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Finance Receivables (Tables)
 9 Months Ended
Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
September 30, 2023December 31, 2022
Retail finance receivables
Retail finance receivables, net of fees(a)
$71,704 $65,322 
Less: allowance for loan losses(2,224)(2,062)
Total retail finance receivables, net69,480 63,260 
Commercial finance receivables
Commercial finance receivables, net of fees(b)
12,204 11,288 
Less: allowance for loan losses(34)(34)
Total commercial finance receivables, net12,170 11,254 
Total finance receivables, net$81,650 $74,514 
Fair value utilizing Level 2 inputs$12,170 $11,254 
Fair value utilizing Level 3 inputs$68,690 $62,150 
________________
(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.
(b) Net of dealer cash management balances of $2.4 billion and $1.9 billion at September 30, 2023 and December 31, 2022.
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 September 30,Nine Months Ended September 30,
2023202220232022
Allowance for retail loan losses beginning balance$2,166 $1,987 $2,062 $1,839 
Provision for loan losses236 179 534 506 
Charge-offs(366)(289)(1,012)(811)
Recoveries196 171 573 510 
Foreign currency translation and other(8)(4)66 — 
Allowance for retail loan losses ending balance$2,224 $2,044 $2,224 $2,044 
Financing Receivable Credit Quality Indicators 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 September 30, 2023 and December 31, 2022:
Year of OriginationSeptember 30, 2023
 20232022202120202019PriorTotalPercent
Prime - FICO Score 680 and greater$19,330 $17,114 $10,013 $5,602 $1,325 $467 $53,851 75.1 %
Near-prime - FICO Score 620 to 6792,556 2,485 1,930 1,031 420 179 8,600 12.0 
Sub-prime - FICO Score less than 6202,391 2,608 2,085 1,145 676 348 9,253 12.9 
Retail finance receivables, net of fees$24,278 $22,207 $14,028 $7,777 $2,421 $994 $71,704 100.0 %
Year of OriginationDecember 31, 2022
 20222021202020192018PriorTotalPercent
Prime - FICO Score 680 and greater$22,677 $13,399 $7,991 $2,254 $1,019 $205 $47,543 72.8 %
Near-prime - FICO Score 620 to 6793,202 2,601 1,487 688 310 104 8,392 12.8 
Sub-prime - FICO Score less than 6203,211 2,746 1,604 1,051 496 280 9,388 14.4 
Retail finance receivables, net of fees$29,090 $18,745 $11,081 $3,992 $1,824 $589 $65,322 100.0 %
Our commercial risk model and risk rating categories are as follows:
Dealer Risk RatingDescription
IPerforming accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
IIPerforming accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
IIINon-Performing accounts with inadequate paying capacity for current obligations and that have the distinct possibility of creating a loss if deficiencies are not corrected.
IVNon-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 tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at September 30, 2023 and December 31, 2022:
Year of OriginationSeptember 30, 2023
Dealer Risk RatingRevolving20232022202120202019PriorTotalPercent
I
$10,252 $320 $541 $309 $321 $94 $36 $11,874 97.3 %
II
142 — 2 1 — — — 146 1.2 
III
150 — 16 9 — 8 — 184 1.6 
IV
— — — — — — — — — 
Balance at end of period$10,545 $320 $559 $320 $322 $102 $36 $12,204 100.0 %
Year of OriginationDecember 31, 2022
Dealer Risk Rating
Revolving20222021202020192018PriorTotalPercent
I
$9,624 $566 $361 $372 $102 $45 $24 $11,094 98.3 %
II
89 — 1 — — — — 91 0.8 
III
78 15 — — 10 — — 104 0.9 
IV
— — — — — — — — — 
Balance at end of period$9,791 $581 $363 $372 $112 $45 $25 $11,288 100.0 %
Past Due Financing Receivables The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at September 30, 2023 and December 31, 2022, as well as summary totals for September 30, 2022. The first table also presents our charge-offs for the nine months ended September 30, 2023 by vintage:
Year of OriginationSeptember 30, 2023September 30, 2022
20232022202120202019PriorTotalPercentTotalPercent
0 - 30 days$24,021 $21,631 $13,489 $7,478 $2,242 $873 $69,735 97.3 %$61,836 97.4 %
31 - 60 days187 408 389 219 133 88 1,424 2.0 1,185 1.9 
Greater than 60 days59 146 135 73 43 31 488 0.7 394 0.6 
Finance receivables more than 30 days delinquent246 555 524 292 175 119 1,911 2.7 1,579 2.5 
In repossession11 21 14 7 4 2 58 0.1 46 0.1 
Finance receivables more than 30 days delinquent or in repossession257 575 538 299 179 121 1,969 2.7 1,625 2.6 
Retail finance receivables, net of fees$24,278 $22,207 $14,028 $7,777 $2,421 $994 $71,704 100.0 %$63,461 100.0 %
Charge-offs$52 $355 $303 $148 $85 $69 $1,012 
Year of OriginationDecember 31, 2022
20222021202020192018PriorTotalPercent
0 - 30 days$28,676 $18,128 $10,702 $3,743 $1,685 $493 $63,426 97.1 %
31 - 60 days310 452 275 184 103 69 1,393 2.1 
Greater than 60 days93 150 98 62 35 26 465 0.7 
Finance receivables more than 30 days delinquent403 603 373 246 138 95 1,857 2.8 
In repossession11 14 6 4 2 1 39 0.1 
Finance receivables more than 30 days delinquent or in repossession414 617 380 249 140 96 1,896 2.9 
Retail finance receivables, net of fees$29,090 $18,745 $11,081 $3,992 $1,824 $589 $65,322 100.0 %