Finance Receivables (Tables)

6 Months Ended

Jun. 25, 2017

Receivables [Abstract]

Finance Receivables

Finance receivables, net, consisted of the following (in thousands):

	June 25, 2017			December 31, 2016			June 26, 2016
Retail	$	6,267,211		$	5,982,211		$	6,020,750
Wholesale	1,258,852			1,026,590			1,422,648
Total finance receivables	7,526,063			7,008,801			7,443,398
Allowance for credit losses	(193,528		)	(173,343		)	(161,353		)
Finance receivables, net	$	7,332,535		$	6,835,458		$	7,282,045

Changes in the 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 June 25, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	176,068		$	7,962		$	184,030
Provision for credit losses	26,550			(333		)	26,217
Charge-offs	(30,374		)	—			(30,374		)
Recoveries	13,655			—			13,655
Balance, end of period	$	185,899		$	7,629		$	193,528
	Three months ended June 26, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	146,727		$	9,457		$	156,184
Provision for credit losses	24,563			(1,102		)	23,461
Charge-offs	(26,460		)	—			(26,460		)
Recoveries	11,459			—			11,459
Other (a)	(3,291		)	—			(3,291		)
Balance, end of period	$	152,998		$	8,355		$	161,353
	Six months ended June 25, 2017
	Retail			Wholesale			Total
Balance, beginning of period	$	166,810		$	6,533		$	173,343
Provision for credit losses	68,710			1,096			69,806
Charge-offs	(76,298		)	—			(76,298		)
Recoveries	26,677			—			26,677
Balance, end of period	$	185,899		$	7,629		$	193,528
	Six months ended June 26, 2016
	Retail			Wholesale			Total
Balance, beginning of period	$	139,320		$	7,858		$	147,178
Provision for credit losses	60,087			497			60,584
Charge-offs	(66,104		)	—			(66,104		)
Recoveries	22,986			—			22,986
Other (a)	(3,291		)	—			(3,291		)
Balance, end of period	$	152,998		$	8,355		$	161,353

(a) Related to the sale of finance receivables with a principal balance of $301.8 million through an off-balance sheet asset-backed securitization transaction (see Note 10 for additional information).

The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in thousands):

	June 25, 2017
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	185,899		7,629		193,528
Total allowance for credit losses	$	185,899	$	7,629	$	193,528
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,267,211		1,258,852		7,526,063
Total finance receivables	$	6,267,211	$	1,258,852	$	7,526,063
	December 31, 2016
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	166,810		6,533		173,343
Total allowance for credit losses	$	166,810	$	6,533	$	173,343
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	5,982,211		1,026,590		7,008,801
Total finance receivables	$	5,982,211	$	1,026,590	$	7,008,801
	June 26, 2016
	Retail		Wholesale		Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	152,998		8,355		161,353
Total allowance for credit losses	$	152,998	$	8,355	$	161,353
Finance receivables, ending balance:
Individually evaluated for impairment	$	—	$	—	$	—
Collectively evaluated for impairment	6,020,750		1,422,648		7,443,398
Total finance receivables	$	6,020,750	$	1,422,648	$	7,443,398

Aging of Past Due Finance Receivables Including Non-Accrual Status Finance Receivables

An analysis of the aging of past due finance receivables was as follows (in thousands):

	June 25, 2017
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	6,086,592	$	118,616	$	36,914	$	25,089	$	180,619	$	6,267,211
Wholesale	1,257,301		281		142		1,128		1,551		1,258,852
Total	$	7,343,893	$	118,897	$	37,056	$	26,217	$	182,170	$	7,526,063
	December 31, 2016
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,760,818	$	131,302	$	49,642	$	40,449	$	221,393	$	5,982,211
Wholesale	1,024,995		1,000		319		276		1,595		1,026,590
Total	$	6,785,813	$	132,302	$	49,961	$	40,725	$	222,988	$	7,008,801
	June 26, 2016
	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Total Finance Receivables
Retail	$	5,852,659	$	108,192	$	37,961	$	21,938	$	168,091	$	6,020,750
Wholesale	1,421,846		457		153		192		802		1,422,648
Total	$	7,274,505	$	108,649	$	38,114	$	22,130	$	168,893	$	7,443,398

Recorded Investment of Retail Finance Receivables by Credit Quality Indicator

The recorded investment in wholesale finance receivables, by internal credit quality indicator, was as follows (in thousands):

	June 25, 2017		December 31, 2016		June 26, 2016
Doubtful	$	5,203	$	1,333	$	—
Substandard	10,458		1,773		19,637
Special Mention	4,953		30,152		4,334
Medium Risk	8,115		14,620		6,350
Low Risk	1,230,123		978,712		1,392,327
Total	$	1,258,852	$	1,026,590	$	1,422,648

The recorded investment in retail finance receivables, by credit quality indicator, was as follows (in thousands):

	June 25, 2017		December 31, 2016		June 26, 2016
Prime	$	5,034,187	$	4,768,420	$	4,756,479
Sub-prime	1,233,024		1,213,791		1,264,271
Total	$	6,267,211	$	5,982,211	$	6,020,750