Finance receivables, net consists of retail loan and dealer products portfolio segments, and includes deferred origination costs, deferred income, and allowance for credit losses. Finance receivables, net also includes securitized retail receivables, which represent retail receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements, as discussed further in Note 8 – Variable Interest Entities. Cash flows from these securitized retail receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors.

Finance receivables are classified as held-for-investment if the Company has the intent and ability to hold the receivables for the foreseeable future or until maturity or payoff. As of March 31, 2021 and 2020, all finance receivables were classified as held-for-investment.

Revenues associated with retail and dealer financing are recognized to approximate a constant effective yield over the contract term. Incremental direct fees and costs incurred in connection with the acquisition of retail contracts and dealer financing receivables, including incentive and rate participation payments made to dealers, are capitalized and amortized to approximate a constant effective yield over the term of the related contracts. Payments received on subvention and other consumer incentives are deferred and recognized to approximate a constant effective yield over the term of the related contracts.

Upon adoption of ASU 2016-13, we elected the accounting policy to present accrued interest related to finance receivables within Other assets in the Consolidated Balance Sheets. As of March 31, 2021, accrued interest related to finance receivables is $187 million and is included in Other assets. The comparative period’s information continues to be reported within Finance receivables, net.

Upon adoption of ASU 2016-13, we no longer reverse accrued interest receivables from interest income for our dealer products portfolio when an account is deemed to be uncollectible. For both retail loan and dealer products portfolio segments, accrued interest, deferred income, and deferred origination costs, if any, are written off within Provision for credit losses at the earlier of when an account is deemed to be uncollectible or when an account is greater than 120 days past due.

Contractual maturities on retail receivables and dealer financing are as follows:

A portion of our finance receivables has historically settled prior to contractual maturity. Contractual maturities shown above should not be considered indicative of future cash collections.

We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed.

The retail loan portfolio segment consists of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan portfolio segment, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs.

Individual borrower accounts within the retail loan portfolio segment are segregated into aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated monthly.

The following table presents the amortized cost basis of our retail loan portfolio by credit quality indicator based on number of days outstanding by origination year at March 31, 2021:

	Amortized Cost Basis by Origination Fiscal Year
	2021		2020		2019		2018		2017		2016 and Prior		Total
Aging of finance receivables:
Current	$	32,026	$	16,047	$	8,972	$	5,977	$	2,435	$	496	$	65,953
30-59 days past due		147		145		114		83		46		27		562
60-89 days past due		37		39		28		21		11		8		144
90 days or greater past due		18		18		13		9		5		6		69
Total	$	32,228	$	16,249	$	9,127	$	6,090	$	2,497	$	537	$	66,728

The amortized cost of retail loan portfolio excludes accrued interest of $160 million at March 31, 2021. The table includes contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell, and contracts in bankruptcy.

The following table presents our retail loan portfolio by credit quality indicator at March 31, 2020:

The dealer products portfolio segment consists of three classes of finance receivables: wholesale, real estate and working capital. All loans outstanding for an individual dealer or dealer group, which includes affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities.

When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four categories representing distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis.

The following table presents the amortized cost basis of our dealer products portfolio by credit quality indicator based on internal risk assessments by origination year at March 31, 2021:

	Amortized Cost Basis by Origination Fiscal Year
	2021		2020		2019		2018		2017		2016 and Prior		Revolving loans		Total
Wholesale
Performing	$	-	$	-	$	-	$	-	$	-	$	-	$	5,893	$	5,893
Credit Watch		-		-		-		-		-		-		218		218
At Risk		-		-		-		-		-		-		35		35
Default		-		-		-		-		-		-		11		11
Wholesale total	$	-	$	-	$	-	$	-	$	-	$	-	$	6,157	$	6,157
Real estate
Performing	$	1,874	$	320	$	596	$	356	$	312	$	1,493	$	-	$	4,951
Credit Watch		8		49		3		20		9		99		-		188
At Risk		13		-		-		-		12		17		-		42
Default		-		-		-		13		9		-		-		22
Real estate total	$	1,895	$	369	$	599	$	389	$	342	$	1,609	$	-	$	5,203
Working Capital
Performing	$	503	$	334	$	200	$	41	$	106	$	176	$	878	$	2,238
Credit Watch		1		-		6		1		-		19		9		36
At Risk		1		-		-		-		7		-		-		8
Default		-		-		-		-		-		-		-		-
Working capital total	$	505	$	334	$	206	$	42	$	113	$	195	$	887	$	2,282
Total	$	2,400	$	703	$	805	$	431	$	455	$	1,804	$	7,044	$	13,642

The amortized cost of the dealer products portfolio excludes accrued interest of $27 million at March 31, 2021. As of March 31, 2021, the amount of line-of-credit arrangements that are converted to term loans in each reporting period was insignificant.

The following table presents our dealer products portfolio by credit quality indicator at:

Substantially all finance receivables do not involve recourse to the dealer in the event of customer default. Finance receivables include contracts greater than 120 days past due, which are recorded at the fair value of collateral less estimated costs to sell, and contracts in bankruptcy. Contracts for which vehicles have been repossessed are excluded. For all finance receivables, we define “past due” as any payment, including principal and interest, that is at least 30 days past the contractual due date. For any customer who is granted a payment extension under an extension program, the aging of the receivable is adjusted for the number of days of the extension granted.

The following table presents the aging of the amortized cost basis of our finance receivables by class:

	March 31, 2021
	30 - 59 Days past due		60 - 89 Days past due		90 Days or greater past due		Total Past due		Current		Total Finance receivables		90 Days or greater past due and accruing
Retail loan	$	562	$	144	$	69	$	775	$	65,953	$	66,728	$	39
Wholesale		-		-		-		-		6,157		6,157		-
Real estate		-		-		-		-		5,203		5,203		-
Working capital		-		-		-		-		2,282		2,282		-
Total	$	562	$	144	$	69	$	775	$	79,595	$	80,370	$	39

Finance receivables excludes accrued interest of $187 million as of March 31, 2021.

	March 31, 2020
	30 - 59 Days past due		60 - 89 Days past due		90 Days or greater past due		Total Past due		Current		Total Finance receivables		90 Days or greater past due and accruing
Retail loan	$	717	$	203	$	104	$	1,024	$	56,064	$	57,088	$	66
Wholesale		-		-		-		-		9,826		9,826		-
Real estate		-		-		1		1		4,627		4,628		-
Working capital		-		-		-		-		3,419		3,419		-
Total	$	717	$	203	$	105	$	1,025	$	73,936	$	74,961	$	66

A troubled debt restructuring occurs when a finance receivable is modified through a concession to a borrower experiencing financial difficulty. A finance receivable modified under a troubled debt restructuring is considered to be impaired. In addition, troubled debt restructurings include finance receivables for which the customer has filed for bankruptcy protection. For such finance receivables, we no longer have the ability to modify the terms of the agreement without the approval of the bankruptcy court and the court may impose term modifications that we are obligated to accept.

For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during fiscal 2021 and 2020 was not significant for each class of finance receivables. Troubled debt restructurings for accounts not under bankruptcy protection within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal or interest rate adjustments during fiscal 2021 and 2020.

We consider finance receivables under bankruptcy protection within the retail loan class to be troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings. The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal. For fiscal 2021 and 2020, the financial impact of troubled debt restructurings related to finance receivables under bankruptcy protection was not significant to our Consolidated Statements of Income and Consolidated Balance Sheets.

For a limited time during fiscal 2021 we offered several programs to provide relief to customers during the COVID-19 pandemic. These programs, which were broadly available to our customers, included retail loan payment extensions and lease payment deferrals. We concluded that these programs did not meet troubled debt restructuring criteria due to the short-term nature of the modifications with no change in the contractual interest rate. To provide relief for our dealers we offered certain temporary interest reductions, interest payment deferrals, and interest waivers on dealer floorplan financing, and principal payment deferrals on dealer floorplan financing, dealer real estate and working capital loans. We also concluded that these programs did not meet troubled debt restructuring criteria as the finance receivables from the dealers were current.