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Auto Loan Receivables | 6 Months Ended
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Aug. 31, 2017
Loans Receivable, Net [Abstract] |
Auto Loan Receivables | Auto Loan Receivables Auto loan receivables include amounts due from customers related to retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses. We generally use warehouse facilities to fund auto loan receivables originated by CAF until we elect to fund them through a term securitization or alternative funding arrangement. The majority of the auto loan receivables serve as collateral for the related non-recourse notes payable of $11.30 billion as of August 31, 2017 and $10.74 billion as of February 28, 2017. See Notes 2 and 10 for additional information on securitizations and non-recourse notes payable. Auto Loan Receivables, Net
| As of August 31 |  | As of February 28
(In millions) | 2017 |  | 2017
Term securitizations | $ | 8,885.4 |  |  | $ | 8,784.7 |
Warehouse facilities | 2,061.0 |  |  | 1,624.0 |
Overcollateralization (1) | 241.8 |  |  | 211.4 |
Other managed receivables (2) | 64.6 |  |  | 61.2 |
Total ending managed receivables | 11,252.8 |  |  | 10,681.3 |
Accrued interest and fees | 46.9 |  |  | 38.5 |
Other | 2.1 |  |  | (0.1 | )
Less allowance for loan losses | (129.5 | ) |  | (123.6 | )
Auto loan receivables, net | $ | 11,172.3 |  |  | $ | 10,596.1 |
(1) | Represents receivables restricted as excess collateral for the warehouse facilities and term securitizations.
(2) | Other managed receivables includes receivables not funded through the warehouse facilities or term securitizations.
Credit Quality. When customers apply for financing, CAF’s proprietary scoring models rely on the customers’ credit history and certain application information to evaluate and rank their risk. We obtain credit histories and other credit data that includes information such as number, age, type of and payment history for prior or existing credit accounts. The application information that is used includes income, collateral value and down payment. The scoring models yield credit grades that represent the relative likelihood of repayment. Customers assigned a grade of “A” are determined to have the highest probability of repayment, and customers assigned a lower grade are determined to have a lower probability of repayment. For loans that are approved, the credit grade influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. CAF uses a combination of the initial credit grades and historical performance to monitor the credit quality of the auto loan receivables on an ongoing basis. We validate the accuracy of the scoring models periodically. Loan performance is reviewed on a recurring basis to identify whether the assigned grades adequately reflect the customers’ likelihood of repayment. Ending Managed Receivables by Major Credit Grade
| As of August 31 |  | As of February 28
(In millions) | 2017 (1) |  | % (2) |  | 2017 (1) |  | % (2)
A | $ | 5,513.2 |  |  | 49.0 |  | $ | 5,223.4 |  |  | 48.9
B | 3,986.6 |  |  | 35.4 |  | 3,739.4 |  |  | 35.0
C and other | 1,753.0 |  |  | 15.6 |  | 1,718.5 |  |  | 16.1
Total ending managed receivables | $ | 11,252.8 |  |  | 100.0 |  | $ | 10,681.3 |  |  | 100.0
(1) | Classified based on credit grade assigned when customers were initially approved for financing.
(2) | Percent of total ending managed receivables.
Allowance for Loan Losses
| Three Months Ended August 31 | Six Months Ended August 31
(In millions) | 2017 |  | % (1) |  | 2016 |  | % (1) | 2017 |  | % (1) |  | 2016 |  | % (1)
Balance as of beginning of period | $ | 129.8 |  |  | 1.18 |  | $ | 104.0 |  |  | 1.05 | $ | 123.6 |  |  | 1.16 |  | $ | 94.9 |  |  | 0.99
Charge-offs | (60.4 | ) |  |  |  | (55.9 | ) |  |  | (114.5 | ) |  |  |  | (101.7 | ) |  |
Recoveries | 27.2 |  |  |  |  | 25.9 |  |  |  | 58.9 |  |  |  |  | 54.2 |  |  |
Provision for loan losses | 32.9 |  |  |  |  | 35.7 |  |  |  | 61.5 |  |  |  |  | 62.3 |  |  |
Balance as of end of period | $ | 129.5 |  |  | 1.15 |  | $ | 109.7 |  |  | 1.08 | $ | 129.5 |  |  | 1.15 |  | $ | 109.7 |  |  | 1.08
(1) | Percent of total ending managed receivables.
The allowance for loan losses represents an estimate of the amount of net losses inherent in our portfolio of managed receivables as of the applicable reporting date and anticipated to occur during the following 12 months. The allowance is primarily based on the composition of the portfolio of managed receivables, historical loss trends and forecasted forward loss curves. We also take into account recent trends in delinquencies and defaults, recovery rates and the economic environment. The provision for loan losses is the periodic expense of maintaining an adequate allowance. Past Due Receivables
| As of August 31 |  | As of February 28
(In millions) | 2017 |  | % (1) |  | 2017 |  | % (1)
Total ending managed receivables | $ | 11,252.8 |  |  | 100.0 |  | $ | 10,681.3 |  |  | 100.0
Delinquent loans: |  |  |  |  |  |  |
31-60 days past due | $ | 239.4 |  |  | 2.1 |  | $ | 211.0 |  |  | 2.0
61-90 days past due | 115.1 |  |  | 1.0 |  | 93.5 |  |  | 0.9
Greater than 90 days past due | 30.5 |  |  | 0.3 |  | 26.5 |  |  | 0.2
Total past due | $ | 385.0 |  |  | 3.4 |  | $ | 331.0 |  |  | 3.1
(1) | Percent of total ending managed receivables.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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