XML 240 R16.htm IDEA: XBRL DOCUMENT v3.22.4
Finance Receivables
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Finance Receivables FINANCE RECEIVABLES
Our finance receivables are comprised of auto loan and lease receivables. Our auto loan receivables include amounts due from customers related to vehicle sales financed through DFC and Pfaff Leasing, secured by the related vehicles. Lease receivables include amounts related to vehicles leased through Pfaff Leasing, also secured by the related vehicles. These amounts are presented net of an allowance for estimated losses.
December 31,
($ in millions)20222021
Asset-backed term funding$482.1 $331.2 
Warehouse facilities1,383.9 279.6 
Other managed receivables390.9 217.5 
Total finance receivables2,256.9 828.3 
Less: Allowance for finance receivable losses(69.3)(25.0)
Finance receivables, net$2,187.6 $803.3 

Our allowance for finance receivable losses represents the net credit losses expected over the remaining contractual life of our managed receivables. During 2022, provision expense and net charge-offs increased primarily due to the higher volume of originations and resulting growth in the finance receivables balance. Also a contributing factor is the 3-4 month lag between charge-off and recovery. Collectively these factors drove an overall increase in the allowance. The allowances for credit losses related to finance receivables consisted of the following changes during the period:
Year Ended December 31,
($ in millions)20222021
Allowance at beginning of period$25.0 $12.9 
Charge-offs(62.0)(16.6)
Recoveries19.1 8.8 
Provision expense87.2 19.9 
Allowance at end of period$69.3 $25.0 
See Note 1 – Summary of Significant Accounting Policies for additional information on the allowance for credit losses related to finance receivables.
Ending finance receivables (principal balances) by FICO score:
As of December 31, 2022
Year of Origination
($ in millions)202220212020Total
<5991
$63.0 $30.3 $4.8 $98.1 
600-699652.6 243.4 27.2 923.2 
700-774575.9 97.9 10.0 683.8 
775+369.5 21.5 4.5 395.5 
Total auto loan receivables$1,661.0 $393.1 $46.5 2,100.6 
Other finance receivables (1)
156.3 
Total finance receivables$2,256.9 
As of December 31, 2021
Year of Origination
($ in millions)20212020Total
<5991
$53.3 $9.5 $62.8 
600-699386.5 50.0 436.5 
700-774149.2 17.3 166.5 
775+30.3 7.0 37.3 
Total auto loan receivables$619.3 $83.8 703.1 
Other finance receivables (1)
125.2 
Total finance receivables$828.3 
(1)Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.