Santander Consumer USA (SC) filed its annual 10-K report with the Securities and Exchange Commission on Thursday, with “revised methodology for estimating credit loss allowance on individually acquired retail installment contracts,” according to a company press release.
Highlighted revisions were made to net income, credit loss allowances, and stock holder equity for the fourth quarter 2015 earnings, year-end 2015 earnings, year-end 2014 earnings, and year-end 2013 earnings, according to the release.
In mid-March, SC announced in an 8-K filed with the SEC that it would be delayed in filing its annual 10-K report for the fiscal year ended December 31, 2015 because its financial statements have not yet been completed. According to the 8-K:
“The Company currently has an open comment letter from the SEC’s Division of Corporation Finance on the Company’s Form 10-K for the year ended December 31, 2014 and Form 10-Q for the quarterly period ended September 30, 2015, with respect to estimating the Company’s credit loss allowance, including the removal of seasonality and the increase in troubled debt restructuring (“TDR”) impairment during the quarterly period ended September 30, 2015, as well as certain TDR disclosures.”
After review, the company said it would change its methodology for estimating credit loss allowance and will correct prior periods. Changes made due to the revised methodology are included in the 10-K, filed on March 31, in Item 8, Financial Statements, and Item 9B, according to the release.
SC also said it has determined it is not required to refile any of its previously filed financial statements.
“After completing this process and revising our methodology, we remain confident in SC’s ability to execute on its business plan,” said Jason Kulas, President and chief executive said in the release. “We continue to focus on upholding disciplined underwriting standards to deliver strong returns, robust profitability, and value to our shareholders.”
Highlights of the impacts to previously reported figures can be found in the company’s press release.