Finance and Other Receivables (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2023			2022
Loans	$	8,022.1		$	7,229.1
Finance leases		4,428.6			3,786.4
Dealer wholesale financing		3,783.2			2,772.1
Operating lease receivables and other		151.3			125.4
		16,385.2			13,913.0
Less allowance for losses:
Loans and leases		(119.6	)		(114.8	)
Dealer wholesale financing		(2.6	)		(3.4	)
Operating lease receivables and other		(2.6	)		(2.9	)
	$	16,260.4		$	13,791.9

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2023
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.4		$	2.2		$	112.6		$	2.9		$	121.1
Provision for losses		(.8	)		(.8	)		16.3			(.6	)		14.1
Charge-offs								(16.0	)		(1.2	)		(17.2	)
Recoveries								4.3			1.3			5.6
Currency translation and other								1.0			.2			1.2
Balance at September 30	$	2.6		$	1.4		$	118.2		$	2.6		$	124.8

	2022
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.3		$	7.1		$	104.4		$	2.1		$	116.9
Provision for losses		.4			(3.3	)		8.1			(1.4	)		3.8
Charge-offs								(6.3	)		(.1	)		(6.4	)
Recoveries		.1						5.2			1.8			7.1
Currency translation and other		(.3	)					(3.9	)		.7			(3.5	)
Balance at September 30	$	3.5		$	3.8		$	107.5		$	3.1		$	117.9

* Operating leases and other trade receivables.

Amortized Cost Basis of Finance Receivables and Charge-offs by Credit Quality Indicator and Portfolio Class

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class.

	REVOLVING
At September 30, 2023	LOANS		2023		2022		2021		2020		2019		PRIOR		TOTAL
Amortized cost:
Dealer:
Wholesale:
Performing	$	3,782.1													$	3,782.1
Watch		1.1														1.1
	$	3,783.2													$	3,783.2
Retail:
Performing	$	164.3	$	556.1	$	542.8	$	315.3	$	177.2	$	182.7	$	152.5	$	2,090.9
	$	164.3	$	556.1	$	542.8	$	315.3	$	177.2	$	182.7	$	152.5	$	2,090.9
Total dealer	$	3,947.5	$	556.1	$	542.8	$	315.3	$	177.2	$	182.7	$	152.5	$	5,874.1
Customer retail:
Fleet:
Performing			$	3,460.9	$	2,866.1	$	1,455.3	$	836.6	$	294.9	$	91.8	$	9,005.6
Watch				34.4		14.9		2.6		1.0		1.1		.9		54.9
At-risk				8.6		23.2		11.5		6.0		11.6		.3		61.2
			$	3,503.9	$	2,904.2	$	1,469.4	$	843.6	$	307.6	$	93.0	$	9,121.7
Owner/operator:
Performing			$	325.4	$	357.4	$	293.9	$	167.2	$	66.6	$	15.1	$	1,225.6
Watch				.3		2.1		1.8		1.1		.1		.2		5.6
At-risk				.1		1.5		2.2		2.1		.7		.3		6.9
			$	325.8	$	361.0	$	297.9	$	170.4	$	67.4	$	15.6	$	1,238.1
Total customer retail			$	3,829.7	$	3,265.2	$	1,767.3	$	1,014.0	$	375.0	$	108.6	$	10,359.8
Total	$	3,947.5	$	4,385.8	$	3,808.0	$	2,082.6	$	1,191.2	$	557.7	$	261.1	$	16,233.9

	REVOLVING
At September 30, 2023	LOANS	2023		2022		2021		2020		2019		PRIOR		TOTAL
Gross charge-offs:
Customer retail:
Fleet				$	4.4	$	4.4	$	3.6	$	.4	$	.4	$	13.2
Owner/operator		$	.2		1.0		1.0		.3				.3		2.8
Total		$	.2	$	5.4	$	5.4	$	3.9	$	.4	$	.7	$	16.0

	REVOLVING
At December 31, 2022	LOANS		2022		2021		2020		2019		2018		PRIOR		TOTAL
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,766.0													$	2,766.0
Watch		6.1														6.1
	$	2,772.1													$	2,772.1
Retail:
Performing	$	206.2	$	609.7	$	348.6	$	223.1	$	241.7	$	120.8	$	121.1	$	1,871.2
At-risk														.7		.7
	$	206.2	$	609.7	$	348.6	$	223.1	$	241.7	$	120.8	$	121.8	$	1,871.9
Total dealer	$	2,978.3	$	609.7	$	348.6	$	223.1	$	241.7	$	120.8	$	121.8	$	4,644.0
Customer retail:
Fleet:
Performing			$	3,558.0	$	1,981.9	$	1,306.5	$	603.7	$	203.4	$	65.6	$	7,719.1
Watch				7.5		7.3		1.8		3.4		2.4		.5		22.9
At-risk				6.7		17.7		18.8		17.2		5.9		.5		66.8
			$	3,572.2	$	2,006.9	$	1,327.1	$	624.3	$	211.7	$	66.6	$	7,808.8
Owner/operator:
Performing			$	478.2	$	425.9	$	251.2	$	120.9	$	45.3	$	6.0	$	1,327.5
Watch				1.8		.9		.4		.3				.1		3.5
At-risk				.4		.8		1.1		.8		.7				3.8
			$	480.4	$	427.6	$	252.7	$	122.0	$	46.0	$	6.1	$	1,334.8
Total customer retail			$	4,052.6	$	2,434.5	$	1,579.8	$	746.3	$	257.7	$	72.7	$	9,143.6
Total	$	2,978.3	$	4,662.3	$	2,783.1	$	1,802.9	$	988.0	$	378.5	$	194.5	$	13,787.6

Financing Receivables by Aging Category

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

	DEALER				CUSTOMER RETAIL
							OWNER/
At September 30, 2023	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	3,783.2	$	2,090.9	$	9,034.9	$	1,228.3	$	16,137.3
31 – 60 days past due						46.1		4.8		50.9
Greater than 60 days past due						40.7		5.0		45.7
	$	3,783.2	$	2,090.9	$	9,121.7	$	1,238.1	$	16,233.9

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2022	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,772.1	$	1,871.9	$	7,768.5	$	1,329.1	$	13,741.6
31 – 60 days past due						14.7		3.1		17.8
Greater than 60 days past due						25.6		2.6		28.2
	$	2,772.1	$	1,871.9	$	7,808.8	$	1,334.8	$	13,787.6

Summary of Amortized Cost Basis of Finance Receivables that are on Non-Accrual Status

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	DEALER		CUSTOMER RETAIL
					OWNER/
At September 30, 2023	WHOLESALE	RETAIL	FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve			$	27.9	$	6.2	$	34.1
Amortized cost basis with no specific reserve				26.7		.5		27.2
Total			$	54.6	$	6.7	$	61.3

	DEALER			CUSTOMER RETAIL
						OWNER/
At December 31, 2022	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	33.9	$	3.6	$	37.5
Amortized cost basis with no specific reserve		$	.7		16.2				16.9
Total		$	.7	$	50.1	$	3.6	$	54.4

Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-Accrual Status

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2023		2022		2023		2022
Interest income recognized:
Dealer:
Retail							$	.1
Customer retail:
Fleet	$	.4	$	.6	$	1.0		2.0
Owner/operator		.1		.1		.2		.2
	$	.5	$	.7	$	1.2	$	2.3

Pre- and Post-Modification Amortized Cost Basis Balances by Portfolio Class

The balance of TDRs was $31.1 and $34.2 at December 31, 2022 and September 30, 2022, respectively. At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class were as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2022				September 30, 2022
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.6	$	1.6	$	9.7	$	9.7