Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-20202 | |
Entity Registrant Name | CREDIT ACCEPTANCE CORP | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-1999511 | |
Entity Address, Address Line One | 25505 W. Twelve Mile Road | |
Entity Address, City or Town | Southfield, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48034-8339 | |
City Area Code | 248 | |
Local Phone Number | 353-2700 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | CACC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,649,378 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000885550 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
ASSETS: | ||||
Cash and cash equivalents | $ 8.9 | $ 187.4 | ||
Restricted cash and cash equivalents | 391.9 | 330.3 | ||
Restricted securities available for sale | [1] | 66.8 | 59.3 | |
Loans receivable | 10,176.1 | [2],[3] | 7,221.2 | |
Allowance for credit losses | (3,310.9) | (536) | ||
Loans receivable, net | 6,865.2 | 6,685.2 | ||
Property and equipment, net | 61 | 59.7 | ||
Income taxes receivable | 8.7 | 66.2 | ||
Other assets | 19 | 35.1 | ||
Total Assets | 7,421.5 | 7,423.2 | ||
Liabilities: | ||||
Accounts payable and accrued liabilities | 187.2 | 206.4 | ||
Revolving secured line of credit | 125.7 | 0 | ||
Secured financing | 3,692.8 | 3,339.7 | ||
Senior notes | 790.1 | 1,187.8 | ||
Mortgage note | [4] | 10.7 | 11.3 | |
Deferred income taxes, net | 306.3 | 322.5 | ||
Income taxes payable | 0.2 | 0.2 | ||
Total Liabilities | 5,113 | 5,067.9 | ||
Commitments and Contingencies - See Note 15 | ||||
Shareholders' Equity: | ||||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued | 0 | 0 | ||
Common stock, $.01 par value, 80,000,000 shares authorized, 17,649,382 and 18,352,779 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 0.2 | 0.2 | ||
Paid-in capital | 160.4 | 157.7 | ||
Retained earnings | 2,146.2 | 2,196.6 | ||
Accumulated other comprehensive income | 1.7 | 0.8 | ||
Total Shareholders' Equity | 2,308.5 | 2,355.3 | ||
Total Liabilities and Shareholders' Equity | $ 7,421.5 | $ 7,423.2 | ||
Preferred stock, par value (in usd per share) | $ 0.01 | |||
Preferred stock, shares authorized | 1,000,000 | |||
Preferred stock, shares issued | 0 | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 80,000,000 | 80,000,000 | ||
Common stock, shares issued | 17,649,382 | 18,352,779 | ||
Balance, shares | 17,649,382 | 18,352,779 | ||
[1] | Measured at fair value on a recurring basis. | |||
[2] | As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | |||
[3] | As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | |||
[4] | Measured at amortized cost with fair value disclosed. |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Finance charges | $ 404.4 | $ 349.9 | $ 1,144.5 | $ 1,013.3 |
Premiums earned | 15.1 | 12.9 | 42.2 | 38.2 |
Other income | 7 | 15.9 | 35.2 | 51.6 |
Total revenue | 426.5 | 378.7 | 1,221.9 | 1,103.1 |
Costs and expenses: | ||||
Salaries and wages | 46.6 | 47.9 | 140.4 | 143.9 |
General and administrative | 17.2 | 17.2 | 46.8 | 47.9 |
Sales and marketing | 16.6 | 16.6 | 53.9 | 53.1 |
Provision for credit losses | (29.8) | 19.3 | 464.3 | 49.2 |
Interest | 46.8 | 50.4 | 146.9 | 145.2 |
Provision for claims | 10.7 | 8.2 | 28.8 | 23.1 |
Loss on extinguishment of debt | 0 | 0 | 7.4 | 0 |
Total costs and expenses | 108.1 | 159.6 | 888.5 | 462.4 |
Income before provision for income taxes | 318.4 | 219.1 | 333.4 | 640.7 |
Provision for income taxes | 76.3 | 53.7 | 78.7 | 146.5 |
Net income | $ 242.1 | $ 165.4 | $ 254.7 | $ 494.2 |
Net income per share: | ||||
Basic (in usd per share) | $ 13.57 | $ 8.73 | $ 14.18 | $ 26.08 |
Diluted (in usd per share) | $ 13.56 | $ 8.73 | $ 14.17 | $ 26.06 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 17,844,785 | 18,944,672 | 17,957,931 | 18,948,140 |
Diluted (in shares) | 17,849,765 | 18,950,866 | 17,973,091 | 18,967,552 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 242.1 | $ 165.4 | $ 254.7 | $ 494.2 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on securities, net of tax | (0.2) | 0.1 | 0.9 | 1.2 |
Other comprehensive income (loss) | (0.2) | 0.1 | 0.9 | 1.2 |
Comprehensive income | $ 241.9 | $ 165.5 | $ 255.6 | $ 495.4 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, shares at Dec. 31, 2018 | 18,972,558 | ||||
Restricted stock awards, net of forfeitures, shares | 4,981 | ||||
Common stock repurchased, shares | (268,611) | (268,611) | |||
Restricted stock units converted to common stock, shares | 87,842 | ||||
Balance, shares at Sep. 30, 2019 | 18,796,770 | ||||
Balance at Dec. 31, 2018 | $ 1,990.9 | $ 0.2 | $ 154.9 | $ 1,836.1 | $ (0.3) |
Net income | 494.2 | 0 | 0 | 494.2 | 0 |
Other comprehensive loss | 1.2 | 0 | 0 | 0 | 1.2 |
Stock-based compensation | 5.7 | 0 | 5.7 | 0 | 0 |
Common stock repurchased, value | (109.2) | 0 | (4.9) | (104.3) | 0 |
Balance at Sep. 30, 2019 | 2,382.8 | $ 0.2 | 155.7 | 2,226 | 0.9 |
Balance, shares at Jun. 30, 2019 | 18,796,876 | ||||
Restricted stock awards, net of forfeitures, shares | (106) | ||||
Balance, shares at Sep. 30, 2019 | 18,796,770 | ||||
Balance at Jun. 30, 2019 | 2,215.3 | $ 0.2 | 153.7 | 2,060.6 | 0.8 |
Net income | 165.4 | 0 | 0 | 165.4 | 0 |
Other comprehensive loss | 0.1 | 0 | 0 | 0 | 0.1 |
Stock-based compensation | 2 | 0 | 2 | 0 | 0 |
Balance at Sep. 30, 2019 | $ 2,382.8 | $ 0.2 | 155.7 | 2,226 | 0.9 |
Balance, shares at Dec. 31, 2019 | 18,352,779 | 18,352,779 | |||
Restricted stock awards, net of forfeitures, shares | (148) | ||||
Common stock repurchased, shares | (725,220) | (725,220) | |||
Restricted stock units converted to common stock, shares | 21,971 | ||||
Balance, shares at Sep. 30, 2020 | 17,649,382 | 17,649,382 | |||
Balance at Dec. 31, 2019 | $ 2,355.3 | $ 0.2 | 157.7 | 2,196.6 | 0.8 |
Net income | 254.7 | 0 | 0 | 254.7 | 0 |
Other comprehensive loss | 0.9 | 0 | 0 | 0 | 0.9 |
Stock-based compensation | 4.7 | 0 | 4.7 | 0 | 0 |
Common stock repurchased, value | (307.1) | 0 | (2) | (305.1) | 0 |
Balance at Sep. 30, 2020 | $ 2,308.5 | $ 0.2 | 160.4 | 2,146.2 | 1.7 |
Balance, shares at Jun. 30, 2020 | 17,649,470 | ||||
Restricted stock awards, net of forfeitures, shares | (88) | ||||
Balance, shares at Sep. 30, 2020 | 17,649,382 | 17,649,382 | |||
Balance at Jun. 30, 2020 | $ 2,065.1 | $ 0.2 | 158.9 | 1,904.1 | 1.9 |
Net income | 242.1 | 0 | 0 | 242.1 | 0 |
Other comprehensive loss | (0.2) | 0 | 0 | 0 | (0.2) |
Stock-based compensation | 1.5 | 0 | 1.5 | 0 | 0 |
Balance at Sep. 30, 2020 | $ 2,308.5 | $ 0.2 | $ 160.4 | $ 2,146.2 | $ 1.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income | $ 254.7 | $ 494.2 |
Adjustments to reconcile cash provided by operating activities: | ||
Provision for credit losses | 464.3 | 49.2 |
Depreciation | 6.4 | 5.3 |
Amortization | 11.1 | 11.3 |
Provision (benefit) for deferred income taxes | (16.4) | 34.2 |
Stock-based compensation | 4.7 | 5.7 |
Loss on extinguishment of debt | 7.4 | 0 |
Other | (0.6) | 0.1 |
Change in operating assets and liabilities: | ||
Decrease in accounts payable and accrued liabilities | (20.3) | (4.8) |
Decrease (increase) in income taxes receivable | 57.5 | (2.9) |
Decrease in income taxes payable | 0 | (2.3) |
Decrease in other assets | 14.2 | 18 |
Net cash provided by operating activities | 783 | 608 |
Cash Flows From Investing Activities: | ||
Purchases of restricted securities available for sale | (37.8) | (32.8) |
Proceeds from sale of restricted securities available for sale | 19.4 | 24.9 |
Maturities of restricted securities available for sale | 12.4 | 8.1 |
Principal collected on Loans receivable | 2,412.7 | 2,254.9 |
Advances to Dealers | (1,751.1) | (1,901.1) |
Purchases of Consumer Loans | (1,161.4) | (1,053.9) |
Accelerated payments of Dealer Holdback | (34.6) | (44.1) |
Payments of Dealer Holdback | (109.9) | (105.4) |
Purchases of property and equipment | (7.7) | (23.6) |
Net cash used in investing activities | (658) | (873) |
Cash Flows From Financing Activities: | ||
Borrowings under revolving secured line of credit | 4,387.8 | 3,027.2 |
Repayments under revolving secured line of credit | (4,262.1) | (3,146.9) |
Proceeds from secured financing | 2,071.9 | 1,698.4 |
Repayments of secured financing | (1,719.6) | (1,563) |
Proceeds from issuance of senior notes | 0 | 400 |
Repayment of senior notes | 401.8 | 0 |
Payments of debt issuance costs and debt extinguishment costs | (12.5) | (15.9) |
Repurchase of common stock | (307.1) | (109.2) |
Other | 1.5 | (0.4) |
Net cash provided (used) by financing activities | (241.9) | 290.2 |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | (116.9) | 25.2 |
Cash and cash equivalents and restricted cash and cash equivalents beginning of period | 517.7 | 329.3 |
Cash and cash equivalents and restricted cash and cash equivalents end of period | 400.8 | 354.5 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 147.2 | 141.6 |
Cash paid during the period for income taxes | $ 35.8 | $ 116.7 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of actual results achieved for full fiscal years. The consolidated balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2019 for Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our” or “us”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2020 for items that could potentially be recognized or disclosed in these financial statements. For additional information regarding subsequent events, see Note 16. Reclassification Certain amounts for prior periods have been reclassified to conform to the current presentation. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Description Of Business [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Since 1972, Credit Acceptance has offered financing programs that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. We refer to automobile dealers who participate in our programs and who share our commitment to changing consumers’ lives as “Dealers”. Upon enrollment in our financing programs, the Dealer enters into a Dealer servicing agreement with us that defines the legal relationship between Credit Acceptance and the Dealer. The Dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on retail installment contracts (referred to as “Consumer Loans”) from the Dealers to us. We are an indirect lender from a legal perspective, meaning the Consumer Loan is originated by the Dealer and assigned to us. Substantially all of the Consumer Loans assigned to us are made to consumers with impaired or limited credit histories. The following table shows the percentage of Consumer Loans assigned to us with either FICO ® scores below 650 or no FICO ® scores: For the Three Months Ended September 30, For the Nine Months Ended September 30, Consumer Loan Assignment Volume 2020 2019 2020 2019 Percentage of total unit volume with either FICO ® scores below 650 or no FICO ® scores 93.6 % 95.5 % 95.4 % 96.0 % We have two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, we advance money to Dealers (referred to as a “Dealer Loan”) in exchange for the right to service the underlying Consumer Loans. Under the Purchase Program, we buy the Consumer Loans from the Dealers (referred to as a “Purchased Loan”) and keep all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as “Loans”. The following table shows the percentage of Consumer Loans assigned to us as Dealer Loans and Purchased Loans for each of the last seven quarters: Unit Volume Dollar Volume (1) Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans March 31, 2019 67.4 % 32.6 % 65.0 % 35.0 % June 30, 2019 66.7 % 33.3 % 63.7 % 36.3 % September 30, 2019 67.2 % 32.8 % 64.1 % 35.9 % December 31, 2019 67.4 % 32.6 % 64.0 % 36.0 % March 31, 2020 64.9 % 35.1 % 60.5 % 39.5 % June 30, 2020 62.5 % 37.5 % 59.1 % 40.9 % September 30, 2020 64.1 % 35.9 % 60.9 % 39.1 % (1) Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. Portfolio Program As payment for the vehicle, the Dealer generally receives the following: • a down payment from the consumer; • a non-recourse cash payment (“advance”) from us; and • after the advance balance (cash advance and related Dealer Loan fees and costs) has been recovered by us, the cash from payments made on the Consumer Loan, net of certain collection costs and our servicing fee (“Dealer Holdback”). We record the amount advanced to the Dealer as a Dealer Loan, which is classified within Loans receivable in our consolidated balance sheets. Cash advanced to the Dealer is automatically assigned to the Dealer’s open pool of advances. Prior to August 5, 2019, we generally required Dealers to group advances into pools of at least 100 Consumer Loans. Beginning August 5, 2019, Dealers may also elect to close a pool containing at least 50 Consumer Loans and assign subsequent advances to a new pool. Unless we receive a request from the Dealer to keep a pool open, we automatically close each pool based on the Dealer's election. All advances within a Dealer’s pool are secured by the future collections on the related Consumer Loans assigned to the pool. For Dealers with more than one pool, the pools are cross-collateralized so the performance of other pools is considered in determining eligibility for Dealer Holdback. We perfect our security interest with respect to the Dealer Loans by obtaining control or taking possession of the Consumer Loans, which list us as lien holder on the vehicle title. The Dealer servicing agreement provides that collections received by us during a calendar month on Consumer Loans assigned by a Dealer are applied on a pool-by-pool basis as follows: • first, to reimburse us for certain collection costs; • second, to pay us our servicing fee, which generally equals 20% of collections; • third, to reduce the aggregate advance balance and to pay any other amounts due from the Dealer to us; and • fourth, to the Dealer as payment of Dealer Holdback. If the collections on Consumer Loans from a Dealer’s pool are not sufficient to repay the advance balance and any other amounts due to us, the Dealer will not receive Dealer Holdback. Certain events may also result in Dealers forfeiting their rights to Dealer Holdback, including becoming inactive before assigning 100 Consumer Loans. Dealers have an opportunity to receive an accelerated Dealer Holdback payment each time a pool of Consumer Loans is closed. The amount paid to the Dealer is calculated using a formula that considers the number of Consumer Loans assigned to the pool and the related forecasted collections and advance balance. Since typically the combination of the advance and the consumer’s down payment provides the Dealer with a cash profit at the time of sale, the Dealer’s risk in the Consumer Loan is limited. We cannot demand repayment of the advance from the Dealer except in the event the Dealer is in default of the Dealer servicing agreement. Advances are made only after the consumer and Dealer have signed a Consumer Loan contract, we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form, and we have approved all of the related stipulations for funding. For accounting purposes, the transactions described under the Portfolio Program are not considered to be loans to consumers. Instead, our accounting reflects that of a lender to the Dealer. The classification as a Dealer Loan for accounting purposes is primarily a result of (1) the Dealer’s financial interest in the Consumer Loan and (2) certain elements of our legal relationship with the Dealer. Purchase Program The Purchase Program differs from our Portfolio Program in that the Dealer receives a one-time payment from us at the time of assignment to purchase the Consumer Loan instead of a cash advance at the time of assignment and future Dealer Holdback payments. For accounting purposes, the transactions described under the Purchase Program are considered to be originated by the Dealer and then purchased by us. Program Enrollment Beginning August 5, 2019, Dealers may enroll in our Portfolio Program without incurring an enrollment fee. Prior to August 5, 2019, Dealers enrolled in our Portfolio Program by (1) paying an up-front, one-time fee of $9,850, or (2) agreeing to allow us to retain 50% of their accelerated Dealer Holdback payment(s) on the first 100 Consumer Loan assignments. Access to the Purchase Program is typically only granted to Dealers that meet one of the following: • assigned at least 100 Consumer Loans under the Portfolio Program; • franchise dealership; or • independent dealership that meets certain criteria upon enrollment. Seasonality Our business is seasonal with peak Consumer Loan assignments and collections occurring during the first quarter of the year. Historically, this seasonality did not have a material impact on our interim results. However, upon adoption of the current expected credit loss (“CECL”) impairment model on January 1, 2020, this seasonality now has a material impact on our interim results, as we are required to recognize a significant provision for credit losses expense at the time of assignment. For additional information, see Note 3. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Segment Information We currently operate in one reportable segment which represents our core business of offering financing programs that enable Dealers to sell vehicles to consumers, regardless of their credit history. The consolidated financial statements reflect the financial results of our one reportable operating segment. Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash equivalents consist of readily marketable securities with original maturities at the date of acquisition of three months or less. As of September 30, 2020 and December 31, 2019, we had $8.5 million and $186.1 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”). Restricted cash and cash equivalents consist of cash pledged as collateral for secured financings and cash held in a trust for future vehicle service contract claims. As of September 30, 2020 and December 31, 2019, we had $388.1 million and $326.7 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC. The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported in our consolidated balance sheets to the total shown in our consolidated statements of cash flows: (In millions) As of September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 8.9 $ 187.4 $ 24.7 $ 25.7 Restricted cash and cash equivalents 391.9 330.3 329.8 303.6 Total cash and cash equivalents and restricted cash and cash equivalents $ 400.8 $ 517.7 $ 354.5 $ 329.3 Restricted Securities Available for Sale Restricted securities available for sale consist of amounts held in a trust for future vehicle service contract claims. We determine the appropriate classification of our investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date. Debt securities for which we do not have the intent or ability to hold to maturity are classified as available for sale, and stated at fair value with unrealized gains and losses, net of income taxes included in the determination of comprehensive income and reported as a component of shareholders’ equity. Loans Receivable and Allowance for Credit Losses Consumer Loan Assignment. For legal purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred: • the consumer and Dealer have signed a Consumer Loan contract; and • we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form. For accounting and financial reporting purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred: • the Consumer Loan has been legally assigned to us; and • we have made a funding decision and generally have provided funding to the Dealer in the form of either an advance under the Portfolio Program or one-time purchase payment under the Purchase Program. Portfolio Segments and Classes. Our Loan portfolio consists of two portfolio segments: Dealer Loans and Purchased Loans. Our determination is based on the following: • We have two financing programs: the Portfolio Program and the Purchase Program. We are considered to be a lender to our Dealers for Consumer Loans assigned under the Portfolio Program and a purchaser of Consumer Loans assigned under the Purchase Program. • The Portfolio Program and the Purchase Program have different levels of risk in relation to credit losses. Under the Portfolio Program, the impact of negative variances in Consumer Loan performance is mitigated by Dealer Holdback and the cross-collateralization of Consumer Loan assignments. Under the Purchase Program, we are impacted by the full amount of negative variances in Consumer Loan performance. • Our business model is narrowly focused on Consumer Loan assignments from one industry with expected cash flows that are significantly lower than the contractual cash flows owed to us due to credit quality. We do not believe that it is meaningful to disaggregate our Loan portfolio beyond the Dealer Loans and Purchased Loans portfolio segments. Each portfolio segment consists of one class of Consumer Loan assignments, which is Consumer Loans originated by Dealers to finance purchases of vehicles and related ancillary products by consumers with impaired or limited credit histories. Our determination is based on the following: • All of the Consumer Loans assigned to us have similar risk characteristics in relation to the categorization of borrowers, type of financing receivable, industry sector and type of collateral. • We only accept Consumer Loan assignments from Dealers located within the United States. 2020 Recognition and Measurement Policies. On January 1, 2020, we adopted Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which is known as the current expected credit loss model, or CECL. Loans outstanding prior to the adoption date qualified for transition relief and are accounted for as purchased financial assets with credit deterioration (“PCD Method”). Under the PCD Method, on January 1, 2020, we: • calculated an effective interest rate based on expected future net cash flows; and • increased the Loans receivable and the related allowance for credit losses balances by the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. This “gross-up” did not impact the net carrying amount of Loans (Loans receivable less allowance for credit losses) or net income. Under the PCD Method, for each reporting period subsequent to our adoption of CECL, we: • recognize finance charge revenue using the effective interest rate that was calculated on the adoption date based on expected future net cash flows; and • adjust the allowance for credit losses so that the net carrying amount of each Loan equals the present value of expected future net cash flows discounted at the effective interest rate. The adjustment to the allowance for credit losses is recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. Consumer Loans assigned to us subsequent to December 31, 2019 do not qualify for the PCD Method and are accounted for as originated financial assets (“Originated Method”). While the cash flows we expect to collect at the time of assignment are significantly lower than the contractual cash flows owed to us due to credit quality, our Loans do not qualify for the PCD Method because the assignment of the Consumer Loan to us occurs a moment after the Consumer Loan is originated by the Dealer, so “a more-than-insignificant deterioration in credit quality since origination” has not occurred at the time of assignment. In addition, Dealer Loans also do not qualify for the PCD Method because Consumer Loans assigned to us under the Portfolio Program are considered to be advances under Dealer Loans originated by us rather than Consumer Loans purchased by us. Under the Originated Method, at the time of assignment, we: • calculate the effective interest rate based on contractual future net cash flows; • record a Loan receivable equal to the advance paid to the Dealer under the Portfolio Program or purchase price paid to the Dealer under the Purchase Program; and • record an allowance for credit losses equal to the difference between the initial Loan receivable balance and the present value of expected future net cash flows discounted at the effective interest rate. The initial allowance for credit losses is recognized as provision for credit losses expense. Under the Originated Method, for each reporting period subsequent to assignment, we: • recognize finance charge revenue using the effective interest rate that was calculated at the time of assignment based on contractual future net cash flows; and • adjust the allowance for credit losses so that the net carrying amount of each Loan equals the present value of expected future net cash flows discounted at the effective interest rate. The adjustment to the allowance for credit losses is recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. 2019 Recognition and Measurement Policies. Prior to the adoption of CECL on January 1, 2020, we accounted for our Loans as loans acquired with significant credit deterioration. At the time of assignment, we: • calculated an effective interest rate based on expected future net cash flows; and • recorded a Loan receivable equal to the advance paid to the Dealer under the Portfolio Program or purchase price paid to the Dealer under the Purchase Program. For each reporting period subsequent to assignment, we: • recalculated an effective interest rate based on expected future net cash flows; • recognized finance charge revenue using the greater of the effective interest rate that was calculated for the reporting period or the effective interest rate that was calculated at the time of assignment, both of which were based on expected future net cash flows; and • recorded or adjusted an allowance for credit losses, if necessary, to reduce the net carrying amount of each Loan to the present value of expected future net cash flows discounted at the effective interest rate that was calculated at the time of assignment. The initial allowance for credit losses was recognized as provision for credit losses expense and the adjustment to the allowance for credit losses was recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. Loans Receivable . Amounts advanced to Dealers for Consumer Loans assigned under the Portfolio Program are recorded as Dealer Loans and are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment. Amounts paid to Dealers for Consumer Loans assigned under the Purchase Program are recorded as Purchased Loans and, for purposes of recognizing revenue and evaluating impairment, are: • not aggregated, if assigned subsequent to December 31, 2019; or • aggregated into pools based on the month of purchase, if assigned prior to January 1, 2020. The outstanding balance of each Loan included in Loans receivable is comprised of the following: • cash paid to the Dealer (or to third party ancillary product providers on the Dealer’s behalf) for the Consumer Loan assignment (advance under the Portfolio Program or one-time purchase payment under the Purchase Program); • finance charges; • Dealer Holdback payments; • accelerated Dealer Holdback payments; • recoveries; • transfers in; • less: collections (net of certain collection costs); • less: write-offs; and • less: transfers out. Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and the related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs. We aggregate these Purchased Loans by Dealer for purposes of recognizing revenue and evaluating impairment. Allowance for Credit Losses. The outstanding balance of the allowance for credit losses of each Loan represents the amount required to reduce net carrying amount of Loans (Loans receivable less allowance for credit losses) to the present value of expected future net cash flows discounted at the effective interest rate. Expected future net cash flows for Dealer Loans are comprised of expected future collections on the assigned Consumer Loans, less any expected future Dealer Holdback payments. Expected future net cash flows for Purchased Loans are comprised of expected future collections on the assigned Consumer Loans. Expected future collections are forecasted for each individual Consumer Loan based on the historical performance of Consumer Loans with similar characteristics, adjusted for recent trends in payment patterns and economic conditions. Our forecast of expected future collections includes estimates for prepayments and post-contractual-term cash flows. Unless the consumer is no longer contractually obligated to pay us, we forecast future collections on each Consumer Loan for a 120 month period after the origination date. Expected future Dealer Holdback payments are forecasted for each individual Dealer based on the expected future collections and current advance balance of each Dealer Loan. We fully write off the outstanding balances of a Loan and the related allowance for credit losses once we are no longer forecasting any expected future net cash flows on the Loan. In addition, on January 1, 2020, we adopted a partial write-off policy in connection with our adoption of CECL. Under our partial write-off policy, we write off the amount of the outstanding balances of a Loan and the related allowance for credit losses, if any, that exceeds 200% of the present value of expected future net cash flows on the Loan, as we deem this amount to be uncollectable. Credit Quality. Substantially all of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories. Consumer Loans made to these individuals generally entail a higher risk of delinquency, default and repossession and higher losses than loans made to consumers with better credit. Since most of our revenue and cash flows are generated from these Consumer Loans, our ability to accurately forecast Consumer Loan performance is critical to our business and financial results. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on these forecasts, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize our economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital and the amount of capital invested. We monitor and evaluate the credit quality of Consumer Loans on a monthly basis by comparing our current forecasted collection rates to our initial expectations. We use a statistical model that considers a number of credit quality indicators to estimate the expected collection rate for each Consumer Loan at the time of assignment. The credit quality indicators considered in our model include attributes contained in the consumer’s credit bureau report, data contained in the consumer’s credit application, the structure of the proposed transaction, vehicle information and other factors. We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. Since all known, significant credit quality indicators have already been factored into our forecasts and pricing, we are not able to use any specific credit quality indicators to predict or explain variances in actual performance from our initial expectations. Any variances in performance from our initial expectations are the result of Consumer Loans performing differently than historical Consumer Loans with similar characteristics. We periodically adjust our statistical pricing model for new trends that we identify through our evaluation of these forecasted collection rate variances. Methodology Changes . On January 1, 2020, we adopted CECL, which changed our accounting policies for Loans. During the first quarter of 2020, we reduced forecasted collection rates to reflect the estimated long-term impact of COVID-19 on Consumer Loan performance. For additional information, see New Accounting Updates Adopted During the Current Year below and Note 6. For the three and nine months ended September 30, 2020 and 2019, we did not make any other methodology changes for Loans that had a material impact on our financial statements. Finance Charges Sources of Revenue. Finance charges is comprised of: (1) interest income earned on Loans; (2) administrative fees earned from ancillary products; (3) program fees charged to Dealers under the Portfolio Program; (4) Consumer Loan assignment fees charged to Dealers; and (5) direct origination costs incurred on Dealer Loans. We provide Dealers the ability to offer vehicle service contracts to consumers through our relationships with Third Party Providers (“TPPs”). A vehicle service contract provides the consumer protection by paying for the repair or replacement of certain components of the vehicle in the event of a mechanical failure. The retail price of the vehicle service contract is included in the principal balance of the Consumer Loan. The wholesale cost of the vehicle service contract is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of the vehicle service contract and the commission paid to the Dealer are charged to the Dealer’s advance balance. TPPs process claims on vehicle service contracts that are underwritten by third party insurers. We bear the risk of loss for claims on certain vehicle service contracts that are reinsured by us. We market the vehicle service contracts directly to our Dealers. We provide Dealers the ability to offer Guaranteed Asset Protection (“GAP”) to consumers through our relationships with TPPs. GAP provides the consumer protection by paying the difference between the loan balance and the amount covered by the consumer’s insurance policy in the event of a total loss of the vehicle due to severe damage or theft. The retail price of GAP is included in the principal balance of the Consumer Loan. The wholesale cost of GAP is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of GAP and the commission paid to the Dealer are charged to the Dealer’s advance balance. TPPs process claims on GAP contracts that are underwritten by third party insurers. Program fees represent monthly fees charged to Dealers for access to our Credit Approval Processing System (“CAPS”); administration, servicing and collection services offered by us; documentation related to or affecting our program; and all tangible and intangible property owned by Credit Acceptance. We charge a monthly fee of $599 to Dealers participating in our Portfolio Program and we collect it from future Dealer Holdback payments. Recognition Policy. We recognize finance charges under the interest method such that revenue is recognized on a level-yield basis over the life of the Loan. We calculate finance charges on a monthly basis by applying the effective interest rate of the Loan to the net carrying amount of the Loan (Loan receivable less the related allowance for credit losses). For Consumer Loans assigned subsequent to December 31, 2019, the effective interest rate is based on contractual future net cash flows. For Consumer Loan assigned prior to January 1, 2020, the effective interest rate was based on expected future net cash flows. In connection with our adoption of CECL on January 1, 2020, we have elected to report the change in the present value of credit losses attributable to the passage of time as a reduction to finance charges. As a result, for financial statement periods beginning after December 31, 2019, we allocate finance charges recognized on each Loan between the Loan receivable and the related allowance for credit losses. The amount of finance charges allocated to the Loan receivable is equal to the effective interest rate applied to the Loans receivable balance. The reduction of finance charges allocated to the allowance for credit losses is equal to the effective interest rate applied to the allowance for credit losses balance. For financial statement periods beginning prior to January 1, 2020, the entire amount of finance charges recognized on each Loan was allocated to the Loan receivable. Reinsurance VSC Re Company (“VSC Re”), our wholly-owned subsidiary, is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles financed by us. VSC Re currently reinsures vehicle service contracts that are offered through one of our third party providers. Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, less fees and certain administrative costs, are contributed to a trust account controlled by VSC Re. These premiums are used to fund claims covered under the vehicle service contracts. VSC Re is a bankruptcy remote entity. As such, our exposure to fund claims is limited to the trust assets controlled by VSC Re and our net investment in VSC Re. Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to expected costs of servicing those contracts. Expected costs are determined based on our historical claims experience. Claims are expensed through a provision for claims in the period the claim was incurred. Capitalized acquisition costs are comprised of premium taxes and are amortized as general and administrative expense over the life of the contracts in proportion to premiums earned. We have consolidated the trust within our financial statements based on our determination of the following: • We have a variable interest in the trust. We have a residual interest in the assets of the trust, which is variable in nature, given that it increases or decreases based upon the actual loss experience of the related service contracts. In addition, VSC Re is required to absorb any losses in excess of the trust's assets. • The trust is a variable interest entity. The trust has insufficient equity at risk as no parties to the trust were required to contribute assets that provide them with any ownership interest. • We are the primary beneficiary of the trust. We control the amount of premiums written and placed in the trust through Consumer Loan assignments under our Programs, which is the activity that most significantly impacts the economic performance of the trust. We have the right to receive benefits from the trust that could potentially be significant. In addition, VSC Re has the obligation to absorb losses of the trust that could potentially be significant. New Accounting Updates Adopted During the Current Year Accounting for Costs of Implementing Cloud Computing. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, which reduces complexity in the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. Under the current guidance, the classification of an arrangement as either a software license or a service contract determines whether or not we capitalize implementation costs. If an arrangement meets the definition of a software license, implementation costs are capitalized. If an arrangement meets the definition of a service contract, implementation costs are expensed as incurred. Under the new guidance, implementation costs will be capitalized regardless of their classification. The adoption of ASU 2018-15 on January 1, 2020 changed how we account for our cloud computing arrangements. However, its adoption did not have a material impact on our consolidated financial statements and related disclosures. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13, which included an impairment model known as the current expected credit loss model, or CECL, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for credit losses based on the difference between contractual future net cash flows and its estimate of expected future net cash flows. The new guidance also changed the scope of the special accounting for loans acquired with significant credit deterioration. Our adoption of ASU 2016-13 on January 1, 2020 had a material impact on our consolidated financial statements and related disclosures, as it changed our accounting policies for Loans. Upon adoption of CECL on January 1, 2020, we increased both our Loans receivable and the related allowance for credit losses balances by $2,463.6 million. This gross-up did not impact the net carrying amount of Loans (Loans receivable less allowance for credit losses) or net income. This gross-up also reflected the impact of our adoption of a partial write-off policy on January 1, 2020 in connection with our adoption of CECL. The net Loan income (finance charge revenue less provision for credit losses expense) that we will recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. While the total amount of net Loan income we will recognize over the life of the Loan is not impacted by CECL, the timing of when we will recognize this income changes significantly from our prior accounting method, as CECL requires us to recognize a significant provision for credit losses expense at the time of assignment for amounts we never expected to realize and finance charge revenue in subsequent periods that significantly exceeds our expected yields. Given the significant change in timing of net Loan income recognition, we believe net income for the year ending December 31, 2020 will be significantly lower under CECL than what would be reported under our prior accounting method, with the greatest impact occurring in the quarter of adoption. For the three months ended September 30, 2020, we recognized $114.1 million provision for credit losses on new Consumer Loan assignments related to our adoption of CECL on January 1, 2020, which reduced consolidated net income by $87.9 million, or $4.92 per diluted share. For the nine months ended September 30, 2020, we recognized $426.2 million provision for credit losses on new Consumer Loan assignments related to our adoption of CECL on January 1, 2020, which reduced consolidated net income by $328.2 million, or $18.26 per diluted share. The financial statement impact of CECL in any period will depend on Consumer Loan assignment volume and the percentage of Consumer Loans assigned to us as Purchased Loans, the size and composition of our Loan portfolio, the Loan portfolio’s credit quality and economic conditions. New Accounting Updates Not Yet Adopted Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, which intends to enhance and simplify various aspects of the income tax accounting guidance, including requirements impacting the allocation of income tax expense to certain legal entities and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for fiscal years, and interim periods, beginning after December 15, 2020. Early application is permitted, but we have not yet adopted ASU 2019-12. We are currently assessing the impact the adoption of ASU 2019-12 will have on our consolidated financial statements and related disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate their value. Cash and Cash Equivalents and Restricted Cash and Cash Equivalents . The carrying amounts approximate their fair value due to the short maturity of these instruments. Restricted Securities Available for Sale. The fair value of U.S. Government and agency securities and corporate bonds is based on quoted market values in active markets. For asset-backed securities, mortgage-backed securities and commercial paper we use model-based valuation techniques for which all significant assumptions are observable in the market. Loans Receivable, net. The fair value is determined by calculating the present value of expected future net cash flows estimated by us utilizing a discount rate comparable with the rate used to calculate the value of our Loans under our non-GAAP floating yield methodology. Revolving Secured Line of Credit. The fair value is determined by calculating the present value of the debt instrument based on current rates for debt with a similar risk profile and maturity. Secured Financing. The fair value of our asset-backed secured financings (“Term ABS”) is determined using quoted market prices; however, these instruments trade in a market with a low trading volume. For our warehouse facilities, the fair values are determined by calculating the present value of each debt instrument based on current rates for debt with similar risk profiles and maturities. Senior Notes. The fair value is determined using quoted market prices in an active market. Mortgage Note. The fair value is determined by calculating the present value of the debt instrument based on current rates for debt with a similar risk profile and maturity. A comparison of the carrying amount and estimated fair value of these financial instruments is as follows: (In millions) As of September 30, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Assets Cash and cash equivalents $ 8.9 $ 8.9 $ 187.4 $ 187.4 Restricted cash and cash equivalents 391.9 391.9 330.3 330.3 Restricted securities available for sale 66.8 66.8 59.3 59.3 Loans receivable, net 6,865.2 7,263.0 6,685.2 6,777.2 Liabilities Revolving secured line of credit $ 125.7 $ 125.7 $ — $ — Secured financing 3,692.8 3,762.0 3,339.7 3,397.5 Senior notes 790.1 808.1 1,187.8 1,257.6 Mortgage note 10.7 10.7 11.3 11.3 Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates or assumptions that market participants would use in pricing the asset or liability. The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value: (In millions) As of September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 8.9 $ — $ — $ 8.9 Restricted cash and cash equivalents (1) 391.9 — — 391.9 Restricted securities available for sale (2) 53.8 13.0 — 66.8 Loans receivable, net (1) — — 7,263.0 7,263.0 Liabilities Revolving secured line of credit (1) $ — $ 125.7 $ — $ 125.7 Secured financing (1) — 3,762.0 — 3,762.0 Senior notes (1) 808.1 — — 808.1 Mortgage note (1) — 10.7 — 10.7 (In millions) As of December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 187.4 $ — $ — $ 187.4 Restricted cash and cash equivalents (1) 330.3 — — 330.3 Restricted securities available for sale (2) 47.5 11.8 — 59.3 Loans receivable, net (1) — — 6,777.2 6,777.2 Liabilities Revolving secured line of credit (1) $ — $ — $ — $ — Secured financing (1) — 3,397.5 — 3,397.5 Senior notes (1) 1,257.6 — — 1,257.6 Mortgage note (1) — 11.3 — 11.3 (1) Measured at amortized cost with fair value disclosed. |
Restricted Securities Available
Restricted Securities Available for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Restricted Securities Available for Sale | RESTRICTED SECURITIES AVAILABLE FOR SALE Restricted securities available for sale consist of the following: (In millions) As of September 30, 2020 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 30.0 $ 1.1 $ — $ 31.1 U.S. Government and agency securities 21.9 0.8 — 22.7 Asset-backed securities 12.3 0.2 — 12.5 Mortgage-backed securities 0.5 — — 0.5 Total restricted securities available for sale $ 64.7 $ 2.1 $ — $ 66.8 (In millions) As of December 31, 2019 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 25.3 $ 0.5 $ — $ 25.8 U.S. Government and agency securities 21.3 0.4 — 21.7 Asset-backed securities 11.2 0.1 — 11.3 Mortgage-backed securities 0.5 — — 0.5 Total restricted securities available for sale $ 58.3 $ 1.0 $ — $ 59.3 The fair value and gross unrealized losses for restricted securities available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: (In millions) Securities Available for Sale with Gross Unrealized Losses as of September 30, 2020 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 4.2 $ — $ — $ — $ 4.2 $ — U.S. Government and agency securities — — — — — — Asset-backed securities 0.5 — — — 0.5 — Mortgage-backed securities — — — — — — Total restricted securities available for sale $ 4.7 $ — $ — $ — $ 4.7 $ — (In millions) Securities Available for Sale with Gross Unrealized Losses as of December 31, 2019 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 1.4 $ — $ — $ — $ 1.4 $ — U.S. Government and agency securities 1.9 — — — 1.9 — Asset-backed securities 1.9 — — — 1.9 — Mortgage-backed securities — — — — — — Total restricted securities available for sale $ 5.2 $ — $ — $ — $ 5.2 $ — The cost and estimated fair values of debt securities by contractual maturity were as follows (securities with multiple maturity dates are classified in the period of final maturity). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In millions) As of September 30, 2020 December 31, 2019 Contractual Maturity Amortized Cost Estimated Fair Amortized Cost Estimated Fair Within one year $ 2.6 $ 2.6 $ 5.7 $ 5.7 Over one year to five years 56.8 58.8 50.8 51.8 Over five years to ten years 5.1 5.2 1.5 1.5 Over ten years 0.2 0.2 0.3 0.3 Total restricted securities available for sale $ 64.7 $ 66.8 $ 58.3 $ 59.3 |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable | LOANS RECEIVABLE Loans receivable and allowance for credit losses consist of the following: (In millions) As of September 30, 2020 Dealer Loans Purchased Loans Total Loans receivable $ 5,857.7 $ 4,318.4 $ 10,176.1 Allowance for credit losses (1,634.8) (1,676.1) (3,310.9) Loans receivable, net $ 4,222.9 $ 2,642.3 $ 6,865.2 (In millions) As of December 31, 2019 Dealer Loans Purchased Loans Total Loans receivable $ 4,623.3 $ 2,597.9 $ 7,221.2 Allowance for credit losses (428.0) (108.0) (536.0) Loans receivable, net $ 4,195.3 $ 2,489.9 $ 6,685.2 A summary of changes in Loans receivable and allowance for credit losses is as follows: For the Three Months Ended September 30, 2020 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,810.8 $ 4,285.1 $ 10,095.9 $ (1,623.6) $ (1,722.5) $ (3,346.1) $ 4,187.2 $ 2,562.6 $ 6,749.8 Finance charges 336.8 259.8 596.6 (95.6) (96.6) (192.2) 241.2 163.2 404.4 Provision for credit losses — — — 26.4 3.4 29.8 26.4 3.4 29.8 New Consumer Loan assignments (2) 519.0 333.1 852.1 — — — 519.0 333.1 852.1 Collections (3) (780.2) (440.1) (1,220.3) — — — (780.2) (440.1) (1,220.3) Accelerated Dealer Holdback payments 11.7 — 11.7 — — — 11.7 — 11.7 Dealer Holdback payments 35.5 — 35.5 — — — 35.5 — 35.5 Transfers (4) (30.0) 30.0 — 9.9 (9.9) — (20.1) 20.1 — Write-offs (48.3) (150.1) (198.4) 48.3 150.1 198.4 — — — Recoveries (5) 0.2 0.6 0.8 (0.2) (0.6) (0.8) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 5,857.7 $ 4,318.4 $ 10,176.1 $ (1,634.8) $ (1,676.1) $ (3,310.9) $ 4,222.9 $ 2,642.3 $ 6,865.2 For the Three Months Ended September 30, 2019 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,466.0 $ 2,407.6 $ 6,873.6 $ (394.0) $ (95.6) $ (489.6) $ 4,072.0 $ 2,312.0 $ 6,384.0 Finance charges 225.3 124.6 349.9 — — — 225.3 124.6 349.9 Provision for credit losses — — (17.9) (1.4) (19.3) (17.9) (1.4) (19.3) New Consumer Loan assignments (2) 573.3 321.1 894.4 — — — 573.3 321.1 894.4 Collections (3) (738.3) (360.1) (1,098.4) — — — (738.3) (360.1) (1,098.4) Accelerated Dealer Holdback payments 16.1 — 16.1 — — — 16.1 — 16.1 Dealer Holdback payments 34.8 — 34.8 — — — 34.8 — 34.8 Transfers (4) (20.3) 20.3 — 2.8 (2.8) — (17.5) 17.5 — Write-offs (0.3) (0.2) (0.5) 0.3 0.2 0.5 — — — Recoveries (5) 0.5 0.2 0.7 (0.5) (0.2) (0.7) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 4,559.3 $ 2,513.5 $ 7,072.8 $ (409.3) $ (99.8) $ (509.1) $ 4,150.0 $ 2,413.7 $ 6,563.7 For the Nine Months Ended September 30, 2020 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,623.3 $ 2,597.9 $ 7,221.2 $ (428.0) $ (108.0) $ (536.0) $ 4,195.3 $ 2,489.9 $ 6,685.2 Adoption of CECL (1) 940.2 1,523.4 2,463.6 (940.2) (1,523.4) (2,463.6) — — — Finance charges 972.3 722.0 1,694.3 (270.3) (279.5) (549.8) 702.0 442.5 1,144.5 Provision for credit losses — — — (202.8) (261.5) (464.3) (202.8) (261.5) (464.3) New Consumer Loan assignments (2) 1,751.1 1,161.4 2,912.5 — — — 1,751.1 1,161.4 2,912.5 Collections (3) (2,313.1) (1,250.8) (3,563.9) — — — (2,313.1) (1,250.8) (3,563.9) Accelerated Dealer Holdback payments 34.6 — 34.6 — — — 34.6 — 34.6 Dealer Holdback payments 109.9 — 109.9 — — — 109.9 — 109.9 Transfers (4) (90.3) 90.3 — 29.5 (29.5) — (60.8) 60.8 — Write-offs (177.8) (527.1) (704.9) 177.8 527.1 704.9 — — — Recoveries (5) 0.8 1.3 2.1 (0.8) (1.3) (2.1) — — — Deferral of Loan origination costs 6.7 — 6.7 — — — 6.7 — 6.7 Balance, end of period $ 5,857.7 $ 4,318.4 $ 10,176.1 $ (1,634.8) $ (1,676.1) $ (3,310.9) $ 4,222.9 $ 2,642.3 $ 6,865.2 For the Nine Months Ended September 30, 2019 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,141.0 $ 2,084.2 $ 6,225.2 $ (378.1) $ (83.8) $ (461.9) $ 3,762.9 $ 2,000.4 $ 5,763.3 Finance charges 661.4 351.9 1,013.3 — — — 661.4 351.9 1,013.3 Provision for credit losses — — — (44.0) (5.2) (49.2) (44.0) (5.2) (49.2) New Consumer Loan assignments (2) 1,901.1 1,053.9 2,955.0 — — — 1,901.1 1,053.9 2,955.0 Collections (3) (2,230.2) (1,044.6) (3,274.8) — — — (2,230.2) (1,044.6) (3,274.8) Accelerated Dealer Holdback payments 44.1 — 44.1 — — — 44.1 — 44.1 Dealer Holdback payments 105.4 — 105.4 — — — 105.4 — 105.4 Transfers (4) (67.6) 67.6 — 10.3 (10.3) — (57.3) 57.3 — Write-offs (3.7) (0.4) (4.1) 3.7 0.4 4.1 — — — Recoveries (5) 1.2 0.9 2.1 (1.2) (0.9) (2.1) — — — Deferral of Loan origination costs 6.6 — 6.6 — — — 6.6 — 6.6 Balance, end of period $ 4,559.3 $ 2,513.5 $ 7,072.8 $ (409.3) $ (99.8) $ (509.1) $ 4,150.0 $ 2,413.7 $ 6,563.7 (1) Represents the gross-up of Loans receivable and allowance for credit losses on January 1, 2020 upon the adoption of CECL for the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. (2) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (3) Represents repayments that we collected on Consumer Loans assigned under our programs. (4) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs. (5) The Dealer Loans amount represents net cash flows received (collection less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full. Under CECL, which we adopted on January 1, 2020, we are required to recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that were not expected to be realized at the time of assignment. Under both CECL and our prior accounting method, we also recognize provision for credit losses for forecast changes in the amount and timing of expected future net cash flows subsequent to assignment. The following table summarizes the provision for credit losses for each of these components: (In millions) For the Three Months Ended September 30, 2020 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 45.6 $ 68.5 $ 114.1 Forecast changes (72.0) (71.9) (143.9) Total $ (26.4) $ (3.4) $ (29.8) (In millions) For the Nine Months Ended September 30, 2020 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 171.3 $ 254.9 $ 426.2 Forecast changes 31.5 6.6 38.1 Total $ 202.8 $ 261.5 $ 464.3 The net Loan income (finance charge revenue less provision for credit losses expense) that we will recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. While the total amount of net Loan income we will recognize over the life of the Loan is not impacted by the adoption of CECL on January 1, 2020, the timing of when we will recognize this income changes significantly from our prior accounting method, as CECL requires us to recognize a significant provision for credit losses expense at the time of assignment for amounts we never expected to realize and finance charge revenue in subsequent periods that significantly exceeds our expected yields. Additional information related to new Consumer Loan assignments is as follows: (In millions) For the Three Months Ended September 30, 2020 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 823.0 $ 730.8 $ 1,553.8 Expected net cash flows at the time of assignment (2) 733.6 475.3 1,208.9 Loans receivable at the time of assignment (3) 519.0 333.1 852.1 Provision for credit losses expense at the time of assignment $ (45.6) $ (68.5) $ (114.1) Expected future finance charges at the time of assignment (4) 260.2 210.7 470.9 Expected net Loan income at the time of assignment (5) $ 214.6 $ 142.2 $ 356.8 (In millions) For the Three Months Ended September 30, 2019 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 895.1 $ 704.4 $ 1,599.5 Expected net cash flows at the time of assignment (2) 797.3 455.7 1,253.0 Loans receivable at the time of assignment (3) 573.3 321.1 894.4 Provision for credit losses expense at the time of assignment $ — $ — $ — Expected future finance charges at the time of assignment (4) 224.0 134.6 358.6 Expected net Loan income at the time of assignment (5) $ 224.0 $ 134.6 $ 358.6 (In millions) For the Nine Months Ended September 30, 2020 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 2,787.2 $ 2,566.4 $ 5,353.6 Expected net cash flows at the time of assignment (2) 2,471.7 1,633.5 4,105.2 Loans receivable at the time of assignment (3) 1,751.1 1,161.4 2,912.5 Provision for credit losses expense at the time of assignment $ (171.3) $ (254.9) $ (426.2) Expected future finance charges at the time of assignment (4) 891.9 727.0 1,618.9 Expected net Loan income at the time of assignment (5) $ 720.6 $ 472.1 $ 1,192.7 (In millions) For the Nine Months Ended September 30, 2019 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 2,982.2 $ 2,308.0 $ 5,290.2 Expected net cash flows at the time of assignment (2) 2,661.0 1,492.6 4,153.6 Loans receivable at the time of assignment (3) 1,901.1 1,053.9 2,955.0 Provision for credit losses expense at the time of assignment $ — $ — $ — Expected future finance charges at the time of assignment (4) 759.9 438.7 1,198.6 Expected net Loan income at the time of assignment (5) $ 759.9 $ 438.7 $ 1,198.6 (1) The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program. (2) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. (3) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. The Loan amounts also represent the fair value at the time of assignment. (4) Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans. (5) Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3). A summary of changes in expected future net cash flows is as follows: (In millions) For the Three Months Ended September 30, 2020 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,745.2 $ 3,731.6 $ 9,476.8 New Consumer Loan assignments (1) 733.6 475.3 1,208.9 Realized net cash flows (2) (733.0) (440.1) (1,173.1) Forecast changes 39.5 99.0 138.5 Transfers (3) (28.7) 30.5 1.8 Balance, end of period $ 5,756.6 $ 3,896.3 $ 9,652.9 (In millions) For the Three Months Ended September 30, 2019 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,462.4 $ 3,223.9 $ 8,686.3 New Consumer Loan assignments (1) 797.3 455.7 1,253.0 Realized net cash flows (2) (687.4) (360.1) (1,047.5) Forecast changes (4.2) 6.8 2.6 Transfers (3) (25.5) 27.4 1.9 Balance, end of period $ 5,542.6 $ 3,353.7 $ 8,896.3 (In millions) For the Nine Months Ended September 30, 2020 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,577.0 $ 3,428.2 $ 9,005.2 New Consumer Loan assignments (1) 2,471.7 1,633.5 4,105.2 Realized net cash flows (2) (2,168.6) (1,250.8) (3,419.4) Forecast changes (36.5) (7.1) (43.6) Transfers (3) (87.0) 92.5 5.5 Balance, end of period $ 5,756.6 $ 3,896.3 $ 9,652.9 (In millions) For the Nine Months Ended September 30, 2019 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,045.9 $ 2,782.9 $ 7,828.8 New Consumer Loan assignments (1) 2,661.0 1,492.6 4,153.6 Realized net cash flows (2) (2,080.7) (1,044.6) (3,125.3) Forecast changes (0.3) 32.6 32.3 Transfers (3) (83.3) 90.2 6.9 Balance, end of period $ 5,542.6 $ 3,353.7 $ 8,896.3 (1) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. (2) The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program. (3) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. Credit Quality We monitor and evaluate the credit quality of Consumer Loans assigned under our Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our prior forecasted collection rates and our initial expectations. For additional information regarding credit quality, see Note 3. The following table compares our forecast of Consumer Loan collection rates as of September 30, 2020 with the forecasts as of June 30, 2020, as of December 31, 2019 and at the time of assignment, segmented by year of assignment: Total Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 74.8 % 74.8 % 74.8 % 72.5 % 0.0 % 0.0 % 2.3 % 2012 73.8 % 73.8 % 73.9 % 71.4 % 0.0 % -0.1 % 2.4 % 2013 73.5 % 73.5 % 73.5 % 72.0 % 0.0 % 0.0 % 1.5 % 2014 71.7 % 71.7 % 71.7 % 71.8 % 0.0 % 0.0 % -0.1 % 2015 65.2 % 65.2 % 65.4 % 67.7 % 0.0 % -0.2 % -2.5 % 2016 63.7 % 63.6 % 64.1 % 65.4 % 0.1 % -0.4 % -1.7 % 2017 64.1 % 63.8 % 64.8 % 64.0 % 0.3 % -0.7 % 0.1 % 2018 64.1 % 63.5 % 65.1 % 63.6 % 0.6 % -1.0 % 0.5 % 2019 64.5 % 63.4 % 64.6 % 64.0 % 1.1 % -0.1 % 0.5 % 2020 64.4 % 62.2 % — 63.0 % 2.2 % — 1.4 % Dealer Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 74.7 % 74.7 % 74.6 % 72.4 % 0.0 % 0.1 % 2.3 % 2012 73.7 % 73.7 % 73.7 % 71.3 % 0.0 % 0.0 % 2.4 % 2013 73.4 % 73.4 % 73.4 % 72.1 % 0.0 % 0.0 % 1.3 % 2014 71.6 % 71.6 % 71.6 % 71.9 % 0.0 % 0.0 % -0.3 % 2015 64.6 % 64.6 % 64.8 % 67.5 % 0.0 % -0.2 % -2.9 % 2016 62.9 % 62.8 % 63.2 % 65.1 % 0.1 % -0.3 % -2.2 % 2017 63.5 % 63.2 % 64.2 % 63.8 % 0.3 % -0.7 % -0.3 % 2018 63.6 % 63.0 % 64.7 % 63.6 % 0.6 % -1.1 % 0.0 % 2019 64.1 % 63.0 % 64.4 % 63.9 % 1.1 % -0.3 % 0.2 % 2020 64.1 % 61.9 % — 62.9 % 2.2 % — 1.2 % Purchased Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 76.4 % 76.4 % 76.4 % 72.7 % 0.0 % 0.0 % 3.7 % 2012 75.9 % 75.9 % 75.9 % 71.4 % 0.0 % 0.0 % 4.5 % 2013 74.3 % 74.3 % 74.4 % 71.6 % 0.0 % -0.1 % 2.7 % 2014 72.5 % 72.5 % 72.5 % 70.9 % 0.0 % 0.0 % 1.6 % 2015 68.9 % 68.9 % 69.3 % 68.5 % 0.0 % -0.4 % 0.4 % 2016 65.9 % 65.9 % 66.6 % 66.5 % 0.0 % -0.7 % -0.6 % 2017 65.7 % 65.3 % 66.3 % 64.6 % 0.4 % -0.6 % 1.1 % 2018 65.2 % 64.6 % 66.0 % 63.5 % 0.6 % -0.8 % 1.7 % 2019 65.2 % 64.1 % 65.1 % 64.2 % 1.1 % 0.1 % 1.0 % 2020 64.9 % 62.6 % — 63.2 % 2.3 % — 1.7 % (1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table. We evaluate and adjust the expected collection rate of each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. The following table summarizes the past-due status of Consumer Loan assignments segmented by year of assignment: (In millions) Total Loans as of September 30, 2020 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2015 and Prior $ 9.7 $ 3.6 $ 24.0 $ 108.5 $ 145.8 2016 106.7 36.4 145.0 33.5 321.6 2017 409.8 135.4 293.4 4.5 843.1 2018 1,166.1 388.6 511.8 0.6 2,067.1 2019 2,359.6 746.9 524.2 — 3,630.7 2020 2,687.7 416.0 64.1 — 3,167.8 $ 6,739.6 $ 1,726.9 $ 1,562.5 $ 147.1 $ 10,176.1 (In millions) Dealer Loans as of September 30, 2020 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2015 and Prior $ 4.6 $ 1.7 $ 12.8 $ 84.3 $ 103.4 2016 49.1 16.2 72.0 25.2 162.5 2017 222.8 70.2 153.6 3.2 449.8 2018 643.0 207.5 270.4 0.4 1,121.3 2019 1,267.7 391.9 270.3 — 1,929.9 2020 1,780.8 269.1 40.9 — 2,090.8 $ 3,968.0 $ 956.6 $ 820.0 $ 113.1 $ 5,857.7 (In millions) Purchased Loans as of September 30, 2020 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2015 and Prior $ 5.1 $ 1.9 $ 11.2 $ 24.2 $ 42.4 2016 57.6 20.2 73.0 8.3 159.1 2017 187.0 65.2 139.8 1.3 393.3 2018 523.1 181.1 241.4 0.2 945.8 2019 1,091.9 355.0 253.9 — 1,700.8 2020 906.9 146.9 23.2 — 1,077.0 $ 2,771.6 $ 770.3 $ 742.5 $ 34.0 $ 4,318.4 (1) As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. (2) As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. (3) Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms. (4) Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. (5) We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due. COVID-19 continues to be widespread in the United States. In an effort to contain the virus, authorities implemented various measures, including travel bans, stay-at-home orders and shutdowns of non-essential businesses. These measures caused a significant decline in economic activity and a dramatic increase in unemployment. While the prevalence, severity and impact of such restrictions have lessened and unemployment rates have improved, uncertainty remains as to when economic conditions will return to normalcy and whether further restrictions may be required. Starting in mid-March, we experienced a substantial reduction in demand for our product and a significant decline in cash flows from our Loan portfolio that lasted through mid-April, after which collections and new loan volumes improved significantly. Starting in late July and continuing into October, we have experienced another substantial reduction in demand for our product. As the virus is not yet fully contained, the ultimate impact of the pandemic on our business is not yet known. The impact will depend on future developments, including, but not limited to, the duration of the pandemic, its severity, the actions to contain the disease or mitigate its impact, additional federal stimulus measures and enhanced unemployment benefits, if any, and the duration, timing and severity of the impact on consumer behavior and economic activity. During the first quarter of 2020, we reduced our estimate of future net cash flows from our Loan portfolio by $206.5 million, or 2.3% of the forecasted net cash flows at the start of the period, primarily due to the impact of the COVID-19 pandemic. The reduction was comprised of: (1) $44.3 million calculated by our forecasting model, which reflected lower realized collections during the first quarter of 2020 and (2) an additional $162.2 million, which represented our best estimate of the future impact of the COVID-19 pandemic on future net cash flows. Under CECL, changes in the amount and timing of forecasted net cash flows are recorded as a provision for credit losses in the current period. While the adjustment to our forecast, which we continued to apply throughout the second and third quarters of 2020, represents our best estimate at this time, the COVID-19 pandemic has created conditions that increase the level of uncertainty associated with our estimate of the amount and timing of future net cash flows from our Loan portfolio. Additional Prior Year Loan Disclosures The adoption of CECL on January 1, 2020 eliminated the following disclosures for 2020 that were required in prior years. The excess of expected net cash flows over the outstanding balance of Loans receivable, net is referred to as the accretable yield and is recognized on a level-yield basis as finance charge income over the remaining lives of the Loans. A summary of changes in the accretable yield is as follows: (In millions) For the Three Months Ended September 30, 2019 Dealer Loans Purchased Loans Total Balance, beginning of period $ 1,390.4 $ 911.9 $ 2,302.3 New Consumer Loan assignments (1) 224.0 134.6 358.6 Accretion (2) (227.6) (124.7) (352.3) Provision for credit losses 17.9 1.4 19.3 Forecast changes (4.2) 6.8 2.6 Transfers (3) (7.9) 10.0 2.1 Balance, end of period $ 1,392.6 $ 940.0 $ 2,332.6 (In millions) For the Nine Months Ended September 30, 2019 Dealer Loans Purchased Loans Total Balance, beginning of period $ 1,283.0 $ 782.5 $ 2,065.5 New Consumer Loan assignments (1) 759.9 438.7 1,198.6 Accretion (2) (668.1) (352.0) (1,020.1) Provision for credit losses 44.0 5.2 49.2 Forecast changes (0.3) 32.6 32.3 Transfers (3) (25.9) 33.0 7.1 Balance, end of period $ 1,392.6 $ 940.0 $ 2,332.6 (1) The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers. (2) Represents finance charges excluding the amortization of deferred direct origination costs for Dealer Loans. (3) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, the related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. Advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program are aggregated into pools for purposes of recognizing revenue and evaluating impairment. As a result of this aggregation, we are not able to segment the carrying amounts of the majority of our Loan portfolio by year of assignment. We are able to segment our Loan portfolio by the performance of the Loan pools. Performance considers both the amount and timing of expected net cash flows and is measured by comparing the balance of the Loan pool to the discounted value of the expected future net cash flows of each Loan pool using the yield established at the time of assignment. The following table segments our Loan portfolio by the performance of the Loan pools: (In millions) As of December 31, 2019 Loan Pool Performance Loan Pool Performance Dealer Purchased Total Dealer Purchased Total Loans receivable $ 1,591.3 $ 2,006.9 $ 3,598.2 $ 3,032.0 $ 591.0 $ 3,623.0 Allowance for credit losses — — — (428.0) (108.0) (536.0) Loans receivable, net $ 1,591.3 $ 2,006.9 $ 3,598.2 $ 2,604.0 $ 483.0 $ 3,087.0 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Reinsurance [Text Block] | REINSURANCE A summary of reinsurance activity is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Net assumed written premiums $ 14.7 $ 11.4 $ 49.3 $ 39.1 Net premiums earned 15.1 12.9 42.2 38.2 Provision for claims 10.7 8.2 28.8 23.1 Amortization of capitalized acquisition costs 0.4 0.2 1.0 0.9 The trust assets and related reinsurance liabilities are as follows: (In millions) As of Balance Sheet location September 30, 2020 December 31, 2019 Trust assets Restricted cash and cash equivalents $ 1.0 $ 0.9 Trust assets Restricted securities available for sale 66.8 59.3 Unearned premium Accounts payable and accrued liabilities 51.2 44.1 Claims reserve (1) Accounts payable and accrued liabilities 2.6 1.8 (1) The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER INCOME Other income consists of the following: (In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Ancillary product profit sharing $ 4.1 $ 8.8 $ 22.3 $ 27.3 Remarketing fees 1.1 3.0 5.7 9.5 Interest 0.4 2.0 2.6 6.7 Dealer enrollment fees 0.7 1.4 2.5 3.5 Dealer support products and services 0.5 0.6 1.5 2.0 GPS-SID fees — — — 1.9 Other 0.2 0.1 0.6 0.7 Total $ 7.0 $ 15.9 $ 35.2 $ 51.6 Ancillary product profit sharing consists of payments received from Third Party Providers (“TPPs”) based upon the performance of vehicle service contracts and Guaranteed Asset Protection (“GAP”) contracts, and is recognized as income over the life of the vehicle service contracts and GAP contracts. Remarketing fees consist of fees retained from the sale of repossessed vehicles by Vehicle Remarketing Services, Inc. (“VRS”), our wholly-owned subsidiary that is responsible for remarketing vehicles for Credit Acceptance. VRS coordinates vehicle repossessions with a nationwide network of repossession contractors, the redemption of the vehicles by the consumers, and the sale of the vehicles through a nationwide network of vehicle auctions. VRS recognizes income from the retained fees at the time of the sale and does not retain a fee if a repossessed vehicle is redeemed by the consumer prior to the sale. Interest consists of income earned on cash and cash equivalents, restricted cash and cash equivalents, and restricted securities available for sale. Interest income is generally recognized over time as it is earned. Interest income on restricted securities available for sale is recognized over the life of the underlying financial instruments using the interest method. Dealer enrollment fees include fees from Dealers that enrolled in our Portfolio Program prior to August 5, 2019. Depending on the enrollment option selected by the Dealer, Dealers may have enrolled by paying us an upfront, one-time fee, or by agreeing to allow us to retain 50% of their accelerated Dealer Holdback payment(s) on the first 100 Consumer Loan assignments. For additional information regarding program enrollment, see Note 2 to the consolidated financial statements. A portion of the $9,850 upfront, one-time fee is considered to be Dealer support products and services revenue. The remaining portion of the $9,850 fee is considered to be a Dealer enrollment fee, which is amortized on a straight-line basis over the estimated life of the Dealer relationship. The 50% portion of the accelerated Dealer Holdback payment(s) on the first 100 Consumer Loan assignments is also considered to be a Dealer enrollment fee. We do not recognize any of this Dealer enrollment fee until the Dealer has met the eligibility requirements to receive an accelerated Dealer Holdback payment and the amount of the first payment, if any, has been calculated. Once an accelerated Dealer Holdback payment has been calculated, we defer the 50% portion that we keep and recognize it on a straight-line basis over the remaining estimated life of the Dealer relationship. Beginning August 5, 2019, Dealers may enroll in our Portfolio Program without incurring an enrollment fee. Dealer support products and services consist of income earned from products and services provided to Dealers to assist with their operations, including sales and marketing, purchasing supplies and materials and acquiring vehicle inventory. Income is recognized in the period the product or service is provided. GPS-SID fees consist of fees we received from a TPP for providing Dealers in certain states the ability to purchase GPS Starter Interrupt Devices (“GPS-SID”). Through this program, Dealers can install GPS-SID on vehicles financed by us that can be activated if the consumer fails to make payments on their account, and can result in the prompt repossession of the vehicle. Dealers purchased GPS-SID directly from the TPP and the TPP paid us a vendor fee for each device sold. GPS-SID fee income was recognized when the units were sold. Effective during the second quarter of 2019, we no longer provide Dealers the ability to purchase GPS-SID through this program. We allowed Dealers to install previously purchased GPS-SID on vehicles financed by us until September 1, 2019. The following table disaggregates our other income by major source of income and timing of the revenue recognition: (In millions) For the Three Months Ended September 30, 2020 Ancillary product profit sharing Remarketing fees Interest Dealer enrollment fees Dealer support products and services Other Total Other Income Source of income Third Party Providers $ 4.1 $ — $ 0.4 $ — $ — $ 0.2 $ 4.7 Dealers — 1.1 — 0.7 0.5 — 2.3 Total $ 4.1 $ 1.1 $ 0.4 $ 0.7 $ 0.5 $ 0.2 $ 7.0 Timing of revenue recognition Over time $ 4.1 $ — $ 0.4 $ 0.7 $ — $ — $ 5.2 At a point in time — 1.1 — — 0.5 0.2 1.8 Total $ 4.1 $ 1.1 $ 0.4 $ 0.7 $ 0.5 $ 0.2 $ 7.0 (In millions) For the Nine Months Ended September 30, 2020 Ancillary product profit sharing Remarketing fees Interest Dealer enrollment fees Dealer support products and services Other Total Other Income Source of income Third Party Providers $ 22.3 $ — $ 2.6 $ — $ — $ 0.6 $ 25.5 Dealers — 5.7 — 2.5 1.5 — 9.7 Total $ 22.3 $ 5.7 $ 2.6 $ 2.5 $ 1.5 $ 0.6 $ 35.2 Timing of revenue recognition Over time $ 22.3 $ — $ 2.6 $ 2.5 $ — $ — $ 27.4 At a point in time — 5.7 — — 1.5 0.6 7.8 Total $ 22.3 $ 5.7 $ 2.6 $ 2.5 $ 1.5 $ 0.6 $ 35.2 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following: (In millions) As of September 30, 2020 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured line of credit (1) $ 125.7 $ — $ — $ 125.7 Secured financing (2) 3,707.9 (15.1) — 3,692.8 Senior notes 800.0 (9.9) — 790.1 Mortgage note 10.7 — — 10.7 Total debt $ 4,644.3 $ (25.0) $ — $ 4,619.3 (In millions) As of December 31, 2019 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured line of credit (1) $ — $ — $ — $ — Secured financing (2) 3,355.6 (15.9) — 3,339.7 Senior notes 1,201.8 (13.2) (0.8) 1,187.8 Mortgage note 11.3 — — 11.3 Total debt $ 4,568.7 $ (29.1) $ (0.8) $ 4,538.8 (1) Excludes deferred debt issuance cost s of $2.2 million a nd $3.2 million as of September 30, 2020 and December 31, 2019, respectively, which are included in other assets. (2) Warehouse facilities and Term ABS. General information for each of our financing transactions in place as of September 30, 2020 is as follows: (Dollars in millions) Financings Wholly-owned Maturity Date Financing Interest Rate Basis as of Revolving Secured Line of Credit n/a 06/22/2022 $ 340.0 At our option, either LIBOR plus 187.5 basis points or the prime rate plus 87.5 basis points Warehouse Facility II (1) CAC Warehouse Funding Corp. II 07/12/2022 (2) 400.0 LIBOR plus 175 basis points (3) Warehouse Facility IV (1) CAC Warehouse Funding LLC IV 07/26/2022 (2) 300.0 LIBOR plus 200 basis points (3) Warehouse Facility V (1) CAC Warehouse Funding LLC V 08/17/2021 (4) 100.0 LIBOR plus 190 basis points (3) Warehouse Facility VI (1) CAC Warehouse Funding LLC VI 09/30/2022 (2) 75.0 LIBOR plus 200 basis points Warehouse Facility VII (1) CAC Warehouse Funding LLC VII 12/16/2021 (5) 150.0 Commercial paper rate plus 200 basis points (3) Warehouse Facility VIII (1) CAC Warehouse Funding LLC VIII 07/26/2022 (2) 200.0 LIBOR plus 190 basis points (3) Term ABS 2017-2 (1) Credit Acceptance Funding LLC 2017-2 06/17/2019 (2) 450.0 Fixed rate Term ABS 2017-3 (1) Credit Acceptance Funding LLC 2017-3 10/15/2019 (2) 350.0 Fixed rate Term ABS 2018-1 (1) Credit Acceptance Funding LLC 2018-1 02/17/2020 (2) 500.0 Fixed rate Term ABS 2018-2 (1) Credit Acceptance Funding LLC 2018-2 05/15/2020 (2) 450.0 Fixed rate Term ABS 2018-3 (1) Credit Acceptance Funding LLC 2018-3 08/17/2020 (2) 398.3 Fixed rate Term ABS 2019-1 (1) Credit Acceptance Funding LLC 2019-1 02/15/2021 (2) 402.5 Fixed rate Term ABS 2019-2 (1) Credit Acceptance Funding LLC 2019-2 08/15/2022 (6) 500.0 Fixed rate Term ABS 2019-3 (1) Credit Acceptance Funding LLC 2019-3 11/15/2021 (2) 351.7 Fixed rate Term ABS 2020-1 (1) Credit Acceptance Funding LLC 2020-1 02/15/2022 (2) 500.0 Fixed rate Term ABS 2020-2 (1) Credit Acceptance Funding LLC 2020-2 07/15/2022 (2) 481.8 Fixed rate 2024 Senior Notes n/a 12/31/2024 400.0 Fixed rate 2026 Senior Notes n/a 03/15/2026 400.0 Fixed rate Mortgage Note (1) Chapter 4 Properties, LLC 08/06/2023 12.0 LIBOR plus 150 basis points (1) Financing made available only to a specified subsidiary of the Company. (2) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets. (3) Interest rate cap agreements are in place to limit the exposure to increasing interest rates. (4) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on August 17, 2023 will be due on that date. (5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 16, 2023 will be due on that date. (6) Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. Additional information related to the amounts outstanding on each facility is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Revolving Secured Line of Credit Maximum outstanding principal balance $ 287.7 $ 193.3 $ 296.6 $ 282.9 Average outstanding principal balance 124.9 71.1 119.7 80.1 Warehouse Facility II Maximum outstanding principal balance 201.0 201.0 201.0 201.0 Average outstanding principal balance 161.5 126.7 127.8 102.8 Warehouse Facility IV Maximum outstanding principal balance — — — 100.0 Average outstanding principal balance — — — 1.5 Warehouse Facility V Maximum outstanding principal balance 75.0 35.0 75.0 35.0 Average outstanding principal balance 17.9 3.4 25.5 1.2 Warehouse Facility VI Maximum outstanding principal balance 50.0 — 50.0 — Average outstanding principal balance 50.0 — 20.3 — Warehouse Facility VII Maximum outstanding principal balance 125.0 50.0 125.0 101.5 Average outstanding principal balance 102.5 23.9 75.0 9.4 Warehouse Facility VIII Maximum outstanding principal balance 149.0 75.0 149.0 75.0 Average outstanding principal balance 35.6 12.7 37.7 12.7 (Dollars in millions) As of September 30, 2020 December 31, 2019 Revolving Secured Line of Credit Principal balance outstanding $ 125.7 $ — Amount available for borrowing (1) 214.3 340.0 Interest rate 2.02 % — % Warehouse Facility II Principal balance outstanding $ 150.0 $ — Amount available for borrowing (1) 250.0 400.0 Loans pledged as collateral 183.8 — Restricted cash and cash equivalents pledged as collateral 4.6 1.0 Interest rate 1.91 % — % Warehouse Facility IV Principal balance outstanding $ — $ — Amount available for borrowing (1) 300.0 300.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility V Principal balance outstanding $ — $ — Amount available for borrowing (1) 100.0 100.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility VI Principal balance outstanding $ 50.0 $ — Amount available for borrowing (1) 25.0 75.0 Loans pledged as collateral 68.2 — Restricted cash and cash equivalents pledged as collateral 2.5 — Interest rate 2.16 % — % Warehouse Facility VII Principal balance outstanding $ 100.0 $ — Amount available for borrowing (1) 50.0 150.0 Loans pledged as collateral 124.2 — Restricted cash and cash equivalents pledged as collateral 3.3 1.0 Interest rate 2.39 % — % Warehouse Facility VIII Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Term ABS 2016-3 Principal balance outstanding $ — $ 51.8 Loans pledged as collateral — 219.5 Restricted cash and cash equivalents pledged as collateral — 23.5 Interest rate — % 3.60 % Term ABS 2017-1 Principal balance outstanding $ — $ 120.9 Loans pledged as collateral — 292.8 Restricted cash and cash equivalents pledged as collateral — 26.1 Interest rate — % 3.19 % Term ABS 2017-2 Principal balance outstanding $ 71.0 $ 277.2 Loans pledged as collateral 267.8 426.7 Restricted cash and cash equivalents pledged as collateral 30.3 35.1 Interest rate 3.24 % 2.83 % Term ABS 2017-3 Principal balance outstanding $ 120.2 $ 303.2 Loans pledged as collateral 251.3 393.0 Restricted cash and cash equivalents pledged as collateral 26.1 29.3 Interest rate 3.31 % 2.91 % Term ABS 2018-1 Principal balance outstanding $ 276.5 $ 500.0 Loans pledged as collateral 450.2 609.5 Restricted cash and cash equivalents pledged as collateral 40.8 43.8 Interest rate 3.43 % 3.24 % Term ABS 2018-2 Principal balance outstanding $ 332.8 $ 450.0 Loans pledged as collateral 463.2 550.4 Restricted cash and cash equivalents pledged as collateral 38.7 37.6 Interest rate 3.76 % 3.68 % Term ABS 2018-3 Principal balance outstanding $ 371.4 $ 398.3 Loans pledged as collateral 459.2 487.7 Restricted cash and cash equivalents pledged as collateral 36.3 32.3 Interest rate 3.73 % 3.72 % Term ABS 2019-1 Principal balance outstanding $ 402.5 $ 402.5 Loans pledged as collateral 482.4 490.2 Restricted cash and cash equivalents pledged as collateral 36.4 31.9 Interest rate 3.53 % 3.53 % Term ABS 2019-2 Principal balance outstanding $ 500.0 $ 500.0 Loans pledged as collateral 575.9 628.5 Restricted cash and cash equivalents pledged as collateral 42.6 38.6 Interest rate 3.13 % 3.13 % Term ABS 2019-3 Principal balance outstanding $ 351.7 $ 351.7 Loans pledged as collateral 439.1 428.6 Restricted cash and cash equivalents pledged as collateral 33.2 27.2 Interest rate 2.56 % 2.56 % Term ABS 2020-1 Principal balance outstanding $ 500.0 $ — Loans pledged as collateral 803.7 — Restricted cash and cash equivalents pledged as collateral 52.1 — Interest rate 2.18 % — % Term ABS 2020-2 Principal balance outstanding $ 481.8 $ — Loans pledged as collateral 629.8 — Restricted cash and cash equivalents pledged as collateral 42.0 — Interest rate 1.65 % — % 2021 Senior Notes Principal balance outstanding $ — $ 151.8 Interest rate — % 6.125 % 2023 Senior Notes Principal balance outstanding $ — $ 250.0 Interest rate — % 7.375 % 2024 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 5.125 % 5.125 % 2026 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 6.625 % 6.625 % Mortgage Note Principal balance outstanding $ 10.7 $ 11.3 Interest rate 1.66 % 3.21 % (1) Availability may be limited by the amount of assets pledged as collateral. Revolving Secured Line of Credit Facility We have a $340.0 million revolving secured line of credit facility with a commercial bank syndicate. Borrowings under the revolving secured line of credit facility, including any letters of credit issued under the facility, are subject to a borrowing-base limitation. This limitation equals 80% of the value of Loans, as defined in the agreement, less a hedging reserve (not exceeding $1.0 million), and the amount of other debt secured by the collateral which secures the revolving secured line of credit facility. Borrowings under the revolving secured line of credit facility agreement are secured by a lien on most of our assets. Warehouse Facilities We have six Warehouse facilities with total borrowing capacity of $1,225.0 million. Each of the facilities is with a different lender or group of lenders. Under each Warehouse facility, we can contribute Loans to our wholly-owned subsidiaries in return for cash and equity in each subsidiary. In turn, each subsidiary pledges the Loans as collateral to lenders to secure financing that will fund the cash portion of the purchase price of the Loans. The financing provided to each subsidiary under the applicable facility is generally limited to the lesser of 80% of the value of the contributed Loans, as defined in the agreements, plus the restricted cash and cash equivalents pledged as collateral on such Loans or the facility limit. The financings create indebtedness for which the subsidiaries are liable and which is secured by all the assets of each subsidiary. Such indebtedness is non-recourse to us, even though we are consolidated for financial reporting purposes with the subsidiaries. Because the subsidiaries are organized as legal entities separate from us, their assets (including the contributed Loans) are not available to our creditors. The subsidiaries pay us a monthly servicing fee equal to 6% of the collections received with respect to the contributed Loans. The servicing fee is paid out of the collections. Except for the servicing fee and holdback payments due to Dealers, if a facility is amortizing, we do not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees and other related costs have been paid in full. If a facility is not amortizing, the applicable subsidiary may be entitled to retain a portion of such collections provided that the borrowing base requirements of the facility are satisfied. Term ABS Financings We have wholly-owned subsidiaries (the “Funding LLCs”) that have completed secured financing transactions with qualified institutional investors or lenders. In connection with these transactions, we contributed Loans on an arms-length basis to each Funding LLC for cash and the sole membership interest in that Funding LLC. In turn, each Funding LLC, other than that of Term ABS 2019-2, contributed the Loans to a respective trust that issued notes to qualified institutional investors. The Funding LLC for the Term ABS 2019-2 transaction pledged the Loans to a lender. The Term ABS 2017-2, 2017-3, 2018-1, 2018-2, 2018-3, 2019-1, 2019-3, 2020-1 and 2020-2 transactions each consist of three classes of notes. Each financing at the time of issuance has a specified revolving period during which we are likely to contribute additional Loans to each Funding LLC. Each Funding LLC will then contribute the Loans to its respective trust. At the end of the applicable revolving period, the debt outstanding under each financing will begin to amortize. The financings create indebtedness for which the trusts or Funding LLCs are liable and which is secured by all the assets of each trust or Funding LLC. Such indebtedness is non-recourse to us, even though we are consolidated for financial reporting purposes with the trusts and the Funding LLCs. Because the Funding LLCs are organized as legal entities separate from us, their assets (including the contributed Loans) are not available to our creditors. We receive a monthly servicing fee on each financing equal to 6% of the collections received with respect to the contributed Loans. The fee is paid out of the collections. Except for the servicing fee and Dealer Holdback payments due to Dealers, if a facility is amortizing, we do not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees and other related costs have been paid in full. If a facility is not amortizing, the applicable subsidiary may be entitled to retain a portion of such collections provided that the borrowing base requirements of the facility are satisfied. However, in our capacity as servicer of the Loans, we do have a limited right to exercise a “clean-up call” option to purchase Loans from the Funding LLCs and/or the trusts under certain specified circumstances. For those Funding LLCs with a trust, when the trust’s underlying indebtedness is paid in full, either through collections or through a prepayment of the indebtedness, the trust is to pay any remaining collections over to its Funding LLC as the sole beneficiary of the trust. For all Funding LLCs, after the indebtedness is paid in full, any remaining collections will ultimately be available to be distributed to us as the sole member of the respective Funding LLC. The table below sets forth certain additional details regarding the outstanding Term ABS financings: (Dollars in millions) Term ABS Financings Close Date Net Book Value of Loans Revolving Period Term ABS 2017-2 June 29, 2017 $ 563.2 Through June 17, 2019 Term ABS 2017-3 October 26, 2017 437.6 Through October 15, 2019 Term ABS 2018-1 February 22, 2018 625.1 Through February 17, 2020 Term ABS 2018-2 May 24, 2018 562.6 Through May 15, 2020 Term ABS 2018-3 August 23, 2018 500.1 Through August 17, 2020 Term ABS 2019-1 February 21, 2019 503.1 Through February 15, 2021 Term ABS 2019-2 August 28, 2019 625.1 Through August 15, 2022 Term ABS 2019-3 November 21, 2019 439.6 Through November 15, 2021 Term ABS 2020-1 February 20, 2020 625.1 Through February 15, 2022 Term ABS 2020-2 July 23, 2020 602.3 Through July 15, 2022 Senior Notes On December 18, 2019, we issued $400.0 million aggregate principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”). The 2024 senior notes were issued pursuant to an indenture, dated as of December 18, 2019, among the Company, as issuer, the Company’s subsidiaries Buyers Vehicle Protection Plan, Inc. and Vehicle Remarketing Services, Inc., as guarantors (collectively, the “Guarantors”), and U.S. Bank National Association, as trustee. The 2024 senior notes mature on December 31, 2024 and bear interest at a rate of 5.125% per annum, computed on the basis of a 360-day year composed of twelve 30-day months and payable semi-annually on June 30 and December 31 of each year, beginning on June 30, 2020. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of our 6.125% senior notes due 2021 (the “2021 senior notes”), of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of our 7.375% senior notes due 2023 (the “2023 senior notes”) on March 15, 2020. During the fourth quarter of 2019, we recognized a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of the 2021 senior notes in the fourth quarter of 2019 and the irrevocable notice given in December 2019 for the redemption of the remaining 2021 senior notes in the first quarter of 2020. During the first quarter of 2020, we recognized a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of the 2023 senior notes. On March 7, 2019, we issued $400.0 million aggregate principal amount of 6.625% senior notes due 2026 (the “2026 senior notes”). The 2026 senior notes were issued pursuant to an indenture, dated as of March 7, 2019, among the Company, as issuer, the Guarantors and U.S. Bank National Association, as trustee. The 2026 senior notes mature on March 15, 2026 and bear interest at a rate of 6.625% per annum, computed on the basis of a 360-day year composed of twelve 30-day months and payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2019. We used the net proceeds from the offering of the 2026 senior notes for general corporate purposes, including repayment of outstanding borrowings under our revolving secured line of credit facility. The 2024 senior notes and 2026 senior notes (the “senior notes”) are guaranteed on a senior basis by the Guarantors, which are also guarantors of obligations under our revolving secured line of credit facility. Other existing and future subsidiaries of ours may become guarantors of the senior notes in the future. The indentures for the senior notes provide for a guarantor of the senior notes to be released from its obligations under its guarantee of the senior notes under specified circumstances. Mortgage Note On August 6, 2018, we entered into a $12.0 million mortgage note with a commercial bank that is secured by a first mortgage lien on a building acquired by us and an assignment of all leases, rents, revenues and profits under all present and future leases of the building. The note matures on August 6, 2023, and bears interest at LIBOR plus 150 basis points. Debt Covenants As of September 30, 2020, we were in compliance with our covenants under the revolving secured line of credit facility and our Warehouse facilities, including those that require the maintenance of certain financial ratios and other financial conditions. These covenants require a minimum ratio of (1) our net earnings, adjusted for specified items, before income taxes, depreciation, amortization and fixed charges to (2) our fixed charges, as defined in the agreements. These covenants also limit the maximum ratio of our funded debt less unrestricted cash and cash equivalents to tangible net worth. Additionally, we must maintain consolidated net income, as defined in the agreements, of not less than $1 for the two most recently ended fiscal quarters. Some of these covenants may indirectly limit the repurchase of common stock or payment of dividends on common stock. Our Warehouse facilities also contain covenants that measure the performance of the contributed assets. During the second quarter of 2020, we amended our agreements for Warehouse Facility II, Warehouse Facility VII, and our revolving secured line of credit facility to modify the basis for calculating our compliance with the minimum net income and fixed charge coverage covenants for periods ending on or prior to December 31, 2020 from our current method of accounting to the basis of accounting that was used prior to January 1, 2020. Our Term ABS financings also contain covenants that measure the performance of the contributed assets. As of September 30, 2020, we were in compliance with all such covenants. As of the end of the quarter, we were also in compliance with our covenants under the senior notes indentures. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | DERIVATIVE AND HEDGING INSTRUMENTS Interest Rate Caps. We utilize interest rate cap agreements to manage the interest rate risk on certain secured financings. The following tables provide the terms of our interest rate cap agreements that were in effect as of September 30, 2020 and December 31, 2019: (Dollars in millions) As of September 30, 2020 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 12/2017 12/2020 $ 205.0 5.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2017 04/2021 58.3 6.50 % Cap Floating Rate 05/2018 04/2021 87.5 6.50 % Cap Floating Rate 07/2019 07/2023 154.2 6.50 % 300.0 100.0 Warehouse Facility V Cap Floating Rate 08/2018 08/2023 75.0 6.50 % 150.0 Warehouse Facility VII Cap Floating Rate 12/2017 11/2021 87.5 5.50 % Cap Floating Rate 01/2020 12/2023 62.5 5.50 % 150.0 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 200.0 5.50 % (Dollars in millions) As of December 31, 2019 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 12/2017 12/2020 $ 205.0 5.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2017 04/2021 100.0 6.50 % Cap Floating Rate 05/2018 04/2021 150.0 6.50 % Cap Floating Rate 07/2019 07/2023 50.0 6.50 % 300.0 100.0 Warehouse Facility V Cap Floating Rate 08/2018 08/2023 75.0 6.50 % 150.0 Warehouse Facility VII Cap Floating Rate 12/2017 11/2021 143.8 5.50 % 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 200.0 5.50 % (1) Rate excludes the spread over the LIBOR or commercial paper rate. The interest rate caps have not been designated as hedging instruments. As of September 30, 2020 and December 31, 2019, the interest rate caps had a fair value of $0.0 million and $0.1 million, respectively, as the capped rates were significantly above market rates. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes 2.9 % 3.5 % 3.0 % 3.1 % Excess tax benefits from stock-based compensation plans — % — % -0.8 % -1.2 % Other 0.1 % — % 0.4 % — % Effective income tax rate 24.0 % 24.5 % 23.6 % 22.9 % State income taxes The decrease in our state income tax rate for the three months ended September 30, 2020, compared to the same period in 2019, was primarily due to the impact of increasing our effective state tax rate estimate in 2019 as a result of higher income tax rates in certain state tax jurisdictions. Excess tax benefits from stock-based compensation plans During the first quarter of each year, we receive a tax benefit upon the vesting of restricted stock and the conversion of restricted stock units to common stock based on the fair value of the shares. The amount by which this tax benefit exceeds the grant-date fair value that was recognized as stock-based compensation expense is referred to as an excess tax benefit. Excess tax benefits are recognized in provision for income taxes and reduce our effective income tax rate. The impact of excess tax benefits on our effective income tax rate decreased in magnitude from 2019 to 2020 primarily due to a decrease in the number of restricted stock units that were converted to common stock due to the timing of long-term stock award grants. Other Other items impacting our effective income tax rate in 2020 primarily consist of non-deductible executive compensation expenses. The impact on our effective income tax rate for the nine months ended September 30, 2020, increased in magnitude from 2019 to 2020 primarily due to the decrease in pre-tax income. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share has been computed by dividing net income by the basic number of weighted average shares outstanding. Diluted net income per share has been computed by dividing net income by the diluted number of weighted average shares outstanding using the treasury stock method. The share effect is as follows: For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Weighted average shares outstanding: Common shares 17,526,660 18,659,113 17,645,184 18,662,610 Vested restricted stock units 318,125 285,559 312,747 285,530 Basic number of weighted average shares outstanding 17,844,785 18,944,672 17,957,931 18,948,140 Dilutive effect of restricted stock and restricted stock units 4,980 6,194 15,160 19,412 Dilutive number of weighted average shares outstanding 17,849,765 18,950,866 17,973,091 18,967,552 For the three and nine months ended September 30, 2020 and September 30, 2019, there were no shares of restricted stock and restricted stock units that were not included in the computation of diluted net income per share because their inclusion would have been anti-dilutive. |
Stock Repurchases
Stock Repurchases | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stock Repurchases [Text Block] | STOCK REPURCHASES There were no stock repurchases for the three months ended September 30, 2020 and 2019. The following table summarizes our stock repurchases for the nine months ended September 30, 2020 and 2019: (Dollars in millions) For the Nine Months Ended September 30, 2020 2019 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 710,157 $ 300.6 225,915 $ 91.0 Other (2) 15,063 6.5 42,696 18.2 Total 725,220 $ 307.1 268,611 $ 109.2 (1) Represents repurchases under authorizations by the board of directors for the repurchase of shares by us from time to time in the open market or in privately negotiated transactions. On March 5, 2020, the board of directors authorized the repurchase of up to three million shares of our common stock in addition to the board’s prior authorizations. As of September 30, 2020, we had authorization to repurchase 3,059,556 shares of our common stock. (2) Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock and restricted stock units and the conversion of restricted stock units to common stock. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Stock-based compensation expense consists of the following: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Restricted stock $ 0.4 $ 0.8 $ 1.5 $ 2.3 Restricted stock units 1.1 1.2 3.2 3.4 Total $ 1.5 $ 2.0 $ 4.7 $ 5.7 A summary of the non-vested restricted stock activity is presented below: Restricted Stock Number of Shares Weighted Average Grant-Date Fair Value Per Share Non-vested as of December 31, 2019 137,503 $ 125.04 Vested (14,633) 182.61 Forfeited (148) 360.67 Non-vested as of September 30, 2020 122,722 $ 117.89 A summary of the restricted stock unit activity is presented below: Restricted Stock Units Number of Restricted Weighted Average Grant-Date Fair Value Per Share Outstanding as of December 31, 2019 428,831 $ 132.99 Granted 5,870 436.89 Converted (21,971) 105.97 Forfeited (112) 434.60 Outstanding as of September 30, 2020 412,618 $ 138.67 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingent Liabilities | COMMITMENTS AND CONTINGENCIES Litigation and Other Legal Matters In the normal course of business and as a result of the consumer-oriented nature of the industry in which we operate, we and other industry participants are frequently subject to various consumer claims, litigation and regulatory investigations seeking damages, fines and statutory penalties. The claims allege, among other theories of liability, violations of state, federal and foreign truth-in-lending, credit availability, credit reporting, consumer protection, warranty, debt collection, insurance and other consumer-oriented laws and regulations, including claims seeking damages for alleged physical and mental harm relating to the repossession and sale of consumers' vehicles and other debt collection activities. As the assignee of Consumer Loans originated by Dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against Dealers. We may also have disputes and litigation with Dealers. The claims may allege, among other theories of liability, that we breached our Dealer servicing agreement. We may also have disputes and litigation with vendors and other third parties. The claims may allege, among other theories of liability, that we breached a license agreement or contract. The damages, fines and penalties that may be claimed by consumers, regulatory agencies, Dealers, vendors or other third parties in these types of matters can be substantial. The relief requested by plaintiffs varies but may include requests for compensatory, statutory and punitive damages and injunctive relief, and plaintiffs may seek treatment as purported class actions. The following matters include current actions to which we are a party and updates to matters that were disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. On October 2, 2020, a shareholder filed a putative class action complaint against the Company, its Chief Executive Officer and its Chief Financial Officer in the United States District Court for the Eastern District of Michigan, Southern Division, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder, based on alleged false and/or misleading statements or omissions regarding the Company and its business, and seeking class certification, unspecified damages plus interest and attorney and expert witness fees and other costs on behalf of a purported class consisting of all persons and entities (subject to specified exceptions) that purchased or otherwise acquired Credit Acceptance common stock from November 1, 2019 through August 28, 2020. We cannot predict the duration or outcome of this lawsuit at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this lawsuit. The Company intends to vigorously defend itself in this matter. On May 7, 2019, we received a subpoena from the Consumer Frauds and Protection Bureau of the Office of the New York State Attorney General, relating to the Company’s origination and collection policies and procedures in the state of New York. On July 30, 2020, we received two additional subpoenas from the Office of the New York State Attorney General, both from the Consumer Frauds and Protection Bureau and the Investor Protection Bureau, relating to the Company’s origination and collection policies and procedures in the state of New York and its securitizations. On August 28, 2020, we were informed that one of the two additional subpoenas was being withdrawn. We are cooperating with the inquiry and cannot predict the eventual scope, duration or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation. On April 22, 2019, we received a civil investigative demand from the Bureau of Consumer Financial Protection (the “Bureau”) seeking, among other things, certain information relating to the Company’s origination and collection of Consumer Loans, TPPs and credit reporting. On May 7, 2020, we received another civil investigative demand from the Bureau seeking additional information relating to its investigation. The Company raised various objections to the May 7, 2020 civil investigative demand, and on May 26, 2020, we were notified that it was withdrawn. On June 1, 2020, we received another civil investigative demand that was similar to the May 7, 2020 demand, and which raised many of the same objections. We formally petitioned the Bureau to modify the June 1, 2020 civil investigative demand. On September 3, 2020, the Director of the Bureau denied our petition to modify the June 1, 2020 civil investigative demand. We continue to cooperate with the investigation, but cannot predict the eventual scope, duration, or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation. On August 14, 2017, we received a subpoena from the Attorney General of the State of Mississippi, relating to the origination and collection of non-prime auto loans in the state of Mississippi. The Company cooperated with the inquiry. On April 23, 2019, the Attorney General of the State of Mississippi, on behalf of the State of Mississippi, filed a complaint in the Chancery Court of the First Judicial District of Hinds County, Mississippi, alleging that the Company engaged in unfair and deceptive trade practices in subprime auto lending, loan servicing, vehicle repossession and debt collection in the State of Mississippi in violation of the Mississippi Consumer Protection Act. The complaint seeks injunctive relief, including civil penalties and disgorgement, and payment of the State’s attorney’s fees and costs. We cannot predict the duration or outcome of this lawsuit at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this lawsuit. The Company intends to vigorously defend itself in this matter. On March 18, 2016, we received a subpoena from the Attorney General of the State of Maryland, relating to the Company’s repossession and sale policies and procedures in the state of Maryland. On April 3, 2020, we received a subpoena from the Attorney General of the State of Maryland relating to the Company’s origination and collection policies and procedures in the state of Maryland. On August 11, 2020, we received a subpoena from the Attorney General of the State of Maryland restating most of the requests contained in the March 18, 2016 and April 3, 2020 subpoenas, making additional requests, and expanding the inquiry to include 39 other states (Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin) and the District of Columbia. Also on August 11, 2020, we received from the Attorney General of the State of New Jersey a subpoena that is essentially identical to the August 11, 2020 Maryland subpoena, both as to substance and as to the jurisdictions identified. We are cooperating with these inquiries and cannot predict the eventual scope, duration or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from these investigations. On December 9, 2014, we received a civil investigative subpoena from the U.S. Department of Justice pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 directing us to produce certain information relating to subprime automotive finance and related securitization activities. We have cooperated with the inquiry, but cannot predict the eventual scope, duration or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation. On December 4, 2014, we received a civil investigative demand from the Office of the Attorney General of the Commonwealth of Massachusetts relating to the origination and collection of non-prime auto loans in Massachusetts. On November 20, 2017 we received a second civil investigative demand from the Office of the Attorney General seeking updated information on its original civil investigative demand, additional information related to the Company's origination and collection of Consumer Loans, and information regarding securitization activities. In connection with this inquiry, we were informed by representatives of the Office of the Attorney General that it believes that the Company may have engaged in unfair and deceptive acts or practices related to the origination and collection of auto loans, which may have caused some of the Company’s representations and warranties contained in securitization documents to be inaccurate. On July 22, 2020, we received a third civil investigative demand from the Office of the Attorney General seeking updates on previously produced data and additional information related to the Company's origination of Consumer Loans. On August 30, 2020, we were served with a complaint, filed by the Attorney General in Massachusetts Superior Court in Suffolk County, alleging that the Company engaged in unfair and deceptive trade practices in subprime auto lending, debt collection and asset-backed securitizations in the Commonwealth of Massachusetts, in violation of the Massachusetts Consumer Protection Law, M.G.L. c. 93A. The complaint seeks injunctive relief, restitution, disgorgement, civil penalties and payment of the Commonwealth’s attorney’s fees and costs. We cannot predict the duration or outcome of this lawsuit at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this lawsuit. The Company intends to vigorously defend itself in this matter. An adverse ultimate disposition in any action to which we are a party or otherwise subject could have a material adverse impact on our financial position, liquidity and results of operations. |
Subsequent Events
Subsequent Events | Oct. 22, 2020 |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn October 22, 2020, we completed a $600.0 million Term ABS financing, which was used to repay outstanding indebtedness. The financing has an expected annualized cost of approximately 1.8% (including the initial purchasers’ fees and other costs), and it will revolve for 24 months, after which it will amortize based upon the cash flows on the contributed Loans. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Business Segment Information | Business Segment Information We currently operate in one reportable segment which represents our core business of offering financing programs that enable Dealers to sell vehicles to consumers, regardless of their credit history. The consolidated financial statements reflect the financial results of our one reportable operating segment. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash equivalents consist of readily marketable securities with original maturities at the date of acquisition of three months or less. As of September 30, 2020 and December 31, 2019, we had $8.5 million and $186.1 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation (“FDIC”). Restricted cash and cash equivalents consist of cash pledged as collateral for secured financings and cash held in a trust for future vehicle service contract claims. As of September 30, 2020 and December 31, 2019, we had $388.1 million and $326.7 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC. The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported in our consolidated balance sheets to the total shown in our consolidated statements of cash flows: (In millions) As of September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 8.9 $ 187.4 $ 24.7 $ 25.7 Restricted cash and cash equivalents 391.9 330.3 329.8 303.6 Total cash and cash equivalents and restricted cash and cash equivalents $ 400.8 $ 517.7 $ 354.5 $ 329.3 |
Restricted Securities, Available-for-sale | Restricted Securities Available for Sale Restricted securities available for sale consist of amounts held in a trust for future vehicle service contract claims. We determine the appropriate classification of our investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date. Debt securities for which we do not have the intent or ability to hold to maturity are classified as available for sale, and stated at fair value with unrealized gains and losses, net of income taxes included in the determination of comprehensive income and reported as a component of shareholders’ equity. |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses Consumer Loan Assignment. For legal purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred: • the consumer and Dealer have signed a Consumer Loan contract; and • we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form. For accounting and financial reporting purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred: • the Consumer Loan has been legally assigned to us; and • we have made a funding decision and generally have provided funding to the Dealer in the form of either an advance under the Portfolio Program or one-time purchase payment under the Purchase Program. Portfolio Segments and Classes. Our Loan portfolio consists of two portfolio segments: Dealer Loans and Purchased Loans. Our determination is based on the following: • We have two financing programs: the Portfolio Program and the Purchase Program. We are considered to be a lender to our Dealers for Consumer Loans assigned under the Portfolio Program and a purchaser of Consumer Loans assigned under the Purchase Program. • The Portfolio Program and the Purchase Program have different levels of risk in relation to credit losses. Under the Portfolio Program, the impact of negative variances in Consumer Loan performance is mitigated by Dealer Holdback and the cross-collateralization of Consumer Loan assignments. Under the Purchase Program, we are impacted by the full amount of negative variances in Consumer Loan performance. • Our business model is narrowly focused on Consumer Loan assignments from one industry with expected cash flows that are significantly lower than the contractual cash flows owed to us due to credit quality. We do not believe that it is meaningful to disaggregate our Loan portfolio beyond the Dealer Loans and Purchased Loans portfolio segments. Each portfolio segment consists of one class of Consumer Loan assignments, which is Consumer Loans originated by Dealers to finance purchases of vehicles and related ancillary products by consumers with impaired or limited credit histories. Our determination is based on the following: • All of the Consumer Loans assigned to us have similar risk characteristics in relation to the categorization of borrowers, type of financing receivable, industry sector and type of collateral. • We only accept Consumer Loan assignments from Dealers located within the United States. 2020 Recognition and Measurement Policies. On January 1, 2020, we adopted Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which is known as the current expected credit loss model, or CECL. Loans outstanding prior to the adoption date qualified for transition relief and are accounted for as purchased financial assets with credit deterioration (“PCD Method”). Under the PCD Method, on January 1, 2020, we: • calculated an effective interest rate based on expected future net cash flows; and • increased the Loans receivable and the related allowance for credit losses balances by the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. This “gross-up” did not impact the net carrying amount of Loans (Loans receivable less allowance for credit losses) or net income. Under the PCD Method, for each reporting period subsequent to our adoption of CECL, we: • recognize finance charge revenue using the effective interest rate that was calculated on the adoption date based on expected future net cash flows; and • adjust the allowance for credit losses so that the net carrying amount of each Loan equals the present value of expected future net cash flows discounted at the effective interest rate. The adjustment to the allowance for credit losses is recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. Consumer Loans assigned to us subsequent to December 31, 2019 do not qualify for the PCD Method and are accounted for as originated financial assets (“Originated Method”). While the cash flows we expect to collect at the time of assignment are significantly lower than the contractual cash flows owed to us due to credit quality, our Loans do not qualify for the PCD Method because the assignment of the Consumer Loan to us occurs a moment after the Consumer Loan is originated by the Dealer, so “a more-than-insignificant deterioration in credit quality since origination” has not occurred at the time of assignment. In addition, Dealer Loans also do not qualify for the PCD Method because Consumer Loans assigned to us under the Portfolio Program are considered to be advances under Dealer Loans originated by us rather than Consumer Loans purchased by us. Under the Originated Method, at the time of assignment, we: • calculate the effective interest rate based on contractual future net cash flows; • record a Loan receivable equal to the advance paid to the Dealer under the Portfolio Program or purchase price paid to the Dealer under the Purchase Program; and • record an allowance for credit losses equal to the difference between the initial Loan receivable balance and the present value of expected future net cash flows discounted at the effective interest rate. The initial allowance for credit losses is recognized as provision for credit losses expense. Under the Originated Method, for each reporting period subsequent to assignment, we: • recognize finance charge revenue using the effective interest rate that was calculated at the time of assignment based on contractual future net cash flows; and • adjust the allowance for credit losses so that the net carrying amount of each Loan equals the present value of expected future net cash flows discounted at the effective interest rate. The adjustment to the allowance for credit losses is recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. 2019 Recognition and Measurement Policies. Prior to the adoption of CECL on January 1, 2020, we accounted for our Loans as loans acquired with significant credit deterioration. At the time of assignment, we: • calculated an effective interest rate based on expected future net cash flows; and • recorded a Loan receivable equal to the advance paid to the Dealer under the Portfolio Program or purchase price paid to the Dealer under the Purchase Program. For each reporting period subsequent to assignment, we: • recalculated an effective interest rate based on expected future net cash flows; • recognized finance charge revenue using the greater of the effective interest rate that was calculated for the reporting period or the effective interest rate that was calculated at the time of assignment, both of which were based on expected future net cash flows; and • recorded or adjusted an allowance for credit losses, if necessary, to reduce the net carrying amount of each Loan to the present value of expected future net cash flows discounted at the effective interest rate that was calculated at the time of assignment. The initial allowance for credit losses was recognized as provision for credit losses expense and the adjustment to the allowance for credit losses was recognized as either provision for credit losses expense or a reversal of provision for credit losses expense. Loans Receivable . Amounts advanced to Dealers for Consumer Loans assigned under the Portfolio Program are recorded as Dealer Loans and are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment. Amounts paid to Dealers for Consumer Loans assigned under the Purchase Program are recorded as Purchased Loans and, for purposes of recognizing revenue and evaluating impairment, are: • not aggregated, if assigned subsequent to December 31, 2019; or • aggregated into pools based on the month of purchase, if assigned prior to January 1, 2020. The outstanding balance of each Loan included in Loans receivable is comprised of the following: • cash paid to the Dealer (or to third party ancillary product providers on the Dealer’s behalf) for the Consumer Loan assignment (advance under the Portfolio Program or one-time purchase payment under the Purchase Program); • finance charges; • Dealer Holdback payments; • accelerated Dealer Holdback payments; • recoveries; • transfers in; • less: collections (net of certain collection costs); • less: write-offs; and • less: transfers out. Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and the related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs. We aggregate these Purchased Loans by Dealer for purposes of recognizing revenue and evaluating impairment. Allowance for Credit Losses. The outstanding balance of the allowance for credit losses of each Loan represents the amount required to reduce net carrying amount of Loans (Loans receivable less allowance for credit losses) to the present value of expected future net cash flows discounted at the effective interest rate. Expected future net cash flows for Dealer Loans are comprised of expected future collections on the assigned Consumer Loans, less any expected future Dealer Holdback payments. Expected future net cash flows for Purchased Loans are comprised of expected future collections on the assigned Consumer Loans. Expected future collections are forecasted for each individual Consumer Loan based on the historical performance of Consumer Loans with similar characteristics, adjusted for recent trends in payment patterns and economic conditions. Our forecast of expected future collections includes estimates for prepayments and post-contractual-term cash flows. Unless the consumer is no longer contractually obligated to pay us, we forecast future collections on each Consumer Loan for a 120 month period after the origination date. Expected future Dealer Holdback payments are forecasted for each individual Dealer based on the expected future collections and current advance balance of each Dealer Loan. We fully write off the outstanding balances of a Loan and the related allowance for credit losses once we are no longer forecasting any expected future net cash flows on the Loan. In addition, on January 1, 2020, we adopted a partial write-off policy in connection with our adoption of CECL. Under our partial write-off policy, we write off the amount of the outstanding balances of a Loan and the related allowance for credit losses, if any, that exceeds 200% of the present value of expected future net cash flows on the Loan, as we deem this amount to be uncollectable. Credit Quality. Substantially all of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories. Consumer Loans made to these individuals generally entail a higher risk of delinquency, default and repossession and higher losses than loans made to consumers with better credit. Since most of our revenue and cash flows are generated from these Consumer Loans, our ability to accurately forecast Consumer Loan performance is critical to our business and financial results. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on these forecasts, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize our economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital and the amount of capital invested. We monitor and evaluate the credit quality of Consumer Loans on a monthly basis by comparing our current forecasted collection rates to our initial expectations. We use a statistical model that considers a number of credit quality indicators to estimate the expected collection rate for each Consumer Loan at the time of assignment. The credit quality indicators considered in our model include attributes contained in the consumer’s credit bureau report, data contained in the consumer’s credit application, the structure of the proposed transaction, vehicle information and other factors. We continue to evaluate the expected collection rate of each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. Since all known, significant credit quality indicators have already been factored into our forecasts and pricing, we are not able to use any specific credit quality indicators to predict or explain variances in actual performance from our initial expectations. Any variances in performance from our initial expectations are the result of Consumer Loans performing differently than historical Consumer Loans with similar characteristics. We periodically adjust our statistical pricing model for new trends that we identify through our evaluation of these forecasted collection rate variances. Methodology Changes . On January 1, 2020, we adopted CECL, which changed our accounting policies for Loans. During the first quarter of 2020, we reduced forecasted collection rates to reflect the estimated long-term impact of COVID-19 on Consumer Loan performance. For additional information, see New Accounting Updates Adopted During the Current Year below and Note 6. For the three and nine months ended September 30, 2020 and 2019, we did not make any other methodology changes for Loans that had a material impact on our financial statements. |
Finance Charges | Finance Charges Sources of Revenue. Finance charges is comprised of: (1) interest income earned on Loans; (2) administrative fees earned from ancillary products; (3) program fees charged to Dealers under the Portfolio Program; (4) Consumer Loan assignment fees charged to Dealers; and (5) direct origination costs incurred on Dealer Loans. We provide Dealers the ability to offer vehicle service contracts to consumers through our relationships with Third Party Providers (“TPPs”). A vehicle service contract provides the consumer protection by paying for the repair or replacement of certain components of the vehicle in the event of a mechanical failure. The retail price of the vehicle service contract is included in the principal balance of the Consumer Loan. The wholesale cost of the vehicle service contract is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of the vehicle service contract and the commission paid to the Dealer are charged to the Dealer’s advance balance. TPPs process claims on vehicle service contracts that are underwritten by third party insurers. We bear the risk of loss for claims on certain vehicle service contracts that are reinsured by us. We market the vehicle service contracts directly to our Dealers. We provide Dealers the ability to offer Guaranteed Asset Protection (“GAP”) to consumers through our relationships with TPPs. GAP provides the consumer protection by paying the difference between the loan balance and the amount covered by the consumer’s insurance policy in the event of a total loss of the vehicle due to severe damage or theft. The retail price of GAP is included in the principal balance of the Consumer Loan. The wholesale cost of GAP is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of GAP and the commission paid to the Dealer are charged to the Dealer’s advance balance. TPPs process claims on GAP contracts that are underwritten by third party insurers. Program fees represent monthly fees charged to Dealers for access to our Credit Approval Processing System (“CAPS”); administration, servicing and collection services offered by us; documentation related to or affecting our program; and all tangible and intangible property owned by Credit Acceptance. We charge a monthly fee of $599 to Dealers participating in our Portfolio Program and we collect it from future Dealer Holdback payments. Recognition Policy. We recognize finance charges under the interest method such that revenue is recognized on a level-yield basis over the life of the Loan. We calculate finance charges on a monthly basis by applying the effective interest rate of the Loan to the net carrying amount of the Loan (Loan receivable less the related allowance for credit losses). For Consumer Loans assigned subsequent to December 31, 2019, the effective interest rate is based on contractual future net cash flows. For Consumer Loan assigned prior to January 1, 2020, the effective interest rate was based on expected future net cash flows. In connection with our adoption of CECL on January 1, 2020, we have elected to report the change in the present value of credit losses attributable to the passage of time as a reduction to finance charges. As a result, for financial statement periods beginning after December 31, 2019, we allocate finance charges recognized on each Loan between the Loan receivable and the related allowance for credit losses. The amount of finance charges allocated to the Loan receivable is equal to the effective interest rate applied to the Loans receivable balance. The reduction of finance charges allocated to the allowance for credit losses is equal to the effective interest rate applied to the allowance for credit losses balance. For financial statement periods beginning prior to January 1, 2020, the entire amount of finance charges recognized on each Loan was allocated to the Loan receivable. |
Reinsurance | Reinsurance VSC Re Company (“VSC Re”), our wholly-owned subsidiary, is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles financed by us. VSC Re currently reinsures vehicle service contracts that are offered through one of our third party providers. Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, less fees and certain administrative costs, are contributed to a trust account controlled by VSC Re. These premiums are used to fund claims covered under the vehicle service contracts. VSC Re is a bankruptcy remote entity. As such, our exposure to fund claims is limited to the trust assets controlled by VSC Re and our net investment in VSC Re. Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to expected costs of servicing those contracts. Expected costs are determined based on our historical claims experience. Claims are expensed through a provision for claims in the period the claim was incurred. Capitalized acquisition costs are comprised of premium taxes and are amortized as general and administrative expense over the life of the contracts in proportion to premiums earned. We have consolidated the trust within our financial statements based on our determination of the following: • We have a variable interest in the trust. We have a residual interest in the assets of the trust, which is variable in nature, given that it increases or decreases based upon the actual loss experience of the related service contracts. In addition, VSC Re is required to absorb any losses in excess of the trust's assets. • The trust is a variable interest entity. The trust has insufficient equity at risk as no parties to the trust were required to contribute assets that provide them with any ownership interest. • We are the primary beneficiary of the trust. We control the amount of premiums written and placed in the trust through Consumer Loan assignments under our Programs, which is the activity that most significantly impacts the economic performance of the trust. We have the right to receive benefits from the trust that could potentially be significant. In addition, VSC Re has the obligation to absorb losses of the trust that could potentially be significant. |
New Accounting Updates | New Accounting Updates Adopted During the Current Year Accounting for Costs of Implementing Cloud Computing. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, which reduces complexity in the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. Under the current guidance, the classification of an arrangement as either a software license or a service contract determines whether or not we capitalize implementation costs. If an arrangement meets the definition of a software license, implementation costs are capitalized. If an arrangement meets the definition of a service contract, implementation costs are expensed as incurred. Under the new guidance, implementation costs will be capitalized regardless of their classification. The adoption of ASU 2018-15 on January 1, 2020 changed how we account for our cloud computing arrangements. However, its adoption did not have a material impact on our consolidated financial statements and related disclosures. Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13, which included an impairment model known as the current expected credit loss model, or CECL, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for credit losses based on the difference between contractual future net cash flows and its estimate of expected future net cash flows. The new guidance also changed the scope of the special accounting for loans acquired with significant credit deterioration. Our adoption of ASU 2016-13 on January 1, 2020 had a material impact on our consolidated financial statements and related disclosures, as it changed our accounting policies for Loans. Upon adoption of CECL on January 1, 2020, we increased both our Loans receivable and the related allowance for credit losses balances by $2,463.6 million. This gross-up did not impact the net carrying amount of Loans (Loans receivable less allowance for credit losses) or net income. This gross-up also reflected the impact of our adoption of a partial write-off policy on January 1, 2020 in connection with our adoption of CECL. The net Loan income (finance charge revenue less provision for credit losses expense) that we will recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. While the total amount of net Loan income we will recognize over the life of the Loan is not impacted by CECL, the timing of when we will recognize this income changes significantly from our prior accounting method, as CECL requires us to recognize a significant provision for credit losses expense at the time of assignment for amounts we never expected to realize and finance charge revenue in subsequent periods that significantly exceeds our expected yields. Given the significant change in timing of net Loan income recognition, we believe net income for the year ending December 31, 2020 will be significantly lower under CECL than what would be reported under our prior accounting method, with the greatest impact occurring in the quarter of adoption. For the three months ended September 30, 2020, we recognized $114.1 million provision for credit losses on new Consumer Loan assignments related to our adoption of CECL on January 1, 2020, which reduced consolidated net income by $87.9 million, or $4.92 per diluted share. For the nine months ended September 30, 2020, we recognized $426.2 million provision for credit losses on new Consumer Loan assignments related to our adoption of CECL on January 1, 2020, which reduced consolidated net income by $328.2 million, or $18.26 per diluted share. The financial statement impact of CECL in any period will depend on Consumer Loan assignment volume and the percentage of Consumer Loans assigned to us as Purchased Loans, the size and composition of our Loan portfolio, the Loan portfolio’s credit quality and economic conditions. New Accounting Updates Not Yet Adopted Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, which intends to enhance and simplify various aspects of the income tax accounting guidance, including requirements impacting the allocation of income tax expense to certain legal entities and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for fiscal years, and interim periods, beginning after December 15, 2020. Early application is permitted, but we have not yet adopted ASU 2019-12. We are currently assessing the impact the adoption of ASU 2019-12 will have on our consolidated financial statements and related disclosures. |
Description of Business_2
Description of Business | 3 Months Ended |
Mar. 31, 2020 | |
Description Of Business [Abstract] | |
Percentage of Consumer Loans Assigned with FICO Score of Less Than 650 or No FICO Score | The following table shows the percentage of Consumer Loans assigned to us with either FICO ® scores below 650 or no FICO ® scores: For the Three Months Ended September 30, For the Nine Months Ended September 30, Consumer Loan Assignment Volume 2020 2019 2020 2019 Percentage of total unit volume with either FICO ® scores below 650 or no FICO ® scores 93.6 % 95.5 % 95.4 % 96.0 % |
Schedule of Percentage of Consumer Loans Assigned Based on Unit Volumes | The following table shows the percentage of Consumer Loans assigned to us as Dealer Loans and Purchased Loans for each of the last seven quarters: Unit Volume Dollar Volume (1) Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans March 31, 2019 67.4 % 32.6 % 65.0 % 35.0 % June 30, 2019 66.7 % 33.3 % 63.7 % 36.3 % September 30, 2019 67.2 % 32.8 % 64.1 % 35.9 % December 31, 2019 67.4 % 32.6 % 64.0 % 36.0 % March 31, 2020 64.9 % 35.1 % 60.5 % 39.5 % June 30, 2020 62.5 % 37.5 % 59.1 % 40.9 % September 30, 2020 64.1 % 35.9 % 60.9 % 39.1 % (1) Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported in our consolidated balance sheets to the total shown in our consolidated statements of cash flows: (In millions) As of September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 8.9 $ 187.4 $ 24.7 $ 25.7 Restricted cash and cash equivalents 391.9 330.3 329.8 303.6 Total cash and cash equivalents and restricted cash and cash equivalents $ 400.8 $ 517.7 $ 354.5 $ 329.3 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Comparison of the Carrying Value and Estimated Fair Value of Financial Instruments | A comparison of the carrying amount and estimated fair value of these financial instruments is as follows: (In millions) As of September 30, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Assets Cash and cash equivalents $ 8.9 $ 8.9 $ 187.4 $ 187.4 Restricted cash and cash equivalents 391.9 391.9 330.3 330.3 Restricted securities available for sale 66.8 66.8 59.3 59.3 Loans receivable, net 6,865.2 7,263.0 6,685.2 6,777.2 Liabilities Revolving secured line of credit $ 125.7 $ 125.7 $ — $ — Secured financing 3,692.8 3,762.0 3,339.7 3,397.5 Senior notes 790.1 808.1 1,187.8 1,257.6 Mortgage note 10.7 10.7 11.3 11.3 |
Schedule of Assets and Liabilities, Measured at Fair Value on a Recurring Basis | The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value: (In millions) As of September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 8.9 $ — $ — $ 8.9 Restricted cash and cash equivalents (1) 391.9 — — 391.9 Restricted securities available for sale (2) 53.8 13.0 — 66.8 Loans receivable, net (1) — — 7,263.0 7,263.0 Liabilities Revolving secured line of credit (1) $ — $ 125.7 $ — $ 125.7 Secured financing (1) — 3,762.0 — 3,762.0 Senior notes (1) 808.1 — — 808.1 Mortgage note (1) — 10.7 — 10.7 (In millions) As of December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 187.4 $ — $ — $ 187.4 Restricted cash and cash equivalents (1) 330.3 — — 330.3 Restricted securities available for sale (2) 47.5 11.8 — 59.3 Loans receivable, net (1) — — 6,777.2 6,777.2 Liabilities Revolving secured line of credit (1) $ — $ — $ — $ — Secured financing (1) — 3,397.5 — 3,397.5 Senior notes (1) 1,257.6 — — 1,257.6 Mortgage note (1) — 11.3 — 11.3 (1) Measured at amortized cost with fair value disclosed. |
Restricted Securities Availab_2
Restricted Securities Available For Sale | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Restricted Securities Available for Sale | Restricted securities available for sale consist of the following: (In millions) As of September 30, 2020 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 30.0 $ 1.1 $ — $ 31.1 U.S. Government and agency securities 21.9 0.8 — 22.7 Asset-backed securities 12.3 0.2 — 12.5 Mortgage-backed securities 0.5 — — 0.5 Total restricted securities available for sale $ 64.7 $ 2.1 $ — $ 66.8 (In millions) As of December 31, 2019 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 25.3 $ 0.5 $ — $ 25.8 U.S. Government and agency securities 21.3 0.4 — 21.7 Asset-backed securities 11.2 0.1 — 11.3 Mortgage-backed securities 0.5 — — 0.5 Total restricted securities available for sale $ 58.3 $ 1.0 $ — $ 59.3 |
Schedule of Restricted Securities Available for Sale by Aging Category | The fair value and gross unrealized losses for restricted securities available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: (In millions) Securities Available for Sale with Gross Unrealized Losses as of September 30, 2020 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 4.2 $ — $ — $ — $ 4.2 $ — U.S. Government and agency securities — — — — — — Asset-backed securities 0.5 — — — 0.5 — Mortgage-backed securities — — — — — — Total restricted securities available for sale $ 4.7 $ — $ — $ — $ 4.7 $ — (In millions) Securities Available for Sale with Gross Unrealized Losses as of December 31, 2019 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 1.4 $ — $ — $ — $ 1.4 $ — U.S. Government and agency securities 1.9 — — — 1.9 — Asset-backed securities 1.9 — — — 1.9 — Mortgage-backed securities — — — — — — Total restricted securities available for sale $ 5.2 $ — $ — $ — $ 5.2 $ — |
Schedule of Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The cost and estimated fair values of debt securities by contractual maturity were as follows (securities with multiple maturity dates are classified in the period of final maturity). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In millions) As of September 30, 2020 December 31, 2019 Contractual Maturity Amortized Cost Estimated Fair Amortized Cost Estimated Fair Within one year $ 2.6 $ 2.6 $ 5.7 $ 5.7 Over one year to five years 56.8 58.8 50.8 51.8 Over five years to ten years 5.1 5.2 1.5 1.5 Over ten years 0.2 0.2 0.3 0.3 Total restricted securities available for sale $ 64.7 $ 66.8 $ 58.3 $ 59.3 |
Loans Receivable_2
Loans Receivable | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Receivables [Abstract] | ||
Schedule of Loans Receivable | Loans receivable and allowance for credit losses consist of the following: (In millions) As of September 30, 2020 Dealer Loans Purchased Loans Total Loans receivable $ 5,857.7 $ 4,318.4 $ 10,176.1 Allowance for credit losses (1,634.8) (1,676.1) (3,310.9) Loans receivable, net $ 4,222.9 $ 2,642.3 $ 6,865.2 (In millions) As of December 31, 2019 Dealer Loans Purchased Loans Total Loans receivable $ 4,623.3 $ 2,597.9 $ 7,221.2 Allowance for credit losses (428.0) (108.0) (536.0) Loans receivable, net $ 4,195.3 $ 2,489.9 $ 6,685.2 | |
Summary of Changes in Loans Receivable | A summary of changes in Loans receivable and allowance for credit losses is as follows: For the Three Months Ended September 30, 2020 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,810.8 $ 4,285.1 $ 10,095.9 $ (1,623.6) $ (1,722.5) $ (3,346.1) $ 4,187.2 $ 2,562.6 $ 6,749.8 Finance charges 336.8 259.8 596.6 (95.6) (96.6) (192.2) 241.2 163.2 404.4 Provision for credit losses — — — 26.4 3.4 29.8 26.4 3.4 29.8 New Consumer Loan assignments (2) 519.0 333.1 852.1 — — — 519.0 333.1 852.1 Collections (3) (780.2) (440.1) (1,220.3) — — — (780.2) (440.1) (1,220.3) Accelerated Dealer Holdback payments 11.7 — 11.7 — — — 11.7 — 11.7 Dealer Holdback payments 35.5 — 35.5 — — — 35.5 — 35.5 Transfers (4) (30.0) 30.0 — 9.9 (9.9) — (20.1) 20.1 — Write-offs (48.3) (150.1) (198.4) 48.3 150.1 198.4 — — — Recoveries (5) 0.2 0.6 0.8 (0.2) (0.6) (0.8) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 5,857.7 $ 4,318.4 $ 10,176.1 $ (1,634.8) $ (1,676.1) $ (3,310.9) $ 4,222.9 $ 2,642.3 $ 6,865.2 For the Three Months Ended September 30, 2019 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,466.0 $ 2,407.6 $ 6,873.6 $ (394.0) $ (95.6) $ (489.6) $ 4,072.0 $ 2,312.0 $ 6,384.0 Finance charges 225.3 124.6 349.9 — — — 225.3 124.6 349.9 Provision for credit losses — — (17.9) (1.4) (19.3) (17.9) (1.4) (19.3) New Consumer Loan assignments (2) 573.3 321.1 894.4 — — — 573.3 321.1 894.4 Collections (3) (738.3) (360.1) (1,098.4) — — — (738.3) (360.1) (1,098.4) Accelerated Dealer Holdback payments 16.1 — 16.1 — — — 16.1 — 16.1 Dealer Holdback payments 34.8 — 34.8 — — — 34.8 — 34.8 Transfers (4) (20.3) 20.3 — 2.8 (2.8) — (17.5) 17.5 — Write-offs (0.3) (0.2) (0.5) 0.3 0.2 0.5 — — — Recoveries (5) 0.5 0.2 0.7 (0.5) (0.2) (0.7) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 4,559.3 $ 2,513.5 $ 7,072.8 $ (409.3) $ (99.8) $ (509.1) $ 4,150.0 $ 2,413.7 $ 6,563.7 For the Nine Months Ended September 30, 2020 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,623.3 $ 2,597.9 $ 7,221.2 $ (428.0) $ (108.0) $ (536.0) $ 4,195.3 $ 2,489.9 $ 6,685.2 Adoption of CECL (1) 940.2 1,523.4 2,463.6 (940.2) (1,523.4) (2,463.6) — — — Finance charges 972.3 722.0 1,694.3 (270.3) (279.5) (549.8) 702.0 442.5 1,144.5 Provision for credit losses — — — (202.8) (261.5) (464.3) (202.8) (261.5) (464.3) New Consumer Loan assignments (2) 1,751.1 1,161.4 2,912.5 — — — 1,751.1 1,161.4 2,912.5 Collections (3) (2,313.1) (1,250.8) (3,563.9) — — — (2,313.1) (1,250.8) (3,563.9) Accelerated Dealer Holdback payments 34.6 — 34.6 — — — 34.6 — 34.6 Dealer Holdback payments 109.9 — 109.9 — — — 109.9 — 109.9 Transfers (4) (90.3) 90.3 — 29.5 (29.5) — (60.8) 60.8 — Write-offs (177.8) (527.1) (704.9) 177.8 527.1 704.9 — — — Recoveries (5) 0.8 1.3 2.1 (0.8) (1.3) (2.1) — — — Deferral of Loan origination costs 6.7 — 6.7 — — — 6.7 — 6.7 Balance, end of period $ 5,857.7 $ 4,318.4 $ 10,176.1 $ (1,634.8) $ (1,676.1) $ (3,310.9) $ 4,222.9 $ 2,642.3 $ 6,865.2 For the Nine Months Ended September 30, 2019 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 4,141.0 $ 2,084.2 $ 6,225.2 $ (378.1) $ (83.8) $ (461.9) $ 3,762.9 $ 2,000.4 $ 5,763.3 Finance charges 661.4 351.9 1,013.3 — — — 661.4 351.9 1,013.3 Provision for credit losses — — — (44.0) (5.2) (49.2) (44.0) (5.2) (49.2) New Consumer Loan assignments (2) 1,901.1 1,053.9 2,955.0 — — — 1,901.1 1,053.9 2,955.0 Collections (3) (2,230.2) (1,044.6) (3,274.8) — — — (2,230.2) (1,044.6) (3,274.8) Accelerated Dealer Holdback payments 44.1 — 44.1 — — — 44.1 — 44.1 Dealer Holdback payments 105.4 — 105.4 — — — 105.4 — 105.4 Transfers (4) (67.6) 67.6 — 10.3 (10.3) — (57.3) 57.3 — Write-offs (3.7) (0.4) (4.1) 3.7 0.4 4.1 — — — Recoveries (5) 1.2 0.9 2.1 (1.2) (0.9) (2.1) — — — Deferral of Loan origination costs 6.6 — 6.6 — — — 6.6 — 6.6 Balance, end of period $ 4,559.3 $ 2,513.5 $ 7,072.8 $ (409.3) $ (99.8) $ (509.1) $ 4,150.0 $ 2,413.7 $ 6,563.7 (1) Represents the gross-up of Loans receivable and allowance for credit losses on January 1, 2020 upon the adoption of CECL for the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. (2) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (3) Represents repayments that we collected on Consumer Loans assigned under our programs. (4) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs. (5) The Dealer Loans amount represents net cash flows received (collection less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full. | |
Summary of Provision for Credit Losses [Table Text Block] | The following table summarizes the provision for credit losses for each of these components: (In millions) For the Three Months Ended September 30, 2020 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 45.6 $ 68.5 $ 114.1 Forecast changes (72.0) (71.9) (143.9) Total $ (26.4) $ (3.4) $ (29.8) (In millions) For the Nine Months Ended September 30, 2020 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 171.3 $ 254.9 $ 426.2 Forecast changes 31.5 6.6 38.1 Total $ 202.8 $ 261.5 $ 464.3 | |
Summary of Information Related to New Consumer Loan Assignments | Additional information related to new Consumer Loan assignments is as follows: (In millions) For the Three Months Ended September 30, 2020 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 823.0 $ 730.8 $ 1,553.8 Expected net cash flows at the time of assignment (2) 733.6 475.3 1,208.9 Loans receivable at the time of assignment (3) 519.0 333.1 852.1 Provision for credit losses expense at the time of assignment $ (45.6) $ (68.5) $ (114.1) Expected future finance charges at the time of assignment (4) 260.2 210.7 470.9 Expected net Loan income at the time of assignment (5) $ 214.6 $ 142.2 $ 356.8 (In millions) For the Three Months Ended September 30, 2019 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 895.1 $ 704.4 $ 1,599.5 Expected net cash flows at the time of assignment (2) 797.3 455.7 1,253.0 Loans receivable at the time of assignment (3) 573.3 321.1 894.4 Provision for credit losses expense at the time of assignment $ — $ — $ — Expected future finance charges at the time of assignment (4) 224.0 134.6 358.6 Expected net Loan income at the time of assignment (5) $ 224.0 $ 134.6 $ 358.6 (In millions) For the Nine Months Ended September 30, 2020 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 2,787.2 $ 2,566.4 $ 5,353.6 Expected net cash flows at the time of assignment (2) 2,471.7 1,633.5 4,105.2 Loans receivable at the time of assignment (3) 1,751.1 1,161.4 2,912.5 Provision for credit losses expense at the time of assignment $ (171.3) $ (254.9) $ (426.2) Expected future finance charges at the time of assignment (4) 891.9 727.0 1,618.9 Expected net Loan income at the time of assignment (5) $ 720.6 $ 472.1 $ 1,192.7 (In millions) For the Nine Months Ended September 30, 2019 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 2,982.2 $ 2,308.0 $ 5,290.2 Expected net cash flows at the time of assignment (2) 2,661.0 1,492.6 4,153.6 Loans receivable at the time of assignment (3) 1,901.1 1,053.9 2,955.0 Provision for credit losses expense at the time of assignment $ — $ — $ — Expected future finance charges at the time of assignment (4) 759.9 438.7 1,198.6 Expected net Loan income at the time of assignment (5) $ 759.9 $ 438.7 $ 1,198.6 (1) The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program. (2) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. (3) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. The Loan amounts also represent the fair value at the time of assignment. (4) Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans. (5) Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3). | |
Summary of Changes in Expected Future Net Cash Flows [Table Text Block] | A summary of changes in expected future net cash flows is as follows: (In millions) For the Three Months Ended September 30, 2020 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,745.2 $ 3,731.6 $ 9,476.8 New Consumer Loan assignments (1) 733.6 475.3 1,208.9 Realized net cash flows (2) (733.0) (440.1) (1,173.1) Forecast changes 39.5 99.0 138.5 Transfers (3) (28.7) 30.5 1.8 Balance, end of period $ 5,756.6 $ 3,896.3 $ 9,652.9 (In millions) For the Three Months Ended September 30, 2019 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,462.4 $ 3,223.9 $ 8,686.3 New Consumer Loan assignments (1) 797.3 455.7 1,253.0 Realized net cash flows (2) (687.4) (360.1) (1,047.5) Forecast changes (4.2) 6.8 2.6 Transfers (3) (25.5) 27.4 1.9 Balance, end of period $ 5,542.6 $ 3,353.7 $ 8,896.3 (In millions) For the Nine Months Ended September 30, 2020 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,577.0 $ 3,428.2 $ 9,005.2 New Consumer Loan assignments (1) 2,471.7 1,633.5 4,105.2 Realized net cash flows (2) (2,168.6) (1,250.8) (3,419.4) Forecast changes (36.5) (7.1) (43.6) Transfers (3) (87.0) 92.5 5.5 Balance, end of period $ 5,756.6 $ 3,896.3 $ 9,652.9 (In millions) For the Nine Months Ended September 30, 2019 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,045.9 $ 2,782.9 $ 7,828.8 New Consumer Loan assignments (1) 2,661.0 1,492.6 4,153.6 Realized net cash flows (2) (2,080.7) (1,044.6) (3,125.3) Forecast changes (0.3) 32.6 32.3 Transfers (3) (83.3) 90.2 6.9 Balance, end of period $ 5,542.6 $ 3,353.7 $ 8,896.3 (1) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. (2) The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program. (3) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. | |
Schedule of Consumer Loans Forecasted Collection Percentage | The following table compares our forecast of Consumer Loan collection rates as of September 30, 2020 with the forecasts as of June 30, 2020, as of December 31, 2019 and at the time of assignment, segmented by year of assignment: Total Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 74.8 % 74.8 % 74.8 % 72.5 % 0.0 % 0.0 % 2.3 % 2012 73.8 % 73.8 % 73.9 % 71.4 % 0.0 % -0.1 % 2.4 % 2013 73.5 % 73.5 % 73.5 % 72.0 % 0.0 % 0.0 % 1.5 % 2014 71.7 % 71.7 % 71.7 % 71.8 % 0.0 % 0.0 % -0.1 % 2015 65.2 % 65.2 % 65.4 % 67.7 % 0.0 % -0.2 % -2.5 % 2016 63.7 % 63.6 % 64.1 % 65.4 % 0.1 % -0.4 % -1.7 % 2017 64.1 % 63.8 % 64.8 % 64.0 % 0.3 % -0.7 % 0.1 % 2018 64.1 % 63.5 % 65.1 % 63.6 % 0.6 % -1.0 % 0.5 % 2019 64.5 % 63.4 % 64.6 % 64.0 % 1.1 % -0.1 % 0.5 % 2020 64.4 % 62.2 % — 63.0 % 2.2 % — 1.4 % Dealer Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 74.7 % 74.7 % 74.6 % 72.4 % 0.0 % 0.1 % 2.3 % 2012 73.7 % 73.7 % 73.7 % 71.3 % 0.0 % 0.0 % 2.4 % 2013 73.4 % 73.4 % 73.4 % 72.1 % 0.0 % 0.0 % 1.3 % 2014 71.6 % 71.6 % 71.6 % 71.9 % 0.0 % 0.0 % -0.3 % 2015 64.6 % 64.6 % 64.8 % 67.5 % 0.0 % -0.2 % -2.9 % 2016 62.9 % 62.8 % 63.2 % 65.1 % 0.1 % -0.3 % -2.2 % 2017 63.5 % 63.2 % 64.2 % 63.8 % 0.3 % -0.7 % -0.3 % 2018 63.6 % 63.0 % 64.7 % 63.6 % 0.6 % -1.1 % 0.0 % 2019 64.1 % 63.0 % 64.4 % 63.9 % 1.1 % -0.3 % 0.2 % 2020 64.1 % 61.9 % — 62.9 % 2.2 % — 1.2 % Purchased Loans as of September 30, 2020 Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2020 June 30, 2020 December 31, 2019 Initial June 30, 2020 December 31, 2019 Initial 2011 76.4 % 76.4 % 76.4 % 72.7 % 0.0 % 0.0 % 3.7 % 2012 75.9 % 75.9 % 75.9 % 71.4 % 0.0 % 0.0 % 4.5 % 2013 74.3 % 74.3 % 74.4 % 71.6 % 0.0 % -0.1 % 2.7 % 2014 72.5 % 72.5 % 72.5 % 70.9 % 0.0 % 0.0 % 1.6 % 2015 68.9 % 68.9 % 69.3 % 68.5 % 0.0 % -0.4 % 0.4 % 2016 65.9 % 65.9 % 66.6 % 66.5 % 0.0 % -0.7 % -0.6 % 2017 65.7 % 65.3 % 66.3 % 64.6 % 0.4 % -0.6 % 1.1 % 2018 65.2 % 64.6 % 66.0 % 63.5 % 0.6 % -0.8 % 1.7 % 2019 65.2 % 64.1 % 65.1 % 64.2 % 1.1 % 0.1 % 1.0 % 2020 64.9 % 62.6 % — 63.2 % 2.3 % — 1.7 % (1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table. | |
Financing Receivable, Past Due [Table Text Block] | The following table summarizes the past-due status of Consumer Loan assignments segmented by year of assignment: (In millions) Total Loans as of September 30, 2020 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2015 and Prior $ 9.7 $ 3.6 $ 24.0 $ 108.5 $ 145.8 2016 106.7 36.4 145.0 33.5 321.6 2017 409.8 135.4 293.4 4.5 843.1 2018 1,166.1 388.6 511.8 0.6 2,067.1 2019 2,359.6 746.9 524.2 — 3,630.7 2020 2,687.7 416.0 64.1 — 3,167.8 $ 6,739.6 $ 1,726.9 $ 1,562.5 $ 147.1 $ 10,176.1 (In millions) Dealer Loans as of September 30, 2020 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2015 and Prior $ 4.6 $ 1.7 $ 12.8 $ 84.3 $ 103.4 2016 49.1 16.2 72.0 25.2 162.5 2017 222.8 70.2 153.6 3.2 449.8 2018 643.0 207.5 270.4 0.4 1,121.3 2019 1,267.7 391.9 270.3 — 1,929.9 2020 1,780.8 269.1 40.9 — 2,090.8 $ 3,968.0 $ 956.6 $ 820.0 $ 113.1 $ 5,857.7 (In millions) Purchased Loans as of September 30, 2020 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2015 and Prior $ 5.1 $ 1.9 $ 11.2 $ 24.2 $ 42.4 2016 57.6 20.2 73.0 8.3 159.1 2017 187.0 65.2 139.8 1.3 393.3 2018 523.1 181.1 241.4 0.2 945.8 2019 1,091.9 355.0 253.9 — 1,700.8 2020 906.9 146.9 23.2 — 1,077.0 $ 2,771.6 $ 770.3 $ 742.5 $ 34.0 $ 4,318.4 (1) As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. (2) As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. (3) Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms. (4) Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. (5) We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due. | |
Summary of Changes in Accretable Yield | A summary of changes in the accretable yield is as follows: (In millions) For the Three Months Ended September 30, 2019 Dealer Loans Purchased Loans Total Balance, beginning of period $ 1,390.4 $ 911.9 $ 2,302.3 New Consumer Loan assignments (1) 224.0 134.6 358.6 Accretion (2) (227.6) (124.7) (352.3) Provision for credit losses 17.9 1.4 19.3 Forecast changes (4.2) 6.8 2.6 Transfers (3) (7.9) 10.0 2.1 Balance, end of period $ 1,392.6 $ 940.0 $ 2,332.6 (In millions) For the Nine Months Ended September 30, 2019 Dealer Loans Purchased Loans Total Balance, beginning of period $ 1,283.0 $ 782.5 $ 2,065.5 New Consumer Loan assignments (1) 759.9 438.7 1,198.6 Accretion (2) (668.1) (352.0) (1,020.1) Provision for credit losses 44.0 5.2 49.2 Forecast changes (0.3) 32.6 32.3 Transfers (3) (25.9) 33.0 7.1 Balance, end of period $ 1,392.6 $ 940.0 $ 2,332.6 (1) The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers. (2) Represents finance charges excluding the amortization of deferred direct origination costs for Dealer Loans. (3) Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, the related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. | |
Schedule of Consumer Loans Performance | The following table segments our Loan portfolio by the performance of the Loan pools: (In millions) As of December 31, 2019 Loan Pool Performance Loan Pool Performance Dealer Purchased Total Dealer Purchased Total Loans receivable $ 1,591.3 $ 2,006.9 $ 3,598.2 $ 3,032.0 $ 591.0 $ 3,623.0 Allowance for credit losses — — — (428.0) (108.0) (536.0) Loans receivable, net $ 1,591.3 $ 2,006.9 $ 3,598.2 $ 2,604.0 $ 483.0 $ 3,087.0 |
Reinsurance_2
Reinsurance | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Summary of Reinsurance Activity | A summary of reinsurance activity is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Net assumed written premiums $ 14.7 $ 11.4 $ 49.3 $ 39.1 Net premiums earned 15.1 12.9 42.2 38.2 Provision for claims 10.7 8.2 28.8 23.1 Amortization of capitalized acquisition costs 0.4 0.2 1.0 0.9 |
Schedule of Trust Assets and Reinsurance Liabilities | The trust assets and related reinsurance liabilities are as follows: (In millions) As of Balance Sheet location September 30, 2020 December 31, 2019 Trust assets Restricted cash and cash equivalents $ 1.0 $ 0.9 Trust assets Restricted securities available for sale 66.8 59.3 Unearned premium Accounts payable and accrued liabilities 51.2 44.1 Claims reserve (1) Accounts payable and accrued liabilities 2.6 1.8 (1) The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other Income_2
Other Income | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Income [Table Text Block] | Other income consists of the following: (In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Ancillary product profit sharing $ 4.1 $ 8.8 $ 22.3 $ 27.3 Remarketing fees 1.1 3.0 5.7 9.5 Interest 0.4 2.0 2.6 6.7 Dealer enrollment fees 0.7 1.4 2.5 3.5 Dealer support products and services 0.5 0.6 1.5 2.0 GPS-SID fees — — — 1.9 Other 0.2 0.1 0.6 0.7 Total $ 7.0 $ 15.9 $ 35.2 $ 51.6 |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates our other income by major source of income and timing of the revenue recognition: (In millions) For the Three Months Ended September 30, 2020 Ancillary product profit sharing Remarketing fees Interest Dealer enrollment fees Dealer support products and services Other Total Other Income Source of income Third Party Providers $ 4.1 $ — $ 0.4 $ — $ — $ 0.2 $ 4.7 Dealers — 1.1 — 0.7 0.5 — 2.3 Total $ 4.1 $ 1.1 $ 0.4 $ 0.7 $ 0.5 $ 0.2 $ 7.0 Timing of revenue recognition Over time $ 4.1 $ — $ 0.4 $ 0.7 $ — $ — $ 5.2 At a point in time — 1.1 — — 0.5 0.2 1.8 Total $ 4.1 $ 1.1 $ 0.4 $ 0.7 $ 0.5 $ 0.2 $ 7.0 (In millions) For the Nine Months Ended September 30, 2020 Ancillary product profit sharing Remarketing fees Interest Dealer enrollment fees Dealer support products and services Other Total Other Income Source of income Third Party Providers $ 22.3 $ — $ 2.6 $ — $ — $ 0.6 $ 25.5 Dealers — 5.7 — 2.5 1.5 — 9.7 Total $ 22.3 $ 5.7 $ 2.6 $ 2.5 $ 1.5 $ 0.6 $ 35.2 Timing of revenue recognition Over time $ 22.3 $ — $ 2.6 $ 2.5 $ — $ — $ 27.4 At a point in time — 5.7 — — 1.5 0.6 7.8 Total $ 22.3 $ 5.7 $ 2.6 $ 2.5 $ 1.5 $ 0.6 $ 35.2 |
Debt_2
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Principal Debt Outstanding | Debt consists of the following: (In millions) As of September 30, 2020 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured line of credit (1) $ 125.7 $ — $ — $ 125.7 Secured financing (2) 3,707.9 (15.1) — 3,692.8 Senior notes 800.0 (9.9) — 790.1 Mortgage note 10.7 — — 10.7 Total debt $ 4,644.3 $ (25.0) $ — $ 4,619.3 (In millions) As of December 31, 2019 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured line of credit (1) $ — $ — $ — $ — Secured financing (2) 3,355.6 (15.9) — 3,339.7 Senior notes 1,201.8 (13.2) (0.8) 1,187.8 Mortgage note 11.3 — — 11.3 Total debt $ 4,568.7 $ (29.1) $ (0.8) $ 4,538.8 (1) Excludes deferred debt issuance cost s of $2.2 million a nd $3.2 million as of September 30, 2020 and December 31, 2019, respectively, which are included in other assets. |
Schedule of General Information of Financing Transaction | General information for each of our financing transactions in place as of September 30, 2020 is as follows: (Dollars in millions) Financings Wholly-owned Maturity Date Financing Interest Rate Basis as of Revolving Secured Line of Credit n/a 06/22/2022 $ 340.0 At our option, either LIBOR plus 187.5 basis points or the prime rate plus 87.5 basis points Warehouse Facility II (1) CAC Warehouse Funding Corp. II 07/12/2022 (2) 400.0 LIBOR plus 175 basis points (3) Warehouse Facility IV (1) CAC Warehouse Funding LLC IV 07/26/2022 (2) 300.0 LIBOR plus 200 basis points (3) Warehouse Facility V (1) CAC Warehouse Funding LLC V 08/17/2021 (4) 100.0 LIBOR plus 190 basis points (3) Warehouse Facility VI (1) CAC Warehouse Funding LLC VI 09/30/2022 (2) 75.0 LIBOR plus 200 basis points Warehouse Facility VII (1) CAC Warehouse Funding LLC VII 12/16/2021 (5) 150.0 Commercial paper rate plus 200 basis points (3) Warehouse Facility VIII (1) CAC Warehouse Funding LLC VIII 07/26/2022 (2) 200.0 LIBOR plus 190 basis points (3) Term ABS 2017-2 (1) Credit Acceptance Funding LLC 2017-2 06/17/2019 (2) 450.0 Fixed rate Term ABS 2017-3 (1) Credit Acceptance Funding LLC 2017-3 10/15/2019 (2) 350.0 Fixed rate Term ABS 2018-1 (1) Credit Acceptance Funding LLC 2018-1 02/17/2020 (2) 500.0 Fixed rate Term ABS 2018-2 (1) Credit Acceptance Funding LLC 2018-2 05/15/2020 (2) 450.0 Fixed rate Term ABS 2018-3 (1) Credit Acceptance Funding LLC 2018-3 08/17/2020 (2) 398.3 Fixed rate Term ABS 2019-1 (1) Credit Acceptance Funding LLC 2019-1 02/15/2021 (2) 402.5 Fixed rate Term ABS 2019-2 (1) Credit Acceptance Funding LLC 2019-2 08/15/2022 (6) 500.0 Fixed rate Term ABS 2019-3 (1) Credit Acceptance Funding LLC 2019-3 11/15/2021 (2) 351.7 Fixed rate Term ABS 2020-1 (1) Credit Acceptance Funding LLC 2020-1 02/15/2022 (2) 500.0 Fixed rate Term ABS 2020-2 (1) Credit Acceptance Funding LLC 2020-2 07/15/2022 (2) 481.8 Fixed rate 2024 Senior Notes n/a 12/31/2024 400.0 Fixed rate 2026 Senior Notes n/a 03/15/2026 400.0 Fixed rate Mortgage Note (1) Chapter 4 Properties, LLC 08/06/2023 12.0 LIBOR plus 150 basis points (1) Financing made available only to a specified subsidiary of the Company. (2) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets. (3) Interest rate cap agreements are in place to limit the exposure to increasing interest rates. (4) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on August 17, 2023 will be due on that date. (5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 16, 2023 will be due on that date. (6) Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. |
Schedule of Additional Information Related to Debt Instruments | Additional information related to the amounts outstanding on each facility is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Revolving Secured Line of Credit Maximum outstanding principal balance $ 287.7 $ 193.3 $ 296.6 $ 282.9 Average outstanding principal balance 124.9 71.1 119.7 80.1 Warehouse Facility II Maximum outstanding principal balance 201.0 201.0 201.0 201.0 Average outstanding principal balance 161.5 126.7 127.8 102.8 Warehouse Facility IV Maximum outstanding principal balance — — — 100.0 Average outstanding principal balance — — — 1.5 Warehouse Facility V Maximum outstanding principal balance 75.0 35.0 75.0 35.0 Average outstanding principal balance 17.9 3.4 25.5 1.2 Warehouse Facility VI Maximum outstanding principal balance 50.0 — 50.0 — Average outstanding principal balance 50.0 — 20.3 — Warehouse Facility VII Maximum outstanding principal balance 125.0 50.0 125.0 101.5 Average outstanding principal balance 102.5 23.9 75.0 9.4 Warehouse Facility VIII Maximum outstanding principal balance 149.0 75.0 149.0 75.0 Average outstanding principal balance 35.6 12.7 37.7 12.7 |
Summary of Debt | (Dollars in millions) As of September 30, 2020 December 31, 2019 Revolving Secured Line of Credit Principal balance outstanding $ 125.7 $ — Amount available for borrowing (1) 214.3 340.0 Interest rate 2.02 % — % Warehouse Facility II Principal balance outstanding $ 150.0 $ — Amount available for borrowing (1) 250.0 400.0 Loans pledged as collateral 183.8 — Restricted cash and cash equivalents pledged as collateral 4.6 1.0 Interest rate 1.91 % — % Warehouse Facility IV Principal balance outstanding $ — $ — Amount available for borrowing (1) 300.0 300.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility V Principal balance outstanding $ — $ — Amount available for borrowing (1) 100.0 100.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility VI Principal balance outstanding $ 50.0 $ — Amount available for borrowing (1) 25.0 75.0 Loans pledged as collateral 68.2 — Restricted cash and cash equivalents pledged as collateral 2.5 — Interest rate 2.16 % — % Warehouse Facility VII Principal balance outstanding $ 100.0 $ — Amount available for borrowing (1) 50.0 150.0 Loans pledged as collateral 124.2 — Restricted cash and cash equivalents pledged as collateral 3.3 1.0 Interest rate 2.39 % — % Warehouse Facility VIII Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Term ABS 2016-3 Principal balance outstanding $ — $ 51.8 Loans pledged as collateral — 219.5 Restricted cash and cash equivalents pledged as collateral — 23.5 Interest rate — % 3.60 % Term ABS 2017-1 Principal balance outstanding $ — $ 120.9 Loans pledged as collateral — 292.8 Restricted cash and cash equivalents pledged as collateral — 26.1 Interest rate — % 3.19 % Term ABS 2017-2 Principal balance outstanding $ 71.0 $ 277.2 Loans pledged as collateral 267.8 426.7 Restricted cash and cash equivalents pledged as collateral 30.3 35.1 Interest rate 3.24 % 2.83 % Term ABS 2017-3 Principal balance outstanding $ 120.2 $ 303.2 Loans pledged as collateral 251.3 393.0 Restricted cash and cash equivalents pledged as collateral 26.1 29.3 Interest rate 3.31 % 2.91 % Term ABS 2018-1 Principal balance outstanding $ 276.5 $ 500.0 Loans pledged as collateral 450.2 609.5 Restricted cash and cash equivalents pledged as collateral 40.8 43.8 Interest rate 3.43 % 3.24 % Term ABS 2018-2 Principal balance outstanding $ 332.8 $ 450.0 Loans pledged as collateral 463.2 550.4 Restricted cash and cash equivalents pledged as collateral 38.7 37.6 Interest rate 3.76 % 3.68 % Term ABS 2018-3 Principal balance outstanding $ 371.4 $ 398.3 Loans pledged as collateral 459.2 487.7 Restricted cash and cash equivalents pledged as collateral 36.3 32.3 Interest rate 3.73 % 3.72 % Term ABS 2019-1 Principal balance outstanding $ 402.5 $ 402.5 Loans pledged as collateral 482.4 490.2 Restricted cash and cash equivalents pledged as collateral 36.4 31.9 Interest rate 3.53 % 3.53 % Term ABS 2019-2 Principal balance outstanding $ 500.0 $ 500.0 Loans pledged as collateral 575.9 628.5 Restricted cash and cash equivalents pledged as collateral 42.6 38.6 Interest rate 3.13 % 3.13 % Term ABS 2019-3 Principal balance outstanding $ 351.7 $ 351.7 Loans pledged as collateral 439.1 428.6 Restricted cash and cash equivalents pledged as collateral 33.2 27.2 Interest rate 2.56 % 2.56 % Term ABS 2020-1 Principal balance outstanding $ 500.0 $ — Loans pledged as collateral 803.7 — Restricted cash and cash equivalents pledged as collateral 52.1 — Interest rate 2.18 % — % Term ABS 2020-2 Principal balance outstanding $ 481.8 $ — Loans pledged as collateral 629.8 — Restricted cash and cash equivalents pledged as collateral 42.0 — Interest rate 1.65 % — % 2021 Senior Notes Principal balance outstanding $ — $ 151.8 Interest rate — % 6.125 % 2023 Senior Notes Principal balance outstanding $ — $ 250.0 Interest rate — % 7.375 % 2024 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 5.125 % 5.125 % 2026 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 6.625 % 6.625 % Mortgage Note Principal balance outstanding $ 10.7 $ 11.3 Interest rate 1.66 % 3.21 % (1) Availability may be limited by the amount of assets pledged as collateral. |
Summary of Term ABS Financings | The table below sets forth certain additional details regarding the outstanding Term ABS financings: (Dollars in millions) Term ABS Financings Close Date Net Book Value of Loans Revolving Period Term ABS 2017-2 June 29, 2017 $ 563.2 Through June 17, 2019 Term ABS 2017-3 October 26, 2017 437.6 Through October 15, 2019 Term ABS 2018-1 February 22, 2018 625.1 Through February 17, 2020 Term ABS 2018-2 May 24, 2018 562.6 Through May 15, 2020 Term ABS 2018-3 August 23, 2018 500.1 Through August 17, 2020 Term ABS 2019-1 February 21, 2019 503.1 Through February 15, 2021 Term ABS 2019-2 August 28, 2019 625.1 Through August 15, 2022 Term ABS 2019-3 November 21, 2019 439.6 Through November 15, 2021 Term ABS 2020-1 February 20, 2020 625.1 Through February 15, 2022 Term ABS 2020-2 July 23, 2020 602.3 Through July 15, 2022 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Terms of Interest Rate Cap Agreements | The following tables provide the terms of our interest rate cap agreements that were in effect as of September 30, 2020 and December 31, 2019: (Dollars in millions) As of September 30, 2020 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 12/2017 12/2020 $ 205.0 5.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2017 04/2021 58.3 6.50 % Cap Floating Rate 05/2018 04/2021 87.5 6.50 % Cap Floating Rate 07/2019 07/2023 154.2 6.50 % 300.0 100.0 Warehouse Facility V Cap Floating Rate 08/2018 08/2023 75.0 6.50 % 150.0 Warehouse Facility VII Cap Floating Rate 12/2017 11/2021 87.5 5.50 % Cap Floating Rate 01/2020 12/2023 62.5 5.50 % 150.0 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 200.0 5.50 % (Dollars in millions) As of December 31, 2019 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 12/2017 12/2020 $ 205.0 5.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2017 04/2021 100.0 6.50 % Cap Floating Rate 05/2018 04/2021 150.0 6.50 % Cap Floating Rate 07/2019 07/2023 50.0 6.50 % 300.0 100.0 Warehouse Facility V Cap Floating Rate 08/2018 08/2023 75.0 6.50 % 150.0 Warehouse Facility VII Cap Floating Rate 12/2017 11/2021 143.8 5.50 % 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 200.0 5.50 % (1) Rate excludes the spread over the LIBOR or commercial paper rate. |
Income Taxes_2
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of the U.S. Federal Statutory Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes 2.9 % 3.5 % 3.0 % 3.1 % Excess tax benefits from stock-based compensation plans — % — % -0.8 % -1.2 % Other 0.1 % — % 0.4 % — % Effective income tax rate 24.0 % 24.5 % 23.6 % 22.9 % |
Net Income Per Share_2
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Outstanding Basic and Diluted | Basic net income per share has been computed by dividing net income by the basic number of weighted average shares outstanding. Diluted net income per share has been computed by dividing net income by the diluted number of weighted average shares outstanding using the treasury stock method. The share effect is as follows: For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Weighted average shares outstanding: Common shares 17,526,660 18,659,113 17,645,184 18,662,610 Vested restricted stock units 318,125 285,559 312,747 285,530 Basic number of weighted average shares outstanding 17,844,785 18,944,672 17,957,931 18,948,140 Dilutive effect of restricted stock and restricted stock units 4,980 6,194 15,160 19,412 Dilutive number of weighted average shares outstanding 17,849,765 18,950,866 17,973,091 18,967,552 |
Stock Repurchases_2
Stock Repurchases | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table summarizes our stock repurchases for the nine months ended September 30, 2020 and 2019: (Dollars in millions) For the Nine Months Ended September 30, 2020 2019 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 710,157 $ 300.6 225,915 $ 91.0 Other (2) 15,063 6.5 42,696 18.2 Total 725,220 $ 307.1 268,611 $ 109.2 (1) Represents repurchases under authorizations by the board of directors for the repurchase of shares by us from time to time in the open market or in privately negotiated transactions. On March 5, 2020, the board of directors authorized the repurchase of up to three million shares of our common stock in addition to the board’s prior authorizations. As of September 30, 2020, we had authorization to repurchase 3,059,556 shares of our common stock. (2) Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock and restricted stock units and the conversion of restricted stock units to common stock. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense consists of the following: (In millions) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Restricted stock $ 0.4 $ 0.8 $ 1.5 $ 2.3 Restricted stock units 1.1 1.2 3.2 3.4 Total $ 1.5 $ 2.0 $ 4.7 $ 5.7 |
Summary of Restricted Stock Activity | A summary of the non-vested restricted stock activity is presented below: Restricted Stock Number of Shares Weighted Average Grant-Date Fair Value Per Share Non-vested as of December 31, 2019 137,503 $ 125.04 Vested (14,633) 182.61 Forfeited (148) 360.67 Non-vested as of September 30, 2020 122,722 $ 117.89 |
Summary Of Restricted Stock Units Activity | A summary of the restricted stock unit activity is presented below: Restricted Stock Units Number of Restricted Weighted Average Grant-Date Fair Value Per Share Outstanding as of December 31, 2019 428,831 $ 132.99 Granted 5,870 436.89 Converted (21,971) 105.97 Forfeited (112) 434.60 Outstanding as of September 30, 2020 412,618 $ 138.67 |
Description of Business (Percen
Description of Business (Percentage of Consumer Loans Assigned with FICO Score of Less Than 650 or No FICO Score) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Percentage Of Contracts With FICO Score Lower Than 650 Or No FICO Score [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Percentage Of Contracts | 93.60% | 95.50% | 95.40% | 96.00% |
Description of Business (Perc_2
Description of Business (Percentage of Consumer Loans Assigned Based on Volumes) | 3 Months Ended | |||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | ||||||
Portfolio Program [Member] | ||||||||||||
Description Of Business [Line Items] | ||||||||||||
Percentage of new consumer loans unit volume | 64.10% | 62.50% | 64.90% | 67.40% | 67.20% | 66.70% | 67.40% | |||||
Percentage of new consumer loans dollar volume | 60.90% | 59.10% | 60.50% | [1] | 64.00% | [1] | 64.10% | [1] | 63.70% | [1] | 65.00% | [1] |
Purchase Program [Member] | ||||||||||||
Description Of Business [Line Items] | ||||||||||||
Percentage of new consumer loans unit volume | 35.90% | 37.50% | 35.10% | 32.60% | 32.80% | 33.30% | 32.60% | |||||
Percentage of new consumer loans dollar volume | 39.10% | 40.90% | 39.50% | [1] | 36.00% | [1] | 35.90% | [1] | 36.30% | [1] | 35.00% | [1] |
[1] | Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. |
Description of Business_2_3
Description of Business | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($)loan | Sep. 30, 2020loanprogram | |
Description Of Business [Abstract] | ||
Number of business programs | program | 2 | |
Original number of Consumer Loans required to group advances | 100 | 100 |
Additional number of Consumer Loans required to group advances | 50 | |
Servicing fee percentage in collections | 20.00% | |
One-time enrollment fee in program | $ | $ 9,850 | |
Payment Holdback Percentage | 50.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($)$ / shares | Mar. 31, 2020segment | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | ||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Uninsured cash and cash equivalents | $ 8.5 | $ 8.5 | $ 186.1 | ||||
Adoption of CECL | [1] | 0 | |||||
Provision for credit losses | (29.8) | $ 19.3 | 464.3 | $ 49.2 | |||
CECL Impact on Net Income | $ 87.9 | $ 328.2 | |||||
CECL Impact on Net Income, Per Diluted Share | $ / shares | $ 4.92 | $ 18.26 | |||||
Restricted Cash and Cash Equivalents [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Uninsured cash and cash equivalents | $ 388.1 | $ 388.1 | $ 326.7 | ||||
New Consumer Loan Assignments [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Provision for credit losses | 114.1 | 0 | 426.2 | 0 | |||
Loans Receivable [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Adoption of CECL | [1] | 2,463.6 | |||||
Provision for credit losses | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Represents the gross-up of Loans receivable and allowance for credit losses on January 1, 2020 upon the adoption of CECL for the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Cash and Cash Equivalents) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 8.9 | $ 187.4 | $ 24.7 | $ 25.7 |
Restricted cash and cash equivalents | 391.9 | 330.3 | 329.8 | 303.6 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ 400.8 | $ 517.7 | $ 354.5 | $ 329.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Schedule of Comparison of the Carrying Value and Estimated Fair Value of Financial Instruments) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | [1] | $ 8.9 | $ 187.4 |
Restricted cash and cash equivalents | [1] | 391.9 | 330.3 |
Restricted securities available for sale | [2] | 66.8 | 59.3 |
Loans receivable, net | [1] | 7,263 | 6,777.2 |
Liabilities | |||
Revolving secured line of credit | [1] | 125.7 | 0 |
Secured financing | [1] | 3,762 | 3,397.5 |
Senior notes | [1] | 808.1 | 1,257.6 |
Mortgage note | [1] | 10.7 | 11.3 |
Carrying Amount [Member] | |||
Assets | |||
Cash and cash equivalents | 8.9 | 187.4 | |
Restricted cash and cash equivalents | 391.9 | 330.3 | |
Restricted securities available for sale | 66.8 | 59.3 | |
Loans receivable, net | 6,865.2 | 6,685.2 | |
Liabilities | |||
Revolving secured line of credit | 125.7 | 0 | |
Secured financing | 3,692.8 | 3,339.7 | |
Senior notes | 790.1 | 1,187.8 | |
Mortgage note | 10.7 | 11.3 | |
Estimated Fair Value [Member] | |||
Assets | |||
Cash and cash equivalents | 8.9 | 187.4 | |
Restricted cash and cash equivalents | 391.9 | 330.3 | |
Restricted securities available for sale | 66.8 | 59.3 | |
Loans receivable, net | 7,263 | 6,777.2 | |
Liabilities | |||
Revolving secured line of credit | 125.7 | 0 | |
Secured financing | 3,762 | 3,397.5 | |
Senior notes | 808.1 | 1,257.6 | |
Mortgage note | $ 10.7 | $ 11.3 | |
[1] | Measured at amortized cost with fair value disclosed. | ||
[2] | Measured at fair value on a recurring basis. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Schedule of Assets and Liabilities, Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | $ 8.9 | $ 187.4 |
Restricted cash and cash equivalents | [1] | 391.9 | 330.3 |
Restricted securities available for sale | [2] | 66.8 | 59.3 |
Loans receivable, net | [1] | 7,263 | 6,777.2 |
Revolving secured line of credit | [1] | 125.7 | 0 |
Secured financing | [1] | 3,762 | 3,397.5 |
Senior notes | [1] | 808.1 | 1,257.6 |
Mortgage note | [1] | 10.7 | 11.3 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | 8.9 | 187.4 |
Restricted cash and cash equivalents | [1] | 391.9 | 330.3 |
Restricted securities available for sale | [2] | 53.8 | 47.5 |
Senior notes | [1] | 808.1 | 1,257.6 |
Mortgage note | [1] | 0 | 0 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted securities available for sale | [2] | 13 | 11.8 |
Revolving secured line of credit | [1] | 125.7 | 0 |
Secured financing | [1] | 3,762 | 3,397.5 |
Mortgage note | [1] | 10.7 | 11.3 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, net | [1] | $ 7,263 | $ 6,777.2 |
[1] | Measured at amortized cost with fair value disclosed. | ||
[2] | Measured at fair value on a recurring basis. |
Restricted Securities Availab_3
Restricted Securities Available for Sale (Schedule of Restricted Securities Available for Sale) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Restricted Securities Available For Sale [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | $ 64.7 | $ 58.3 | |
Gross Unrealized Gains | 2.1 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | [1] | 66.8 | 59.3 |
Corporate Bond Securities [Member] | |||
Restricted Securities Available For Sale [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 30 | 25.3 | |
Gross Unrealized Gains | 1.1 | 0.5 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 31.1 | 25.8 | |
US Government and Agency Securities [Member] | |||
Restricted Securities Available For Sale [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 21.9 | 21.3 | |
Gross Unrealized Gains | 0.8 | 0.4 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 22.7 | 21.7 | |
Asset-backed Securities [Member] | |||
Restricted Securities Available For Sale [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 12.3 | 11.2 | |
Gross Unrealized Gains | 0.2 | 0.1 | |
Gross Unrealized Losses | 0 | ||
Estimated Fair Value | 12.5 | 11.3 | |
Mortgage-backed Securities [Member] | |||
Restricted Securities Available For Sale [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 0.5 | 0.5 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | $ 0.5 | $ 0.5 | |
[1] | Measured at fair value on a recurring basis. |
Restricted Securities Availab_4
Restricted Securities Available for Sale (Schedule of Restricted Securities Available for Sale by Aging Category) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted Securities Available For Sale [Line Items] | ||
Estimated Fair Value, Less than 12 Months | $ 4.7 | $ 5.2 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Total Estimated Fair Value | 4.7 | 5.2 |
Total Gross Unrealized Losses | 0 | 0 |
Corporate Bond Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 4.2 | 1.4 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Total Estimated Fair Value | 4.2 | 1.4 |
Total Gross Unrealized Losses | 0 | 0 |
US Government and Agency Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 0 | 1.9 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Total Estimated Fair Value | 0 | 1.9 |
Total Gross Unrealized Losses | 0 | 0 |
Asset-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 0.5 | 1.9 |
Gross Unrealized Losses, Less than 12 Months | 0 | |
Estimated Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Total Estimated Fair Value | 0.5 | 1.9 |
Mortgage-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Estimated Fair Value, Less than 12 Months | 0 | 0 |
Estimated Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Total Estimated Fair Value | $ 0 | $ 0 |
Restricted Securities Availab_5
Restricted Securities Available for Sale (Schedule of Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Within one year, cost | $ 2.6 | $ 5.7 | |
Within one year, fair value | 2.6 | 5.7 | |
Over one year to five years, cost | 56.8 | 50.8 | |
Over one year to five years, fair value | 58.8 | 51.8 | |
Over five years to ten years, cost | 5.1 | 1.5 | |
Over five years to ten years, fair value | 5.2 | 1.5 | |
Over ten years, cost | 0.2 | 0.3 | |
Over ten years, fair value | 0.2 | 0.3 | |
Total restricted securities available for sale, cost | 64.7 | 58.3 | |
Total restricted securities available for sale | [1] | $ 66.8 | $ 59.3 |
[1] | Measured at fair value on a recurring basis. |
Loans Receivable_2_3
Loans Receivable - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Forecast changes | $ 138.5 | $ (206.5) | $ 2.6 | $ (43.6) | $ 32.3 |
Certain Loans Acquired In Transfer Accounted For As Loans Accretable Yield Reclassifications From Nonaccretable Difference Forecast Changes, By Percentage | 2.30% | ||||
Dealer Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Forecast changes | 39.5 | (4.2) | $ (36.5) | (0.3) | |
Purchased Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Forecast changes | 99 | $ 6.8 | $ (7.1) | $ 32.6 | |
Forecast Changes [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Forecast changes | (44.3) | ||||
COVID-19 Adjustment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Forecast changes | $ (162.2) |
Loans Receivable (Schedule of L
Loans Receivable (Schedule of Loans Receivable) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | $ 10,176.1 | [1],[2] | $ 7,221.2 | ||||
Allowance for credit losses | (3,310.9) | (536) | |||||
Loans receivable, net | 6,865.2 | $ 6,749.8 | 6,685.2 | $ 6,563.7 | $ 6,384 | $ 5,763.3 | |
Dealer Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 5,857.7 | [1] | 4,623.3 | ||||
Allowance for credit losses | (1,634.8) | (428) | |||||
Loans receivable, net | 4,222.9 | 4,187.2 | 4,195.3 | 4,150 | 4,072 | 3,762.9 | |
Purchased Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 4,318.4 | [2] | 2,597.9 | ||||
Allowance for credit losses | (1,676.1) | (108) | |||||
Loans receivable, net | $ 2,642.3 | $ 2,562.6 | $ 2,489.9 | $ 2,413.7 | $ 2,312 | $ 2,000.4 | |
[1] | As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | ||||||
[2] | As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. |
Loans Receivable (Summary of Ch
Loans Receivable (Summary of Changes in Loans Receivable and Allowance for Credit Losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | $ (6,749.8) | $ (6,384) | $ (6,685.2) | $ (5,763.3) | ||
Adoption of CECL | [1] | 0 | ||||
Finance Charges Revenue | (404.4) | (349.9) | (1,144.5) | (1,013.3) | ||
Provision for credit losses | 29.8 | (19.3) | (464.3) | (49.2) | ||
New Consumer Loan Assignments | [2] | 852.1 | 894.4 | 2,912.5 | 2,955 | |
Proceeds from Collection of Loans Receivable | [3] | (1,220.3) | (1,098.4) | (3,563.9) | (3,274.8) | |
Accelerated Payments of Dealer Holdback | 11.7 | 16.1 | 34.6 | 44.1 | ||
Payments of Dealer Holdback | 35.5 | 34.8 | 109.9 | 105.4 | ||
Loans And Leases Receivable Transfers | [4] | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | ||
Recoveries | [5] | 0 | 0 | 0 | 0 | |
Deferral of Loan Origination Costs | 2.2 | 2.2 | 6.7 | 6.6 | ||
Balance, end of period | (6,865.2) | (6,563.7) | (6,865.2) | (6,563.7) | ||
Dealer Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (4,187.2) | (4,072) | (4,195.3) | (3,762.9) | ||
Adoption of CECL | [1] | 0 | ||||
Finance Charges Revenue | (241.2) | (225.3) | (702) | (661.4) | ||
Provision for credit losses | 26.4 | (17.9) | (202.8) | (44) | ||
New Consumer Loan Assignments | [2] | 519 | 573.3 | 1,751.1 | 1,901.1 | |
Proceeds from Collection of Loans Receivable | [3] | (780.2) | (738.3) | (2,313.1) | (2,230.2) | |
Accelerated Payments of Dealer Holdback | 11.7 | 16.1 | 34.6 | 44.1 | ||
Payments of Dealer Holdback | 35.5 | 34.8 | 109.9 | 105.4 | ||
Loans And Leases Receivable Transfers | [4] | (20.1) | (17.5) | (60.8) | (57.3) | |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | ||
Recoveries | [5] | 0 | 0 | 0 | 0 | |
Deferral of Loan Origination Costs | 2.2 | 2.2 | 6.7 | 6.6 | ||
Balance, end of period | (4,222.9) | (4,150) | (4,222.9) | (4,150) | ||
Purchased Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (2,562.6) | (2,312) | (2,489.9) | (2,000.4) | ||
Adoption of CECL | [1] | 0 | ||||
Finance Charges Revenue | (163.2) | (124.6) | (442.5) | (351.9) | ||
Provision for credit losses | 3.4 | (1.4) | (261.5) | (5.2) | ||
New Consumer Loan Assignments | [2] | 333.1 | 321.1 | 1,161.4 | 1,053.9 | |
Proceeds from Collection of Loans Receivable | [3] | (440.1) | (360.1) | (1,250.8) | (1,044.6) | |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Loans And Leases Receivable Transfers | [4] | (20.1) | (17.5) | (60.8) | (57.3) | |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | ||
Recoveries | [5] | 0 | 0 | 0 | 0 | |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | ||
Balance, end of period | (2,642.3) | (2,413.7) | (2,642.3) | (2,413.7) | ||
Loans Receivable [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (10,095.9) | (6,873.6) | (7,221.2) | (6,225.2) | ||
Adoption of CECL | [1] | (2,463.6) | ||||
Finance Charges Revenue | (596.6) | (349.9) | (1,694.3) | (1,013.3) | ||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
New Consumer Loan Assignments | [2] | 852.1 | 894.4 | 2,912.5 | 2,955 | |
Proceeds from Collection of Loans Receivable | [3] | (1,220.3) | (1,098.4) | (3,563.9) | (3,274.8) | |
Accelerated Payments of Dealer Holdback | 11.7 | 16.1 | 34.6 | 44.1 | ||
Payments of Dealer Holdback | 35.5 | 34.8 | 109.9 | 105.4 | ||
Loans And Leases Receivable Transfers | [4] | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | (198.4) | (0.5) | (704.9) | (4.1) | ||
Recoveries | [5] | (0.8) | (0.7) | (2.1) | (2.1) | |
Deferral of Loan Origination Costs | 2.2 | 2.2 | 6.7 | 6.6 | ||
Balance, end of period | (10,176.1) | (7,072.8) | (10,176.1) | (7,072.8) | ||
Loans Receivable [Member] | Dealer Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (5,810.8) | (4,466) | (4,623.3) | (4,141) | ||
Adoption of CECL | [1] | (940.2) | ||||
Finance Charges Revenue | (336.8) | (225.3) | (972.3) | (661.4) | ||
Provision for credit losses | 0 | 0 | 0 | |||
New Consumer Loan Assignments | [2] | 519 | 573.3 | 1,751.1 | 1,901.1 | |
Proceeds from Collection of Loans Receivable | [3] | (780.2) | (738.3) | (2,313.1) | (2,230.2) | |
Accelerated Payments of Dealer Holdback | 11.7 | 16.1 | 34.6 | 44.1 | ||
Payments of Dealer Holdback | 35.5 | 34.8 | 109.9 | 105.4 | ||
Loans And Leases Receivable Transfers | [4] | (30) | (20.3) | (90.3) | (67.6) | |
Allowance for Loan and Lease Losses, Write-offs | (48.3) | (0.3) | (177.8) | (3.7) | ||
Recoveries | [5] | (0.2) | (0.5) | (0.8) | (1.2) | |
Deferral of Loan Origination Costs | 2.2 | 2.2 | 6.7 | 6.6 | ||
Balance, end of period | (5,857.7) | (4,559.3) | (5,857.7) | (4,559.3) | ||
Loans Receivable [Member] | Purchased Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (4,285.1) | (2,407.6) | (2,597.9) | (2,084.2) | ||
Adoption of CECL | [1] | (1,523.4) | ||||
Finance Charges Revenue | (259.8) | (124.6) | (722) | (351.9) | ||
Provision for credit losses | 0 | 0 | 0 | 0 | ||
New Consumer Loan Assignments | [2] | 333.1 | 321.1 | 1,161.4 | 1,053.9 | |
Proceeds from Collection of Loans Receivable | [3] | (440.1) | (360.1) | (1,250.8) | (1,044.6) | |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Loans And Leases Receivable Transfers | [4] | (30) | (20.3) | (90.3) | (67.6) | |
Allowance for Loan and Lease Losses, Write-offs | (150.1) | (0.2) | (527.1) | (0.4) | ||
Recoveries | [5] | (0.6) | (0.2) | (1.3) | (0.9) | |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | ||
Balance, end of period | (4,318.4) | (2,513.5) | (4,318.4) | (2,513.5) | ||
Allowance for Credit Losses [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (3,346.1) | (489.6) | (536) | (461.9) | ||
Adoption of CECL | [1] | (2,463.6) | ||||
Finance Charges Revenue | (192.2) | 0 | (549.8) | 0 | ||
Provision for credit losses | 29.8 | (19.3) | (464.3) | (49.2) | ||
New Consumer Loan Assignments | [2] | 0 | 0 | 0 | 0 | |
Proceeds from Collection of Loans Receivable | [3] | 0 | 0 | 0 | 0 | |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Loans And Leases Receivable Transfers | [4] | 0 | 0 | 0 | 0 | |
Allowance for Loan and Lease Losses, Write-offs | (198.4) | (0.5) | (704.9) | (4.1) | ||
Recoveries | [5] | (0.8) | (0.7) | (2.1) | (2.1) | |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | ||
Balance, end of period | (3,310.9) | (509.1) | (3,310.9) | (509.1) | ||
Allowance for Credit Losses [Member] | Dealer Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (1,623.6) | (394) | (428) | (378.1) | ||
Adoption of CECL | [1] | (940.2) | ||||
Finance Charges Revenue | (95.6) | 0 | (270.3) | 0 | ||
Provision for credit losses | 26.4 | (17.9) | (202.8) | (44) | ||
New Consumer Loan Assignments | [2] | 0 | 0 | 0 | 0 | |
Proceeds from Collection of Loans Receivable | [3] | 0 | 0 | 0 | 0 | |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Loans And Leases Receivable Transfers | [4] | (9.9) | (2.8) | (29.5) | (10.3) | |
Allowance for Loan and Lease Losses, Write-offs | (48.3) | (0.3) | (177.8) | (3.7) | ||
Recoveries | [5] | (0.2) | (0.5) | (0.8) | (1.2) | |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | ||
Balance, end of period | (1,634.8) | (409.3) | (1,634.8) | (409.3) | ||
Allowance for Credit Losses [Member] | Purchased Loans [Member] | ||||||
Loans and Leases Receivable, Net [Roll Forward] | ||||||
Balance, beginning of period | (1,722.5) | (95.6) | (108) | (83.8) | ||
Adoption of CECL | [1] | (1,523.4) | ||||
Finance Charges Revenue | (96.6) | 0 | (279.5) | 0 | ||
Provision for credit losses | 3.4 | (1.4) | (261.5) | (5.2) | ||
New Consumer Loan Assignments | [2] | 0 | 0 | 0 | [6] | 0 |
Proceeds from Collection of Loans Receivable | [3] | 0 | 0 | 0 | 0 | |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | ||
Loans And Leases Receivable Transfers | [4] | (9.9) | (2.8) | (29.5) | (10.3) | |
Allowance for Loan and Lease Losses, Write-offs | (150.1) | (0.2) | (527.1) | (0.4) | ||
Recoveries | [5] | (0.6) | (0.2) | (1.3) | (0.9) | |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | ||
Balance, end of period | $ (1,676.1) | $ (99.8) | $ (1,676.1) | $ (99.8) | ||
[1] | Represents the gross-up of Loans receivable and allowance for credit losses on January 1, 2020 upon the adoption of CECL for the present value of the difference between contractual future net cash flows and expected future net cash flows discounted at the effective interest rate. | |||||
[2] | The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. | |||||
[3] | Represents repayments that we collected on Consumer Loans assigned under our programs. | |||||
[4] | Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance and related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs | |||||
[5] | The Dealer Loans amount represents net cash flows received (collection less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full. | |||||
[6] | Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table. |
Loans Receivable (Summary of _2
Loans Receivable (Summary of Changes in Accretable Yield) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Certain Loans Acquired in Transfer Not Accounted for as Loans Accretable Yield Movement Schedule [Roll Forward] | |||||||
Balance, beginning of period | $ 2,302.3 | $ 2,065.5 | |||||
New Consumer Loan assignments | 358.6 | [1] | 1,198.6 | ||||
Accretion | (352.3) | [2] | (1,020.1) | [3] | |||
Provision for credit losses | 19.3 | 49.2 | |||||
Forecast changes | $ 138.5 | $ (206.5) | 2.6 | $ (43.6) | 32.3 | ||
Transfers | (2.1) | [4] | (7.1) | [5] | |||
Balance, end of period | 2,332.6 | 2,332.6 | |||||
Dealer Loans [Member] | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Loans Accretable Yield Movement Schedule [Roll Forward] | |||||||
Balance, beginning of period | 1,390.4 | 1,283 | |||||
New Consumer Loan assignments | 224 | [1] | 759.9 | ||||
Accretion | (227.6) | [2] | (668.1) | [3] | |||
Provision for credit losses | 17.9 | 44 | |||||
Forecast changes | 39.5 | (4.2) | (36.5) | (0.3) | |||
Transfers | (7.9) | [4] | (25.9) | [5] | |||
Balance, end of period | 1,392.6 | 1,392.6 | |||||
Purchased Loans [Member] | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Loans Accretable Yield Movement Schedule [Roll Forward] | |||||||
Balance, beginning of period | 911.9 | 782.5 | |||||
New Consumer Loan assignments | 134.6 | [1] | 438.7 | ||||
Accretion | (124.7) | [2] | (352) | [3] | |||
Provision for credit losses | 1.4 | 5.2 | |||||
Forecast changes | $ 99 | 6.8 | $ (7.1) | 32.6 | |||
Transfers | (10) | [4] | (33) | [5] | |||
Balance, end of period | $ 940 | $ 940 | |||||
[1] | The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers. | ||||||
[2] | Represents finance charges excluding the amortization of deferred direct origination costs for Dealer Loans. | ||||||
[3] | The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program. | ||||||
[4] | Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, the related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. | ||||||
[5] | Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. |
Loans Receivable (Summary of In
Loans Receivable (Summary of Information Related to New Consumer Loan Assignments) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contractual net cash flows at the time of assignment | [1] | $ 1,553.8 | $ 1,599.5 | $ 5,353.6 | $ 5,290.2 | ||||
Expected net cash flows at the time of assignment | 1,208.9 | [2] | 1,253 | [2] | 4,105.2 | [3] | 4,153.6 | [2] | |
Fair value at the time of assignment | [4] | 852.1 | 894.4 | 2,912.5 | 2,955 | ||||
Provision for Loan and Lease Losses | 29.8 | (19.3) | (464.3) | (49.2) | |||||
Expected future finance charges at the time of assignment | [5] | 470.9 | 358.6 | 1,618.9 | 1,198.6 | ||||
New Consumer Loan assignments | 358.6 | [6] | 1,198.6 | ||||||
Realized Net Cash Flows | (1,173.1) | [2] | (1,047.5) | [2] | (3,419.4) | [7] | (3,125.3) | [7] | |
Expected net Loan income at the time of assignment | [8] | 356.8 | 358.6 | 1,192.7 | 1,198.6 | ||||
Dealer Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contractual net cash flows at the time of assignment | [1] | 823 | 895.1 | 2,787.2 | 2,982.2 | ||||
Expected net cash flows at the time of assignment | 733.6 | [3] | 797.3 | [2] | 2,471.7 | [3] | 2,661 | [2] | |
Fair value at the time of assignment | [4] | 519 | 573.3 | 1,751.1 | 1,901.1 | ||||
Provision for Loan and Lease Losses | 26.4 | (17.9) | (202.8) | (44) | |||||
Expected future finance charges at the time of assignment | [5] | 260.2 | 224 | 891.9 | 759.9 | ||||
New Consumer Loan assignments | 224 | [6] | 759.9 | ||||||
Realized Net Cash Flows | (733) | [2] | (687.4) | [2] | (2,168.6) | [7] | (2,080.7) | [7] | |
Expected net Loan income at the time of assignment | [8] | 214.6 | 224 | 720.6 | 759.9 | ||||
Purchased Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Contractual net cash flows at the time of assignment | 730.8 | [1] | 704.4 | [9] | 2,566.4 | [1] | 2,308 | [1] | |
Expected net cash flows at the time of assignment | [2] | 475.3 | 455.7 | 1,633.5 | 1,492.6 | ||||
Fair value at the time of assignment | [4] | 333.1 | 321.1 | 1,161.4 | 1,053.9 | ||||
Provision for Loan and Lease Losses | 3.4 | (1.4) | (261.5) | (5.2) | |||||
Expected future finance charges at the time of assignment | [5] | 210.7 | 134.6 | 727 | 438.7 | ||||
New Consumer Loan assignments | 134.6 | [6] | 438.7 | ||||||
Realized Net Cash Flows | (440.1) | [2] | (360.1) | [2] | (1,250.8) | [7] | (1,044.6) | [7] | |
Expected net Loan income at the time of assignment | [8] | 142.2 | 134.6 | 472.1 | 438.7 | ||||
New Consumer Loan Assignments [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision for Loan and Lease Losses | (114.1) | 0 | (426.2) | 0 | |||||
New Consumer Loan Assignments [Member] | Dealer Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision for Loan and Lease Losses | (45.6) | 0 | (171.3) | 0 | |||||
New Consumer Loan Assignments [Member] | Purchased Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision for Loan and Lease Losses | $ (68.5) | $ 0 | $ (254.9) | $ 0 | |||||
[1] | The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program. | ||||||||
[2] | The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. | ||||||||
[3] | The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. | ||||||||
[4] | The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. The Loan amounts also represent the fair value at the time of assignment. | ||||||||
[5] | Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans. | ||||||||
[6] | The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealers. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealers. | ||||||||
[7] | The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program. | ||||||||
[8] | Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3). | ||||||||
[9] | The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. |
Loans Receivable (Schedule of C
Loans Receivable (Schedule of Consumer Loans Forecasted Collection Percentage) | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Loans Originating In 2011 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 74.80% | [1] | 74.80% | 74.80% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 72.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.30% | |||||||||||||
Loans Originating In 2012 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 73.80% | [1] | 73.80% | 73.90% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.10%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.40% | |||||||||||||
Loans Originating In 2013 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 73.50% | [1] | 73.50% | 73.50% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 72.00% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.50% | |||||||||||||
Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 71.70% | [1] | 71.70% | 71.70% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.80% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.10%) | |||||||||||||
Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65.20% | [1] | 65.20% | 65.40% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 67.70% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.20%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.50%) | |||||||||||||
Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 63.70% | [1] | 63.60% | 64.10% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 65.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.40%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (1.70%) | |||||||||||||
Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.10% | [1] | 63.80% | 64.80% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 64.00% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.30% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.70%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.10% | |||||||||||||
Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.10% | [1] | 63.50% | 65.10% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 63.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.60% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (1.00%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.50% | |||||||||||||
Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.50% | [1] | 63.40% | 64.60% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 64.00% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 1.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.10%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.50% | |||||||||||||
Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.40% | [1] | 62.20% | |||||||||||
Initial Forecasted Collection Percentage | 63.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 2.20% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.40% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2011 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 74.70% | [1] | 74.70% | 74.60% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 72.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.10% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.30% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2012 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 73.70% | [1] | 73.70% | 73.70% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.40% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2013 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 73.40% | [1] | 73.40% | 73.40% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 72.10% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.30% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 71.60% | [1] | 71.60% | 71.60% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.30%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.60% | [1] | 64.60% | 64.80% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 67.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.20%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.90%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 62.90% | [1] | 62.80% | 63.20% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 65.10% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.20%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 63.50% | [1] | 63.20% | 64.20% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 63.80% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.30% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.70%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.30%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 63.60% | [1] | 63.00% | 64.70% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 63.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.60% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (1.10%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.00% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.10% | [1] | 63.00% | 64.40% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 63.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 1.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.20% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.10% | [1] | 61.90% | |||||||||||
Initial Forecasted Collection Percentage | [1] | 62.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 2.20% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.20% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2011 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 76.40% | [1] | 76.40% | 76.40% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 72.70% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 3.70% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2012 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 75.90% | [1] | 75.90% | 75.90% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 4.50% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2013 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 74.30% | [1] | 74.30% | 74.40% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 71.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.10%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.70% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 72.50% | [1] | 72.50% | 72.50% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 70.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.00% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.60% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 68.90% | [1] | 68.90% | 69.30% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 68.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.40%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.40% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65.90% | [1] | 65.90% | 66.60% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 66.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.00% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.70%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.60%) | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65.70% | [1] | 65.30% | 66.30% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 64.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.40% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.60%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.10% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65.20% | [1] | 64.60% | 66.00% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 63.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.60% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.80%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.70% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65.20% | [1] | 64.10% | 65.10% | [1] | |||||||||
Initial Forecasted Collection Percentage | [1] | 64.20% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 1.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.10% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.00% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 64.90% | [1] | 62.60% | |||||||||||
Initial Forecasted Collection Percentage | [1] | 63.20% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 2.30% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.70% | |||||||||||||
[1] | Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table. |
Loans Receivable (Schedule of_2
Loans Receivable (Schedule of Consumer Loans Performance) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | $ 10,176.1 | [1],[2] | $ 7,221.2 | ||||
Allowance for credit losses | (3,310.9) | (536) | |||||
Loans receivable, net | 6,865.2 | $ 6,749.8 | 6,685.2 | $ 6,563.7 | $ 6,384 | $ 5,763.3 | |
Loan Pool Performance Meets Or Exceeds Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 3,598.2 | ||||||
Allowance for credit losses | 0 | ||||||
Loans receivable, net | 3,598.2 | ||||||
Loan Pool Performance Less Than Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 3,623 | ||||||
Allowance for credit losses | (536) | ||||||
Loans receivable, net | 3,087 | ||||||
Dealer Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 5,857.7 | [1] | 4,623.3 | ||||
Allowance for credit losses | (1,634.8) | (428) | |||||
Loans receivable, net | 4,222.9 | 4,187.2 | 4,195.3 | 4,150 | 4,072 | 3,762.9 | |
Dealer Loans [Member] | Loan Pool Performance Meets Or Exceeds Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 1,591.3 | ||||||
Allowance for credit losses | 0 | ||||||
Loans receivable, net | 1,591.3 | ||||||
Dealer Loans [Member] | Loan Pool Performance Less Than Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 3,032 | ||||||
Allowance for credit losses | (428) | ||||||
Loans receivable, net | 2,604 | ||||||
Purchased Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 4,318.4 | [2] | 2,597.9 | ||||
Allowance for credit losses | (1,676.1) | (108) | |||||
Loans receivable, net | $ 2,642.3 | $ 2,562.6 | 2,489.9 | $ 2,413.7 | $ 2,312 | $ 2,000.4 | |
Purchased Loans [Member] | Loan Pool Performance Meets Or Exceeds Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 2,006.9 | ||||||
Allowance for credit losses | 0 | ||||||
Loans receivable, net | 2,006.9 | ||||||
Purchased Loans [Member] | Loan Pool Performance Less Than Initial Estimates [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | 591 | ||||||
Allowance for credit losses | (108) | ||||||
Loans receivable, net | $ 483 | ||||||
[1] | As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | ||||||
[2] | As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. |
Loans Receivable (Summary of _3
Loans Receivable (Summary of Changes In Allowance for Credit Losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Write-offs | $ 0 | $ 0 | $ 0 | $ 0 | |
Recoveries | [1] | 0 | 0 | 0 | 0 |
Balance, end of period | 3,310.9 | 3,310.9 | |||
Dealer Loans [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Write-offs | 0 | 0 | 0 | 0 | |
Recoveries | [1] | 0 | 0 | 0 | 0 |
Balance, end of period | 1,634.8 | 1,634.8 | |||
Purchased Loans [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Write-offs | 0 | 0 | 0 | 0 | |
Recoveries | [1] | 0 | $ 0 | 0 | $ 0 |
Balance, end of period | $ 1,676.1 | $ 1,676.1 | |||
[1] | The Dealer Loans amount represents net cash flows received (collection less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full. |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable (Summary of Provision for Credit Losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | $ (29.8) | $ 19.3 | $ 464.3 | $ 49.2 |
Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | (26.4) | 17.9 | 202.8 | 44 |
Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | (3.4) | 1.4 | 261.5 | 5.2 |
New Consumer Loan Assignments [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 114.1 | 0 | 426.2 | 0 |
New Consumer Loan Assignments [Member] | Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 45.6 | 0 | 171.3 | 0 |
New Consumer Loan Assignments [Member] | Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 68.5 | $ 0 | 254.9 | $ 0 |
Forecast Changes [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | (143.9) | 38.1 | ||
Forecast Changes [Member] | Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | (72) | 31.5 | ||
Forecast Changes [Member] | Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | $ (71.9) | $ 6.6 |
Loans Receivable Loans Receiv_2
Loans Receivable Loans Receivable (Summary of Changes in Expected Future Net Cash Flows) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | $ 9,476.8 | $ 8,686.3 | $ 9,005.2 | $ 7,828.8 | ||||||
New Consumer Loan Assignments | 1,208.9 | [1] | 1,253 | [1] | 4,105.2 | [2] | 4,153.6 | [1] | ||
Realized Net Cash Flows | (1,173.1) | [1] | (1,047.5) | [1] | (3,419.4) | [3] | (3,125.3) | [3] | ||
Forecast changes | 138.5 | $ (206.5) | 2.6 | (43.6) | 32.3 | |||||
Transfers | [4] | 1.8 | 1.9 | 5.5 | 6.9 | |||||
Balance, end of period | 9,652.9 | 9,476.8 | 8,896.3 | 9,652.9 | 8,896.3 | |||||
Dealer Loans [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | 5,745.2 | 5,462.4 | 5,577 | 5,045.9 | ||||||
New Consumer Loan Assignments | 733.6 | [2] | 797.3 | [1] | 2,471.7 | [2] | 2,661 | [1] | ||
Realized Net Cash Flows | (733) | [1] | (687.4) | [1] | (2,168.6) | [3] | (2,080.7) | [3] | ||
Forecast changes | 39.5 | (4.2) | (36.5) | (0.3) | ||||||
Transfers | [4] | (28.7) | (25.5) | (87) | (83.3) | |||||
Balance, end of period | 5,756.6 | 5,745.2 | 5,542.6 | 5,756.6 | 5,542.6 | |||||
Purchased Loans [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Balance, beginning of period | 3,731.6 | 3,223.9 | 3,428.2 | 2,782.9 | ||||||
New Consumer Loan Assignments | [1] | 475.3 | 455.7 | 1,633.5 | 1,492.6 | |||||
Realized Net Cash Flows | (440.1) | [1] | (360.1) | [1] | (1,250.8) | [3] | (1,044.6) | [3] | ||
Forecast changes | 99 | 6.8 | (7.1) | 32.6 | ||||||
Transfers | [4] | 30.5 | 27.4 | 92.5 | 90.2 | |||||
Balance, end of period | $ 3,896.3 | $ 3,731.6 | $ 3,353.7 | $ 3,896.3 | $ 3,353.7 | |||||
[1] | The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. | |||||||||
[2] | The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program. | |||||||||
[3] | The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under our Purchase Program. | |||||||||
[4] | Under our Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer’s outstanding Dealer Loan balance, related allowance for credit losses balance and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs. |
Loans Receivable Loans Receiv_3
Loans Receivable Loans Receivable (Summary of Past-Due Status) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | $ 10,176.1 | [1],[2] | $ 7,221.2 | |
Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 6,739.6 | ||
Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 1,726.9 | ||
Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 1,562.5 | ||
Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 147.1 | ||
Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | 5,857.7 | [1] | 4,623.3 | |
Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 3,968 | ||
Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 956.6 | ||
Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 820 | ||
Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 113.1 | ||
Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | 4,318.4 | [2] | $ 2,597.9 | |
Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 2,771.6 | ||
Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 770.3 | ||
Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 742.5 | ||
Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 34 | ||
Loans Originating In 2015 and Prior [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 145.8 | ||
Loans Originating In 2015 and Prior [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 9.7 | ||
Loans Originating In 2015 and Prior [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 3.6 | ||
Loans Originating In 2015 and Prior [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 24 | ||
Loans Originating In 2015 and Prior [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 108.5 | ||
Loans Originating In 2015 and Prior [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 103.4 | ||
Loans Originating In 2015 and Prior [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 4.6 | ||
Loans Originating In 2015 and Prior [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 1.7 | ||
Loans Originating In 2015 and Prior [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 12.8 | ||
Loans Originating In 2015 and Prior [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 84.3 | ||
Loans Originating In 2015 and Prior [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 42.4 | ||
Loans Originating In 2015 and Prior [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 5.1 | ||
Loans Originating In 2015 and Prior [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 1.9 | ||
Loans Originating In 2015 and Prior [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 11.2 | ||
Loans Originating In 2015 and Prior [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 24.2 | ||
Loans Originating In 2016 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 321.6 | ||
Loans Originating In 2016 [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 106.7 | ||
Loans Originating In 2016 [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 36.4 | ||
Loans Originating In 2016 [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 145 | ||
Loans Originating In 2016 [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 33.5 | ||
Loans Originating In 2016 [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 162.5 | ||
Loans Originating In 2016 [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 49.1 | ||
Loans Originating In 2016 [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 16.2 | ||
Loans Originating In 2016 [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 72 | ||
Loans Originating In 2016 [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 25.2 | ||
Loans Originating In 2016 [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 159.1 | ||
Loans Originating In 2016 [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 57.6 | ||
Loans Originating In 2016 [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 20.2 | ||
Loans Originating In 2016 [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 73 | ||
Loans Originating In 2016 [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 8.3 | ||
Loans Originating In 2017 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 843.1 | ||
Loans Originating In 2017 [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 409.8 | ||
Loans Originating In 2017 [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 135.4 | ||
Loans Originating In 2017 [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 293.4 | ||
Loans Originating In 2017 [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 4.5 | ||
Loans Originating In 2017 [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 449.8 | ||
Loans Originating In 2017 [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 222.8 | ||
Loans Originating In 2017 [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 70.2 | ||
Loans Originating In 2017 [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 153.6 | ||
Loans Originating In 2017 [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 3.2 | ||
Loans Originating In 2017 [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 393.3 | ||
Loans Originating In 2017 [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 187 | ||
Loans Originating In 2017 [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 65.2 | ||
Loans Originating In 2017 [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 139.8 | ||
Loans Originating In 2017 [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 1.3 | ||
Loans Originating In 2018 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 2,067.1 | ||
Loans Originating In 2018 [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 1,166.1 | ||
Loans Originating In 2018 [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 388.6 | ||
Loans Originating In 2018 [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 511.8 | ||
Loans Originating In 2018 [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0.6 | ||
Loans Originating In 2018 [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 1,121.3 | ||
Loans Originating In 2018 [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 643 | ||
Loans Originating In 2018 [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 207.5 | ||
Loans Originating In 2018 [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 270.4 | ||
Loans Originating In 2018 [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0.4 | ||
Loans Originating In 2018 [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 945.8 | ||
Loans Originating In 2018 [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 523.1 | ||
Loans Originating In 2018 [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 181.1 | ||
Loans Originating In 2018 [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 241.4 | ||
Loans Originating In 2018 [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 0.2 | ||
Loans Originating In 2019 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 3,630.7 | ||
Loans Originating In 2019 [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 2,359.6 | ||
Loans Originating In 2019 [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 746.9 | ||
Loans Originating In 2019 [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 524.2 | ||
Loans Originating In 2019 [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0 | ||
Loans Originating In 2019 [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 1,929.9 | ||
Loans Originating In 2019 [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 1,267.7 | ||
Loans Originating In 2019 [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 391.9 | ||
Loans Originating In 2019 [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 270.3 | ||
Loans Originating In 2019 [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0 | ||
Loans Originating In 2019 [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 1,700.8 | ||
Loans Originating In 2019 [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 1,091.9 | ||
Loans Originating In 2019 [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 355 | ||
Loans Originating In 2019 [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 253.9 | ||
Loans Originating In 2019 [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 0 | ||
Loans Originating In 2020 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 3,167.8 | ||
Loans Originating In 2020 [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 2,687.7 | ||
Loans Originating In 2020 [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 416 | ||
Loans Originating In 2020 [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 64.1 | ||
Loans Originating In 2020 [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0 | ||
Loans Originating In 2020 [Member] | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 2,090.8 | ||
Loans Originating In 2020 [Member] | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3],[4] | 1,780.8 | ||
Loans Originating In 2020 [Member] | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 269.1 | ||
Loans Originating In 2020 [Member] | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 40.9 | ||
Loans Originating In 2020 [Member] | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0 | ||
Loans Originating In 2020 [Member] | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 1,077 | ||
Loans Originating In 2020 [Member] | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3],[4] | 906.9 | ||
Loans Originating In 2020 [Member] | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 146.9 | ||
Loans Originating In 2020 [Member] | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 23.2 | ||
Loans Originating In 2020 [Member] | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | $ 0 | ||
[1] | As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and evaluating impairment, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | |||
[2] | As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and evaluating impairment, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan. | |||
[3] | Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms. | |||
[4] | We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due. | |||
[5] | Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. |
Reinsurance (Summary of Reinsur
Reinsurance (Summary of Reinsurance Activity) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Insurance [Abstract] | ||||
Net assumed written premiums | $ 14.7 | $ 11.4 | $ 49.3 | $ 39.1 |
Net premiums earned | 15.1 | 12.9 | 42.2 | 38.2 |
Provision for claims | 10.7 | 8.2 | 28.8 | 23.1 |
Amortization of capitalized acquisition costs | $ 0.4 | $ 0.2 | $ 1 | $ 0.9 |
Reinsurance (Schedule of Trust
Reinsurance (Schedule of Trust Assets and Reinsurance Liabilities) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Reinsurance [Line Items] | |||||
Restricted cash and cash equivalents | $ 391.9 | $ 330.3 | $ 329.8 | $ 303.6 | |
Restricted securities available for sale | [1] | 66.8 | 59.3 | ||
Trust Assets [Member] | |||||
Reinsurance [Line Items] | |||||
Restricted cash and cash equivalents | 1 | 0.9 | |||
Restricted securities available for sale | 66.8 | 59.3 | |||
Unearned Premium [Member] | |||||
Reinsurance [Line Items] | |||||
Accounts payable and accrued liabilities | 51.2 | 44.1 | |||
Claims Reserve [Member] | |||||
Reinsurance [Line Items] | |||||
Accounts payable and accrued liabilities | [2] | $ 2.6 | $ 1.8 | ||
[1] | Measured at fair value on a recurring basis. | ||||
[2] | The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other Income_2_3
Other Income | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other Income and Expenses [Abstract] | |
Payment Holdback Percentage | 50.00% |
One-time enrollment fee in program | $ 9,850 |
Other income (Schedule of Other
Other income (Schedule of Other Income) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 7 | $ 15.9 | $ 35.2 | $ 51.6 |
Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 4.1 | 8.8 | 22.3 | 27.3 |
Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 1.1 | 3 | 5.7 | 9.5 |
Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.4 | 2 | 2.6 | 6.7 |
Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.7 | 1.4 | 2.5 | 3.5 |
Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.5 | 0.6 | 1.5 | 2 |
GPS-SID Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | 0 | 1.9 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.7 |
Other Income (Disaggregation of
Other Income (Disaggregation of Revenue) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 7 | $ 15.9 | $ 35.2 | $ 51.6 |
Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 4.1 | 8.8 | 22.3 | 27.3 |
Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 1.1 | 3 | 5.7 | 9.5 |
Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.4 | 2 | 2.6 | 6.7 |
Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.7 | 1.4 | 2.5 | 3.5 |
Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.5 | 0.6 | 1.5 | 2 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.2 | $ 0.1 | 0.6 | $ 0.7 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 5.2 | 27.4 | ||
Transferred over Time [Member] | Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 4.1 | 22.3 | ||
Transferred over Time [Member] | Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred over Time [Member] | Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.4 | 2.6 | ||
Transferred over Time [Member] | Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.7 | 2.5 | ||
Transferred over Time [Member] | Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred over Time [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 1.8 | 7.8 | ||
Transferred at Point in Time [Member] | Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred at Point in Time [Member] | Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 1.1 | 5.7 | ||
Transferred at Point in Time [Member] | Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred at Point in Time [Member] | Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Transferred at Point in Time [Member] | Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.5 | 1.5 | ||
Transferred at Point in Time [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.2 | 0.6 | ||
Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 4.7 | 25.5 | ||
Third Party Providers [Member] | Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 4.1 | 22.3 | ||
Third Party Providers [Member] | Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Third Party Providers [Member] | Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.4 | 2.6 | ||
Third Party Providers [Member] | Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Third Party Providers [Member] | Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Third Party Providers [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.2 | 0.6 | ||
Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.3 | 9.7 | ||
Dealers [Member] | Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Dealers [Member] | Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 1.1 | 5.7 | ||
Dealers [Member] | Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Dealers [Member] | Dealer Enrollment Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.7 | 2.5 | ||
Dealers [Member] | Dealer Support Products And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.5 | 1.5 | ||
Dealers [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 0 | $ 0 |
Debt_2_3
Debt - USD ($) | Mar. 07, 2019 | Aug. 06, 2018 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 18, 2019 | |||
Debt Instrument [Line Items] | |||||||||||||
Maximum hedging reserve | $ 1,000,000 | $ 1,000,000 | |||||||||||
Unamortized Debt Issuance Costs | (25,000,000) | $ (29,100,000) | $ (25,000,000) | ||||||||||
Percentage of collections on contributed loans | 6.00% | ||||||||||||
Monthly servicing fee per financing | 6.00% | ||||||||||||
Mortgage note | [1] | 10,700,000 | 11,300,000 | $ 10,700,000 | |||||||||
Repayment of senior notes | $ 148,200,000 | 401,800,000 | $ 0 | ||||||||||
Senior notes | 790,100,000 | 1,187,800,000 | 790,100,000 | ||||||||||
Proceeds from issuance of senior notes | 0 | 400,000,000 | |||||||||||
Loss on extinguishment of debt | 0 | $ 7,400,000 | 1,800,000 | $ 0 | 7,400,000 | $ 0 | |||||||
Debt covenants | 1 | 1 | |||||||||||
Unamortized Discount | 0 | (800,000) | 0 | ||||||||||
Carrying Amount | 4,619,300,000 | 4,538,800,000 | 4,619,300,000 | ||||||||||
Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unamortized Debt Issuance Costs | (9,900,000) | (13,200,000) | (9,900,000) | ||||||||||
Unamortized Discount | 0 | (800,000) | 0 | ||||||||||
Carrying Amount | 790,100,000 | 1,187,800,000 | 790,100,000 | ||||||||||
Mortgages [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 12,000,000 | 12,000,000 | [2] | 12,000,000 | [2] | ||||||||
Unamortized Debt Issuance Costs | 0 | 0 | 0 | ||||||||||
Close date, secured financings | Aug. 6, 2018 | ||||||||||||
Mortgage note | $ 10,700,000 | $ 11,300,000 | $ 10,700,000 | ||||||||||
Debt maturity date | Aug. 6, 2023 | Aug. 6, 2023 | [2] | ||||||||||
Senior notes yield to maturity | 1.66% | 3.21% | 1.66% | ||||||||||
Unamortized Discount | $ 0 | $ 0 | $ 0 | ||||||||||
Carrying Amount | 10,700,000 | 11,300,000 | 10,700,000 | ||||||||||
Revolving Secured Line of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility | 340,000,000 | $ 340,000,000 | |||||||||||
Percentage of net book value of loans | 80.00% | ||||||||||||
Unamortized Debt Issuance Costs | [3] | 0 | 0 | $ 0 | |||||||||
Unamortized Discount | [3] | 0 | 0 | 0 | |||||||||
Carrying Amount | [3] | 125,700,000 | $ 0 | $ 125,700,000 | |||||||||
Warehouse Facilities [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of net book value of loans | 80.00% | ||||||||||||
Number of warehouse facilities | 6 | ||||||||||||
Debt facility financing amount | 1,225,000,000 | $ 1,225,000,000 | |||||||||||
Warehouse Facility II [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2],[4] | $ 400,000,000 | $ 400,000,000 | ||||||||||
Debt maturity date | [2],[5] | Jul. 12, 2022 | |||||||||||
Senior notes yield to maturity | 1.91% | 0.00% | 1.91% | ||||||||||
Warehouse Facility IV [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 300,000,000 | [2],[4] | $ 300,000,000 | $ 300,000,000 | [2],[4] | ||||||||
Debt maturity date | [2],[5] | Jul. 26, 2022 | |||||||||||
Senior notes yield to maturity | 0.00% | 0.00% | 0.00% | ||||||||||
Warehouse Facility V [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2],[4] | $ 100,000,000 | $ 100,000,000 | ||||||||||
Debt maturity date | [2],[6] | Aug. 17, 2021 | |||||||||||
Senior notes yield to maturity | 0.00% | 0.00% | 0.00% | ||||||||||
Warehouse Facility VI [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 75,000,000 | $ 75,000,000 | ||||||||||
Debt maturity date | [2],[5] | Sep. 30, 2022 | |||||||||||
Senior notes yield to maturity | 2.16% | 0.00% | 2.16% | ||||||||||
Warehouse Facility VII [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2],[4] | $ 150,000,000 | $ 150,000,000 | ||||||||||
Debt maturity date | [2],[7] | Dec. 16, 2021 | |||||||||||
Senior notes yield to maturity | 2.39% | 0.00% | 2.39% | ||||||||||
Term ABS 2016-3 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes yield to maturity | 0.00% | 3.60% | 0.00% | ||||||||||
Term ABS 2017-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes yield to maturity | 0.00% | 3.19% | 0.00% | ||||||||||
Term ABS 2017-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 450,000,000 | $ 450,000,000 | ||||||||||
Debt financing close date | Jun. 29, 2017 | ||||||||||||
Debt maturity date | [2],[5] | Jun. 17, 2019 | |||||||||||
Senior notes yield to maturity | 3.24% | 2.83% | 3.24% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 563,200,000 | $ 563,200,000 | |||||||||||
Term ABS 2017-3 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 350,000,000 | $ 350,000,000 | ||||||||||
Debt financing close date | Oct. 26, 2017 | ||||||||||||
Debt maturity date | [2],[5] | Oct. 15, 2019 | |||||||||||
Senior notes yield to maturity | 3.31% | 2.91% | 3.31% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 437,600,000 | $ 437,600,000 | |||||||||||
Term ABS 2018-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 500,000,000 | $ 500,000,000 | ||||||||||
Debt financing close date | Feb. 22, 2018 | ||||||||||||
Debt maturity date | [2],[5] | Feb. 17, 2020 | |||||||||||
Senior notes yield to maturity | 3.43% | 3.24% | 3.43% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 625,100,000 | $ 625,100,000 | |||||||||||
Term ABS 2018-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 450,000,000 | $ 450,000,000 | ||||||||||
Debt financing close date | May 24, 2018 | ||||||||||||
Debt maturity date | [2],[5] | May 15, 2020 | |||||||||||
Senior notes yield to maturity | 3.76% | 3.68% | 3.76% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 562,600,000 | $ 562,600,000 | |||||||||||
Term ABS 2018-3 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 398,300,000 | $ 398,300,000 | ||||||||||
Debt financing close date | Aug. 23, 2018 | ||||||||||||
Debt maturity date | [2],[5] | Aug. 17, 2020 | |||||||||||
Senior notes yield to maturity | 3.73% | 3.72% | 3.73% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 500,100,000 | $ 500,100,000 | |||||||||||
Term ABS 2019-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 402,500,000 | $ 402,500,000 | ||||||||||
Debt financing close date | Feb. 21, 2019 | ||||||||||||
Debt maturity date | [2],[5] | Feb. 15, 2021 | |||||||||||
Senior notes yield to maturity | 3.53% | 3.53% | 3.53% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 503,100,000 | $ 503,100,000 | |||||||||||
Term ABS 2019-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 500,000,000 | $ 500,000,000 | ||||||||||
Debt financing close date | Aug. 28, 2019 | ||||||||||||
Debt maturity date | [2],[8] | Aug. 15, 2022 | |||||||||||
Senior notes yield to maturity | 3.13% | 3.13% | 3.13% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 625,100,000 | $ 625,100,000 | |||||||||||
Term ABS 2019-3 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 351,700,000 | $ 351,700,000 | ||||||||||
Debt financing close date | Nov. 21, 2019 | ||||||||||||
Debt maturity date | [2],[5] | Nov. 15, 2021 | |||||||||||
Senior notes yield to maturity | 2.56% | 2.56% | 2.56% | ||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 439,600,000 | $ 439,600,000 | |||||||||||
Term ABS 2020-1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | [2] | $ 500,000,000 | $ 500,000,000 | ||||||||||
Debt financing close date | Feb. 20, 2020 | ||||||||||||
Debt maturity date | [2],[5] | Feb. 15, 2022 | |||||||||||
Senior notes yield to maturity | 2.18% | 2.18% | |||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 625,100,000 | $ 625,100,000 | |||||||||||
Term ABS 2020-2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 481,800,000 | $ 481,800,000 | |||||||||||
Debt financing close date | Jul. 23, 2020 | ||||||||||||
Debt maturity date | Jul. 15, 2022 | ||||||||||||
Senior notes yield to maturity | 1.65% | 1.65% | |||||||||||
Net Book Value Of Loans Pledged As Collateral | $ 602,300,000 | $ 602,300,000 | |||||||||||
2021 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 300,000,000 | ||||||||||||
Repayment of senior notes | $ 151,800,000 | ||||||||||||
Senior notes | $ 0 | $ 151,800,000 | $ 0 | ||||||||||
Senior notes yield to maturity | 0.00% | 6.125% | 0.00% | 6.125% | |||||||||
2024 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 400,000,000 | $ 400,000,000 | |||||||||||
Debt maturity date | Dec. 31, 2024 | ||||||||||||
Senior notes | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||||||
Senior notes yield to maturity | 5.125% | 5.125% | 5.125% | 5.125% | |||||||||
2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt facility financing amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||||||||
Close date, secured financings | Mar. 7, 2019 | ||||||||||||
Senior notes stated interest rate | 6.625% | ||||||||||||
Debt maturity date | Mar. 15, 2026 | Mar. 15, 2026 | |||||||||||
Senior notes | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||||||||
Senior notes yield to maturity | 6.625% | 6.625% | 6.625% | ||||||||||
LIBOR [Member] | Mortgages [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | [2],[4] | 150.00% | |||||||||||
LIBOR [Member] | Revolving Secured Line of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 187.50% | ||||||||||||
LIBOR [Member] | Warehouse Facility II [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | [2],[4] | 175.00% | |||||||||||
LIBOR [Member] | Warehouse Facility IV [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | [2],[4] | 200.00% | |||||||||||
LIBOR [Member] | Warehouse Facility V [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | [2],[4] | 190.00% | |||||||||||
LIBOR [Member] | Warehouse Facility VI [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | [2] | 200.00% | |||||||||||
Prime Rate [Member] | Revolving Secured Line of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 87.50% | ||||||||||||
[1] | Measured at amortized cost with fair value disclosed. | ||||||||||||
[2] | Financing made available only to a specified subsidiary of the Company. | ||||||||||||
[3] | Excludes deferred debt issuance cost s of $2.2 million a nd $3.2 million as of September 30, 2020 and December 31, 2019, respectively, which are included in other assets. | ||||||||||||
[4] | Interest rate cap agreements are in place to limit the exposure to increasing interest rates | ||||||||||||
[5] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets. | ||||||||||||
[6] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on August 17, 2023 will be due on that date. | ||||||||||||
[7] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 16, 2023 will be due on that date. | ||||||||||||
[8] | Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. |
Debt (Schedule of Principal Deb
Debt (Schedule of Principal Debt Outstanding) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 4,644.3 | $ 4,568.7 | |
Unamortized Debt Issuance Costs | (25) | (29.1) | |
Unamortized Discount | 0 | (0.8) | |
Carrying Amount | 4,619.3 | 4,538.8 | |
Other Assets [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Costs | (2.2) | (3.2) | |
Revolving Secured Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | [1] | 125.7 | 0 |
Unamortized Debt Issuance Costs | [1] | 0 | 0 |
Unamortized Discount | [1] | 0 | 0 |
Carrying Amount | [1] | 125.7 | 0 |
Secured financings [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | [2] | 3,707.9 | 3,355.6 |
Unamortized Debt Issuance Costs | [2] | (15.1) | (15.9) |
Unamortized Discount | [2] | 0 | 0 |
Carrying Amount | [2] | 3,692.8 | 3,339.7 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 800 | 1,201.8 | |
Unamortized Debt Issuance Costs | (9.9) | (13.2) | |
Unamortized Discount | 0 | (0.8) | |
Carrying Amount | 790.1 | 1,187.8 | |
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 10.7 | 11.3 | |
Unamortized Debt Issuance Costs | 0 | 0 | |
Unamortized Discount | 0 | 0 | |
Carrying Amount | $ 10.7 | $ 11.3 | |
[1] | Excludes deferred debt issuance cost s of $2.2 million a nd $3.2 million as of September 30, 2020 and December 31, 2019, respectively, which are included in other assets. | ||
[2] | Warehouse facilities and Term ABS. |
Debt (Schedule of General Infor
Debt (Schedule of General Information of Financing Transaction) - USD ($) $ in Millions | Mar. 07, 2019 | Aug. 06, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 18, 2019 | ||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 790.1 | $ 1,187.8 | |||||
Revolving Secured Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maturity date | Jun. 22, 2022 | ||||||
Financing Amount | $ 340 | ||||||
Revolving Secured Line of Credit [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 187.50% | ||||||
Revolving Secured Line of Credit [Member] | Prime Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 87.50% | ||||||
Warehouse Facility II [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.91% | 0.00% | |||||
Debt maturity date | [1],[2] | Jul. 12, 2022 | |||||
Debt facility financing amount | [1],[3] | $ 400 | |||||
Warehouse Facility II [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 175.00% | |||||
Warehouse Facility IV [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | 0.00% | |||||
Debt maturity date | [1],[2] | Jul. 26, 2022 | |||||
Debt facility financing amount | $ 300 | [1],[3] | $ 300 | ||||
Warehouse Facility IV [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 200.00% | |||||
Warehouse Facility V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | 0.00% | |||||
Debt maturity date | [1],[4] | Aug. 17, 2021 | |||||
Debt facility financing amount | [1],[3] | $ 100 | |||||
Warehouse Facility V [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 190.00% | |||||
Warehouse Facility VI [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.16% | 0.00% | |||||
Debt maturity date | [1],[2] | Sep. 30, 2022 | |||||
Debt facility financing amount | [1] | $ 75 | |||||
Warehouse Facility VI [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1] | 200.00% | |||||
Warehouse Facility VII [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.39% | 0.00% | |||||
Debt maturity date | [1],[5] | Dec. 16, 2021 | |||||
Debt facility financing amount | [1],[3] | $ 150 | |||||
Warehouse Facility VII [Member] | Commercial Paper Offered Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 200.00% | |||||
Warehouse Facility VIII [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.00% | 0.00% | |||||
Debt maturity date | [1],[2] | Jul. 26, 2022 | |||||
Debt facility financing amount | [1],[3] | $ 200 | |||||
Warehouse Facility VIII [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1] | 190.00% | |||||
Term ABS 2017-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.24% | 2.83% | |||||
Debt maturity date | [1],[2] | Jun. 17, 2019 | |||||
Debt facility financing amount | [1] | $ 450 | |||||
Term ABS 2017-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.31% | 2.91% | |||||
Debt maturity date | [1],[2] | Oct. 15, 2019 | |||||
Debt facility financing amount | [1] | $ 350 | |||||
Term ABS 2018-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.43% | 3.24% | |||||
Debt maturity date | [1],[2] | Feb. 17, 2020 | |||||
Debt facility financing amount | [1] | $ 500 | |||||
Term ABS 2018-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.76% | 3.68% | |||||
Debt maturity date | [1],[2] | May 15, 2020 | |||||
Debt facility financing amount | [1] | $ 450 | |||||
Term ABS 2018-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.73% | 3.72% | |||||
Debt maturity date | [1],[2] | Aug. 17, 2020 | |||||
Debt facility financing amount | [1] | $ 398.3 | |||||
Term ABS 2019-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.53% | 3.53% | |||||
Debt maturity date | [1],[2] | Feb. 15, 2021 | |||||
Debt facility financing amount | [1] | $ 402.5 | |||||
Term ABS 2019-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.13% | 3.13% | |||||
Debt maturity date | [1],[6] | Aug. 15, 2022 | |||||
Debt facility financing amount | [1] | $ 500 | |||||
Term ABS 2019-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.56% | 2.56% | |||||
Debt maturity date | [1],[2] | Nov. 15, 2021 | |||||
Debt facility financing amount | [1] | $ 351.7 | |||||
Term ABS 2020-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.18% | ||||||
Debt maturity date | [1],[2] | Feb. 15, 2022 | |||||
Debt facility financing amount | [1] | $ 500 | |||||
Term ABS 2020-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.65% | ||||||
Debt maturity date | Jul. 15, 2022 | ||||||
Debt facility financing amount | $ 481.8 | ||||||
2024 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400 | $ 400 | $ 400 | ||||
Interest rate | 5.125% | 5.125% | 5.125% | ||||
Debt maturity date | Dec. 31, 2024 | ||||||
Debt facility financing amount | $ 400 | ||||||
2026 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400 | $ 400 | |||||
Interest rate | 6.625% | 6.625% | |||||
Debt maturity date | Mar. 15, 2026 | Mar. 15, 2026 | |||||
Debt facility financing amount | $ 400 | $ 400 | |||||
Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.66% | 3.21% | |||||
Debt maturity date | Aug. 6, 2023 | Aug. 6, 2023 | [1] | ||||
Debt facility financing amount | $ 12 | $ 12 | [1] | ||||
Mortgages [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 150.00% | |||||
[1] | Financing made available only to a specified subsidiary of the Company. | ||||||
[2] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets. | ||||||
[3] | Interest rate cap agreements are in place to limit the exposure to increasing interest rates | ||||||
[4] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on August 17, 2023 will be due on that date. | ||||||
[5] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 16, 2023 will be due on that date. | ||||||
[6] | Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. |
Debt (Schedule of Additional In
Debt (Schedule of Additional Information Related to Debt Instruments) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revolving Secured Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | $ 287.7 | $ 193.3 | $ 296.6 | $ 282.9 |
Average outstanding balance | 124.9 | 71.1 | 119.7 | 80.1 |
Warehouse Facility II [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 201 | 201 | 201 | 201 |
Average outstanding balance | 161.5 | 126.7 | 127.8 | 102.8 |
Warehouse Facility IV [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 0 | 0 | 0 | 100 |
Average outstanding balance | 0 | 0 | 0 | 1.5 |
Warehouse Facility V [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 75 | 35 | 75 | 35 |
Average outstanding balance | 17.9 | 3.4 | 25.5 | 1.2 |
Warehouse Facility VI [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 50 | 0 | 50 | 0 |
Average outstanding balance | 50 | 0 | 20.3 | 0 |
Warehouse Facility VII [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 125 | 50 | 125 | 101.5 |
Average outstanding balance | 102.5 | 23.9 | 75 | 9.4 |
Warehouse Facility VIII [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 149 | 75 | 149 | 75 |
Average outstanding balance | $ 35.6 | $ 12.7 | $ 37.7 | $ 12.7 |
Debt (Summary of Debt)
Debt (Summary of Debt) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 18, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 125.7 | $ 0 | |||||
Secured Debt | 3,692.8 | 3,339.7 | |||||
Balance outstanding | 790.1 | 1,187.8 | |||||
Restricted cash and cash equivalents pledged as collateral | 391.9 | 330.3 | $ 329.8 | $ 303.6 | |||
Mortgage note | [1] | 10.7 | 11.3 | ||||
Revolving Secured Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | 125.7 | 0 | |||||
Amount available for borrowing | [2] | $ 214.3 | $ 340 | ||||
Interest rate | 2.02% | 0.00% | |||||
Warehouse Facility II [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 150 | $ 0 | |||||
Amount available for borrowing | [2] | 250 | 400 | ||||
Loans pledged as collateral | 183.8 | 0 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 4.6 | $ 1 | |||||
Interest rate | 1.91% | 0.00% | |||||
Warehouse Facility IV [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 0 | $ 0 | |||||
Amount available for borrowing | [2] | 300 | 300 | ||||
Loans pledged as collateral | 0 | 0 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 1 | $ 1 | |||||
Interest rate | 0.00% | 0.00% | |||||
Warehouse Facility V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 0 | $ 0 | |||||
Amount available for borrowing | [2] | 100 | 100 | ||||
Loans pledged as collateral | 0 | 0 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 1 | $ 1 | |||||
Interest rate | 0.00% | 0.00% | |||||
Warehouse Facility VI [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 50 | $ 0 | |||||
Amount available for borrowing | [2] | 25 | 75 | ||||
Loans pledged as collateral | 68.2 | ||||||
Restricted cash and cash equivalents pledged as collateral | $ 2.5 | $ 0 | |||||
Interest rate | 2.16% | 0.00% | |||||
Warehouse Facility VII [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 100 | $ 0 | |||||
Amount available for borrowing | [2] | 50 | 150 | ||||
Loans pledged as collateral | 124.2 | 0 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 3.3 | $ 1 | |||||
Interest rate | 2.39% | 0.00% | |||||
Warehouse Facility VIII [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 0 | $ 0 | |||||
Amount available for borrowing | [2] | 200 | 200 | ||||
Loans pledged as collateral | 0 | 0 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 0 | |||||
Interest rate | 0.00% | 0.00% | |||||
Term ABS 2016-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 0 | $ 51.8 | |||||
Loans pledged as collateral | 0 | 219.5 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 23.5 | |||||
Interest rate | 0.00% | 3.60% | |||||
Term ABS 2017-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 0 | $ 120.9 | |||||
Loans pledged as collateral | 0 | 292.8 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 26.1 | |||||
Interest rate | 0.00% | 3.19% | |||||
Term ABS 2017-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 71 | $ 277.2 | |||||
Loans pledged as collateral | 267.8 | 426.7 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 30.3 | $ 35.1 | |||||
Interest rate | 3.24% | 2.83% | |||||
Term ABS 2017-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 120.2 | $ 303.2 | |||||
Loans pledged as collateral | 251.3 | 393 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 26.1 | $ 29.3 | |||||
Interest rate | 3.31% | 2.91% | |||||
Term ABS 2018-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 276.5 | $ 500 | |||||
Loans pledged as collateral | 450.2 | 609.5 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 40.8 | $ 43.8 | |||||
Interest rate | 3.43% | 3.24% | |||||
Term ABS 2018-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 332.8 | $ 450 | |||||
Loans pledged as collateral | 463.2 | 550.4 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 38.7 | $ 37.6 | |||||
Interest rate | 3.76% | 3.68% | |||||
Term ABS 2018-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 371.4 | $ 398.3 | |||||
Loans pledged as collateral | 459.2 | 487.7 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 36.3 | $ 32.3 | |||||
Interest rate | 3.73% | 3.72% | |||||
Term ABS 2019-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 402.5 | $ 402.5 | |||||
Loans pledged as collateral | 482.4 | 490.2 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 36.4 | $ 31.9 | |||||
Interest rate | 3.53% | 3.53% | |||||
Term ABS 2019-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 500 | $ 500 | |||||
Loans pledged as collateral | 575.9 | 628.5 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 42.6 | $ 38.6 | |||||
Interest rate | 3.13% | 3.13% | |||||
Term ABS 2019-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 351.7 | $ 351.7 | |||||
Loans pledged as collateral | 439.1 | 428.6 | |||||
Restricted cash and cash equivalents pledged as collateral | $ 33.2 | $ 27.2 | |||||
Interest rate | 2.56% | 2.56% | |||||
Term ABS 2020-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 500 | ||||||
Loans pledged as collateral | 803.7 | ||||||
Restricted cash and cash equivalents pledged as collateral | $ 52.1 | ||||||
Interest rate | 2.18% | ||||||
Term ABS 2020-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured Debt | $ 481.8 | ||||||
Loans pledged as collateral | 629.8 | ||||||
Restricted cash and cash equivalents pledged as collateral | $ 42 | ||||||
Interest rate | 1.65% | ||||||
2021 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 0 | $ 151.8 | |||||
Interest rate | 0.00% | 6.125% | 6.125% | ||||
2023 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 0 | $ 250 | $ 250 | ||||
Interest rate | 0.00% | 7.375% | 7.375% | ||||
2024 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 400 | $ 400 | $ 400 | ||||
Interest rate | 5.125% | 5.125% | 5.125% | ||||
2026 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Balance outstanding | $ 400 | $ 400 | |||||
Interest rate | 6.625% | 6.625% | |||||
Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.66% | 3.21% | |||||
Mortgage note | $ 10.7 | $ 11.3 | |||||
[1] | Measured at amortized cost with fair value disclosed. | ||||||
[2] | Availability may be limited by the amount of assets pledged as collateral. |
Debt (Summary of Term ABS Finan
Debt (Summary of Term ABS Financings) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Term ABS 2017-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Jun. 29, 2017 | |
Net Book Value of Loans Contributed at Closing | $ 563.2 | |
Maturity Date | Jun. 17, 2019 | [1],[2] |
Term ABS 2017-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Oct. 26, 2017 | |
Net Book Value of Loans Contributed at Closing | $ 437.6 | |
Maturity Date | Oct. 15, 2019 | [1],[2] |
Term ABS 2018-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Feb. 22, 2018 | |
Net Book Value of Loans Contributed at Closing | $ 625.1 | |
Maturity Date | Feb. 17, 2020 | [1],[2] |
Term ABS 2018-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | May 24, 2018 | |
Net Book Value of Loans Contributed at Closing | $ 562.6 | |
Maturity Date | May 15, 2020 | [1],[2] |
Term ABS 2018-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Aug. 23, 2018 | |
Net Book Value of Loans Contributed at Closing | $ 500.1 | |
Maturity Date | Aug. 17, 2020 | [1],[2] |
Term ABS 2019-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Feb. 21, 2019 | |
Net Book Value of Loans Contributed at Closing | $ 503.1 | |
Maturity Date | Feb. 15, 2021 | [1],[2] |
Term ABS 2019-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Aug. 28, 2019 | |
Net Book Value of Loans Contributed at Closing | $ 625.1 | |
Maturity Date | Aug. 15, 2022 | [1],[3] |
Term ABS 2019-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Nov. 21, 2019 | |
Net Book Value of Loans Contributed at Closing | $ 439.6 | |
Maturity Date | Nov. 15, 2021 | [1],[2] |
Term ABS 2020-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Feb. 20, 2020 | |
Net Book Value of Loans Contributed at Closing | $ 625.1 | |
Maturity Date | Feb. 15, 2022 | [1],[2] |
Term ABS 2020-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Jul. 23, 2020 | |
Net Book Value of Loans Contributed at Closing | $ 602.3 | |
Maturity Date | Jul. 15, 2022 | |
[1] | Financing made available only to a specified subsidiary of the Company. | |
[2] | Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets. | |
[3] | Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Schedule of Terms of Interest Rate Cap Agreements) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Derivative [Line Items] | ||||
Interest rate caps, fair value of less than $0.1 million | $ 0 | $ 0.1 | ||
Warehouse Facility II [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | [1],[2] | 400 | ||
Warehouse Facility II [Member] | 5.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | 400 | 400 | ||
Notional Amount | $ 205 | $ 205 | ||
Cap Interest Rate | [3] | 5.50% | 5.50% | |
Warehouse Facility IV [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | $ 300 | [1],[2] | $ 300 | |
Notional Amount | 300 | 300 | ||
Warehouse Facility IV [Member] | 5.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 100 | |||
Cap Interest Rate | [3] | 6.50% | ||
Warehouse Facility IV [Member] | 6.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 58.3 | $ 150 | ||
Cap Interest Rate | [3] | 6.50% | 6.50% | |
Warehouse Facility IV [Member] | 6.50% Cap Interest Rate Additional [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 87.5 | $ 50 | ||
Cap Interest Rate | [3] | 6.50% | 6.50% | |
Warehouse Facility IV [Member] | 6.50% Cap Interest Rate Second Additional [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 154.2 | |||
Cap Interest Rate | [3] | 6.50% | ||
Warehouse Facility V [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | [1],[2] | $ 100 | ||
Warehouse Facility V [Member] | 6.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | 100 | $ 100 | ||
Notional Amount | $ 75 | $ 75 | ||
Cap Interest Rate | [3] | 6.50% | 6.50% | |
Warehouse Facility VII [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | [1],[2] | $ 150 | ||
Notional Amount | 150 | |||
Warehouse Facility VII [Member] | 5.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | 150 | |||
Notional Amount | $ 87.5 | |||
Cap Interest Rate | [3] | 5.50% | ||
Warehouse Facility VII [Member] | 5.50% Cap Interest Rate Additional [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 62.5 | |||
Cap Interest Rate | [3] | 5.50% | ||
Warehouse Facility VII [Member] | 5.00% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | $ 150 | |||
Notional Amount | $ 143.8 | |||
Cap Interest Rate | [3] | 5.50% | ||
Warehouse Facility VIII [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | [1],[2] | $ 200 | ||
Warehouse Facility VIII [Member] | 5.50% Cap Interest Rate [Member] | ||||
Derivative [Line Items] | ||||
Debt facility financing amount | 200 | $ 200 | ||
Notional Amount | $ 200 | $ 200 | ||
Cap Interest Rate | [3] | 5.50% | 5.50% | |
[1] | Financing made available only to a specified subsidiary of the Company. | |||
[2] | Interest rate cap agreements are in place to limit the exposure to increasing interest rates | |||
[3] | Rate excludes the spread over the LIBOR or commercial paper rate. |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of the U.S. Federal Statutory Rate to Effective Tax Rate) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | 21.00% |
State income taxes | 2.90% | 3.50% | 3.00% | 3.10% |
Excess tax benefits from stock-based compensation plans | 0.00% | 0.00% | (0.80%) | (1.20%) |
Other | 0.10% | 0.00% | 0.40% | 0.00% |
Effective tax rate | 24.00% | 24.50% | 23.60% | 22.90% |
Net Income Per Share (Computati
Net Income Per Share (Computation of Weighted Average Shares Outstanding Basic and Diluted) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Common shares | 17,526,660 | 18,659,113 | 17,645,184 | 18,662,610 |
Vested restricted stock units | 318,125 | 285,559 | 312,747 | 285,530 |
Basic number of weighted average shares outstanding | 17,844,785 | 18,944,672 | 17,957,931 | 18,948,140 |
Dilutive effect of restricted stock and restricted stock units | 4,980 | 6,194 | 15,160 | 19,412 |
Dilutive number of weighted average shares outstanding | 17,849,765 | 18,950,866 | 17,973,091 | 18,967,552 |
Shares outstanding excluded from calculation of diluted net income per share | 0 | 0 | 0 | 0 |
Stock Repurchases_2_3
Stock Repurchases - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 05, 2020 | ||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased, shares | 725,220 | 268,611 | ||
Common stock repurchased, value | $ 307.1 | $ 109.2 | ||
Increase in number of shares authorized for repurchase | 3,000,000 | |||
Remaining number of shares authorized for repurchase | 3,059,556 | |||
Open Market [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased, shares | [1] | 710,157 | 225,915 | |
Common stock repurchased, value | [1] | $ 300.6 | $ 91 | |
Other [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased, shares | [2] | 15,063 | 42,696 | |
Common stock repurchased, value | [2] | $ 6.5 | $ 18.2 | |
[1] | Represents repurchases under authorizations by the board of directors for the repurchase of shares by us from time to time in the open market or in privately negotiated transactions. On March 5, 2020, the board of directors authorized the repurchase of up to three million shares of our common stock in addition to the board’s prior authorizations. As of September 30, 2020, we had authorization to repurchase 3,059,556 shares of our common stock. | |||
[2] | Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock and restricted stock units and the conversion of restricted stock units to common stock. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Schedule of Stock Based Compensation Expense) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.5 | $ 2 | $ 4.7 | $ 5.7 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 0.4 | 0.8 | 1.5 | 2.3 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.1 | $ 1.2 | $ 3.2 | $ 3.4 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans Stock-Based Compensation Plans (Summary Of Restricted Stock Activity) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Nonvested | shares | 137,503 |
Vested | shares | (14,633) |
Forfeited | shares | (148) |
Outstanding, Nonvested | shares | 122,722 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested | $ / shares | $ 125.04 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Vested | $ / shares | 182.61 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Forfeited | $ / shares | 360.67 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested | $ / shares | $ 117.89 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Stock-Based Compensation Plans (Summary Of Restricted Stock Units Activity) - Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding | shares | 428,831 |
Granted | shares | 5,870 |
Restricted stock units converted to common stock, shares | shares | (21,971) |
Forfeited | shares | (112) |
Outstanding | shares | 412,618 |
Weighted Average Grant-Date Fair Value Per Share, Outstanding | $ / shares | $ 132.99 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Granted | $ / shares | 436.89 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Converted | $ / shares | 105.97 |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Forfeited | $ / shares | 434.60 |
Weighted Average Grant-Date Fair Value Per Share, Outstanding | $ / shares | $ 138.67 |
Subsequent Events_2
Subsequent Events - USD ($) $ in Millions | Oct. 22, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Secured Debt | $ 3,692.8 | $ 3,339.7 | |
Term ABS 2020-3 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Secured Debt | $ 600 | ||
Interest rate | 1.80% |