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Finance Receivables (Tables) | 3 Months Ended
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Mar. 29, 2020
Receivables [Abstract] |
Finance Receivables | Finance receivables, net, consisted of the following (in thousands):
| March 29, 2020 |  | December 31, 2019 |  | March 31, 2019
Retail finance receivables | $ | 6,269,247 |  |  | $ | 6,416,428 |  |  | $ | 6,290,036 |
Wholesale finance receivables | 1,358,656 |  |  | 1,156,519 |  |  | 1,339,428 |
| 7,627,903 |  |  | 7,572,947 |  |  | 7,629,464 |
Allowance for credit losses | (335,496) |  |  | (198,581) |  |  | (190,872) |
| $ | 7,292,407 |  |  | $ | 7,374,366 |  |  | $ | 7,438,592 |
Allowance for Credit Losses on Finance Receivables | Changes in the allowance for credit losses on finance receivables by portfolio were as follows (in thousands):
| Three months ended March 29, 2020 |  |  |  |
| Retail |  | Wholesale |  | Total
Balance, beginning of period | $ | 188,501 |  |  | $ | 10,080 |  |  | $ | 198,581 |
Cumulative effect of change in accounting(a) | 95,558 |  |  | 5,046 |  |  | 100,604 |
Provision for credit losses | 70,417 |  |  | 9,002 |  |  | 79,419 |
Charge-offs | (55,215) |  |  | — |  |  | (55,215) |
Recoveries | 12,107 |  |  | — |  |  | 12,107 |
Balance, end of period | $ | 311,368 |  |  | $ | 24,128 |  |  | $ | 335,496 |
| Three months ended March 31, 2019 |  |  |  |
| Retail |  | Wholesale |  | Total
Balance, beginning of period | $ | 182,098 |  |  | $ | 7,787 |  |  | $ | 189,885 |
Provision for credit losses | 32,832 |  |  | 1,659 |  |  | 34,491 |
Charge-offs | (44,721) |  |  | — |  |  | (44,721) |
Recoveries | 11,217 |  |  | — |  |  | 11,217 |
Balance, end of period | $ | 181,426 |  |  | $ | 9,446 |  |  | $ | 190,872 |
(a)On January 1, 2020, the Company adopted ASU 2016-13 and increased the allowance for loan loss through Retained earnings, net of income taxes, to establish an allowance that represents expected lifetime credit losses on the finance receivable portfolios at date of adoption. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that were individually evaluated for impairment and those that were collectively evaluated for impairment, were as follows (in thousands):
| December 31, 2019 |  |  |  |
| Retail |  | Wholesale |  | Total
Allowance for credit losses, ending balance: |  |  |  |  |
Individually evaluated for impairment | $ | — |  |  | $ | 2,100 |  |  | $ | 2,100 |
Collectively evaluated for impairment | 188,501 |  |  | 7,980 |  |  | 196,481 |
| $ | 188,501 |  |  | $ | 10,080 |  |  | $ | 198,581 |
Finance receivables, ending balance: |  |  |  |  |
Individually evaluated for impairment | $ | — |  |  | $ | 4,601 |  |  | $ | 4,601 |
Collectively evaluated for impairment | 6,416,428 |  |  | 1,151,918 |  |  | 7,568,346 |
| $ | 6,416,428 |  |  | $ | 1,156,519 |  |  | $ | 7,572,947 |
| March 31, 2019 |  |  |  |
| Retail |  | Wholesale |  | Total
Allowance for credit losses, ending balance: |  |  |  |  |
Individually evaluated for impairment | $ | — |  |  | $ | — |  |  | $ | — |
Collectively evaluated for impairment | 181,426 |  |  | 9,446 |  |  | 190,872 |
| $ | 181,426 |  |  | $ | 9,446 |  |  | $ | 190,872 |
Finance receivables, ending balance: |  |  |  |  |
Individually evaluated for impairment | $ | — |  |  | $ | — |  |  | $ | — |
Collectively evaluated for impairment | 6,290,036 |  |  | 1,339,428 |  |  | 7,629,464 |
| $ | 6,290,036 |  |  | $ | 1,339,428 |  |  | $ | 7,629,464 |
Financing Receivable Credit Quality Indicators | The amortized cost of the Company's U.S. and Canada retail finance receivable portfolios by credit quality indicator and vintage, as of March 29, 2020, was as follows (in thousands):
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | 2015 & Prior |  | Total
U.S. Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | $ | 204,937 |  |  |  | $ | 825,176 |  |  |  | $ | 539,296 |  |  |  | $ | 275,621 |  |  |  | $ | 140,284 |  |  |  | $ | 62,924 |  |  |  | $ | 2,048,238 |
Prime | 265,365 |  |  |  | 1,065,132 |  |  |  | 717,234 |  |  |  | 441,284 |  |  |  | 262,421 |  |  |  | 155,338 |  |  |  | 2,906,774 |
Sub-prime | 108,068 |  |  |  | 394,291 |  |  |  | 239,571 |  |  |  | 155,391 |  |  |  | 108,531 |  |  |  | 98,124 |  |  |  | 1,103,976 |
| 578,370 |  |  |  | 2,284,599 |  |  |  | 1,496,101 |  |  |  | 872,296 |  |  |  | 511,236 |  |  |  | 316,386 |  |  |  | $ | 6,058,988 |
Canadian Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | $ | 12,819 |  |  |  | $ | 61,889 |  |  |  | $ | 39,516 |  |  |  | $ | 22,186 |  |  |  | $ | 10,565 |  |  |  | $ | 4,989 |  |  |  | $ | 151,964 |
Prime | 3,968 |  |  |  | 16,479 |  |  |  | 12,389 |  |  |  | 8,441 |  |  |  | 4,549 |  |  |  | 3,929 |  |  |  | 49,755 |
Sub-prime | 768 |  |  |  | 2,827 |  |  |  | 1,919 |  |  |  | 1,348 |  |  |  | 921 |  |  |  | 757 |  |  |  | 8,540 |
| 17,555 |  |  |  | 81,195 |  |  |  | 53,824 |  |  |  | 31,975 |  |  |  | 16,035 |  |  |  | 9,675 |  |  |  | 210,259 |
| $ | 595,925 |  |  | $ | 2,365,794 |  |  | $ | 1,549,925 |  |  | $ | 904,271 |  |  | $ | 527,271 |  |  | $ | 326,061 |  |  | $ | 6,269,247 |
The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):
|  | December 31, 2019 |  | March 31, 2019
Prime |  | $ | 5,278,093 |  |  | $ | 5,160,942 |
Sub-prime |  | 1,138,335 |  |  | 1,129,094 |
|  | $ | 6,416,428 |  |  | $ | 6,290,036 |
The amortized cost of wholesale financial receivables, by credit quality indicator and vintage, was as follows as of March 29, 2020 (in thousands):
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | 2015 & Prior |  | Total
Non-Performing | $ | — |  |  |  | $ | 2,376 |  |  |  | $ | 1,774 |  |  |  | $ | 107 |  |  |  | $ | 25 |  |  |  | $ | 43 |  |  |  | $ | 4,325 |
Doubtful | 478 |  |  |  | 4,169 |  |  |  | 529 |  |  |  | 51 |  |  |  | — |  |  |  | 726 |  |  |  | 5,953 |
Substandard | 5,375 |  |  |  | 6,374 |  |  |  | 391 |  |  |  | 131 |  |  |  | — |  |  |  | — |  |  |  | 12,271 |
Special Mention | 5,239 |  |  |  | 8,001 |  |  |  | 977 |  |  |  | 6 |  |  |  | — |  |  |  | 1,268 |  |  |  | 15,491 |
Medium Risk | 8,307 |  |  |  | 10,996 |  |  |  | 1,091 |  |  |  | 23 |  |  |  | — |  |  |  | 826 |  |  |  | 21,243 |
Low Risk | 658,137 |  |  |  | 574,401 |  |  |  | 47,101 |  |  |  | 10,997 |  |  |  | 6,323 |  |  |  | 2,414 |  |  |  | 1,299,373 |
| $ | 677,536 |  |  |  | $ | 606,317 |  |  |  | $ | 51,863 |  |  |  | $ | 11,315 |  |  |  | $ | 6,348 |  |  |  | $ | 5,277 |  |  |  | $ | 1,358,656 |
The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):
|  | December 31, 2019 |  | March 31, 2019
Doubtful |  | $ | 11,664 |  |  | $ | 8,679 |
Substandard |  | 6,122 |  |  | 7,866 |
Special Mention |  | 16,125 |  |  | 11,484 |
Medium Risk |  | 16,800 |  |  | 917 |
Low Risk |  | 1,105,808 |  |  | 1,310,482 |
|  | $ | 1,156,519 |  |  | $ | 1,339,428 |
Impaired Financing Receivables Under ASC 310 | Additional information related to the wholesale finance receivables on non-accrual status at March 29, 2020 includes (in thousands):
| Amortized Cost, Beginning of Period |  | Amortized Cost, End of Period |  | Interest Income Recognized
Wholesale: |  |  |  |  |
No related allowance recorded | $ | — |  |  | $ | — |  |  | $ | — |
Related allowance recorded | 4,994 |  |  | 4,325 |  |  | — |
| $ | 4,994 |  |  | $ | 4,325 |  |  | $ | — |
Additional information related to the wholesale finance receivables that were individually deemed to be impaired under ASC Topic 310, Receivables at December 31, 2019 included the following (in thousands). There were no wholesale receivables individually deemed to be impaired at March 31, 2019.
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized
Wholesale: |  |  |  |  |  |  |  |  |
No related allowance recorded | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Related allowance recorded | 4,994 |  |  | 4,601 |  |  | 2,100 |  |  | 4,976 |  |  | — |
| $ | 4,994 |  |  | $ | 4,601 |  |  | $ | 2,100 |  |  | $ | 4,976 |  |  | $ | — |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | The aging analysis of finance receivables was as follows (in thousands):
| March 29, 2020 |  |  |  |  |  |  |  |  |  |
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total Finance Receivables
Retail finance receivables | $ | 6,091,319 |  |  | $ | 101,412 |  |  | $ | 37,816 |  |  | $ | 38,700 |  |  | $ | 177,928 |  |  | $ | 6,269,247 |
Wholesale finance receivables | 1,352,084 |  |  | 2,051 |  |  | 1,437 |  |  | 3,084 |  |  | 6,572 |  |  | 1,358,656 |
| $ | 7,443,403 |  |  | $ | 103,463 |  |  | $ | 39,253 |  |  | $ | 41,784 |  |  | $ | 184,500 |  |  | $ | 7,627,903 |
| December 31, 2019 |  |  |  |  |  |  |  |  |  |
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total Finance Receivables
Retail finance receivables | $ | 6,171,930 |  |  | $ | 142,479 |  |  | $ | 53,995 |  |  | $ | 48,024 |  |  | $ | 244,498 |  |  | $ | 6,416,428 |
Wholesale finance receivables | 1,152,416 |  |  | 1,145 |  |  | 384 |  |  | 2,574 |  |  | 4,103 |  |  | 1,156,519 |
| $ | 7,324,346 |  |  | $ | 143,624 |  |  | $ | 54,379 |  |  | $ | 50,598 |  |  | $ | 248,601 |  |  | $ | 7,572,947 |
| March 31, 2019 |  |  |  |  |  |  |  |  |  |
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total Finance Receivables
Retail finance receivables | $ | 6,088,894 |  |  | $ | 119,150 |  |  | $ | 43,028 |  |  | $ | 38,964 |  |  | $ | 201,142 |  |  | $ | 6,290,036 |
Wholesale finance receivables | 1,337,429 |  |  | 862 |  |  | 355 |  |  | 782 |  |  | 1,999 |  |  | 1,339,428 |
| $ | 7,426,323 |  |  | $ | 120,012 |  |  | $ | 43,383 |  |  | $ | 39,746 |  |  | $ | 203,141 |  |  | $ | 7,629,464 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=119407570&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=118936363&loc=SL6953659-111524 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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