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Loans Receivable (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of Loans Receivable

Loans receivable consists of the following:
(In millions)
As of September 30, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
4,559.3

 
$
2,513.5

 
$
7,072.8

Allowance for credit losses
(409.3
)
 
(99.8
)
 
(509.1
)
Loans receivable, net
$
4,150.0

 
$
2,413.7

 
$
6,563.7

 
 
 
 
 
 
(In millions)
As of December 31, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
4,141.0

 
$
2,084.2

 
$
6,225.2

Allowance for credit losses
(378.1
)
 
(83.8
)
 
(461.9
)
Loans receivable, net
$
3,762.9

 
$
2,000.4

 
$
5,763.3
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, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
4,466.0

 
$
2,407.6

 
$
6,873.6

New Consumer Loan assignments (1)
573.3

 
321.1

 
894.4

Principal collected on Loans receivable
(510.8
)
 
(235.5
)
 
(746.3
)
Accelerated Dealer Holdback payments
16.1

 
—

 
16.1

Dealer Holdback payments
34.8

 
—

 
34.8

Transfers (2)
(20.3
)
 
20.3

 
—

Write-offs
(0.3
)
 
(0.2
)
 
(0.5
)
Recoveries (3)
0.5

 
0.2

 
0.7

Balance, end of period
$
4,559.3

 
$
2,513.5

 
$
7,072.8

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
3,918.4

 
$
1,861.7

 
$
5,780.1

New Consumer Loan assignments (1)
556.7

 
274.3

 
831.0

Principal collected on Loans receivable
(466.0
)
 
(181.3
)
 
(647.3
)
Accelerated Dealer Holdback payments
11.6

 
—

 
11.6

Dealer Holdback payments
31.9

 
—

 
31.9

Transfers (2)
(20.2
)
 
20.2

 
—

Write-offs
(2.5
)
 
(0.2
)
 
(2.7
)
Recoveries (3)
0.3

 
0.3

 
0.6

Balance, end of period
$
4,030.2

 
$
1,975.0

 
$
6,005.2

(In millions)
For the Nine Months Ended September 30, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
4,141.0

 
$
2,084.2

 
$
6,225.2

New Consumer Loan assignments (1)
1,901.1

 
1,053.9

 
2,955.0

Principal collected on Loans receivable
(1,562.2
)
 
(692.7
)
 
(2,254.9
)
Accelerated Dealer Holdback payments
44.1

 
—

 
44.1

Dealer Holdback payments
105.4

 
—

 
105.4

Transfers (2)
(67.6
)
 
67.6

 
—

Write-offs
(3.7
)
 
(0.4
)
 
(4.1
)
Recoveries (3)
1.2

 
0.9

 
2.1

Balance, end of period
$
4,559.3

 
$
2,513.5

 
$
7,072.8

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
3,518.1

 
$
1,530.9

 
$
5,049.0

New Consumer Loan assignments (1)
1,870.2

 
917.0

 
2,787.2

Principal collected on Loans receivable
(1,425.2
)
 
(523.8
)
 
(1,949.0
)
Accelerated Dealer Holdback payments
41.0

 
—

 
41.0

Dealer Holdback payments
98.0

 
—

 
98.0

Transfers (2)
(53.3
)
 
53.3

 
—

Write-offs
(21.3
)
 
(3.2
)
 
(24.5
)
Recoveries (3)
2.7

 
0.8

 
3.5

Balance, end of period
$
4,030.2

 
$
1,975.0

 
$
6,005.2

 
(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 and the related allowance for credit losses 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, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,390.4

 
$
911.9

 
$
2,302.3

New Consumer Loan assignments (1)
224.0

 
134.6

 
358.6

Accretion (2)
(227.6
)
 
(124.7
)
 
(352.3
)
Provision for credit losses
17.9

 
1.4

 
19.3

Forecast changes
(4.2
)
 
6.8

 
2.6

Transfers (3)
(7.9
)
 
10.0

 
2.1

Balance, end of period
$
1,392.6

 
$
940.0

 
$
2,332.6

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,246.6

 
$
708.4

 
$
1,955.0

New Consumer Loan assignments (1)
227.8

 
112.6

 
340.4

Accretion (2)
(208.6
)
 
(96.6
)
 
(305.2
)
Provision for credit losses
12.4

 
1.6

 
14.0

Forecast changes
(0.1
)
 
17.2

 
17.1

Transfers (3)
(7.8
)
 
10.2

 
2.4

Balance, end of period
$
1,270.3

 
$
753.4

 
$
2,023.7

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,283.0

 
$
782.5

 
$
2,065.5

New Consumer Loan assignments (1)
759.9

 
438.7

 
1,198.6

Accretion (2)
(668.1
)
 
(352.0
)
 
(1,020.1
)
Provision for credit losses
44.0

 
5.2

 
49.2

Forecast changes
(0.3
)
 
32.6

 
32.3

Transfers (3)
(25.9
)
 
33.0

 
7.1

Balance, end of period
$
1,392.6

 
$
940.0

 
$
2,332.6

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,088.6

 
$
576.9

 
$
1,665.5

New Consumer Loan assignments (1)
768.1

 
380.2

 
1,148.3

Accretion (2)
(603.5
)
 
(266.1
)
 
(869.6
)
Provision for credit losses
34.3

 
4.9

 
39.2

Forecast changes
3.5

 
31.0

 
34.5

Transfers (3)
(20.7
)
 
26.5

 
5.8

Balance, end of period
$
1,270.3

 
$
753.4

 
$
2,023.7



(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, the related allowance for credit losses 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, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
895.1

 
$
704.4

 
$
1,599.5

Expected net cash flows at the time of assignment (2)
797.3

 
455.7

 
1,253.0

Fair value at the time of assignment (3)
573.3

 
321.1

 
894.4

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
883.1

 
$
606.1

 
$
1,489.2

Expected net cash flows at the time of assignment (2)
784.5

 
386.9

 
1,171.4

Fair value at the time of assignment (3)
556.7

 
274.3

 
831.0

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
2,982.2

 
$
2,308.0

 
$
5,290.2

Expected net cash flows at the time of assignment (2)
2,661.0

 
1,492.6

 
4,153.6

Fair value at the time of assignment (3)
1,901.1

 
1,053.9

 
2,955.0

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
2,965.7

 
$
2,028.4

 
$
4,994.1

Expected net cash flows at the time of assignment (2)
2,638.3

 
1,297.2

 
3,935.5

Fair value at the time of assignment (3)
1,870.2

 
917.0

 
2,787.2

 
(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, 2019 with the forecasts as of June 30, 2019, as of December 31, 2018 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
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
 
Initial Forecast
 
June 30, 2019
 
December 31, 2018
 
Initial Forecast
2010
 
77.7
%
 
77.7
%
 
77.7
%
 
73.6
%
 
0.0
 %
 
0.0
 %
 
4.1
 %
2011
 
74.8
%
 
74.8
%
 
74.7
%
 
72.5
%
 
0.0
 %
 
0.1
 %
 
2.3
 %
2012
 
73.9
%
 
73.9
%
 
73.8
%
 
71.4
%
 
0.0
 %
 
0.1
 %
 
2.5
 %
2013
 
73.5
%
 
73.5
%
 
73.5
%
 
72.0
%
 
0.0
 %
 
0.0
 %
 
1.5
 %
2014
 
71.8
%
 
71.8
%
 
71.7
%
 
71.8
%
 
0.0
 %
 
0.1
 %
 
0.0
 %
2015
 
65.5
%
 
65.5
%
 
65.4
%
 
67.7
%
 
0.0
 %
 
0.1
 %
 
-2.2
 %
2016
 
64.1
%
 
64.2
%
 
64.2
%
 
65.4
%
 
-0.1
 %
 
-0.1
 %
 
-1.3
 %
2017
 
65.0
%
 
65.1
%
 
65.5
%
 
64.0
%
 
-0.1
 %
 
-0.5
 %
 
1.0
 %
2018
 
65.4
%
 
65.5
%
 
65.0
%
 
63.6
%
 
-0.1
 %
 
0.4
 %
 
1.8
 %
     2019 (2)
 
64.8
%
 
64.7
%
 
—

 
64.1
%
 
0.1
 %
 
—

 
0.7
 %


(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.
(2)
The forecasted collection rate for 2019 Consumer Loans as of September 30, 2019 includes both Consumer Loans that were in our portfolio as of June 30, 2019 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
 
Current Forecast Variance from
2019 Consumer Loan Assignment Period
 
September 30, 2019
 
June 30, 2019
 
Initial Forecast
 
June 30, 2019
 
Initial Forecast
January 1, 2019 through June 30, 2019
 
65.1
%
 
64.7
%
 
64.2
%
 
0.4
%
 
0.9
%
July 1, 2019 through September 30, 2019
 
64.1
%
 
—

 
64.0
%
 
—

 
0.1
%
Schedule of Additional Consumer Loans Forecasted Collection Percentage
 
 
Forecasted Collection Percentage as of
 
Current Forecast Variance from
2019 Consumer Loan Assignment Period
 
September 30, 2019
 
June 30, 2019
 
Initial Forecast
 
June 30, 2019
 
Initial Forecast
January 1, 2019 through June 30, 2019
 
65.1
%
 
64.7
%
 
64.2
%
 
0.4
%
 
0.9
%
July 1, 2019 through September 30, 2019
 
64.1
%
 
—

 
64.0
%
 
—

 
0.1
%
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, 2019
 
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
$
1,585.3

 
$
1,931.1

 
$
3,516.4

 
$
2,974.0

 
$
582.4

 
$
3,556.4

Allowance for credit losses
—

 
—

 
—

 
(409.3
)
 
(99.8
)
 
(509.1
)
Loans receivable, net
$
1,585.3

 
$
1,931.1

 
$
3,516.4

 
$
2,564.7

 
$
482.6

 
$
3,047.3

 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
As of December 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
$
1,355.1

 
$
1,392.1

 
$
2,747.2

 
$
2,785.9

 
$
692.1

 
$
3,478.0

Allowance for credit losses
—

 
—

 
—

 
(378.1
)
 
(83.8
)
 
(461.9
)
Loans receivable, net
$
1,355.1

 
$
1,392.1

 
$
2,747.2

 
$
2,407.8

 
$
608.3

 
$
3,016.1
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, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
394.0

 
$
95.6

 
$
489.6

Provision for credit losses
17.9

 
1.4

 
19.3

Transfers (1)
(2.8
)
 
2.8

 
—

Write-offs
(0.3
)
 
(0.2
)
 
(0.5
)
Recoveries (2)
0.5

 
0.2

 
0.7

Balance, end of period
$
409.3

 
$
99.8

 
$
509.1

 
 
 
 
 
 
(In millions)
For the Three Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
365.9

 
$
69.8

 
$
435.7

Provision for credit losses
12.4

 
1.6

 
14.0

Transfers (1)
(3.1
)
 
3.1

 
—

Write-offs
(2.5
)
 
(0.2
)
 
(2.7
)
Recoveries (2)
0.3

 
0.3

 
0.6

Balance, end of period
$
373.0

 
$
74.6

 
$
447.6

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
378.1

 
$
83.8

 
$
461.9

Provision for credit losses
44.0

 
5.2

 
49.2

Transfers (1)
(10.3
)
 
10.3

 
—

Write-offs
(3.7
)
 
(0.4
)
 
(4.1
)
Recoveries (2)
1.2

 
0.9

 
2.1

Balance, end of period
$
409.3

 
$
99.8

 
$
509.1

 
 
 
 
 
 
(In millions)
For the Nine Months Ended September 30, 2018
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
366.0

 
$
63.4

 
$
429.4

Provision for credit losses
34.3

 
4.9

 
39.2

Transfers (1)
(8.7
)
 
8.7

 
—

Write-offs
(21.3
)
 
(3.2
)
 
(24.5
)
Recoveries (2)
2.7

 
0.8

 
3.5

Balance, end of period
$
373.0

 
$
74.6

 
$
447.6

(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 and 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.