Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2014

Loans receivable consists of the following:



(In millions)	As of December 31, 2014
	Dealer Loans			Purchased Loans			Total
Loans receivable	$	2,389.8		$	330.0		$	2,719.8
Allowance for credit losses	(198.1		)	(8.8		)	(206.9		)
Loans receivable, net	$	2,191.7		$	321.2		$	2,512.9

(In millions)	As of December 31, 2013
	Dealer Loans			Purchased Loans			Total
Loans receivable	$	2,155.5		$	252.7		$	2,408.2
Allowance for credit losses	(185.7		)	(9.7		)	(195.4		)
Loans receivable, net	$	1,969.8		$	243.0		$	2,212.8

Summary Of Changes In Loans Receivable

A summary of changes in Loans receivable is as follows:



(In millions)	For the Year Ended December 31, 2014
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	2,155.5		$	252.7		$	2,408.2
New Consumer Loan assignments (1)	1,471.4			204.3			1,675.7
Principal collected on Loans receivable	(1,392.6		)	(147.5		)	(1,540.1		)
Accelerated Dealer Holdback payments	41.7			—			41.7
Dealer Holdback payments	135.5			—			135.5
Transfers (2)	(20.5		)	20.5			—
Write-offs	(3.1		)	(0.1		)	(3.2		)
Recoveries (3)	1.8			0.1			1.9
Net change in other loans	0.1			—			0.1
Balance, end of period	$	2,389.8		$	330.0		$	2,719.8

(In millions)	For the Year Ended December 31, 2013
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	1,869.4		$	240.5		$	2,109.9
New Consumer Loan assignments (1)	1,356.6			124.0			1,480.6
Principal collected on Loans receivable	(1,204.6		)	(129.8		)	(1,334.4		)
Accelerated Dealer Holdback payments	40.4			—			40.4
Dealer Holdback payments	114.2			—			114.2
Transfers (2)	(17.9		)	17.9			—
Write-offs	(5.2		)	(0.1		)	(5.3		)
Recoveries (3)	2.2			0.2			2.4
Net change in other loans	0.4			—			0.4
Balance, end of period	$	2,155.5		$	252.7		$	2,408.2

(In millions)	For the Year Ended December 31, 2012
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	1,506.5		$	246.4		$	1,752.9
New Consumer Loan assignments (1)	1,253.6			108.8			1,362.4
Principal collected on Loans receivable	(1,024.8		)	(138.0		)	(1,162.8		)
Accelerated Dealer Holdback payments	43.7			—			43.7
Dealer Holdback payments	115.7			—			115.7
Transfers (2)	(23.8		)	23.8			—
Write-offs	(3.6		)	(0.6		)	(4.2		)
Recoveries (3)	2.2			0.1			2.3
Net change in other loans	(0.1		)	—			(0.1		)
Balance, end of period	$	1,869.4		$	240.5		$	2,109.9


(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)	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 to Purchased Loans in the period this forfeiture occurs.


(3)	Represents collections received on previously written off Loans.

Summary Of Changes In Accretable Yield

The excess of expected net cash flows over the carrying value of the Loans 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 Year Ended December 31, 2014
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	667.5		$	112.8		$	780.3
New Consumer Loan assignments (1)	593.8			77.2			671.0
Finance charge income	(552.8		)	(77.6		)	(630.4		)
Forecast changes	23.1			12.7			35.8
Transfers (2)	(6.4		)	11.4			5.0
Balance, end of period	$	725.2		$	136.5		$	861.7

(In millions)	For the Year Ended December 31, 2013
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	602.9		$	115.2		$	718.1
New Consumer Loan assignments (1)	564.9			50.3			615.2
Finance charge income	(517.7		)	(72.7		)	(590.4		)
Forecast changes	24.9			7.6			32.5
Transfers (2)	(7.5		)	12.4			4.9
Balance, end of period	$	667.5		$	112.8		$	780.3

(In millions)	For the Year Ended December 31, 2012
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	508.0		$	120.1		$	628.1
New Consumer Loan assignments (1)	538.7			47.8			586.5
Finance charge income	(458.7		)	(79.5		)	(538.2		)
Forecast changes	25.6			10.0			35.6
Transfers (2)	(10.7		)	16.8			6.1
Balance, end of period	$	602.9		$	115.2		$	718.1


(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)	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 expected future net cash flows to Purchased Loans in the period this forfeiture occurs.

Summary Of Information Related To New Consumer Loan Assignments

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



(In millions)	For the Year Ended December 31, 2014
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	2,251.4	$	394.7	$	2,646.1
Expected net cash flows at the time of assignment (2)	2,065.2		281.5		2,346.7
Fair value at the time of assignment (3)	1,471.4		204.3		1,675.7

(In millions)	For the Year Ended December 31, 2013
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	2,079.8	$	241.6	$	2,321.4
Expected net cash flows at the time of assignment (2)	1,921.5		174.3		2,095.8
Fair value at the time of assignment (3)	1,356.6		124.0		1,480.6

(In millions)	For the Year Ended December 31, 2012
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,935.1	$	217.6	$	2,152.7
Expected net cash flows at the time of assignment (2)	1,792.3		156.5		1,948.8
Fair value at the time of assignment (3)	1,253.6		108.8		1,362.4

(1)

The Dealer Loans amount represents the 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 the 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 the 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 the 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.

Schedule Of Consumer Loans Forecasted Collection Percentage

The following table compares our forecast of Consumer Loan collection rates as of December 31, 2014, with the forecasts as of December 31, 2013, as of December 31, 2012, and at the time of assignment, segmented by year of assignment:



	Forecasted Collection Percentage as of (1)								Variance in Forecasted Collection Percentage from
Consumer Loan Assignment Year	December 31, 2014		December 31, 2013		December 31, 2012		Initial Forecast		December 31, 2013		December 31, 2012		Initial Forecast
2005	73.7	%	73.7	%	73.6	%	74.0	%	—	%	0.1	%	(0.3	)%
2006	70.0	%	70.0	%	69.9	%	71.4	%	—	%	0.1	%	(1.4	)%
2007	68.0	%	67.9	%	68.0	%	70.7	%	0.1	%	—	%	(2.7	)%
2008	70.3	%	70.1	%	70.3	%	69.7	%	0.2	%	—	%	0.6	%
2009	79.4	%	79.2	%	79.5	%	71.9	%	0.2	%	(0.1	)%	7.5	%
2010	77.2	%	77.0	%	77.3	%	73.6	%	0.2	%	(0.1	)%	3.6	%
2011	74.0	%	74.1	%	74.1	%	72.5	%	(0.1	)%	(0.1	)%	1.5	%
2012	73.4	%	73.5	%	72.2	%	71.4	%	(0.1	)%	1.2	%	2.0	%
2013	73.7	%	73.3	%	—		72.0	%	0.4	%	—		1.7	%
2014	72.6	%	—		—		71.8	%	—		—		0.8	%


(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.

Schedule Of Consumer Loans Performance

The following table segments our Loan portfolio by the performance of the Loan pools:



(In millions)	As of December 31, 2014
	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	$	945.1	$	317.7	$	1,262.8	$	1,444.7		$	12.3		$	1,457.0
Allowance for credit losses	—		—		—		(198.1		)	(8.8		)	(206.9		)
Loans receivable, net	$	945.1	$	317.7	$	1,262.8	$	1,246.6		$	3.5		$	1,250.1

(In millions)	As of December 31, 2013
	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	$	681.4	$	227.3	$	908.7	$	1,474.1		$	25.4		$	1,499.5
Allowance for credit losses	—		—		—		(185.7		)	(9.7		)	(195.4		)
Loans receivable, net	$	681.4	$	227.3	$	908.7	$	1,288.4		$	15.7		$	1,304.1

Summary Of Changes In Allowance For Credit Losses

A summary of changes in the allowance for credit losses is as follows:



(In millions)	For the Year Ended December 31, 2014
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	185.7		$	9.7		$	195.4
Provision for credit losses	13.7			(0.9		)	12.8
Write-offs	(3.1		)	(0.1		)	(3.2		)
Recoveries (1)	1.8			0.1			1.9
Balance, end of period	$	198.1		$	8.8		$	206.9

(In millions)	For the Year Ended December 31, 2013
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	167.4		$	9.0		$	176.4
Provision for credit losses	21.3			0.6			21.9
Write-offs	(5.2		)	(0.1		)	(5.3		)
Recoveries (1)	2.2			0.2			2.4
Balance, end of period	$	185.7		$	9.7		$	195.4

(In millions)	For the Year Ended December 31, 2012
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	141.7		$	12.6		$	154.3
Provision for credit losses	27.1			(3.1		)	24.0
Write-offs	(3.6		)	(0.6		)	(4.2		)
Recoveries (1)	2.2			0.1			2.3
Balance, end of period	$	167.4		$	9.0		$	176.4


(1)	Represents collections received on previously written off Loans.