Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

The Company’s investments, primarily in Brazil, consist of certificates of deposit that are classified as available-for-sale and stated at fair value based upon quoted market prices. Unrealized gains and losses are recorded in AOCI. Realized gains and losses are recognized in investment income and are determined using the specific identification method. There were no realized gains from the sale of securities or proceeds from the sale of available-for-sale securities for the years ended December 31, 2019 and 2018.

The Company has deferred compensation plans that enable certain employees to defer receipt of a portion of their cash, 401(k) or share-based compensation and non-employee directors to defer receipt of director fees at the participants’ discretion. For deferred cash-based compensation, the Company established rabbi trusts (refer to note 15), which are recorded at fair value of the underlying securities within securities and other investments. The related deferred compensation liability is recorded at fair value within other long-term liabilities. Realized and unrealized gains and losses on marketable securities in the rabbi trusts are recognized in interest income.

The Company’s investments consist of the following:



	Cost Basis		Unrealized Gain			Fair Value
As of December 31, 2019
Short-term investments
Certificates of deposit	$	10.0	$	—		$	10.0
Long-term investments
Assets held in a rabbi trust	$	5.5	$	0.7		$	6.2

As of December 31, 2018
Short-term investments
Certificates of deposit	$	33.5	$	—		$	33.5
Long-term investments:
Assets held in a rabbi trust	$	6.5	$	(0.2	)	$	6.3

Securities and other investments also included a cash surrender value of insurance contracts of $15.2 and $11.1 as of December 31, 2019 and 2018, respectively, as well as an interest rate swap asset carrying value of $4.8 as of December 31, 2018, which also represented fair value (refer to note 18). As of December 31, 2019 there was no interest rate swap long term asset.

The Company has certain strategic alliances that are not consolidated. The Company tests these strategic alliances annually, individually and in the aggregate, to determine materiality. The Company owns 40.0 percent of Inspur (Suzhou) Financial Technology Service Co. Ltd. (Inspur JV) and 43.6 percent of Aisino-Wincor Retail & Banking Systems (Shanghai) Co., Ltd. (Aisino JV). The Company engages in transactions in the ordinary course of business with its strategic alliances. The Company's strategic alliances are not significant subsidiaries and are accounted for under the equity method of investments. As of December 31, 2019, the Company had accounts receivable and accounts payable balances with these strategic alliances of $10.3 and $11.8, respectively, which are included in trade receivables, less allowances for doubtful accounts and accounts payable on the consolidated balance sheets. During the fourth quarter of 2018, the Company recorded a charge of $19.2 for its investment in its Aisino strategic alliance as a result of the weakening banking market in China. The charge was included in equity in (loss) earnings of unconsolidated subsidiaries, net in its consolidated statements of operations. The Company continues to assess these strategic alliances as part of the optimization of its portfolio of businesses, which may include the exit or restructuring of these businesses.

In May 2017, the Company announced a strategic partnership with Kony, a leading enterprise mobility and application company, to offer white label mobile application solutions for financial institutions and retailers. In September 2019, the Company's interest in Kony was sold for cash proceeds of $21.3. The Company's carrying value in Kony was $14.0, resulting in a gain of $7.3.

The Company provides financing arrangements to customers purchasing its products. These financing arrangements are largely classified and accounted for as sales-type leases.

The following table presents finance lease receivables sold by the Company for the years ended December 31:



	2019		2018		2017
Finance lease receivables sold	$	2.7	$	11.1	$	—

The following table presents the components of finance lease receivables as of December 31:



	2019			2018
Gross minimum lease receivable	$	41.8		$	39.0
Allowance for credit losses	(0.3		)	(0.4		)
Estimated unguaranteed residual values	0.2			0.4
	41.7			39.0
Less:
Unearned interest income	(2.8		)	(3.0		)
Unearned residuals	—			(0.1		)
	(2.8		)	(3.1		)
Total	$	38.9		$	35.9

Future minimum payments due from customers under finance lease receivables as of December 31, 2019 are as follows:



2020	$	10.9
2021	7.4
2022	7.3
2023	7.2
2024	6.4
Thereafter	2.6
	$	41.8

The Company's combined allowance for finance receivables and notes receivables was $0.1 and $0.3 for the years ended December 31, 2019 and 2018, respectively, all resulted from individual impairment evaluation. As of December 31, 2019, finance leases and notes receivables individually evaluated for impairment were $38.9 and $4.9, respectively, were assessed with no provision recorded. As of December 31, 2018, finance leases and notes receivables individually evaluated for impairment were $35.9 and $4.9, respectively, were assessed with no provision recorded.

The Company records interest income and any fees or costs related to financing receivables using the effective interest method over the term of the lease or loan. The Company reviews the aging of its financing receivables to determine past due and delinquent accounts. Credit quality is reviewed at inception and is re-evaluated as needed based on customer-specific circumstances. Receivable balances 60 days to 89 days past due are reviewed and may be placed on nonaccrual status based on customer-specific circumstances. Receivable balances are placed on nonaccrual status upon reaching greater than 89 days past due. Upon receipt of payment on nonaccrual financing receivables, interest income is recognized and accrual of interest is resumed once the account has been made current or the specific circumstances have been resolved.

As of December 31, 2019 and 2018, the recorded investment in past-due financing receivables was minimal and no recorded investment in finance receivables was past due 90 days or more and still accruing interest.

The following table summarizes the Company’s allowances for doubtful accounts:



	2019			2018			2017
Balance at January 1	$	58.2		$	71.7		$	50.4
Charged to costs and expenses	24.4			22.8			54.9
Charged to other accounts ⁽¹⁾	(0.9		)	(4.1		)	1.4
Deductions ⁽²⁾	(39.5		)	(32.2		)	(35.0		)
Balance at December 31	$	42.2		$	58.2		$	71.7

⁽¹⁾ Net effects of foreign currency translation.

⁽²⁾ Uncollectible accounts written-off, net of recoveries.