Harley Davidson 2013 Annual Report Download - page 71

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71
The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually
evaluated for impairment and those that are collectively evaluated for impairment, at December 31 were as follows (in
thousands):
2013
Retail Wholesale Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment $ — $ — $ —
Collectively evaluated for impairment 106,063 4,630 110,693
Total allowance for credit losses $ 106,063 $ 4,630 $ 110,693
Finance receivables, ending balance:
Individually evaluated for impairment $ — $ — $ —
Collectively evaluated for impairment 5,265,044 845,212 6,110,256
Total finance receivables $ 5,265,044 $ 845,212 $ 6,110,256
2012
Retail Wholesale Total
Allowance for credit losses, ending balance:
Individually evaluated for impairment $ — $ — $ —
Collectively evaluated for impairment 101,442 6,225 107,667
Total allowance for credit losses $ 101,442 $ 6,225 $ 107,667
Finance receivables, ending balance:
Individually evaluated for impairment $ — $ — $ —
Collectively evaluated for impairment 5,073,115 816,404 5,889,519
Total finance receivables $ 5,073,115 $ 816,404 $ 5,889,519
Finance receivables are considered impaired when management determines it is probable that the Company will be
unable to collect all amounts due according to the loan agreement. As retail finance receivables are collectively and not
individually reviewed for impairment, this portfolio does not have specifically impaired finance receivables. A specific
allowance is established for wholesale finance receivables determined to be individually impaired in accordance with the
applicable accounting standards when management concludes that the borrower will not be able to make full payment of the
contractual amounts due based on the original terms of the loan agreement. The impairment is determined based on the cash
that the Company expects to receive discounted at the loan’s original interest rate and the fair value of the collateral, if the loan
is collateral-dependent. In establishing the allowance, management considers a number of factors including the specific
borrower’s financial performance as well as ability to repay. At December 31, 2013 and 2012, there were no wholesale finance
receivables that were individually deemed to be impaired under ASC Topic 310, “Receivables”.
Retail finance receivables accrue interest until either collected or charged-off. Interest continues to accrue on past due
wholesale finance receivables until the finance receivable becomes uncollectible, at which time the finance receivable is placed
on non-accrual status. The Company will resume accruing interest on these wholesale finance receivables when payments are
current according to the terms of the loan agreements and future payments are reasonably assured. At December 31, 2013 and
2012, there were no wholesale finance receivables on non-accrual status.
An analysis of the aging of past due finance receivables at December 31 was as follows (in thousands):
2013
Current 31-60 Days
Past Due 61-90 Days
Past Due
Greater than
90 Days
Past Due Total
Past Due
Total
Finance
Receivables
Retail $ 5,094,615 $ 109,806 $ 36,029 $ 24,594 $ 170,429 $ 5,265,044
Wholesale 844,033 791 181 207 1,179 845,212
Total $ 5,938,648 $ 110,597 $ 36,210 $ 24,801 $ 171,608 $ 6,110,256