Table 8 sets forth the activity in the allowance for loan losses for the periods indicated. See “Asset Quality,” “Delinquencies” and “Net Charge-Offs” for a more complete analysis of asset quality. Table 8: Summary of Allowance for Loan Losses Year Ended December 31 (Dollars in Thousands) 2002 2001 2000 1999 1998 Balance at beginning of year $ 840,000 $ 527,000  $ 342,000 $ 231,000 $ 183,000 Provision for loan losses: Domestic 2,025,885 1,048,972 705,195 364,086 252,612 Foreign 123,443 71,485 107,666 62,384 36,229 Total provision for loan losses 2,149,328 1,120,457 812,861 426,470 288,841 Acquisitions/other (9,644) 14,800 (549 )3,522 7,503 Charge-offs: Domestic (1,363,565) (908,065)(693,106 ) (344,679 ) (282,455) Foreign (127,276) (110,285)(79,296 ) (55,464 ) (11,840) Total charge-offs (1,490,841) (1,018,350)(772,402 ) (400,143 ) (294,295) Principal recoveries: Domestic 203,412 176,102 136,334 79,150 45,892 Foreign 27,745 19,991 8,756 2,001 59 Total principal recoveries 231,157 196,093 145,090 81,151 45,951 Net charge-offs (1,259,684) (822,257)(627,312 ) (318,992 ) (248,344) Balance at end of year $ 1,720,000 $ 840,000  $ 527,000 $ 342,000 $ 231,000 Allowance for loan losses to loans at end of year 6.18% 4.02% 3.49% 3.45% 3.75% Allowance for loan losses by geographic distribution: Domestic $ 1,636,405 $ 784,857 $ 451,074 $ 299,424 $ 198,419 Foreign 83,595 55,143 75,926 42,576 32,581 REPORTABLE SEGMENTS Table 9: Segments (Managed Basis) The Company manages its business by three distinct operating segments: Consumer Lending, Auto Finance and International. The Consumer Lending, Auto Finance and International segments are considered reportable segments based on quantitative thresholds applied to the managed loan portfolio for reportable segments provided by SFAS No. 131,  Disclosures about Segments of an Enterprise and Related Information.  Management decision making is performed on a managed portfolio basis, and such information about reportable segments is provided on a managed basis. Consumer Lending Auto Finance International 2002 2001 2002 2001 2002 2001 Loans receivable $ 47,290,100 $ 37,324,079 $ 6,992,541 $ 3,957,729 $ 5,330,541 $ 3,970,244 Net income 1,043,027 780,776 10,262 (35,361) (35,566) (50,454) Net charge-off rate 5.54% 4.87% 3.82% 4.25% 3.76% 3.59% Delinquency rate 5.54 5.00 7.15 5.59 4.18 3.84 32