
	December 31, 2021		December 31, 2020
Retail finance receivables
Retail finance receivables, net of fees(a)	$	58,093	$	51,288
Less: allowance for loan losses	(1,839)		(1,915)
Total retail finance receivables, net	56,254		49,373
Commercial finance receivables
Commercial finance receivables, net of fees(b)	6,772		9,080
Less: allowance for loan losses	(47)		(63)
Total commercial finance receivables, net	6,725		9,017
Total finance receivables, net	$	62,979	$	58,390
Fair value utilizing Level 2 inputs	$	6,725	$	9,017
Fair value utilizing Level 3 inputs	$	57,613	$	51,645


	Years Ended December 31,
	2021		2020		2019
Allowance for retail loan losses beginning balance	$	1,915	$	866	$	844
Impact of adopting ASU 2016-13 (Not e 1)	—		801		—
Provision for loan losses	267		880		690
Charge-offs	(897)		(1,149)		(1,218)
Recoveries	571		537		548
Foreign currency translation	(17)		(20)		2
Allowance for retail loan losses ending balance	$	1,839	$	1,915	$	866

The allowance for retail loan losses decreased by $76 million as of December 31, 2021 compared to December 31, 2020, primarily due to a reduction in the reserve levels established at the onset of the COVID-19 pandemic. This reduction was a result of actual credit performance that was better than forecasted and favorable expectations for future charge-offs and recoveries, reflecting improved economic conditions. These decreases in the reserve levels were partially offset by reserves established for loans originated during 2021.

Retail Credit Quality Our retail finance receivables portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. The following tables are consolidated summaries of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the portfolio at December 31, 2021 and 2020:


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior			Total		Percent
Prime - FICO Score 680 and greater	$	19,729	$	12,408	$	4,078	$	2,298	$	763	$	143		$	39,419	67.9	%
Near-prime - FICO Score 620 to 679	3,856		2,388		1,229		648		274		84			8,479		14.6
Sub-prime - FICO Score less than 620	4,053		2,528		1,777		972		570		295			10,195		17.5
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522		$	58,093	100.0	%


	Year of Origination												December 31, 2020
	2020		2019		2018		2017		2016		Prior		Total		Percent
Prime - FICO Score 680 and greater	$	18,685	$	7,033	$	4,491	$	1,917	$	555	$	119	$	32,800	64.0	%
Near-prime - FICO Score 620 to 679	3,695		2,097		1,232		603		225		83		7,935		15.4
Sub-prime - FICO Score less than 620	3,803		2,920		1,740		1,173		610		307		10,553		20.6
Retail finance receivables, net of fees	$	26,183	$	12,050	$	7,463	$	3,693	$	1,390	$	509	$	51,288	100.0	%

We review the ongoing credit quality of our retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at December 31, 2021 and 2020:


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total		Percent
0 - 30 days	$	27,270	$	16,945	$	6,772	$	3,721	$	1,478	$	440	$	56,626	97.5	%

31 - 60 days	273		276		230		147		97		60		1,083		1.8
Greater than 60 days	83		93		76		46		30		21		349		0.6
Finance receivables more than 30 days delinquent	356		369		306		193		127		81		1,432		2.4
In repossession	12		10		6		4		2		1		35		0.1
Finance receivables more than 30 days delinquent or in repossession	368		379		312		197		129		82		1,467		2.5
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522	$	58,093	100.0	%


	Year of Origination												December 31, 2020
	2020		2019		2018		2017		2016		Prior		Total		Percent
0 - 30 days	$	25,894	$	11,591	$	7,131	$	3,454	$	1,249	$	421	$	49,740	97.0	%

31 - 60 days	210		325		235		170		102		61		1,103		2.1
Greater than 60 days	72		123		90		64		37		26		412		0.8
Finance receivables more than 30 days delinquent	282		448		325		234		139		87		1,515		2.9
In repossession	7		11		7		5		2		1		33		0.1
Finance receivables more than 30 days delinquent or in repossession	289		459		332		239		141		88		1,548		3.0
Retail finance receivables, net of fees	$	26,183	$	12,050	$	7,463	$	3,693	$	1,390	$	509	$	51,288	100.0	%

The accrual of finance charge income had been suspended on retail finance receivables with contractual amounts due of $602 million and $714 million at December 31, 2021 and 2020.

TDRs The outstanding amortized cost of retail finance receivables that are considered TDRs was $1.9 billion and $2.2 billion, including $219 million and $301 million in nonaccrual loans at December 31, 2021 and 2020. Additional TDR activity is presented below:


	Years Ended December 31,
	2021		2020		2019
Number of loans classified as TDRs during the period	46,158		57,524		69,863
Outstanding amortized cost of loans classified as TDRs during the period	$	920	$	1,057	$	1,269

The unpaid principal balances, net of recoveries, of loans charged off during the reporting period within 12 months of being modified as a TDR were $17 million, $28 million and $37 million for 2021, 2020 and 2019.

Credit Quality Our commercial finance receivables consist of dealer financings, primarily for dealer inventory purchases. Proprietary models are used to assign a risk rating to each dealer. We perform periodic credit reviews of each dealership and adjust the dealership's risk rating, if necessary.


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.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at December 31, 2021 and 2020:


	Year of Origination(a)														December 31, 2021
Dealer Risk Rating	Revolving		2021		2020		2019		2018		2017		Prior		Total		Percent
I	$	5,296	$	433	$	426	$	131	$	57	$	50	$	10	$	6,403	94.6	%
II	213		5		16		12		1		10		—		257		3.8
III	81		8		15		2		—		2		4		112		1.6
IV	—		—		—		—		—		—		—		—		—
Balance at end of period	$	5,590	$	446	$	457	$	145	$	58	$	62	$	14	$	6,772	100.0	%


	Year of Origination(a)														December 31, 2020
Dealer Risk Rating	Revolving		2020		2019		2018		2017		2016		Prior		Total		Percent
I	$	7,210	$	579	$	179	$	77	$	110	$	43	$	19	$	8,217	90.5	%
II	508		2		18		11		15		18		34		606		6.7
III	203		—		8		29		2		11		—		253		2.8
IV	—		—		—		—		—		—		4		4		—
Balance at end of period	$	7,921	$	581	$	205	$	117	$	127	$	72	$	57	$	9,080	100.0	%

At December 31, 2021 and 2020, substantially all of our commercial finance receivables were current with respect to payment status, and activity in the allowance for commercial loan losses was insignificant for 2021, 2020 and 2019. There were no commercial finance receivables on nonaccrual status at December 31, 2021 and an insignificant amount at December 31, 2020. None of the commercial finance receivables were classified as TDRs at December 31, 2021 and 2020.