Loans Receivable

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Loans Receivable

LOANS RECEIVABLE

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

(In millions)	As of December 31, 2022
	Dealer Loans		Purchased Loans		Total
Loans receivable	$	6,074.8	$	3,090.7	$	9,165.5
Allowance for credit losses	(2,000.0)		(867.8)		(2,867.8)
Loans receivable, net	$	4,074.8	$	2,222.9	$	6,297.7
(In millions)	As of December 31, 2021
	Dealer Loans		Purchased Loans		Total
Loans receivable	$	5,655.1	$	3,694.7	$	9,349.8
Allowance for credit losses	(1,767.8)		(1,245.7)		(3,013.5)
Loans receivable, net	$	3,887.3	$	2,449.0	$	6,336.3

A summary of changes in Loans receivable and allowance for credit losses is as follows:

(In millions)	For the Year Ended December 31, 2022
	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	$	5,655.1	$	3,694.7	$	9,349.8	$	(1,767.8)	$	(1,245.7)	$	(3,013.5)	$	3,887.3	$	2,449.0	$	6,336.3
Finance charges	1,391.0		997.8		2,388.8		(442.4)		(260.1)		(702.5)		948.6		737.7		1,686.3
Provision for credit losses	—		—		—		(240.4)		(241.0)		(481.4)		(240.4)		(241.0)		(481.4)
New Consumer Loan assignments (1)	2,530.0		1,095.3		3,625.3		—		—		—		2,530.0		1,095.3		3,625.3
Collections (2)	(3,237.5)		(1,871.9)		(5,109.4)		—		—		—		(3,237.5)		(1,871.9)		(5,109.4)
Accelerated Dealer Holdback payments	44.2		—		44.2		—		—		—		44.2		—		44.2
Dealer Holdback payments	186.6		—		186.6		—		—		—		186.6		—		186.6
Transfers (3)	(72.1)		72.1		—		18.3		(18.3)		—		(53.8)		53.8		—
Write-offs	(433.4)		(900.4)		(1,333.8)		433.4		900.4		1,333.8		—		—		—
Recoveries (4)	1.1		3.1		4.2		(1.1)		(3.1)		(4.2)		—		—		—
Deferral of Loan origination costs	9.8		—		9.8		—		—		—		9.8		—		9.8
Balance, end of period	$	6,074.8	$	3,090.7	$	9,165.5	$	(2,000.0)	$	(867.8)	$	(2,867.8)	$	4,074.8	$	2,222.9	$	6,297.7

(In millions)	For the Year Ended December 31, 2021
	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	$	5,869.6	$	4,255.2	$	10,124.8	$	(1,702.1)	$	(1,634.8)	$	(3,336.9)	$	4,167.5	$	2,620.4	$	6,787.9
Finance charges	1,385.1		1,117.9		2,503.0		(413.8)		(346.6)		(760.4)		971.3		771.3		1,742.6
Provision for credit losses	—		—		—		28.2		(36.6)		(8.4)		28.2		(36.6)		(8.4)
New Consumer Loan assignments (1)	2,059.0		1,108.8		3,167.8		—		—		—		2,059.0		1,108.8		3,167.8
Collections (2)	(3,464.6)		(2,095.1)		(5,559.7)		—		—		—		(3,464.6)		(2,095.1)		(5,559.7)
Accelerated Dealer Holdback payments	44.1		—		44.1		—		—		—		44.1		—		44.1
Dealer Holdback payments	153.4		—		153.4		—		—		—		153.4		—		153.4
Transfers (3)	(115.7)		115.7		—		35.5		(35.5)		—		(80.2)		80.2		—
Write-offs	(286.2)		(810.3)		(1,096.5)		286.2		810.3		1,096.5		—		—		—
Recoveries (4)	1.8		2.5		4.3		(1.8)		(2.5)		(4.3)		—		—		—
Deferral of Loan origination costs	8.6		—		8.6		—		—		—		8.6		—		8.6
Balance, end of period	$	5,655.1	$	3,694.7	$	9,349.8	$	(1,767.8)	$	(1,245.7)	$	(3,013.5)	$	3,887.3	$	2,449.0	$	6,336.3

(In millions)	For the Year Ended December 31, 2020
	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 (5)	940.2		1,523.4		2,463.6		(940.2)		(1,523.4)		(2,463.6)		—		—		—
Finance charges	1,313.9		991.0		2,304.9		(368.0)		(374.5)		(742.5)		945.9		616.5		1,562.4
Provision for credit losses	—		—		—		(239.7)		(317.2)		(556.9)		(239.7)		(317.2)		(556.9)
New Consumer Loan assignments (1)	2,207.8		1,433.4		3,641.2		—		—		—		2,207.8		1,433.4		3,641.2
Collections (2)	(3,059.1)		(1,682.3)		(4,741.4)		—		—		—		(3,059.1)		(1,682.3)		(4,741.4)
Accelerated Dealer Holdback payments	45.9		—		45.9		—		—		—		45.9		—		45.9
Dealer Holdback payments	142.6		—		142.6		—		—		—		142.6		—		142.6
Transfers (3)	(119.8)		119.8		—		39.7		(39.7)		—		(80.1)		80.1		—
Write-offs	(235.1)		(729.8)		(964.9)		235.1		729.8		964.9		—		—		—
Recoveries (4)	1.0		1.8		2.8		(1.0)		(1.8)		(2.8)		—		—		—
Deferral of Loan origination costs	8.9		—		8.9		—		—		—		8.9		—		8.9
Balance, end of period	$	5,869.6	$	4,255.2	$	10,124.8	$	(1,702.1)	$	(1,634.8)	$	(3,336.9)	$	4,167.5	$	2,620.4	$	6,787.9

(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)Represents repayments that we collected on Consumer Loans assigned under our programs.

(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 allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs.

(4)The Dealer Loans amount represents net cash flows received (collections 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.

(5)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.

We 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. We also recognize provision for credit losses on 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 Year Ended December 31, 2022
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	154.8	$	188.9	$	343.7
Forecast changes	85.6		52.1		137.7
Total	$	240.4	$	241.0	$	481.4

(In millions)	For the Year Ended December 31, 2021
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	153.1	$	212.0	$	365.1
Forecast changes	(181.3)		(175.4)		(356.7)
Total	$	(28.2)	$	36.6	$	8.4

(In millions)	For the Year Ended December 31, 2020
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	209.7	$	308.9	$	518.6
Forecast changes	30.0		8.3		38.3
Total	$	239.7	$	317.2	$	556.9

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. Under CECL, we are required to recognize a significant provision for credit losses expense at the time of assignment for contractual net cash flows we never expect to realize and to recognize in subsequent periods finance charge revenue that is significantly in excess of our expected yields. Additional information related to new Consumer Loan assignments is as follows:

(In millions)	For the Year Ended December 31, 2022
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	3,874.4	$	2,185.9	$	6,060.3
Expected net cash flows at the time of assignment (2)	3,516.1		1,497.0		5,013.1
Loans receivable at the time of assignment (3)	2,530.0		1,095.3		3,625.3
Provision for credit losses expense at the time of assignment	$	(154.8)	$	(188.9)	$	(343.7)
Expected future finance charges at the time of assignment (4)	1,140.9		590.6		1,731.5
Expected net Loan income at the time of assignment (5)	$	986.1	$	401.7	$	1,387.8

(In millions)	For the Year Ended December 31, 2021
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	3,202.5	$	2,324.1	$	5,526.6
Expected net cash flows at the time of assignment (2)	2,880.9		1,549.1		4,430.0
Loans receivable at the time of assignment (3)	2,059.0		1,108.8		3,167.8
Provision for credit losses expense at the time of assignment	$	(153.1)	$	(212.0)	$	(365.1)
Expected future finance charges at the time of assignment (4)	975.0		652.3		1,627.3
Expected net Loan income at the time of assignment (5)	$	821.9	$	440.3	$	1,262.2

(In millions)	For the Year Ended December 31, 2020
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	3,506.9	$	3,151.2	$	6,658.1
Expected net cash flows at the time of assignment (2)	3,113.4		2,018.2		5,131.6
Loans receivable at the time of assignment (3)	2,207.8		1,433.4		3,641.2
Provision for credit losses expense at the time of assignment	$	(209.7)	$	(308.9)	$	(518.6)
Expected future finance charges at the time of assignment (4)	1,115.3		893.7		2,009.0
Expected net Loan income at the time of assignment (5)	$	905.6	$	584.8	$	1,490.4

(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.

(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 Year Ended December 31, 2022
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	5,249.7	$	3,698.6	$	8,948.3
New Consumer Loan assignments (1)	3,516.1		1,497.0		5,013.1
Realized net cash flows (2)	(3,006.7)		(1,871.9)		(4,878.6)
Forecast changes	(41.6)		(18.1)		(59.7)
Transfers (3)	(79.6)		89.9		10.3
Balance, end of period	$	5,637.9	$	3,395.5	$	9,033.4

(In millions)	For the Year Ended December 31, 2021
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	5,664.3	$	3,880.1	$	9,544.4
New Consumer Loan assignments (1)	2,880.9		1,549.1		4,430.0
Realized net cash flows (2)	(3,267.1)		(2,095.1)		(5,362.2)
Forecast changes	87.7		238.4		326.1
Transfers (3)	(116.1)		126.1		10.0
Balance, end of period	$	5,249.7	$	3,698.6	$	8,948.3

(In millions)	For the Year Ended December 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)	3,113.4		2,018.2		5,131.6
Realized net cash flows (2)	(2,870.6)		(1,682.3)		(4,552.9)
Forecast changes	(41.1)		(5.2)		(46.3)
Transfers (3)	(114.4)		121.2		6.8
Balance, end of period	$	5,664.3	$	3,880.1	$	9,544.4

(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 2 to the consolidated financial statements. The following table compares our forecast of Consumer Loan collection rates as of December 31, 2022, with the forecasts as of December 31, 2021, as of December 31, 2020, and at the time of assignment, segmented by year of assignment:

	Total Loans as of December 31, 2022
	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	December 31, 2022		December 31, 2021		December 31, 2020		Initial Forecast		December 31, 2021		December 31, 2020		Initial Forecast
2013	73.5	%	73.4	%	73.4	%	72.0	%	0.1	%	0.1	%	1.5	%
2014	71.7	%	71.5	%	71.6	%	71.8	%	0.2	%	0.1	%	-0.1	%
2015	65.2	%	65.1	%	65.2	%	67.7	%	0.1	%	0.0	%	-2.5	%
2016	63.8	%	63.6	%	63.6	%	65.4	%	0.2	%	0.2	%	-1.6	%
2017	64.7	%	64.4	%	64.1	%	64.0	%	0.3	%	0.6	%	0.7	%
2018	65.2	%	65.1	%	64.0	%	63.6	%	0.1	%	1.2	%	1.6	%
2019	66.6	%	66.5	%	64.4	%	64.0	%	0.1	%	2.2	%	2.6	%
2020	67.8	%	67.9	%	64.8	%	63.4	%	-0.1	%	3.0	%	4.4	%
2021	66.2	%	66.5	%	—		66.3	%	-0.3	%	—		-0.1	%
2022	66.3	%	—		—		67.5	%	—		—		-1.2	%

	Dealer Loans as of December 31, 2022
	Forecasted Collection Percentage as of (1) (2)								Current Forecast Variance from
Consumer Loan Assignment Year	December 31, 2022		December 31, 2021		December 31, 2020		Initial Forecast		December 31, 2021		December 31, 2020		Initial Forecast
2013	73.4	%	73.3	%	73.4	%	72.1	%	0.1	%	0.0	%	1.3	%
2014	71.6	%	71.4	%	71.5	%	71.9	%	0.2	%	0.1	%	-0.3	%
2015	64.5	%	64.4	%	64.5	%	67.5	%	0.1	%	0.0	%	-3.0	%
2016	63.0	%	62.8	%	62.8	%	65.1	%	0.2	%	0.2	%	-2.1	%
2017	64.0	%	63.8	%	63.4	%	63.8	%	0.2	%	0.6	%	0.2	%
2018	64.6	%	64.6	%	63.5	%	63.6	%	0.0	%	1.1	%	1.0	%
2019	66.3	%	66.2	%	64.1	%	63.9	%	0.1	%	2.2	%	2.4	%
2020	67.7	%	67.6	%	64.5	%	63.3	%	0.1	%	3.2	%	4.4	%
2021	66.0	%	66.2	%	—		66.3	%	-0.2	%	—		-0.3	%
2022	65.8	%	—		—		67.3	%	—		—		-1.5	%

	Purchased Loans as of December 31, 2022
	Forecasted Collection Percentage as of (1) (2)								Current Forecast Variance from
Consumer Loan Assignment Year	December 31, 2022		December 31, 2021		December 31, 2020		Initial Forecast		December 31, 2021		December 31, 2020		Initial Forecast
2013	74.3	%	74.2	%	74.3	%	71.6	%	0.1	%	0.0	%	2.7	%
2014	72.5	%	72.4	%	72.4	%	70.9	%	0.1	%	0.1	%	1.6	%
2015	68.9	%	68.9	%	68.8	%	68.5	%	0.0	%	0.1	%	0.4	%
2016	66.0	%	65.8	%	65.8	%	66.5	%	0.2	%	0.2	%	-0.5	%
2017	66.3	%	66.0	%	65.6	%	64.6	%	0.3	%	0.7	%	1.7	%
2018	66.4	%	66.4	%	65.1	%	63.5	%	0.0	%	1.3	%	2.9	%
2019	67.2	%	67.2	%	65.1	%	64.2	%	0.0	%	2.1	%	3.0	%
2020	68.0	%	68.4	%	65.4	%	63.6	%	-0.4	%	2.6	%	4.4	%
2021	66.7	%	67.1	%	—		66.3	%	-0.4	%	—		0.4	%
2022	67.4	%	—		—		68.0	%	—		—		-0.6	%

(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 rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment.

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 as of December 31, 2022 and December 31, 2021, segmented by year of assignment:

(In millions)	Total Loans as of December 31, 2022 (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
2017 and prior	$	16.1	$	9.6	$	42.2	$	167.7	$	235.6
2018	142.8		71.7		197.5		37.3		449.3
2019	446.5		214.0		411.9		6.5		1,078.9
2020	732.6		332.8		421.1		0.9		1,487.4
2021	1,209.1		480.4		398.8		—		2,088.3
2022	3,036.1		631.1		158.8		—		3,826.0
	$	5,583.2	$	1,739.6	$	1,630.3	$	212.4	$	9,165.5

(In millions)	Dealer Loans as of December 31, 2022 (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
2017 and prior	$	7.7	$	4.5	$	20.4	$	103.1	$	135.7
2018	71.5		34.3		97.3		21.3		224.4
2019	215.2		100.7		196.9		4.2		517.0
2020	461.6		204.6		259.4		0.7		926.3
2021	836.1		324.8		268.0		—		1,428.9
2022	2,258.6		467.1		116.8		—		2,842.5
	$	3,850.7	$	1,136.0	$	958.8	$	129.3	$	6,074.8

(In millions)	Purchased Loans as of December 31, 2022 (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
2017 and prior	$	8.4	$	5.1	$	21.8	$	64.6	$	99.9
2018	71.3		37.4		100.2		16.0		224.9
2019	231.3		113.3		215.0		2.3		561.9
2020	271.0		128.2		161.7		0.2		561.1
2021	373.0		155.6		130.8		—		659.4
2022	777.5		164.0		42.0		—		983.5
	$	1,732.5	$	603.6	$	671.5	$	83.1	$	3,090.7

(In millions)	Total Loans as of December 31, 2021 (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
2016 and prior	$	7.4	$	3.4	$	38.6	$	117.5	$	166.9
2017	93.4		35.0		155.7		34.5		318.6
2018	452.4		169.9		395.1		6.7		1,024.1
2019	1,085.4		410.7		580.8		1.1		2,078.0
2020	1,586.4		538.6		405.5		—		2,530.5
2021	2,555.5		554.5		121.7		—		3,231.7
	$	5,780.5	$	1,712.1	$	1,697.4	$	159.8	$	9,349.8

(In millions)	Dealer Loans as of December 31, 2021 (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
2016 and prior	$	2.5	$	1.1	$	12.8	$	82.2	$	98.6
2017	44.9		16.8		75.2		21.8		158.7
2018	228.7		84.0		195.9		4.2		512.8
2019	530.7		194.2		276.3		0.7		1,001.9
2020	1,025.5		337.9		254.0		—		1,617.4
2021	1,800.5		382.8		82.4		—		2,265.7
	$	3,632.8	$	1,016.8	$	896.6	$	108.9	$	5,655.1

(In millions)	Purchased Loans as of December 31, 2021 (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
2016 and prior	$	4.9	$	2.3	$	25.8	$	35.3	$	68.3
2017	48.5		18.2		80.5		12.7		159.9
2018	223.7		85.9		199.2		2.5		511.3
2019	554.7		216.5		304.5		0.4		1,076.1
2020	560.9		200.7		151.5		—		913.1
2021	755.0		171.7		39.3		—		966.0
	$	2,147.7	$	695.3	$	800.8	$	50.9	$	3,694.7

(1)As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses, 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 measuring credit losses, 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.

The COVID-19 pandemic created conditions that increased the level of uncertainty associated with our estimate of the amount and timing of future net cash flows from our Loan portfolio. During the first quarter of 2020, we applied a subjective adjustment to our forecasting model to reflect our best estimate of the future impact of the COVID-19 pandemic on future net cash flows (“COVID forecast adjustment”), which reduced our estimate of future net cash flows by $162.2 million. We continued to apply the COVID forecast adjustment through the end of 2021, as it continued to represent our best estimate. During the first quarter of 2022, we determined that we had sufficient Consumer Loan performance experience since the lapse of federal stimulus payments and enhanced unemployment benefits to refine our estimate of future net cash flows. Accordingly, during the first quarter of 2022, we removed the COVID forecast adjustment and enhanced our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent data and new forecast variables. Under CECL, changes in the amount and timing of forecasted net cash flows are recorded as a provision for credit losses in the period of change.

The removal of the COVID forecast adjustment and the implementation of the enhanced forecasting methodology during the first quarter of 2022 impacted forecasted net cash flows and provision for credit losses as follows:

(In millions)	Increase / (Decrease) in
Forecasting Methodology Changes	Forecasted Net Cash Flows		Provision for Credit Losses
Removal of COVID forecast adjustment	$	149.5	$	(118.5)
Implementation of enhanced forecasting methodology	(53.8)		47.9
Total	95.7		(70.6)