Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease)

  
adjustments include the uncertainty of the impacts of recent economic trends on customer behavior. The change in the allowance for loan losses is recognized through an adjustment to the provision for loan losses.  
Allowance for Loan Losses

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of February 28, 2022 |
| (In millions) | Core |  | Other |  | Total |  | %  (1) |
| Balance as of beginning of year | $ | 379.4  |  |  | $ | 31.7  |  |  | $ | 411.1  |  |  | 2.97  |  |
| Charge-offs | (206.5) |  |  | (20.7) |  |  | (227.2) |  |  |   |
| Recoveries (2) | 99.4  |  |  | 8.0  |  |  | 107.4  |  |  |   |
| Provision for loan losses | 105.2  |  |  | 36.5  |  |  | 141.7  |  |  |   |
| Balance as of end of year | $ | 377.5  |  |  | $ | 55.5  |  |  | $ | 433.0  |  |  | 2.77  |  |

 

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of February 28, 2021 |
| (In millions) | Core |  | Other |  | Total |  | %  (1) |
| Balance as of beginning of year | $ | 140.5  |  |  | $ | 17.3  |  |  | $ | 157.8  |  |  | 1.16  |  |
| Adoption of CECL | 179.2  |  |  | 22.8  |  |  | 202.0  |  |  |  |
| Adjusted balance as of beginning of period | 319.7  |  |  | 40.1  |  |  | 359.8  |  |  | 2.64  |  |
| Charge-offs | (210.0) |  |  | (20.4) |  |  | (230.4) |  |  |  |
| Recoveries (2) | 112.3  |  |  | 8.7  |  |  | 121.0  |  |  |  |
| Provision for loan losses | 157.4  |  |  | 3.3  |  |  | 160.7  |  |  |  |
| Balance as of end of year | $ | 379.4  |  |  | $ | 31.7  |  |  | $ | 411.1  |  |  | 2.97  |  |

  
(1)Percent of total ending managed receivables(2)Net of costs incurred to recover vehicle.  
During fiscal 2022, the allowance for loan losses increased $21.9 million, primarily reflecting growth in receivables, largely offset by favorable loan loss performance during the year. Although net charge-offs remained low in fiscal 2022, loss performance in the second half of fiscal 2022 began to return to pre-pandemic levels. We do not believe the favorable loss performance this fiscal year is consistent with our best estimate of expected future losses. As a result, we determined that the quantitative loss rates should be qualitatively adjusted to reflect future loss performance.  
Past Due Receivables. An account is considered delinquent when the related customer fails to make a substantial portion of a scheduled payment on or before the due date. In general, accounts are charged-off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month, the related vehicle is repossessed and liquidated, or the receivable is otherwise deemed uncollectible. For purposes of determining impairment, auto loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment. Past Due Receivables

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|  | As of February 28, 2022 |
|  | Core Receivables |  | Other Receivables |  | Total |
| (In millions) | A |  | B |  | C & Other |  | Total |  | C & Other |  | $ |  | %  (1) |
| Current | $ | 7,711.9  |  |  | $ | 5,401.3  |  |  | $ | 1,702.7  |  |  | $ | 14,815.9  |  |  | $ | 206.4  |  |  | $ | 15,022.3  |  |  | 95.98  |  |
| Delinquent loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 31-60 days past due | 25.4  |  |  | 173.3  |  |  | 160.4  |  |  | 359.1  |  |  | 33.0  |  |  | 392.1  |  |  | 2.50  |  |
| 61-90 days past due | 9.2  |  |  | 75.6  |  |  | 85.2  |  |  | 170.0  |  |  | 19.1  |  |  | 189.1  |  |  | 1.21  |  |
| Greater than 90 days past due | 3.2  |  |  | 19.9  |  |  | 21.9  |  |  | 45.0  |  |  | 3.8  |  |  | 48.8  |  |  | 0.31  |  |
| Total past due | 37.8  |  |  | 268.8  |  |  | 267.5  |  |  | 574.1  |  |  | 55.9  |  |  | 630.0  |  |  | 4.02  |  |
| Total ending managed receivables | $ | 7,749.7  |  |  | $ | 5,670.1  |  |  | $ | 1,970.2  |  |  | $ | 15,390.0  |  |  | $ | 262.3  |  |  | $ | 15,652.3  |  |  | 100.00  |  |

  
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