loan assignments (1)
1,371.5

 
266.8

 
1,638.3

Principal collected on Loans receivable
(1,176.7
)
 
(142.0
)
 
(1,318.7
)
Accelerated Dealer Holdback payments
39.6

 
—

 
39.6

Dealer Holdback payments
115.2

 
—

 
115.2

Transfers (2)
(8.4
)
 
8.4

 
—

Write-offs
(5.7
)
 
(0.2
)
 
(5.9
)
Recoveries (3)
1.2

 
0.2

 
1.4

Balance, end of period
$
2,726.5

 
$
463.2

 
$
3,189.7

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
2,155.5

 
$
252.7

 
$
2,408.2

New Consumer Loan assignments (1)
1,103.6

 
142.8

 
1,246.4

Principal collected on Loans receivable
(1,060.3
)
 
(111.2
)
 
(1,171.5
)
Accelerated Dealer Holdback payments
31.6

 
—

 
31.6

Dealer Holdback payments
101.5

 
—

 
101.5

Transfers (2)
(16.0
)
 
16.0

 
—

Write-offs
(2.0
)
 
(0.1
)
 
(2.1
)
Recoveries (3)
1.4

 
0.1

 
1.5

Balance, end of period
$
2,315.3

 
$
300.3

 
$
2,615.6

 
(1)
The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program.  The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.
(2)
Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback.  We transfer the Dealer’s outstanding Dealer Loan balance to Purchased Loans in the period this forfeiture occurs.
(3)
Represents collections received on previously written off Loans.  
Summary of Changes in Accretable Yield
A summary of changes in the accretable yield is as follows:
(In millions)
For the Three Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
825.1

 
$
168.4

 
$
993.5

New Consumer Loan assignments (1)
179.6

 
34.4

 
214.0

Accretion (2)
(162.1
)
 
(26.4
)
 
(188.5
)
Provision for credit losses
13.4

 
(0.2
)
 
13.2

Forecast changes
(0.8
)
 
3.7

 
2.9

Transfers (4)
(0.4
)
 
1.1

 
0.7

Balance, end of period
$
854.8

 
$
181.0

 
$
1,035.8

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
709.6

 
$
124.5

 
$
834.1

New Consumer Loan assignments (1)
137.7

 
17.9

 
155.6

Accretion (2) (3)
(141.1
)
 
(19.4
)
 
(160.5
)
Provision for credit losses (3)
4.0

 
0.1

 
4.1

Forecast changes (3)
5.8

 
2.4

 
8.2

Transfers (4)
(1.1
)
 
2.3

 
1.2

Balance, end of period
$
714.9

 
$
127.8

 
$
842.7

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
725.2

 
$
136.5

 
$
861.7

New Consumer Loan assignments (1)
566.3

 
99.6

 
665.9

Accretion (2)
(469.3
)
 
(74.1
)
 
(543.4
)
Provision for credit losses
28.2

 
(0.4
)
 
27.8

Forecast changes
6.7

 
14.2

 
20.9

Transfers (4)
(2.3
)
 
5.2

 
2.9

Balance, end of period
$
854.8

 
$
181.0

 
$
1,035.8

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
667.5

 
$
112.8

 
$
780.3

New Consumer Loan assignments (1)
445.2

 
54.5

 
499.7

Accretion (2) (3)
(419.3
)
 
(57.0
)
 
(476.3
)
Provision for credit losses (3)
14.0

 
(0.6
)
 
13.4

Forecast changes (3)
12.6

 
9.2

 
21.8

Transfers (4)
(5.1
)
 
8.9

 
3.8

Balance, end of period
$
714.9

 
$
127.8

 
$
842.7



(1)
The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers.  The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers.
(2)
Represents finance charges excluding the amortization of deferred direct origination costs for Dealer Loans.
(3)
We have changed the presentation from prior periods to: (i) exclude the amortization of deferred direct origination costs for Dealer Loans from accretion (finance charge income under our previous presentation) and forecast changes and (ii) present provision for credit losses and forecast changes as separate activities. Under our previous presentation, we presented: (i) finance charges as reported in our consolidated statements of income and (ii) provision for credit losses and forecast changes as a combined activity.
(4)
Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback.  We transfer the Dealer’s outstanding Dealer Loan balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.
Summary of Information Related to New Consumer Loan Assignments
Additional information related to new Consumer Loan assignments is as follows:

(In millions)
For the Three Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
678.3

 
$
184.7

 
$
863.0

Expected net cash flows at the time of assignment (2)
607.5

 
127.0

 
734.5

Fair value at the time of assignment (3)
427.9

 
92.6

 
520.5

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
523.9

 
$
93.5

 
$
617.4

Expected net cash flows at the time of assignment (2)
480.6

 
66.7

 
547.3

Fair value at the time of assignment (3)
342.9

 
48.8

 
391.7

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
2,147.4

 
$
530.1

 
$
2,677.5

Expected net cash flows at the time of assignment (2)
1,937.8

 
366.4

 
2,304.2

Fair value at the time of assignment (3)
1,371.5

 
266.8

 
1,638.3

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
1,684.8

 
$
274.7

 
$
1,959.5

Expected net cash flows at the time of assignment (2)
1,548.8

 
197.3

 
1,746.1

Fair value at the time of assignment (3)
1,103.6

 
142.8

 
1,246.4

 
(1)
The Dealer Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments.  The Purchased Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program.
(2)
The Dealer Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make.  The Purchased Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program.
(3)
The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program.  The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.
Schedule of Consumer Loans Forecasted Collection Percentage
The following table compares our forecast of Consumer Loan collection rates as of September 30, 2015, with the forecasts as of June 30, 2015, December 31, 2014, and at the time of assignment, segmented by year of assignment:

 
 
Forecasted Collection Percentage as of (1)
 
Variance in Forecasted Collection Percentage from
 Consumer Loan
Assignment Year
 
September 30, 2015
 
June 30,
2015
 
December 31, 2014
 
Initial
Forecast
 
June 30,
2015
 
December 31, 2014
 
Initial
Forecast
2006
 
70.1
%
 
70.1
%
 
70.0
%
 
71.4
%
 
0.0
 %
 
0.1
 %
 
-1.3
 %
2007
 
68.1
%
 
68.1
%
 
68.0
%
 
70.7
%
 
0.0
 %
 
0.1
 %
 
-2.6
 %
2008
 
70.3
%
 
70.3
%
 
70.3
%
 
69.7
%
 
0.0
 %
 
0.0
 %
 
0.6
 %
2009
 
79.4
%
 
79.4
%
 
79.4
%
 
71.9
%
 
0.0
 %
 
0.0
 %
 
7.5
 %
2010
 
77.4
%
 
77.4
%
 
77.2
%
 
73.6
%
 
0.0
 %
 
0.2
 %
 
3.8
 %
2011
 
74.2
%
 
74.2
%
 
74.0
%
 
72.5
%
 
0.0
 %
 
0.2
 %
 
1.7
 %
2012
 
73.2
%
 
73.3
%
 
73.4
%
 
71.4
%
 
-0.1
 %
 
-0.2
 %
 
1.8
 %
2013
 
73.5
%
 
73.5
%
 
73.7
%
 
72.0
%
 
0.0
 %
 
-0.2
 %
 
1.5
 %
2014
 
72.8
%
 
72.8
%
 
72.6
%
 
71.8
%
 
0.0
 %
 
0.2
 %
 
1.0
 %
     2015 (2)
 
68.2
%
 
68.9
%
 
—

 
68.1
%
 
-0.7
 %
 
—

 
0.1
 %

(1)
Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment.  Contractual repayments include both principal and interest.
(2)
The forecasted collection rate for 2015 Consumer Loans as of September 30, 2015 includes both Consumer Loans that were in our portfolio as of June 30, 2015 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:
 
 
Forecasted Collection Percentage as of
 
Variance from
2015 Consumer Loan Assignment Period
 
September 30, 2015
 
June 30,
2015
 
Initial Forecast
 
June 30,
2015
 
Initial Forecast
January 1, 2015 through June 30, 2015
 
69.0
%
 
68.9
%
 
68.6
%
 
0.1
%
 
0.4
%
July 1, 2015 through September 30, 2015
 
66.5
%
 
—

 
—

 
—

 
—
Schedule of Consumer Loans Performance
The following table segments our Loan portfolio by the performance of the Loan pools:
(In millions)
As of September 30, 2015
 
Loan Pool Performance Meets or Exceeds Initial Estimates
 
Loan Pool Performance Less than Initial Estimates
 
Dealer
Loans
 
Purchased
Loans
 
Total
 
Dealer
Loans
 
Purchased
Loans
 
Total
Loans receivable
$
1,021.3

 
$
422.6

 
$
1,443.9

 
$
1,705.2

 
$
40.6

 
$
1,745.8

Allowance for credit losses
—

 
—

 
—

 
(221.8
)
 
(8.4
)
 
(230.2
)
    Loans receivable, net
$
1,021.3

 
$
422.6

 
$
1,443.9

 
$
1,483.4

 
$
32.2

 
$
1,515.6

 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
As of December 31, 2014
 
Loan Pool Performance Meets or Exceeds Initial Estimates
 
Loan Pool Performance Less than Initial Estimates
 
Dealer
Loans
 
Purchased
Loans
 
Total
 
Dealer
Loans
 
Purchased
Loans
 
Total
Loans receivable
$
945.1

 
$
317.7

 
$
1,262.8

 
$
1,444.7

 
$
12.3

 
$
1,457.0

Allowance for credit losses
—

 
—

 
—

 
(198.1
)
 
(8.8
)
 
(206.9
)
    Loans receivable, net
$
945.1

 
$
317.7

 
$
1,262.8

 
$
1,246.6

 
$
3.5

 
$
1,250.1
Summary of Changes in Allowance for Credit Losses
A summary of changes in the allowance for credit losses is as follows:

(In millions)
For the Three Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
209.4

 
$
8.5

 
$
217.9

Provision for credit losses
13.4

 
(0.2
)
 
13.2

Write-offs
(1.3
)
 
—

 
(1.3
)
Recoveries (1)
0.3

 
0.1

 
0.4

Balance, end of period
$
221.8

 
$
8.4

 
$
230.2

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
195.8

 
$
9.0

 
$
204.8

Provision for credit losses
4.0

 
0.1

 
4.1

Write-offs
(1.1
)
 
(0.1
)
 
(1.2
)
Recoveries (1)
0.4

 
0.1

 
0.5

Balance, end of period
$
199.1

 
$
9.1

 
$
208.2

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2015
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
198.1

 
$
8.8

 
$
206.9

Provision for credit losses
28.2

 
(0.4
)
 
27.8

Write-offs
(5.7
)
 
(0.2
)
 
(5.9
)
Recoveries (1)
1.2

 
0.2

 
1.4

Balance, end of period
$
221.8

 
$
8.4

 
$
230.2

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2014
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
185.7

 
$
9.7

 
$
195.4

Provision for credit losses
14.0

 
(0.6
)
 
13.4

Write-offs
(2.0
)
 
(0.1
)
 
(2.1
)
Recoveries (1)
1.4

 
0.1

 
1.5

Balance, end of period
$
199.1

 
$
9.1

 
$
208.2


(1)
Represents collections received on previously written off Loans.