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Finance Receivables (Tables) | 3 Months Ended
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Mar. 28, 2021
Receivables [Abstract] |
Finance Receivables | Finance receivables, net were as follows (in thousands):
| March 28, 2021 |  | December 31, 2020 |  | March 29, 2020
Retail finance receivables | $ | 6,310,982 |  |  | $ | 6,344,195 |  |  | $ | 6,269,247 |
Wholesale finance receivables | 792,028 |  |  | 489,749 |  |  | 1,358,656 |
| 7,103,010 |  |  | 6,833,944 |  |  | 7,627,903 |
Allowance for credit losses | (346,233) |  |  | (390,936) |  |  | (335,496) |
| $ | 6,756,777 |  |  | $ | 6,443,008 |  |  | $ | 7,292,407 |
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 28, 2021
| Retail |  | Wholesale |  | Total
Balance, beginning of period | $ | 371,738 |  |  | $ | 19,198 |  |  | $ | 390,936 |
Provision for credit losses | (22,449) |  |  | (25) |  |  | (22,474) |
Charge-offs | (34,589) |  |  | — |  |  | (34,589) |
Recoveries | 12,360 |  |  | — |  |  | 12,360 |
Balance, end of period | $ | 327,060 |  |  | $ | 19,173 |  |  | $ | 346,233 |
| 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 |
(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.
Financing Receivable Credit Quality Indicators | The amortized cost of the Company's U.S. and Canadian retail finance receivables by vintage and credit quality indicator was as follows (in thousands):
| March 28, 2021
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 & Prior |  | Total
U.S. Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | $ | 260,359 |  |  | $ | 725,383 |  |  | $ | 502,847 |  |  | $ | 301,839 |  |  | $ | 134,213 |  |  | $ | 74,086 |  |  | $ | 1,998,727 |
Prime | 349,662 |  |  | 1,026,080 |  |  | 706,940 |  |  | 445,201 |  |  | 249,327 |  |  | 183,217 |  |  | 2,960,427 |
Sub-prime | 130,389 |  |  | 395,495 |  |  | 263,203 |  |  | 156,368 |  |  | 96,998 |  |  | 100,827 |  |  | 1,143,280 |
| 740,410 |  |  | 2,146,958 |  |  | 1,472,990 |  |  | 903,408 |  |  | 480,538 |  |  | 358,130 |  |  | 6,102,434 |
Canadian Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | 13,938 |  |  | 48,309 |  |  | 42,993 |  |  | 24,549 |  |  | 11,116 |  |  | 4,831 |  |  | 145,736 |
Prime | 4,245 |  |  | 17,350 |  |  | 13,055 |  |  | 9,263 |  |  | 5,808 |  |  | 4,178 |  |  | 53,899 |
Sub-prime | 601 |  |  | 2,949 |  |  | 2,227 |  |  | 1,407 |  |  | 951 |  |  | 778 |  |  | 8,913 |
| 18,784 |  |  | 68,608 |  |  | 58,275 |  |  | 35,219 |  |  | 17,875 |  |  | 9,787 |  |  | 208,548 |
| $ | 759,194 |  |  | $ | 2,215,566 |  |  | $ | 1,531,265 |  |  | $ | 938,627 |  |  | $ | 498,413 |  |  | $ | 367,917 |  |  | $ | 6,310,982 |
| December 31, 2020
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | 2015 & Prior |  | Total
U.S. Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | $ | 822,631 |  |  | $ | 575,977 |  |  | $ | 355,529 |  |  | $ | 165,436 |  |  | $ | 71,360 |  |  | $ | 29,181 |  |  | $ | 2,020,114 |
Prime | 1,133,637 |  |  | 794,058 |  |  | 508,713 |  |  | 293,358 |  |  | 156,688 |  |  | 77,046 |  |  | 2,963,500 |
Sub-prime | 435,875 |  |  | 295,403 |  |  | 177,598 |  |  | 111,163 |  |  | 72,556 |  |  | 52,060 |  |  | 1,144,655 |
| 2,392,143 |  |  | 1,665,438 |  |  | 1,041,840 |  |  | 569,957 |  |  | 300,604 |  |  | 158,287 |  |  | 6,128,269 |
Canadian Retail: |  |  |  |  |  |  |  |  |  |  |  |  |
Super prime | 53,465 |  |  | 48,692 |  |  | 28,581 |  |  | 13,818 |  |  | 5,018 |  |  | 2,011 |  |  | 151,585 |
Prime | 18,568 |  |  | 14,257 |  |  | 10,269 |  |  | 6,727 |  |  | 3,198 |  |  | 2,025 |  |  | 55,044 |
Sub-prime | 3,172 |  |  | 2,498 |  |  | 1,560 |  |  | 1,095 |  |  | 607 |  |  | 365 |  |  | 9,297 |
| 75,205 |  |  | 65,447 |  |  | 40,410 |  |  | 21,640 |  |  | 8,823 |  |  | 4,401 |  |  | 215,926 |
| $ | 2,467,348 |  |  | $ | 1,730,885 |  |  | $ | 1,082,250 |  |  | $ | 591,597 |  |  | $ | 309,427 |  |  | $ | 162,688 |  |  | $ | 6,344,195 |
| March 29, 2020
| 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 amortized cost of wholesale financial receivables, by vintage and credit quality indicator, was as follows (in thousands):
| March 28, 2021
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 & Prior |  | Total
Non-Performing | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Special Mention | 567 |  |  | 530 |  |  | 262 |  |  | 17 |  |  | — |  |  | — |  |  | 1,376 |
Medium Risk | — |  |  | 728 |  |  | 417 |  |  | — |  |  | — |  |  | — |  |  | 1,145 |
Low Risk | 600,144 |  |  | 122,970 |  |  | 44,614 |  |  | 12,568 |  |  | 6,392 |  |  | 2,819 |  |  | 789,507 |
| $ | 600,711 |  |  | $ | 124,228 |  |  | $ | 45,293 |  |  | $ | 12,585 |  |  | $ | 6,392 |  |  | $ | 2,819 |  |  | $ | 792,028 |
| December 31, 2020
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | 2015 & Prior |  | Total
Non-Performing | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Special Mention | 658 |  |  | 365 |  |  | 31 |  |  | — |  |  | — |  |  | — |  |  | 1,054 |
Medium Risk | 1,925 |  |  | 242 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,167 |
Low Risk | 388,568 |  |  | 71,441 |  |  | 13,412 |  |  | 7,887 |  |  | 2,297 |  |  | 2,923 |  |  | 486,528 |
| $ | 391,151 |  |  | $ | 72,048 |  |  | $ | 13,443 |  |  | $ | 7,887 |  |  | $ | 2,297 |  |  | $ | 2,923 |  |  | $ | 489,749 |
| March 29, 2020
| 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 |
Impaired Financing Receivables | 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
No related allowance recorded | $ | — |  |  | $ | — |  |  | $ | — |
Related allowance recorded | 4,994 |  |  | 4,325 |  |  | — |
| $ | 4,994 |  |  | $ | 4,325 |  |  | $ | — |
Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables | The aging analysis of finance receivables was as follows (in thousands):
| March 28, 2021
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total
Retail finance receivables | $ | 6,196,345 |  |  | $ | 69,032 |  |  | $ | 23,420 |  |  | $ | 22,185 |  |  | $ | 114,637 |  |  | $ | 6,310,982 |
Wholesale finance receivables | 791,826 |  |  | 128 |  |  | 22 |  |  | 52 |  |  | 202 |  |  | 792,028 |
| $ | 6,988,171 |  |  | $ | 69,160 |  |  | $ | 23,442 |  |  | $ | 22,237 |  |  | $ | 114,839 |  |  | $ | 7,103,010 |
| December 31, 2020
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total
Retail finance receivables | $ | 6,164,369 |  |  | $ | 106,818 |  |  | $ | 39,933 |  |  | $ | 33,075 |  |  | $ | 179,826 |  |  | $ | 6,344,195 |
Wholesale finance receivables | 489,556 |  |  | 166 |  |  | 23 |  |  | 4 |  |  | 193 |  |  | 489,749 |
| $ | 6,653,925 |  |  | $ | 106,984 |  |  | $ | 39,956 |  |  | $ | 33,079 |  |  | $ | 180,019 |  |  | $ | 6,833,944 |
| March 29, 2020
| Current |  | 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater than 90 Days Past Due |  | Total Past Due |  | Total
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 |

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- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447 + Details
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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=121599337&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=121611835&loc=SL6953659-111524 + Details
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- Definition Tabular disclosure of impaired financing receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121611835&loc=d3e5212-111524 + Details
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- Definition Tabular disclosure of aging analysis for financing receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919253-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 7A -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953401-111524 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 55 -Paragraph 80 -URI http://asc.fasb.org/extlink&oid=121647567&loc=SL82922355-210448 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=121611835&loc=d3e5111-111524 + 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=120391452&loc=d3e13212-122682 + Details
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