Loans and finance receivables

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Loans and finance receivables

Note 7. Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions).

	September 30, 2019			December 31, 2018
Loans and finance receivables before allowances and discounts	$	17,462		$	16,622
Allowances for uncollectible loans		(183	)		(177	)
Unamortized acquisition discounts		(144	)		(165	)
	$	17,135		$	16,280

Loans and finance receivables are principally installment loans originated or acquired by our manufactured housing business. Provisions for loan losses for the first nine months were $109 million in both 2019 and 2018. Loan charge-offs, net of recoveries in the first nine months, were $103 million in 2019 and $106 million in 2018. At September 30, 2019, approximately 98% of the manufactured housing loan balances were evaluated collectively for impairment, with the remainder evaluated individually. As part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or non-performing. At September 30, 2019, we considered approximately 99% of the loan balances to be performing and approximately 96% of the loan balances to be current as to payment status.

Additionally, during 2018, an insurance subsidiary entered into an agreement with Seritage Growth Properties to provide a $2.0 billion term loan facility, which matures on July 31, 2023. As of September 30, 2019 and December 31, 2018, the outstanding loans under the facility were approximately $1.6 billion.