Dealer Finance Receivables - GO

The following is a summary of the activity in Dealer Finance Receivables:



	Three months ended March 31,
	2013			2012
	(In thousands)
Balance, Beginning of Period	$	40,956		$	24
Advances During the Period	38,960			5,502
Revenue Recognized	2,037			125
Payments to Reduce Amount Advanced	(7,200		)	(178		)
Balance, End of Period	$	74,753		$	5,473

At March 31, 2013 and December 31, 2012 we have not recorded impairment on any pools.

Accretable yield represents the amount of revenue the Company expects over the remaining life of existing portfolios. Changes in accretable yield were as follows:



	Three months ended March 31,
	2013			2012
	(In thousands)
Balance, Beginning of Period	$	8,887		$	—
Accretion (Revenue Recognized)	(2,037		)	(125		)
Additions	9,999			1,792
Reclassification from (to) Nonaccretable Yield	—			—
Balance, End of Period	$	16,849		$	1,667

Non-accretable yield represents the difference between the total contractual net cash flows of Dealer Finance Receivables and the expected cash flows. This difference is neither accreted into income nor recorded on our balance sheet since it represents the portion of cash flows not expected to be received. Contractual net cash flows are comprised of the underlying contractual cash flows from consumer loans aggregated with the total accretable yield to be earned on Dealer Finance receivables over the life of the Dealer Pool. Although we are required to present contractual cash flows, we do not believe that contractual net cash flows on the underlying consumer loans are relevant in assessing our potential future cash flows because we are not entitled to the contractual cash flows and do not expect to receive 100% of contractual cash. Expected net cash flows represent the loss adjusted contractual cash flows, including earnings thereon. Components of non-accretable yield are as follows:



	As of March 31, 2013
	(In thousands)
Contractual Net Cash Flows ⁽¹⁾	$	103,306
Expected Net Cash Flows	(91,602		)
Non-accretable Yield	$	11,704

^{(1) Contractual net cash flows represents total cash payments due across all dealer servicing agreements for repayment of dealer advances and contract servicing.}