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Loans Receivable (Tables)
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Schedule of Loans Receivable
Loans receivable consists of the following:
(In millions)
As of March 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
3,773.5

 
$
1,724.6

 
$
5,498.1

Allowance for credit losses
(379.3
)
 
(69.1
)
 
(448.4
)
Loans receivable, net
$
3,394.2

 
$
1,655.5

 
$
5,049.7

 
 
 
 
 
 
(In millions)
As of December 31, 2017
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
3,518.1

 
$
1,530.9

 
$
5,049.0

Allowance for credit losses
(366.0
)
 
(63.4
)
 
(429.4
)
Loans receivable, net
$
3,152.1

 
$
1,467.5

 
$
4,619.6
Summary of Changes in Loans Receivable
A summary of changes in Loans receivable is as follows:

(In millions)
For the Three Months Ended March 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
3,518.1

 
$
1,530.9

 
$
5,049.0

New Consumer Loan assignments (1)
709.2

 
342.4

 
1,051.6

Principal collected on Loans receivable
(478.7
)
 
(165.2
)
 
(643.9
)
Accelerated Dealer Holdback payments
12.6

 
—

 
12.6

Dealer Holdback payments
33.2

 
—

 
33.2

Transfers (2)
(18.4
)
 
18.4

 
—

Write-offs
(4.3
)
 
(2.1
)
 
(6.4
)
Recoveries (3)
1.8

 
0.2

 
2.0

Balance, end of period
$
3,773.5

 
$
1,724.6

 
$
5,498.1

 
 
 
 
 
 
(In millions)
For the Three Months Ended March 31, 2017
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
3,209.0

 
$
998.0

 
$
4,207.0

New Consumer Loan assignments (1)
536.9

 
254.6

 
791.5

Principal collected on Loans receivable
(461.0
)
 
(106.0
)
 
(567.0
)
Accelerated Dealer Holdback payments
10.2

 
—

 
10.2

Dealer Holdback payments
35.2

 
—

 
35.2

Transfers (2)
(1.1
)
 
1.1

 
—

Write-offs
(3.0
)
 
(0.2
)
 
(3.2
)
Recoveries (3)
0.3

 
—

 
0.3

Balance, end of period
$
3,326.5

 
$
1,147.5

 
$
4,474.0

 
 
 
 
 
 
 
(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 March 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,088.6

 
$
576.9

 
$
1,665.5

New Consumer Loan assignments (1)
289.4

 
147.8

 
437.2

Accretion (2)
(192.3
)
 
(80.1
)
 
(272.4
)
Provision for credit losses
18.7

 
4.7

 
23.4

Forecast changes
(6.1
)
 
(4.7
)
 
(10.8
)
Transfers (3)
(7.2
)
 
9.2

 
2.0

Balance, end of period
$
1,191.1

 
$
653.8

 
$
1,844.9

 
 
 
 
 
 
(In millions)
For the Three Months Ended March 31, 2017
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
982.6

 
$
348.1

 
$
1,330.7

New Consumer Loan assignments (1)
219.7

 
103.4

 
323.1

Accretion (2)
(187.8
)
 
(52.4
)
 
(240.2
)
Provision for credit losses
17.2

 
3.3

 
20.5

Forecast changes
(3.4
)
 
11.5

 
8.1

Transfers (3)
(0.2
)
 
0.7

 
0.5

Balance, end of period
$
1,028.1

 
$
414.6

 
$
1,442.7



(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)
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 March 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
1,122.7

 
$
765.9

 
$
1,888.6

Expected net cash flows at the time of assignment (2)
998.6

 
490.2

 
1,488.8

Fair value at the time of assignment (3)
709.2

 
342.4

 
1,051.6

 
 
 
 
 
 
(In millions)
For the Three Months Ended March 31, 2017
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
854.5

 
$
551.1

 
$
1,405.6

Expected net cash flows at the time of assignment (2)
756.6

 
358.0

 
1,114.6

Fair value at the time of assignment (3)
536.9

 
254.6

 
791.5

 
(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 March 31, 2018, with the forecasts as of December 31, 2017 and at the time of assignment, segmented by year of assignment:
 
 
Forecasted Collection Percentage as of (1)
 
Current Forecast Variance from
 Consumer Loan
Assignment Year
 
March 31 2018
 
December 31, 2017
 
Initial Forecast
 
December 31, 2017
 
Initial Forecast
2009
 
79.5
%
 
79.5
%
 
71.9
%
 
0.0
 %
 
7.6
 %
2010
 
77.6
%
 
77.6
%
 
73.6
%
 
0.0
 %
 
4.0
 %
2011
 
74.7
%
 
74.7
%
 
72.5
%
 
0.0
 %
 
2.2
 %
2012
 
73.8
%
 
73.8
%
 
71.4
%
 
0.0
 %
 
2.4
 %
2013
 
73.4
%
 
73.5
%
 
72.0
%
 
-0.1
 %
 
1.4
 %
2014
 
71.7
%
 
71.7
%
 
71.8
%
 
0.0
 %
 
-0.1
 %
2015
 
65.3
%
 
65.5
%
 
67.7
%
 
-0.2
 %
 
-2.4
 %
2016
 
64.4
%
 
64.8
%
 
65.4
%
 
-0.4
 %
 
-1.0
 %
2017
 
65.5
%
 
65.6
%
 
64.0
%
 
-0.1
 %
 
1.5
 %
2018
 
63.6
%
 
—

 
63.5
%
 
—

 
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. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table.
Schedule of Consumer Loans Performance
The following table segments our Loan portfolio by the performance of the Loan pools:
(In millions)
As of March 31, 2018
 
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
$
834.3

 
$
812.9

 
$
1,647.2

 
$
2,939.2

 
$
911.7

 
$
3,850.9

Allowance for credit losses
—

 
—

 
—

 
(379.3
)
 
(69.1
)
 
(448.4
)
    Loans receivable, net
$
834.3

 
$
812.9

 
$
1,647.2

 
$
2,559.9

 
$
842.6

 
$
3,402.5

 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
As of December 31, 2017
 
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
$
755.2

 
$
472.7

 
$
1,227.9

 
$
2,762.9

 
$
1,058.2

 
$
3,821.1

Allowance for credit losses
—

 
—

 
—

 
(366.0
)
 
(63.4
)
 
(429.4
)
    Loans receivable, net
$
755.2

 
$
472.7

 
$
1,227.9

 
$
2,396.9

 
$
994.8

 
$
3,391.7
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 March 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
366.0

 
$
63.4

 
$
429.4

Provision for credit losses
18.7

 
4.7

 
23.4

Transfers (1)
(2.9
)
 
2.9

 
—

Write-offs
(4.3
)
 
(2.1
)
 
(6.4
)
Recoveries (2)
1.8

 
0.2

 
2.0

Balance, end of period
$
379.3

 
$
69.1

 
$
448.4

 
 
 
 
 
 
(In millions)
For the Three Months Ended March 31, 2017
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
309.3

 
$
11.1

 
$
320.4

Provision for credit losses
17.2

 
3.3

 
20.5

Write-offs
(3.0
)
 
(0.2
)
 
(3.2
)
Recoveries (2)
0.3

 
—

 
0.3

Balance, end of period
$
323.8

 
$
14.2

 
$
338.0

 
(1)
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. Beginning in the fourth quarter of 2017, we also transfer the related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs.
(2)
Represents collections received on previously written off Loans.