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Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of Finance Receivables, Net
June 30, 2024December 31, 2023
Retail finance receivables
Retail finance receivables(a)
$73,335 $72,729 
Less: allowance for loan losses(2,261)(2,308)
Total retail finance receivables, net71,074 70,421 
Commercial finance receivables
Commercial finance receivables(a)(b)
17,127 14,251 
Less: allowance for loan losses(50)(36)
Total commercial finance receivables, net17,078 14,216 
Total finance receivables, net$88,151 $84,637 
Fair value utilizing Level 2 inputs$17,078 $14,216 
Fair value utilizing Level 3 inputs$71,552 $70,911 
________________
(a)    Net of unearned income, unamortized premiums and discounts, and deferred fees and costs.
(b)    Includes dealer financing of $16.3 billion and $13.4 billion, and other financing of $826 million and $830 million at June 30, 2024 and December 31, 2023. Commercial finance receivables are presented net of dealer cash management balances of $3.0 billion and $2.6 billion at June 30, 2024 and December 31, 2023.
Schedule of 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,
2024202320242023
Allowance for retail loan losses beginning balance$2,320 $2,123 $2,308 $2,062 
Provision for loan losses159 161 364 298 
Charge-offs(411)(323)(816)(645)
Recoveries222 191 434 377 
Foreign currency translation and other(28)14 (30)74 
Allowance for retail loan losses ending balance$2,261 $2,166 $2,261 $2,166 
Schedule of 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 June 30, 2024 and December 31, 2023:
Year of OriginationJune 30, 2024
 20242023202220212020PriorTotalPercent
Prime - FICO Score 680 and greater$11,725 $19,600 $12,532 $7,131 $3,651 $772 $55,411 75.6 %
Near-prime - FICO Score 620 to 6791,817 2,701 1,867 1,389 670 291 8,736 11.9 
Sub-prime - FICO Score less than 6201,908 2,553 1,951 1,487 752 539 9,188 12.5 
Retail finance receivables$15,450 $24,854 $16,350 $10,007 $5,073 $1,602 $73,335 100.0 %
Year of OriginationDecember 31, 2023
 20232022202120202019PriorTotalPercent
Prime - FICO Score 680 and greater$23,940 $15,581 $9,039 $4,926 $1,076 $320 $54,882 75.5 %
Near-prime - FICO Score 620 to 6793,234 2,281 1,746 906 350 129 8,647 11.9 
Sub-prime - FICO Score less than 6203,079 2,397 1,884 1,010 573 257 9,200 12.6 
Retail finance receivables$30,253 $20,259 $12,670 $6,842 $2,000 $707 $72,729 100.0 %
Our dealer 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 dealer credit risk profile by dealer risk rating at June 30, 2024 and December 31, 2023:
Year of OriginationJune 30, 2024
Dealer Risk RatingRevolving20242023202220212020PriorTotalPercent
I
$14,237 $121 $243 $392 $268 $286 $44 $15,591 95.6 %
II
332 — 3 22 — 1 — 358 2.2 
III
301 4 5 — 24 — 18 352 2.2 
IV
— — — — — — — — — 
Balance at end of period$14,870 $125 $251 $414 $292 $287 $62 $16,301 100.0 %
Year of OriginationDecember 31, 2023
Dealer Risk RatingRevolving20232022202120202019PriorTotalPercent
I
$11,638 $295 $417 $297 $301 $85 $11 $13,043 97.2 %
II
182 — 2 2 — — — 187 1.4 
III
152 1 15 12 — 11 — 192 1.4 
IV
— — — — — — — — — 
Balance at end of period$11,971 $296 $435 $311 $301 $96 $11 $13,422 100.0 %
Schedule of 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 June 30, 2024 and December 31, 2023, as well as summary totals for June 30, 2023. The tables also present gross charge offs by vintage for the six months ended June 30, 2024 and the year ended December 31, 2023:
Year of OriginationJune 30, 2024June 30, 2023
20242023202220212020PriorTotalPercentTotalPercent
0 - 30 days$15,306 $24,314 $15,782 $9,551 $4,839 $1,419 $71,211 97.1 %$67,957 97.5 %
31 - 60 days109 383 411 337 175 136 1,551 2.1 1,284 1.8 
Greater than 60 days30 135 138 108 54 44 509 0.7 430 0.6 
Finance receivables more than 30 days delinquent140 518 549 445 229 179 2,060 2.8 1,714 2.5 
In repossession4 22 19 11 5 3 64 0.1 51 0.1 
Finance receivables more than 30 days delinquent or in repossession144 540 567 457 234 182 2,124 2.9 1,765 2.5 
Retail finance receivables$15,450 $24,854 $16,350 $10,007 $5,073 $1,602 $73,335 100.0 %$69,722 100.0 %
Gross charge-offs$13 $262 $254 $161 $68 $59 $816 
Year of OriginationDecember 31, 2023
20232022202120202019PriorTotalPercent
0 - 30 days$29,816 $19,602 $12,098 $6,533 $1,825 $599 $70,472 96.9 %
31 - 60 days318 470 415 227 130 78 1,637 2.3 
Greater than 60 days102 168 142 76 42 29 559 0.8 
Finance receivables more than 30 days delinquent421 637 557 302 172 107 2,196 3.0 
In repossession17 20 14 6 3 1 61 0.1 
Finance receivables more than 30 days delinquent or in repossession437 657 572 308 175 108 2,257 3.1 
Retail finance receivables$30,253 $20,259 $12,670 $6,842 $2,000 $707 $72,729 100.0 %
Gross charge-offs$143 $494 $399 $192 $108 $87 $1,423