Investments

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

Investments

The Company’s investments, primarily in Brazil, consist of certificates of deposit that are recorded at fair value based upon quoted market prices. Changes in fair value are recognized in investment income, determined using the specific identification method, and were minimal. There were no gains from the sale of securities or proceeds from the sale of securities for the three and six months ended June 30, 2020 and 2019.

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 18), 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 subject to fair value measurement consist of the following:

	Cost Basis		Unrealized Gain / (Loss)		Fair Value
As of June 30, 2020
Short-term investments
Certificates of deposit	$	9.0	$	—	$	9.0
Long-term investments
Assets held in a rabbi trust	$	5.2	$	0.5	$	5.7
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

Securities and other investments also includes a cash surrender value of insurance contracts of $11.7 and $15.2 as of June 30, 2020 and December 31, 2019, respectively. The decrease is primarily due to death benefits paid. During the second quarter of 2020, the Company created a plan to close and surrender several of its COLI plans. As a result, the Company received proceeds of $7.2 for the close of one plan and recorded this to Miscellaneous, net within Other Income (Expense) on the Condensed

Consolidated Statement of Operations during the three months ended June 30, 2020. The Company expects to close the remaining plans during the third quarter of 2020.

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 48.1 percent of Inspur (Suzhou) Financial Technology Service Co. Ltd. (Inspur JV), which increased from 40.0 percent as a result of the divestiture of the Company's operations in China (refer to note 15). Additionally, the Company owns 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 accounting. As of June 30, 2020, the Company had accounts receivable and accounts payable balances with these strategic alliances of $13.7 and $40.9, respectively, which are included in trade receivables, less allowances for doubtful accounts and accounts payable on the condensed consolidated balance sheets. 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.

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 the components of finance lease receivables as of June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Gross minimum lease receivables	$	41.2	$	41.8
Allowance for credit losses	(0.3)		(0.3)
Estimated unguaranteed residual values	0.2		0.2
	41.1		41.7
Less:
Unearned interest income	(1.7)		(2.8)
Total	$	39.4	$	38.9

Future minimum payments due from customers under finance lease receivables as of June 30, 2020 are as follows:

2020	12.7
2021	8.4
2022	7.1
2023	5.3
2024	4.7
Thereafter	3.0
	$	41.2

There were no significant changes in provision for credit losses, recoveries and write-offs during the six months ended June 30, 2020 and 2019. As of June 30, 2020, finance leases and notes receivable individually evaluated for impairment were $39.7 and $4.6, respectively, with no provision recorded. As of June 30, 2019, finance leases and notes receivable individually evaluated for impairment were $36.3 and $4.9, respectively. There have been no material changes to the maturities on the finance lease receivables since December 31, 2019. The income related to the finance lease receivables was minimal for the three and six months ended June 30, 2020.

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. 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.

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended actions for containment and mitigation. The Company continues to actively monitor the impact of the COVID-19 pandemic, which will likely impact the global economy including our business and results of operations for the rest of 2020. The extent of the COVID-19 impact to our operations will depend largely on future developments, along with any new information that may emerge regarding the severity of the pandemic and the actions taken by government authorities to mitigate the spread of the virus, among other factors, all of which are highly uncertain and cannot be accurately predicted.

As a result of the disruption and uncertainty related to the COVID-19 pandemic, the Company continues to assess the impacts on its investments and credit losses.