v3.22.2.2
Customer Accounts Receivable
 9 Months Ended
Oct. 31, 2022
Receivables [Abstract]  
Customer Accounts Receivable Customer Accounts Receivable
Customer accounts receivable consisted of the following:
(in thousands)October 31,
2022		January 31,
2022
Customer accounts receivable (1)
$1,032,800 $1,130,395 
Deferred fees and origination costs, net(11,753)(13,503)
Allowance for no-interest option credit programs(17,609)(19,654)
Allowance for uncollectible interest and fees(23,049)(15,124)
Carrying value of customer accounts receivable980,389 1,082,114 
Allowance for credit losses (2)
(164,629)(193,896)
Carrying value of customer accounts receivable, net of allowance for credit losses815,760 888,218 
  Short-term portion of customer accounts receivable, net(423,827)(455,787)
Long-term customer accounts receivable, net$391,933 $432,431 
Carrying Value
(in thousands)October 31,
2022		January 31,
2022
Customer accounts receivable 60+ days past due (3)
$119,223 $112,858 
Re-aged customer accounts receivable (4)
161,429 181,996 
Restructured customer accounts receivable (5)
76,163 99,557 
(1)As of October 31, 2022 and January 31, 2022, the customer accounts receivable balance included $33.0 million and $22.3 million, respectively, in interest receivable. Net of the allowance for uncollectible interest, interest receivable outstanding as of October 31, 2022 and January 31, 2022 was $9.9 million and $7.2 million, respectively.
(2)Our current methodology to estimate expected credit losses utilized macroeconomic forecasts as of October 31, 2022 and January 31, 2022, which incorporated the continued estimated impact of the global COVID-19 outbreak and other factors on the U.S. economy. Our forecast utilized economic projections from a major rating service reflecting an increase in unemployment rates.
(3)As of October 31, 2022 and January 31, 2022, the carrying value of customer accounts receivable past due one day or greater was $297.1 million and $299.0 million, respectively. These amounts include the 60+ days past due balances shown above.
(4)The re-aged carrying value as of October 31, 2022 and January 31, 2022 includes $46.1 million and $48.6 million, respectively, in carrying value that are both 60+ days past due and re-aged.
(5)The restructured carrying value as of October 31, 2022 and January 31, 2022 includes $21.2 million and $29.0 million, respectively, in carrying value that are both 60+ days past due and restructured.
The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows:
(in thousands)October 31, 2022January 31, 2022
Customer accounts receivable - current$521,440 $564,825 
Allowance for credit losses for customer accounts receivable - current(97,613)(109,038)
Customer accounts receivable, net of allowances423,827 455,787 
Customer accounts receivable - non current481,998 532,413 
Allowance for credit losses for customer accounts receivable - non current(90,065)(99,982)
Long-term portion of customer accounts receivable, net of allowances391,933 432,431 
Total customer accounts receivable, net$815,760 $888,218 
The following presents the activity in our allowance for credit losses and uncollectible interest for customer receivables: 
 Nine Months Ended October 31, 2022Nine Months Ended October 31, 2021
(in thousands)Customer
Accounts
Receivable		 
Restructured
Accounts		 
 
Total		Customer
Accounts
Receivable		 
Restructured
Accounts		 
 
Total
Allowance at beginning of period$165,044 $43,976 $209,020 $219,740 $78,297 $298,037 
Provision for credit loss expense (1)
89,078 25,771 114,849 21,845 23,079 44,924 
Principal charge-offs (2)
(100,214)(34,222)(134,436)(81,710)(50,691)(132,401)
Interest charge-offs(24,016)(8,201)(32,217)(22,432)(13,917)(36,349)
Recoveries (2)
22,708 7,754 30,462 20,947 12,996 33,943 
Allowance at end of period$152,600 $35,078 $187,678 $158,390 $49,764 $208,154 
Average total customer portfolio balance$972,943 $89,042 $1,061,985 $985,634 $149,745 $1,135,379 
(1)Includes provision for uncollectible interest, which is included in finance charges and other revenues, and changes in expected future recoveries.
(2)Charge-offs include the principal amount of losses (excluding accrued and unpaid interest). Recoveries include the principal amount collected during the period for previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries.
We manage our customer accounts receivable portfolio using delinquency as a key credit quality indicator. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by year of origination. The information is presented as of October 31, 2022:
(in thousands)
Delinquency Bucket2022202120202019PriorTotal% of Total
Current$384,401 $227,174 $61,119 $9,016 $1,572 $683,282 69.7 %
1-3050,477 56,730 18,562 5,799 1,386 132,954 13.6 %
31-6015,554 19,555 6,539 2,656 625 44,929 4.6 %
61-908,613 12,072 3,781 1,664 332 26,462 2.7 %
91+22,434 46,784 15,170 6,948 1,426 92,762 9.4 %
Total$481,479 $362,315 $105,171 $26,083 $5,341 $980,389 100.0 %