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Loans Receivable
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Loans Receivable LOANS RECEIVABLE

Loans receivable and allowance for credit losses consist of the following:
(In millions)
As of March 31, 2020
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
5,677.7

 
$
4,181.3

 
$
9,859.0

Allowance for credit losses
(1,532.3
)
 
(1,708.2
)
 
(3,240.5
)
Loans receivable, net
$
4,145.4

 
$
2,473.1

 
$
6,618.5

 
 
 
 
 
 
(In millions)
As of December 31, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Loans receivable
$
4,623.3

 
$
2,597.9

 
$
7,221.2

Allowance for credit losses
(428.0
)
 
(108.0
)
 
(536.0
)
Loans receivable, net
$
4,195.3

 
$
2,489.9

 
$
6,685.2




A summary of changes in Loans receivable and allowance for credit losses is as follows:
 
For the Three Months Ended March 31, 2020
(In millions)
Loans Receivable
 
Allowance for Credit Losses
 
Loans Receivable, Net
 
Dealer Loans
 
Purchased Loans
 
Total
 
Dealer Loans
 
Purchased Loans
 
Total
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
4,623.3

 
$
2,597.9

 
$
7,221.2

 
$
(428.0
)
 
$
(108.0
)
 
$
(536.0
)
 
$
4,195.3

 
$
2,489.9

 
$
6,685.2

Adoption of CECL (1)
940.2

 
1,523.4

 
2,463.6

 
(940.2
)
 
(1,523.4
)
 
(2,463.6
)
 
—

 
—

 
—

Finance charges
311.8

 
222.0

 
533.8

 
(83.7
)
 
(88.2
)
 
(171.9
)
 
228.1

 
133.8

 
361.9

Provision for credit losses
—

 
—

 
—

 
(168.1
)
 
(186.6
)
 
(354.7
)
 
(168.1
)
 
(186.6
)
 
(354.7
)
New Consumer Loan assignments (2)
638.1

 
417.2

 
1,055.3

 
—

 
—

 
—

 
638.1

 
417.2

 
1,055.3

Collections (3)
(776.6
)
 
(402.8
)
 
(1,179.4
)
 
—

 
—

 
—

 
(776.6
)
 
(402.8
)
 
(1,179.4
)
Accelerated Dealer Holdback payments
11.4

 
—

 
11.4

 
—

 
—

 
—

 
11.4

 
—

 
11.4

Dealer Holdback payments
36.6

 
—

 
36.6

 
—

 
—

 
—

 
36.6

 
—

 
36.6

Transfers (4)
(31.3
)
 
31.3

 
—

 
9.7

 
(9.7
)
 
—

 
(21.6
)
 
21.6

 
—

Write-offs
(78.3
)
 
(208.0
)
 
(286.3
)
 
78.3

 
208.0

 
286.3

 
—

 
—

 
—

Recoveries (5)
0.3

 
0.3

 
0.6

 
(0.3
)
 
(0.3
)
 
(0.6
)
 
—

 
—

 
—

Deferral of Loan origination costs
2.2

 
—

 
2.2

 
—

 
—

 
—

 
2.2

 
—

 
2.2

Balance, end of period
$
5,677.7

 
$
4,181.3

 
$
9,859.0

 
$
(1,532.3
)
 
$
(1,708.2
)
 
$
(3,240.5
)
 
$
4,145.4

 
$
2,473.1

 
$
6,618.5

 
For the Three Months Ended March 31, 2019
(In millions)
Loans Receivable
 
Allowance for Credit Losses
 
Loans Receivable, Net
 
Dealer Loans
 
Purchased Loans
 
Total
 
Dealer Loans
 
Purchased Loans
 
Total
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
4,141.0

 
$
2,084.2

 
$
6,225.2

 
$
(378.1
)
 
$
(83.8
)
 
$
(461.9
)
 
$
3,762.9

 
$
2,000.4

 
$
5,763.3

Finance charges
213.5

 
108.4

 
321.9

 
—

 
—

 
—

 
213.5

 
108.4

 
321.9

Provision for credit losses
—

 
—

 
—

 
(11.6
)
 
(2.9
)
 
(14.5
)
 
(11.6
)
 
(2.9
)
 
(14.5
)
New Consumer Loan assignments (2)
719.0

 
386.4

 
1,105.4

 
—

 
—

 
—

 
719.0

 
386.4

 
1,105.4

Collections (3)
(747.0
)
 
(334.5
)
 
(1,081.5
)
 
—

 
—

 
—

 
(747.0
)
 
(334.5
)
 
(1,081.5
)
Accelerated Dealer Holdback payments
12.3

 
—

 
12.3

 
—

 
—

 
—

 
12.3

 
—

 
12.3

Dealer Holdback payments
34.6

 
—

 
34.6

 
—

 
—

 
—

 
34.6

 
—

 
34.6

Transfers (4)
(25.7
)
 
25.7

 
—

 
4.2

 
(4.2
)
 
—

 
(21.5
)
 
21.5

 
—

Write-offs
(2.8
)
 
(0.1
)
 
(2.9
)
 
2.8

 
0.1

 
2.9

 
—

 
—

 
—

Recoveries (5)
0.4

 
0.3

 
0.7

 
(0.4
)
 
(0.3
)
 
(0.7
)
 
—

 
—

 
—

Deferral of Loan origination costs
2.2

 
—

 
2.2

 
—

 
—

 
—

 
2.2

 
—

 
2.2

Balance, end of period
$
4,347.5

 
$
2,270.4

 
$
6,617.9

 
$
(383.1
)
 
$
(91.1
)
 
$
(474.2
)
 
$
3,964.4

 
$
2,179.3

 
$
6,143.7

 
(1)
Represents the gross-up of Loans receivable and allowance for credit losses on January 1, 2020 upon the adoption of CECL for the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate.
(2)
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.
(3)
Represents repayments that we collected on Consumer Loans assigned under our programs.
(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 allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs.
(5)
The Dealer Loans amount represents net cash flows received (collection less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full.
Under CECL, which we adopted on January 1, 2020, we are required to recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that were not expected to be realized at the time of assignment. Under both CECL and our prior accounting method, we also recognize provision for credit losses for forecast changes in the amount and timing of expected future net cash flows subsequent to assignment. The following table summarizes the provision for credit losses for each of these components:
(In millions)
For the Three Months Ended March 31, 2020
Provision for Credit Losses
Dealer Loans
 
Purchased Loans
 
Total
New Consumer Loan assignments
$
64.8

 
$
93.1

 
$
157.9

Forecast changes
103.3

 
93.5

 
196.8

Total
$
168.1

 
$
186.6

 
$
354.7


The net Loan income (finance charge revenue less provision for credit losses expense) that we will recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. While the total amount of net Loan income we will recognize over the life of the Loan is not impacted by the adoption of CECL on January 1, 2020, the timing of when we will recognize this income changes significantly from our prior accounting method, as CECL requires us to recognize a significant provision for credit losses expense at the time of assignment for amounts we never expected to realize and finance charge revenue in subsequent periods that significantly exceeds our expected yields. Additional information related to new Consumer Loan assignments is as follows:
(In millions)
For the Three Months Ended March 31, 2020
New Consumer Loan Assignments
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
1,013.5

 
$
911.6

 
$
1,925.1

Expected net cash flows at the time of assignment (2)
897.6

 
576.8

 
1,474.4

Loans receivable at the time of assignment (3)
638.1

 
417.2

 
1,055.3

 
 
 
 
 


Provision for credit losses expense at the time of assignment
$
(64.8
)
 
$
(93.1
)
 
$
(157.9
)
Expected future finance charges at the time of assignment (4)
324.3

 
252.7

 
577.0

Expected net Loan income at the time of assignment (5)
$
259.5

 
$
159.6

 
$
419.1

(In millions)
For the Three Months Ended March 31, 2019
New Consumer Loan Assignments
Dealer Loans
 
Purchased Loans
 
Total
Contractual net cash flows at the time of assignment (1)
$
1,131.5

 
$
850.3

 
$
1,981.8

Expected net cash flows at the time of assignment (2)
1,010.3

 
546.4

 
1,556.7

Loans receivable at the time of assignment (3)
719.0

 
386.4

 
1,105.4

 
 
 
 
 
 
Provision for credit losses expense at the time of assignment
$
—

 
$
—

 
$
—

Expected future finance charges at the time of assignment (4)
291.3

 
160.0

 
451.3

Expected net Loan income at the time of assignment (5)
$
291.3

 
$
160.0

 
$
451.3


(1)
The Dealer Loans amount represents 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 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 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 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. The Loan amounts also represent the fair value at the time of assignment.
(4)
Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans.
(5)
Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3).
A summary of changes in expected future net cash flows is as follows:
(In millions)
For the Three Months Ended March 31, 2020
Expected Future Net Cash Flows
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
5,577.0

 
$
3,428.2

 
$
9,005.2

New Consumer Loan assignments (1)
897.6

 
576.8

 
1,474.4

Realized net cash flows (2)
(728.6
)
 
(402.8
)
 
(1,131.4
)
Forecast changes
(75.9
)
 
(130.6
)
 
(206.5
)
Transfers (3)
(31.3
)
 
33.5

 
2.2

Balance, end of period
$
5,638.8

 
$
3,505.1

 
$
9,143.9

(In millions)
For the Three Months Ended March 31, 2019
Expected Future Net Cash Flows
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
5,045.9

 
$
2,782.9

 
$
7,828.8

New Consumer Loan assignments (1)
1,010.3

 
546.4

 
1,556.7

Realized net cash flows (2)
(700.1
)
 
(334.5
)
 
(1,034.6
)
Forecast changes
0.5

 
16.2

 
16.7

Transfers (3)
(31.0
)
 
33.3

 
2.3

Balance, end of period
$
5,325.6

 
$
3,044.3

 
$
8,369.9


(1)
The Dealer Loans amount represents 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 repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program.
(2)
The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program.
(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, related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.

Credit Quality

We monitor and evaluate the credit quality of Consumer Loans assigned under our Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our prior forecasted collection rates and our initial expectations. For additional information regarding credit quality, see Note 3. 

The following table compares our forecast of Consumer Loan collection rates as of March 31, 2020 with the forecasts as of December 31, 2019 and at the time of assignment, segmented by year of assignment:
 
 
Total Loans as of March 31, 2020
 
 
Forecasted Collection Percentage as of (1)
 
Current Forecast Variance from
 Consumer Loan
Assignment Year
 
March 31, 2020
 
December 31, 2019
 
Initial
Forecast
 
December 31, 2019
 
Initial
Forecast
2011
 
74.8
%
 
74.8
%
 
72.5
%
 
0.0
 %
 
2.3
 %
2012
 
73.8
%
 
73.9
%
 
71.4
%
 
-0.1
 %
 
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
%
 
65.4
%
 
67.7
%
 
-0.1
 %
 
-2.4
 %
2016
 
63.6
%
 
64.1
%
 
65.4
%
 
-0.5
 %
 
-1.8
 %
2017
 
63.8
%
 
64.8
%
 
64.0
%
 
-1.0
 %
 
-0.2
 %
2018
 
63.6
%
 
65.1
%
 
63.6
%
 
-1.5
 %
 
0.0
 %
2019
 
63.0
%
 
64.6
%
 
64.0
%
 
-1.6
 %
 
-1.0
 %
2020
 
61.3
%
 
—

 
62.5
%
 
—

 
-1.2
 %
 
 
Dealer Loans as of March 31, 2020
 
 
Forecasted Collection Percentage as of (1)
 
Current Forecast Variance from
 Consumer Loan
Assignment Year
 
March 31, 2020
 
December 31, 2019
 
Initial
Forecast
 
December 31, 2019
 
Initial
Forecast
2011
 
74.6
%
 
74.6
%
 
72.4
%
 
0.0
 %
 
2.2
 %
2012
 
73.6
%
 
73.7
%
 
71.3
%
 
-0.1
 %
 
2.3
 %
2013
 
73.4
%
 
73.4
%
 
72.1
%
 
0.0
 %
 
1.3
 %
2014
 
71.6
%
 
71.6
%
 
71.9
%
 
0.0
 %
 
-0.3
 %
2015
 
64.6
%
 
64.8
%
 
67.5
%
 
-0.2
 %
 
-2.9
 %
2016
 
62.8
%
 
63.2
%
 
65.1
%
 
-0.4
 %
 
-2.3
 %
2017
 
63.2
%
 
64.2
%
 
63.8
%
 
-1.0
 %
 
-0.6
 %
2018
 
63.1
%
 
64.7
%
 
63.6
%
 
-1.6
 %
 
-0.5
 %
2019
 
62.6
%
 
64.4
%
 
63.9
%
 
-1.8
 %
 
-1.3
 %
2020
 
61.2
%
 
—

 
62.4
%
 
—

 
-1.2
 %
 
 
Purchased Loans as of March 31, 2020
 
 
Forecasted Collection Percentage as of (1)
 
Current Forecast Variance from
 Consumer Loan
Assignment Year
 
March 31, 2020
 
December 31, 2019
 
Initial
Forecast
 
December 31, 2019
 
Initial
Forecast
2011
 
76.3
%
 
76.4
%
 
72.7
%
 
-0.1
 %
 
3.6
 %
2012
 
75.9
%
 
75.9
%
 
71.4
%
 
0.0
 %
 
4.5
 %
2013
 
74.3
%
 
74.4
%
 
71.6
%
 
-0.1
 %
 
2.7
 %
2014
 
72.5
%
 
72.5
%
 
70.9
%
 
0.0
 %
 
1.6
 %
2015
 
69.0
%
 
69.3
%
 
68.5
%
 
-0.3
 %
 
0.5
 %
2016
 
66.0
%
 
66.6
%
 
66.5
%
 
-0.6
 %
 
-0.5
 %
2017
 
65.4
%
 
66.3
%
 
64.6
%
 
-0.9
 %
 
0.8
 %
2018
 
64.6
%
 
66.0
%
 
63.5
%
 
-1.4
 %
 
1.1
 %
2019
 
63.6
%
 
65.1
%
 
64.2
%
 
-1.5
 %
 
-0.6
 %
2020
 
61.6
%
 
—

 
62.8
%
 
—

 
-1.2
 %


(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.
 
 
 
 
 
 
 
 
 
 
 

We evaluate and adjust the expected collection rate of each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. The following table summarizes the past-due status of Consumer Loan assignments segmented by year of assignment:
(In millions)
Total Loans as of March 31, 2020 (1) (2)
 
Pre-term Consumer Loans (3)
 
Post-term Consumer Loans (4)
 
Total
Consumer Loan Assignment Year
Current (5)
 
Past Due
11-90 Days
 
Past Due
Over 90 Days
 
 
2015 and Prior
$
27.5

 
$
11.2

 
$
47.6

 
$
131.0

 
$
217.3

2016
183.3

 
74.8

 
198.2

 
18.1

 
474.4

2017
568.2

 
226.2

 
334.6

 
2.0

 
1,131.0

2018
1,458.4

 
583.6

 
528.9

 
0.1

 
2,571.0

2019
2,944.8

 
962.7

 
328.2

 
—

 
4,235.7

2020
1,154.2

 
75.4

 
—

 
—

 
1,229.6

 
$
6,336.4

 
$
1,933.9

 
$
1,437.5

 
$
151.2

 
$
9,859.0


(In millions)
Dealer Loans as of March 31, 2020 (1)
 
Pre-term Consumer Loans (3)
 
Post-term Consumer Loans (4)
 
Total
Consumer Loan Assignment Year
Current (5)
 
Past Due
11-90 Days
 
Past Due
Over 90 Days
 
 
2015 and Prior
$
15.1

 
$
6.0

 
$
28.9

 
$
103.5

 
$
153.5

2016
95.3

 
37.6

 
107.5

 
13.5

 
253.9

2017
326.0

 
123.5

 
179.4

 
1.4

 
630.3

2018
844.7

 
328.5

 
286.1

 
0.1

 
1,459.4

2019
1,661.2

 
529.3

 
175.5

 
—

 
2,366.0

2020
765.9

 
48.7

 
—

 
—

 
814.6

 
$
3,708.2

 
$
1,073.6

 
$
777.4

 
$
118.5

 
$
5,677.7


(In millions)
Purchased Loans as of March 31, 2020 (2)
 
Pre-term Consumer Loans (3)
 
Post-term Consumer Loans (4)
 
Total
Consumer Loan Assignment Year
Current (5)
 
Past Due
11-90 Days
 
Past Due
Over 90 Days
 
 
2015 and Prior
$
12.4

 
$
5.2

 
$
18.7

 
$
27.5

 
$
63.8

2016
88.0

 
37.2

 
90.7

 
4.6

 
220.5

2017
242.2

 
102.7

 
155.2

 
0.6

 
500.7

2018
613.7

 
255.1

 
242.8

 
—

 
1,111.6

2019
1,283.6

 
433.4

 
152.7

 
—

 
1,869.7

2020
388.3

 
26.7

 
—

 
—

 
415.0

 
$
2,628.2

 
$
860.3

 
$
660.1

 
$
32.7

 
$
4,181.3


(1)
As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.
(2)
As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.
(3)
Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms.
(4)
Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms.
(5)
We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due.



In March 2020, COVID-19 began to spread rapidly across the United States. In an effort to slow the spread of the virus, authorities implemented various measures, including travel bans, stay-at-home orders and shutdowns of non-essential businesses. These measures have caused a significant decline in economic activity and a dramatic increase in the number of individuals who are no longer employed. Starting in mid-March, we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our Loan portfolio that lasted through mid-April, after which collections and new loan volumes improved significantly. As the virus is not yet contained, the ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the disease or mitigate its impact, and the duration, timing and severity of the impact on consumer behavior and economic activity.

During the first quarter, we reduced our estimate of future net cash flows from our Loan portfolio by $206.5 million, or 2.3% of the forecasted net cash flows at the start of the period, primarily due to the impact of the COVID-19 pandemic. The reduction is comprised of: (1) $44.3 million calculated by our forecasting model, which reflects lower realized collections during the quarter and (2) an additional $162.2 million, which represents our best estimate of the future impact of the COVID-19 pandemic on future net cash flows. Under CECL, changes in forecasted net cash flows are recorded as a provision for credit losses in the current period. While the adjustment to our forecast represents our best estimate at this time, the COVID-19 pandemic has created conditions that do not allow us to forecast future cash flows from our Loan portfolio with confidence.

Forecasted collection rates in the tables above reflect a reduction in collection rates calculated by our forecasting model and an additional subjective adjustment which considers the future impact of COVID-19. The COVID-19 adjustment for total loans is detailed by year of assignment as follows:
 
 
Forecasted Collection Percentage as of March 31, 2020
 Consumer Loan Assignment Year
 
Prior to COVID-19 Adjustment
 
COVID-19 Adjustment
 
After COVID-19 Adjustment
2011
 
74.8
%
 
0.0
 %
 
74.8
%
2012
 
73.9
%
 
-0.1
 %
 
73.8
%
2013
 
73.5
%
 
-0.1
 %
 
73.4
%
2014
 
71.8
%
 
-0.1
 %
 
71.7
%
2015
 
65.4
%
 
-0.1
 %
 
65.3
%
2016
 
64.0
%
 
-0.4
 %
 
63.6
%
2017
 
64.4
%
 
-0.6
 %
 
63.8
%
2018
 
64.5
%
 
-0.9
 %
 
63.6
%
2019
 
64.5
%
 
-1.5
 %
 
63.0
%
2020
 
63.2
%
 
-1.9
 %
 
61.3
%


Additional Prior Year Loan Disclosures

The adoption of CECL on January 1, 2020 eliminated the following disclosures for 2020 that were required in prior years.

The excess of expected net cash flows over the outstanding balance of Loans receivable, net is referred to as the accretable yield and is recognized on a level-yield basis as finance charge income over the remaining lives of the Loans. A summary of changes in the accretable yield is as follows:
(In millions)
For the Three Months Ended March 31, 2019
 
Dealer Loans
 
Purchased Loans
 
Total
Balance, beginning of period
$
1,283.0

 
$
782.5

 
$
2,065.5

New Consumer Loan assignments (1)
291.3

 
160.0

 
451.3

Accretion (2)
(215.7
)
 
(108.4
)
 
(324.1
)
Provision for credit losses
11.6

 
2.9

 
14.5

Forecast changes
0.5

 
16.2

 
16.7

Transfers (3)
(9.5
)
 
11.8

 
2.3

Balance, end of period
$
1,361.2

 
$
865.0

 
$
2,226.2


(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.

Advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program are aggregated into pools for purposes of recognizing revenue and evaluating impairment. As a result of this aggregation, we are not able to segment the carrying amounts of the majority of our Loan portfolio by year of assignment. We are able to segment our Loan portfolio by the performance of the Loan pools. Performance considers both the amount and timing of expected net cash flows and is measured by comparing the balance of the Loan pool to the discounted value of the expected future net cash flows of each Loan pool using the yield established at the time of assignment. The following table segments our Loan portfolio by the performance of the Loan pools:
(In millions)
As of December 31, 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
$
1,591.3

 
$
2,006.9

 
$
3,598.2

 
$
3,032.0

 
$
591.0

 
$
3,623.0

Allowance for credit losses
—

 
—

 
—

 
(428.0
)
 
(108.0
)
 
(536.0
)
Loans receivable, net
$
1,591.3

 
$
2,006.9

 
$
3,598.2

 
$
2,604.0

 
$
483.0

 
$
3,087.0