Loans Receivable

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Loans Receivable

LOANS RECEIVABLE

Loans receivable and allowance for credit losses consist of the following:

(In millions)	As of June 30, 2020
	Dealer Loans		Purchased Loans		Total
Loans receivable	$	5,810.8	$	4,285.1	$	10,095.9
Allowance for credit losses	(1,623.6)		(1,722.5)		(3,346.1)
Loans receivable, net	$	4,187.2	$	2,562.6	$	6,749.8
(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 June 30, 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	$	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
Finance charges	323.7		240.2		563.9		(91.0)		(94.7)		(185.7)		232.7		145.5		378.2
Provision for credit losses	—		—		—		(61.1)		(78.3)		(139.4)		(61.1)		(78.3)		(139.4)
New Consumer Loan assignments (2)	594.0		411.1		1,005.1		—		—		—		594.0		411.1		1,005.1
Collections (3)	(756.3)		(407.9)		(1,164.2)		—		—		—		(756.3)		(407.9)		(1,164.2)
Accelerated Dealer Holdback payments	11.5		—		11.5		—		—		—		11.5		—		11.5
Dealer Holdback payments	37.8		—		37.8		—		—		—		37.8		—		37.8
Transfers (4)	(29.0)		29.0		—		9.9		(9.9)		—		(19.1)		19.1		—
Write-offs	(51.2)		(169.0)		(220.2)		51.2		169.0		220.2		—		—		—
Recoveries (5)	0.3		0.4		0.7		(0.3)		(0.4)		(0.7)		—		—		—
Deferral of Loan origination costs	2.3		—		2.3		—		—		—		2.3		—		2.3
Balance, end of period	$	5,810.8	$	4,285.1	$	10,095.9	$	(1,623.6)	$	(1,722.5)	$	(3,346.1)	$	4,187.2	$	2,562.6	$	6,749.8

	For the Three Months Ended June 30, 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	$	4,347.5	$	2,270.4	$	6,617.9	$	(383.1)	$	(91.1)	$	(474.2)	$	3,964.4	$	2,179.3	$	6,143.7
Finance charges	222.6		118.9		341.5		—		—		—		222.6		118.9		341.5
Provision for credit losses	—		—		—		(14.5)		(0.9)		(15.4)		(14.5)		(0.9)		(15.4)
New Consumer Loan assignments (2)	608.8		346.4		955.2		—		—		—		608.8		346.4		955.2
Collections (3)	(744.9)		(350.0)		(1,094.9)		—		—		—		(744.9)		(350.0)		(1,094.9)
Accelerated Dealer Holdback payments	15.7		—		15.7		—		—		—		15.7		—		15.7
Dealer Holdback payments	36.0		—		36.0		—		—		—		36.0		—		36.0
Transfers (4)	(21.6)		21.6		—		3.3		(3.3)		—		(18.3)		18.3		—
Write-offs	(0.6)		(0.1)		(0.7)		0.6		0.1		0.7		—		—		—
Recoveries (5)	0.3		0.4		0.7		(0.3)		(0.4)		(0.7)		—		—		—
Deferral of Loan origination costs	2.2		—		2.2		—		—		—		2.2		—		2.2
Balance, end of period	$	4,466.0	$	2,407.6	$	6,873.6	$	(394.0)	$	(95.6)	$	(489.6)	$	4,072.0	$	2,312.0	$	6,384.0

	For the Six Months Ended June 30, 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	635.5		462.2		1,097.7		(174.7)		(182.9)		(357.6)		460.8		279.3		740.1
Provision for credit losses	—		—		—		(229.2)		(264.9)		(494.1)		(229.2)		(264.9)		(494.1)
New Consumer Loan assignments (2)	1,232.1		828.3		2,060.4		—		—		—		1,232.1		828.3		2,060.4
Collections (3)	(1,532.9)		(810.7)		(2,343.6)		—		—		—		(1,532.9)		(810.7)		(2,343.6)
Accelerated Dealer Holdback payments	22.9		—		22.9		—		—		—		22.9		—		22.9
Dealer Holdback payments	74.4		—		74.4		—		—		—		74.4		—		74.4
Transfers (4)	(60.3)		60.3		—		19.6		(19.6)		—		(40.7)		40.7		—
Write-offs	(129.5)		(377.0)		(506.5)		129.5		377.0		506.5		—		—		—
Recoveries (5)	0.6		0.7		1.3		(0.6)		(0.7)		(1.3)		—		—		—
Deferral of Loan origination costs	4.5		—		4.5		—		—		—		4.5		—		4.5
Balance, end of period	$	5,810.8	$	4,285.1	$	10,095.9	$	(1,623.6)	$	(1,722.5)	$	(3,346.1)	$	4,187.2	$	2,562.6	$	6,749.8

	For the Six Months Ended June 30, 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	436.1		227.3		663.4		—		—		—		436.1		227.3		663.4
Provision for credit losses	—		—		—		(26.1)		(3.8)		(29.9)		(26.1)		(3.8)		(29.9)
New Consumer Loan assignments (2)	1,327.8		732.8		2,060.6		—		—		—		1,327.8		732.8		2,060.6
Collections (3)	(1,491.9)		(684.5)		(2,176.4)		—		—		—		(1,491.9)		(684.5)		(2,176.4)
Accelerated Dealer Holdback payments	28.0		—		28.0		—		—		—		28.0		—		28.0
Dealer Holdback payments	70.6		—		70.6		—		—		—		70.6		—		70.6
Transfers (4)	(47.3)		47.3		—		7.5		(7.5)		—		(39.8)		39.8		—
Write-offs	(3.4)		(0.2)		(3.6)		3.4		0.2		3.6		—		—		—
Recoveries (5)	0.7		0.7		1.4		(0.7)		(0.7)		(1.4)		—		—		—
Deferral of Loan origination costs	4.4		—		4.4		—		—		—		4.4		—		4.4
Balance, end of period	$	4,466.0	$	2,407.6	$	6,873.6	$	(394.0)	$	(95.6)	$	(489.6)	$	4,072.0	$	2,312.0	$	6,384.0

(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 June 30, 2020
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	60.9	$	93.3	$	154.2
Forecast changes	0.2		(15.0)		(14.8)
Total	$	61.1	$	78.3	$	139.4
(In millions)	For the Six Months Ended June 30, 2020
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	125.7	$	186.4	$	312.1
Forecast changes	103.5		78.5		182.0
Total	$	229.2	$	264.9	$	494.1

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 June 30, 2020
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	950.7	$	924.0	$	1,874.7
Expected net cash flows at the time of assignment (2)	840.5		581.4		1,421.9
Loans receivable at the time of assignment (3)	594.0		411.1		1,005.1
Provision for credit losses expense at the time of assignment	$	(60.9)	$	(93.3)	$	(154.2)
Expected future finance charges at the time of assignment (4)	307.4		263.6		571.0
Expected net Loan income at the time of assignment (5)	$	246.5	$	170.3	$	416.8

(In millions)	For the Three Months Ended June 30, 2019
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	955.6	$	753.3	$	1,708.9
Expected net cash flows at the time of assignment (2)	853.4		490.5		1,343.9
Loans receivable at the time of assignment (3)	608.8		346.4		955.2
Provision for credit losses expense at the time of assignment	$	—	$	—	$	—
Expected future finance charges at the time of assignment (4)	244.6		144.1		388.7
Expected net Loan income at the time of assignment (5)	$	244.6	$	144.1	$	388.7

(In millions)	For the Six Months Ended June 30, 2020
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,964.2	$	1,835.6	$	3,799.8
Expected net cash flows at the time of assignment (2)	1,738.1		1,158.2		2,896.3
Loans receivable at the time of assignment (3)	1,232.1		828.3		2,060.4
Provision for credit losses expense at the time of assignment	$	(125.7)	$	(186.4)	$	(312.1)
Expected future finance charges at the time of assignment (4)	631.7		516.3		1,148.0
Expected net Loan income at the time of assignment (5)	$	506.0	$	329.9	$	835.9
(In millions)	For the Six Months Ended June 30, 2019
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	2,087.1	$	1,603.6	$	3,690.7
Expected net cash flows at the time of assignment (2)	1,863.7		1,036.9		2,900.6
Loans receivable at the time of assignment (3)	1,327.8		732.8		2,060.6
Provision for credit losses expense at the time of assignment	$	—	$	—	$	—
Expected future finance charges at the time of assignment (4)	535.9		304.1		840.0
Expected net Loan income at the time of assignment (5)	$	535.9	$	304.1	$	840.0

(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 June 30, 2020
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	5,638.8	$	3,505.1	$	9,143.9
New Consumer Loan assignments (1)	840.5		581.4		1,421.9
Realized net cash flows (2)	(707.0)		(407.9)		(1,114.9)
Forecast changes	(0.1)		24.5		24.4
Transfers (3)	(27.0)		28.5		1.5
Balance, end of period	$	5,745.2	$	3,731.6	$	9,476.8

(In millions)	For the Three Months Ended June 30, 2019
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	5,325.6	$	3,044.3	$	8,369.9
New Consumer Loan assignments (1)	853.4		490.5		1,343.9
Realized net cash flows (2)	(693.2)		(350.0)		(1,043.2)
Forecast changes	3.4		9.6		13.0
Transfers (3)	(26.8)		29.5		2.7
Balance, end of period	$	5,462.4	$	3,223.9	$	8,686.3

(In millions)	For the Six Months Ended June 30, 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)	1,738.1		1,158.2		2,896.3
Realized net cash flows (2)	(1,435.6)		(810.7)		(2,246.3)
Forecast changes	(76.0)		(106.1)		(182.1)
Transfers (3)	(58.3)		62.0		3.7
Balance, end of period	$	5,745.2	$	3,731.6	$	9,476.8
(In millions)	For the Six Months Ended June 30, 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)	1,863.7		1,036.9		2,900.6
Realized net cash flows (2)	(1,393.3)		(684.5)		(2,077.8)
Forecast changes	3.9		25.8		29.7
Transfers (3)	(57.8)		62.8		5.0
Balance, end of period	$	5,462.4	$	3,223.9	$	8,686.3

(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 June 30, 2020 with the forecasts as of March 31, 2020, as of December 31, 2019 and at the time of assignment, segmented by year of assignment:

	Total Loans as of June 30, 2020
	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	June 30, 2020		March 31, 2020		December 31, 2019		Initial Forecast		March 31, 2020		December 31, 2019		Initial Forecast
2011	74.8	%	74.8	%	74.8	%	72.5	%	0.0	%	0.0	%	2.3	%
2012	73.8	%	73.8	%	73.9	%	71.4	%	0.0	%	-0.1	%	2.4	%
2013	73.5	%	73.4	%	73.5	%	72.0	%	0.1	%	0.0	%	1.5	%
2014	71.7	%	71.7	%	71.7	%	71.8	%	0.0	%	0.0	%	-0.1	%
2015	65.2	%	65.3	%	65.4	%	67.7	%	-0.1	%	-0.2	%	-2.5	%
2016	63.6	%	63.6	%	64.1	%	65.4	%	0.0	%	-0.5	%	-1.8	%
2017	63.8	%	63.8	%	64.8	%	64.0	%	0.0	%	-1.0	%	-0.2	%
2018	63.5	%	63.6	%	65.1	%	63.6	%	-0.1	%	-1.6	%	-0.1	%
2019	63.4	%	63.0	%	64.6	%	64.0	%	0.4	%	-1.2	%	-0.6	%
2020	62.2	%	61.3	%	—		62.4	%	0.9	%	—		-0.2	%

	Dealer Loans as of June 30, 2020
	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	June 30, 2020		March 31, 2020		December 31, 2019		Initial Forecast		March 31, 2020		December 31, 2019		Initial Forecast
2011	74.7	%	74.6	%	74.6	%	72.4	%	0.1	%	0.1	%	2.3	%
2012	73.7	%	73.6	%	73.7	%	71.3	%	0.1	%	0.0	%	2.4	%
2013	73.4	%	73.4	%	73.4	%	72.1	%	0.0	%	0.0	%	1.3	%
2014	71.6	%	71.6	%	71.6	%	71.9	%	0.0	%	0.0	%	-0.3	%
2015	64.6	%	64.6	%	64.8	%	67.5	%	0.0	%	-0.2	%	-2.9	%
2016	62.8	%	62.8	%	63.2	%	65.1	%	0.0	%	-0.4	%	-2.3	%
2017	63.2	%	63.2	%	64.2	%	63.8	%	0.0	%	-1.0	%	-0.6	%
2018	63.0	%	63.1	%	64.7	%	63.6	%	-0.1	%	-1.7	%	-0.6	%
2019	63.0	%	62.6	%	64.4	%	63.9	%	0.4	%	-1.4	%	-0.9	%
2020	61.9	%	61.2	%	—		62.3	%	0.7	%	—		-0.4	%

	Purchased Loans as of June 30, 2020
	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	June 30, 2020		March 31, 2020		December 31, 2019		Initial Forecast		March 31, 2020		December 31, 2019		Initial Forecast
2011	76.4	%	76.3	%	76.4	%	72.7	%	0.1	%	0.0	%	3.7	%
2012	75.9	%	75.9	%	75.9	%	71.4	%	0.0	%	0.0	%	4.5	%
2013	74.3	%	74.3	%	74.4	%	71.6	%	0.0	%	-0.1	%	2.7	%
2014	72.5	%	72.5	%	72.5	%	70.9	%	0.0	%	0.0	%	1.6	%
2015	68.9	%	69.0	%	69.3	%	68.5	%	-0.1	%	-0.4	%	0.4	%
2016	65.9	%	66.0	%	66.6	%	66.5	%	-0.1	%	-0.7	%	-0.6	%
2017	65.3	%	65.4	%	66.3	%	64.6	%	-0.1	%	-1.0	%	0.7	%
2018	64.6	%	64.6	%	66.0	%	63.5	%	0.0	%	-1.4	%	1.1	%
2019	64.1	%	63.6	%	65.1	%	64.2	%	0.5	%	-1.0	%	-0.1	%
2020	62.6	%	61.6	%	—		62.6	%	1.0	%	—		0.0	%

(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 June 30, 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	$	17.4	$	6.0	$	34.0	$	122.2	$	179.6
2016	144.8		49.9		168.7		26.2		389.6
2017	500.5		163.4		306.5		3.1		973.5
2018	1,350.0		445.5		505.7		0.3		2,301.5
2019	2,698.9		807.8		418.7		—		3,925.4
2020	2,073.0		237.5		15.8		—		2,326.3
	$	6,784.6	$	1,710.1	$	1,449.4	$	151.8	$	10,095.9

(In millions)	Dealer Loans as of June 30, 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	$	8.8	$	3.1	$	19.4	$	96.1	$	127.4
2016	70.9		23.8		88.4		19.8		202.9
2017	278.7		87.3		163.9		2.2		532.1
2018	759.8		246.4		271.2		0.2		1,277.6
2019	1,486.0		437.5		220.8		—		2,144.3
2020	1,363.7		152.5		10.3		—		1,526.5
	$	3,967.9	$	950.6	$	774.0	$	118.3	$	5,810.8

(In millions)	Purchased Loans as of June 30, 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	$	8.6	$	2.9	$	14.6	$	26.1	$	52.2
2016	73.9		26.1		80.3		6.4		186.7
2017	221.8		76.1		142.6		0.9		441.4
2018	590.2		199.1		234.5		0.1		1,023.9
2019	1,212.9		370.3		197.9		—		1,781.1
2020	709.3		85.0		5.5		—		799.8
	$	2,816.7	$	759.5	$	675.4	$	33.5	$	4,285.1

(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.

COVID-19 continues to spread rapidly across the United States. In an effort to slow the spread of the virus, authorities continue to implement 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, the continuation of federal stimulus measures and unemployment benefits, and the duration, timing and severity of the impact on consumer behavior and economic activity.

During the first quarter of 2020, 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 was comprised of: (1) $44.3 million calculated by our forecasting model, which reflected lower realized collections during the first quarter of 2020 and (2) an additional $162.2 million, which represented 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, which we continued to apply throughout the second quarter of 2020, 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.

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 June 30, 2019
	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	1,361.2	$	865.0	$	2,226.2
New Consumer Loan assignments (1)	244.6		144.1		388.7
Accretion (2)	(224.8)		(118.9)		(343.7)
Provision for credit losses	14.5		0.9		15.4
Forecast changes	3.4		9.6		13.0
Transfers (3)	(8.5)		11.2		2.7
Balance, end of period	$	1,390.4	$	911.9	$	2,302.3
(In millions)	For the Six Months Ended June 30, 2019
	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	1,283.0	$	782.5	$	2,065.5
New Consumer Loan assignments (1)	535.9		304.1		840.0
Accretion (2)	(440.5)		(227.3)		(667.8)
Provision for credit losses	26.1		3.8		29.9
Forecast changes	3.9		25.8		29.7
Transfers (3)	(18.0)		23.0		5.0
Balance, end of period	$	1,390.4	$	911.9	$	2,302.3

(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