Loans Receivable

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans Receivable

LOANS RECEIVABLE

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

(In millions)	As of March 31, 2024
	Dealer Loans		Purchased Loans		Total
Loans receivable	$	7,553.0	$	2,930.5	$	10,483.5
Allowance for credit losses	(2,471.2)		(666.7)		(3,137.9)
Loans receivable, net	$	5,081.8	$	2,263.8	$	7,345.6
(In millions)	As of December 31, 2023
	Dealer Loans		Purchased Loans		Total
Loans receivable	$	7,065.5	$	2,954.6	$	10,020.1
Allowance for credit losses	(2,355.7)		(709.1)		(3,064.8)
Loans receivable, net	$	4,709.8	$	2,245.5	$	6,955.3

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

	For the Three Months Ended March 31, 2024
(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	$	7,065.5	$	2,954.6	$	10,020.1	$	(2,355.7)	$	(709.1)	$	(3,064.8)	$	4,709.8	$	2,245.5	$	6,955.3
Finance charges	438.5		228.0		666.5		(148.2)		(49.1)		(197.3)		290.3		178.9		469.2
Provision for credit losses	—		—		—		(121.7)		(64.3)		(186.0)		(121.7)		(64.3)		(186.0)
New Consumer Loan assignments (1)	1,009.4		307.6		1,317.0		—		—		—		1,009.4		307.6		1,317.0
Collections (2)	(864.9)		(428.8)		(1,293.7)		—		—		—		(864.9)		(428.8)		(1,293.7)
Accelerated Dealer Holdback payments	15.1		—		15.1		—		—		—		15.1		—		15.1
Dealer Holdback payments	64.9		—		64.9		—		—		—		64.9		—		64.9
Transfers (3)	(36.9)		36.9		—		12.0		(12.0)		—		(24.9)		24.9		—
Write-offs	(142.8)		(168.6)		(311.4)		142.8		168.6		311.4		—		—		—
Recoveries (4)	0.4		0.8		1.2		(0.4)		(0.8)		(1.2)		—		—		—
Deferral of Loan origination costs	3.8		—		3.8		—		—		—		3.8		—		3.8
Balance, end of period	$	7,553.0	$	2,930.5	$	10,483.5	$	(2,471.2)	$	(666.7)	$	(3,137.9)	$	5,081.8	$	2,263.8	$	7,345.6

	For the Three Months Ended March 31, 2023
(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	$	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
Finance charges	368.3		231.1		599.4		(122.6)		(55.7)		(178.3)		245.7		175.4		421.1
Provision for credit losses	—		—		—		(74.7)		(62.7)		(137.4)		(74.7)		(62.7)		(137.4)
New Consumer Loan assignments (1)	745.9		349.4		1,095.3		—		—		—		745.9		349.4		1,095.3
Collections (2)	(808.6)		(438.4)		(1,247.0)		—		—		—		(808.6)		(438.4)		(1,247.0)
Accelerated Dealer Holdback payments	10.8		—		10.8		—		—		—		10.8		—		10.8
Dealer Holdback payments	57.2		—		57.2		—		—		—		57.2		—		57.2
Transfers (3)	(19.2)		19.2		—		6.7		(6.7)		—		(12.5)		12.5		—
Write-offs	(117.7)		(182.9)		(300.6)		117.7		182.9		300.6		—		—		—
Recoveries (4)	0.3		0.8		1.1		(0.3)		(0.8)		(1.1)		—		—		—
Deferral of Loan origination costs	2.6		—		2.6		—		—		—		2.6		—		2.6
Balance, end of period	$	6,314.4	$	3,069.9	$	9,384.3	$	(2,073.2)	$	(810.8)	$	(2,884.0)	$	4,241.2	$	2,259.1	$	6,500.3

(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.

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 Three Months Ended March 31, 2024
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	57.4	$	41.4	$	98.8
Forecast changes	64.3		22.9		87.2
Total	$	121.7	$	64.3	$	186.0
(In millions)	For the Three Months Ended March 31, 2023
Provision for Credit Losses	Dealer Loans		Purchased Loans		Total
New Consumer Loan assignments	$	37.7	$	55.4	$	93.1
Forecast changes	37.0		7.3		44.3
Total	$	74.7	$	62.7	$	137.4

The net Loan income (finance charge revenue less provision for credit losses expense) that we 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 the Loan's assignment to us for contractual net cash flows we do not expect to realize; and

•finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Additional information related to new Consumer Loan assignments is as follows:

(In millions)	For the Three Months Ended March 31, 2024
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,586.2	$	636.5	$	2,222.7
Expected net cash flows at the time of assignment (2)	1,437.8		448.2		1,886.0
Loans receivable at the time of assignment (3)	1,009.4		307.6		1,317.0
Provision for credit losses expense at the time of assignment	$	(57.4)	$	(41.4)	$	(98.8)
Expected future finance charges at the time of assignment (4)	485.8		182.0		667.8
Expected net Loan income at the time of assignment (5)	$	428.4	$	140.6	$	569.0

(In millions)	For the Three Months Ended March 31, 2023
New Consumer Loan Assignments	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,172.8	$	713.6	$	1,886.4
Expected net cash flows at the time of assignment (2)	1,064.1		488.8		1,552.9
Loans receivable at the time of assignment (3)	745.9		349.4		1,095.3
Provision for credit losses expense at the time of assignment	$	(37.7)	$	(55.4)	$	(93.1)
Expected future finance charges at the time of assignment (4)	355.9		194.8		550.7
Expected net Loan income at the time of assignment (5)	$	318.2	$	139.4	$	457.6

(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. The Loan amounts also represent the fair value at the time of assignment.

(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 exceed Loans receivable at the time of assignment.

A summary of changes in expected future net cash flows is as follows:

(In millions)	For the Three Months Ended March 31, 2024
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	6,707.2	$	3,472.0	$	10,179.2
New Consumer Loan assignments (1)	1,437.8		448.2		1,886.0
Realized net cash flows (2)	(784.9)		(428.8)		(1,213.7)
Forecast changes	(27.0)		(3.8)		(30.8)
Transfers (3)	(37.2)		39.5		2.3
Balance, end of period	$	7,295.9	$	3,527.1	$	10,823.0

(In millions)	For the Three Months Ended March 31, 2023
Expected Future Net Cash Flows	Dealer Loans		Purchased Loans		Total
Balance, beginning of period	$	5,637.9	$	3,395.5	$	9,033.4
New Consumer Loan assignments (1)	1,064.1		488.8		1,552.9
Realized net cash flows (2)	(740.6)		(438.4)		(1,179.0)
Forecast changes	(7.2)		16.6		9.4
Transfers (3)	(18.5)		22.1		3.6
Balance, end of period	$	5,935.7	$	3,484.6	$	9,420.3

(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 aggregated forecast of Consumer Loan collection rates as of March 31, 2024 with the aggregated forecasts as of December 31, 2023 and at the time of assignment, segmented by year of assignment:

	Total Loans
	Forecasted Collection Percentage as of (1)						Current Forecast Variance from
Consumer Loan Assignment Year	March 31, 2024		December 31, 2023		Initial Forecast		December 31, 2023		Initial Forecast
2015	65.3	%	65.2	%	67.7	%	0.1	%	-2.4	%
2016	63.8	%	63.8	%	65.4	%	0.0	%	-1.6	%
2017	64.7	%	64.7	%	64.0	%	0.0	%	0.7	%
2018	65.5	%	65.5	%	63.6	%	0.0	%	1.9	%
2019	67.0	%	66.9	%	64.0	%	0.1	%	3.0	%
2020	67.7	%	67.6	%	63.4	%	0.1	%	4.3	%
2021	64.3	%	64.5	%	66.3	%	-0.2	%	-2.0	%
2022	62.1	%	62.7	%	67.5	%	-0.6	%	-5.4	%
2023	67.2	%	67.4	%	67.5	%	-0.2	%	-0.3	%
2024	66.9	%	—		66.9	%	—		0.0	%

	Dealer Loans
	Forecasted Collection Percentage as of (1) (2)						Current Forecast Variance from
Consumer Loan Assignment Year	March 31, 2024		December 31, 2023		Initial Forecast		December 31, 2023		Initial Forecast
2015	64.6	%	64.6	%	67.5	%	0.0	%	-2.9	%
2016	63.0	%	63.0	%	65.1	%	0.0	%	-2.1	%
2017	64.0	%	64.0	%	63.8	%	0.0	%	0.2	%
2018	64.9	%	64.9	%	63.6	%	0.0	%	1.3	%
2019	66.7	%	66.5	%	63.9	%	0.2	%	2.8	%
2020	67.5	%	67.4	%	63.3	%	0.1	%	4.2	%
2021	64.1	%	64.2	%	66.3	%	-0.1	%	-2.2	%
2022	61.4	%	62.0	%	67.3	%	-0.6	%	-5.9	%
2023	66.1	%	66.4	%	66.8	%	-0.3	%	-0.7	%
2024	66.0	%	—		66.0	%	—		0.0	%

	Purchased Loans
	Forecasted Collection Percentage as of (1) (2)						Current Forecast Variance from
Consumer Loan Assignment Year	March 31, 2024		December 31, 2023		Initial Forecast		December 31, 2023		Initial Forecast
2015	68.9	%	68.9	%	68.5	%	0.0	%	0.4	%
2016	66.1	%	66.1	%	66.5	%	0.0	%	-0.4	%
2017	66.3	%	66.3	%	64.6	%	0.0	%	1.7	%
2018	66.8	%	66.8	%	63.5	%	0.0	%	3.3	%
2019	67.7	%	67.5	%	64.2	%	0.2	%	3.5	%
2020	67.9	%	67.8	%	63.6	%	0.1	%	4.3	%
2021	64.8	%	65.0	%	66.3	%	-0.2	%	-1.5	%
2022	63.8	%	64.3	%	68.0	%	-0.5	%	-4.2	%
2023	70.0	%	70.1	%	69.4	%	-0.1	%	0.6	%
2024	70.0	%	—		69.9	%	—		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.

(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 for 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 March 31, 2024 and December 31, 2023, segmented by year of assignment:

(In millions)	Total Loans as of March 31, 2024 (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
2019 and prior	$	122.3	$	67.7	$	241.6	$	244.2	$	675.8
2020	271.0		124.6		271.9		8.7		676.2
2021	511.4		204.7		327.7		1.1		1,044.9
2022	1,325.5		397.7		399.4		0.1		2,122.7
2023	3,351.6		650.5		219.6		—		4,221.7
2024	1,682.3		59.9		—		—		1,742.2
	$	7,264.1	$	1,505.1	$	1,460.2	$	254.1	$	10,483.5

(In millions)	Dealer Loans as of March 31, 2024 (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
2019 and prior	$	55.7	$	30.4	$	111.8	$	137.6	$	335.5
2020	164.0		74.0		163.9		6.6		408.5
2021	346.5		134.7		217.2		0.9		699.3
2022	960.8		284.1		284.7		0.1		1,529.7
2023	2,514.4		496.3		163.6		—		3,174.3
2024	1,356.2		49.5		—		—		1,405.7
	$	5,397.6	$	1,069.0	$	941.2	$	145.2	$	7,553.0

(In millions)	Purchased Loans as of March 31, 2024 (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
2019 and prior	$	66.6	$	37.3	$	129.8	$	106.6	$	340.3
2020	107.0		50.6		108.0		2.1		267.7
2021	164.9		70.0		110.5		0.2		345.6
2022	364.7		113.6		114.7		—		593.0
2023	837.2		154.2		56.0		—		1,047.4
2024	326.1		10.4		—		—		336.5
	$	1,866.5	$	436.1	$	519.0	$	108.9	$	2,930.5

(In millions)	Total Loans as of December 31, 2023 (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
2018 and prior	$	24.2	$	16.8	$	73.5	$	204.9	$	319.4
2019	150.7		83.8		237.6		39.5		511.6
2020	328.9		165.5		314.5		4.6		813.5
2021	596.6		262.1		368.7		0.7		1,228.1
2022	1,518.0		499.8		422.5		—		2,440.3
2023	3,888.7		666.5		152.0		—		4,707.2
	$	6,507.1	$	1,694.5	$	1,568.8	$	249.7	$	10,020.1

(In millions)	Dealer Loans as of December 31, 2023 (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
2018 and prior	$	11.7	$	7.9	$	35.0	$	117.8	$	172.4
2019	69.9		38.0		111.2		22.0		241.1
2020	201.7		98.0		190.4		3.5		493.6
2021	407.3		173.4		245.0		0.6		826.3
2022	1,109.4		360.4		303.5		—		1,773.3
2023	2,942.3		503.6		112.9		—		3,558.8
	$	4,742.3	$	1,181.3	$	998.0	$	143.9	$	7,065.5

(In millions)	Purchased Loans as of December 31, 2023 (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
2018 and prior	$	12.5	$	8.9	$	38.5	$	87.1	$	147.0
2019	80.8		45.8		126.4		17.5		270.5
2020	127.2		67.5		124.1		1.1		319.9
2021	189.3		88.7		123.7		0.1		401.8
2022	408.6		139.4		119.0		—		667.0
2023	946.4		162.9		39.1		—		1,148.4
	$	1,764.8	$	513.2	$	570.8	$	105.8	$	2,954.6

(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 following table summarizes the write-offs for Consumer Loan assignments for the three months ended March 31, 2024 and 2023, segmented by year of assignment:

(In millions)	For the Three Months Ended March 31, 2024
Write-offs by Consumer Loan Assignment Year	Dealer Loans		Purchased Loans		Total
2019 and prior	$	45.2	$	41.5	$	86.7
2020	25.3		21.8		47.1
2021	28.9		27.9		56.8
2022	33.2		40.1		73.3
2023	9.0		35.9		44.9
2024	1.2		1.4		2.6
	$	142.8	$	168.6	$	311.4

(In millions)	For the Three Months Ended March 31, 2023
Write-offs by Consumer Loan Assignment Year	Dealer Loans		Purchased Loans		Total
2018 and prior	$	31.6	$	31.5	$	63.1
2019	23.7		48.3		72.0
2020	23.7		28.8		52.5
2021	18.8		32.9		51.7
2022	19.0		40.3		59.3
2023	0.9		1.1		2.0
	$	117.7	$	182.9	$	300.6