FINANCE LEASE RECEIVABLES

12 Months Ended

Dec. 31, 2023

Under certain circumstances, the Company provides financing arrangements to customers that are largely classified and accounted for as sales-type leases. 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.

Future minimum payments due from customers under finance lease receivables as of December 31, 2023 are as follows:


2024	$	7.9
2025	4.6
2026	4.1
2027	3.1
2028	2.8
Thereafter	1.9
	$	24.4

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


	Successor		Predecessor
	2023		2022
Gross minimum lease receivable	$	24.4	$	28.1
Allowance for credit losses	(0.2)		(0.2)
Estimated unguaranteed residual values	—		0.1
	24.2		28.0
Less:
Unearned interest income	(0.9)		(1.5)
Unearned residuals	—		—
	(0.9)		(1.5)
Total	$	23.3	$	26.5

The Company's combined allowance for finance receivables and notes receivables was minimal for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, finance leases and notes receivables individually evaluated for impairment were $23.5 and $0.5, respectively, with no provision recorded. As of December 31, 2022, finance leases and notes receivables individually evaluated for impairment were $26.7 and $0.5, respectively, with no provision recorded. As of December 31, 2023 and 2022, 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 presents finance lease receivables sold by the Company for the years ended December 31:


	Successor		Predecessor
	2023		2022		2021
Finance lease receivables sold	$	—	$	1.6	$	1.9