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Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
 
June 30, 2020
 
December 31, 2019

Retail finance receivables
 
 
 
Retail finance receivables, net of fees(a)
$
46,489

 
$
42,268

Less: allowance for loan losses
(2,044
)
 
(866
)
Total retail finance receivables, net
44,445

 
41,402

Commercial finance receivables
 
 
 
Commercial finance receivables, net of fees(b)
7,884

 
12,149

Less: allowance for loan losses
(67
)
 
(78
)
Total commercial finance receivables, net
7,817

 
12,071

Total finance receivables, net
$
52,262

 
$
53,473

Fair value utilizing Level 2 inputs
$
7,817

 
$
12,071

Fair value utilizing Level 3 inputs
$
46,619

 
$
42,012

________________
(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $218 million and $83 million at June 30, 2020 and December 31, 2019.
(b) Net of dealer cash management balances of $1.3 billion and $1.2 billion at June 30, 2020 and December 31, 2019.
Allowance for Credit Losses on Financing Receivables A summary of the activity in the allowance for retail loan losses is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Allowance for retail loan losses beginning balance
$
1,879

 
$
862

 
$
866

 
$
844

Impact of adopting ASU 2016-13 (Note 1)
—

 
—

 
801

 
—

Provision for loan losses
332

 
165

 
788

 
343

Charge-offs
(256
)
 
(279
)
 
(596
)
 
(586
)
Recoveries
89

 
132

 
245

 
277

Foreign currency translation
—

 
1

 
(60
)
 
3

Allowance for retail loan losses ending balance
$
2,044

 
$
881

 
$
2,044

 
$
881
Financing Receivable Credit Quality Indicators A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at June 30, 2020 is as follows:
 
Year of Origination
 
 
 
2020
 
2019
 
2018
 
2017
 
2016
 
2015
 
Prior
 
Total
 
Percent
Prime - FICO Score 680 and greater
$
10,305

 
$
9,019

 
$
6,063

 
$
2,774

 
$
940

 
$
253

 
$
9

 
$
29,363

 
63.2
%
Near-prime - FICO Score 620 to 679
1,785

 
2,533

 
1,574

 
828

 
340

 
138

 
25

 
7,223

 
15.5

Sub-prime - FICO Score less than 620
1,917

 
3,178

 
1,982

 
1,440

 
833

 
396

 
157

 
9,903

 
21.3

Retail finance receivables, net of fees
$
14,007

 
$
14,730

 
$
9,619

 
$
5,042

 
$
2,113

 
$
787

 
$
191

 
$
46,489

 
100.0
%

Effective January 1, 2020, we updated our commercial risk model and our risk rating categories as follows:
Dealer Risk Rating
 
Description
I
 
Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II
 
Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III
 
Non-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IV
 
Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection or liquidation in full highly questionable or improbable.

The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at June 30, 2020.
 
 
Year of Origination(a)
 
 
Dealer Risk Rating
 
Revolving
 
2020
 
2019
 
2018
 
2017
 
2016
 
2015
 
Prior
 
Total
 
Percent
I
 
$
6,232

 
$
170

 
$
253

 
$
100

 
$
117

 
$
127

 
$
75

 
$
8

 
$
7,082

 
89.8
%
II
 
408

 
1

 
7

 
12

 
33

 
4

 
13

 
22

 
500

 
6.3

III
 
247

 
—

 
8

 
29

 
2

 
10

 
1

 
—

 
297

 
3.8

IV
 
1

 
—

 
—

 
—

 
—

 
—

 
4

 
—

 
5

 
0.1

Balance at end of period
 
$
6,888

 
$
171

 
$
268

 
$
141

 
$
152

 
$
141

 
$
93

 
$
30

 
$
7,884

 
100.0
%

________________
(a) Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination.
Past Due Financing Receivables The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at June 30, 2020:
 
Year of Origination
 
 
 
2020
 
2019
 
2018
 
2017
 
2016
 
2015
 
Prior
 
Total
 
Percent
Current
$
13,875

 
$
14,244

 
$
9,231

 
$
4,752

 
$
1,930

 
$
689

 
$
148

 
$
44,869

 
96.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 - 60 days
86

 
295

 
236

 
181

 
114

 
61

 
25

 
998

 
2.2

Greater than 60 days
44

 
183

 
147

 
106

 
67

 
36

 
18

 
601

 
1.3

Finance receivables more than 30 days delinquent
130

 
478

 
383

 
287

 
181

 
97

 
43

 
1,599

 
3.5

In repossession
2

 
8

 
5

 
3

 
2

 
1

 
—

 
21

 
—

Finance receivables more than 30 days delinquent or in repossession
132

 
486

 
388

 
290

 
183

 
98

 
43

 
1,620

 
3.5

Retail finance receivables, net of fees
$
14,007

 
$
14,730

 
$
9,619

 
$
5,042

 
$
2,113

 
$
787

 
$
191

 
$
46,489

 
100.0
%
Troubled Debt Restructurings on Financing Receivables Additional TDR activity is presented below:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2018
 
2020
 
2019
 
2018
Number of loans classified as TDRs during the period
14,378

 
17,407

 
19,662

 
29,646

 
33,939

 
33,096

Outstanding amortized cost of loans classified as TDRs during the period
$
248

 
$
318

 
$
360

 
$
535

 
$
626

 
$
613