Finance and Other Receivables (Tables)

3 Months Ended

Mar. 31, 2012

Finance and Other Receivables

Finance and other receivables include the following:

	March 31 2012			December 31 2011
Loans	$	3,233.0		$	3,114.8
Retail direct financing leases		2,270.2			2,187.8
Sales-type finance leases		796.4			795.8
Dealer wholesale financing		1,805.9			1,517.1
Interest and other receivables		109.5			111.0
Unearned interest on finance leases		(339.1	)		(327.8	)
		7,875.9			7,398.7
Less allowance for losses:
Loans, leases and other		(126.7	)		(127.3	)
Dealer wholesale financing		(14.6	)		(11.7	)
	$	7,734.6		$	7,259.7

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2012
	WHOLESALE		RETAIL			TOTAL
Balance at January 1	$	11.7	$	127.3		$	139.0
Provision for losses		2.7		4.8			7.5
Charge-offs				(8.8	)		(8.8	)
Recoveries				1.4			1.4
Currency translation		.2		2.0			2.2
Balance at March 31	$	14.6	$	126.7		$	141.3

	2011
	WHOLESALE			RETAIL			TOTAL
Balance at January 1	$	7.5		$	137.5		$	145.0
Provision for losses		.5			10.0			10.5
Charge-offs		(.5	)		(10.3	)		(10.8	)
Recoveries					1.5			1.5
Currency translation		.2			2.6			2.8
Balance at March 31	$	7.7		$	141.3		$	149.0

Finance Receivables Summary by those Evaluated Collectively and Individually

Information regarding finance receivables evaluated and determined individually and collectively is as follows:

At March 31, 2012	WHOLESALE		RETAIL		TOTAL
Recorded investment for impaired finance receivables evaluated individually	$	18.1	$	89.9	$	108.0
Allowance for impaired finance receivables determined individually	$	2.8	$	23.1	$	25.9
Recorded investment for finance receivables evaluated collectively	$	1,787.8	$	5,870.6	$	7,658.4
Allowance for finance receivables determined collectively	$	11.8	$	103.6	$	115.4
At December 31, 2011	WHOLESALE		RETAIL		TOTAL
Recorded investment for impaired finance receivables evaluated individually	$	18.4	$	96.0	$	114.4
Allowance for finance receivables determined individually	$	2.2	$	25.7	$	27.9
Recorded investment for finance receivables evaluated collectively	$	1,498.7	$	5,674.6	$	7,173.3
Allowance for finance receivables determined collectively	$	9.5	$	101.6	$	111.1

Summary of Impaired Loans and Specific Reserve

All impaired loans have a specific reserve and are summarized below. The impaired loans with specific reserve represent the unpaid principal loan balance.

At March 31, 2012	WHOLESALE			FLEET			OWNER / OPERATOR			TOTAL
Impaired loans with specific reserve	$	18.1		$	26.9		$	9.7		$	54.7
Associated allowance		(2.8	)		(6.0	)		(2.0	)		(10.8	)
Net carrying amount of impaired loans	$	15.3		$	20.9		$	7.7		$	43.9
At December 31, 2011	WHOLESALE			FLEET			OWNER / OPERATOR			TOTAL
Impaired loans with specific reserve	$	18.4		$	27.9		$	11.5		$	57.8
Associated allowance		(2.2	)		(6.0	)		(2.6	)		(10.8	)
Net carrying amount of impaired loans	$	16.2		$	21.9		$	8.9		$	47.0
Three Months Ended March 31, 2012	WHOLESALE			FLEET			OWNER / OPERATOR			TOTAL
Average recorded investment*	$	17.9		$	31.9		$	11.4		$	61.2
Interest income recognized on a cash basis**				$	.4		$	.3		$	.7
Three Months Ended March 31, 2011	WHOLESALE			FLEET			OWNER / OPERATOR			TOTAL
Average recorded investment*	$	5.7		$	36.9		$	22.7		$	65.3
Interest income recognized on a cash basis**				$	.3		$	.1		$	.4

* Represents the average during the 12 months ended March 31, 2012 and 2011.

** Represents the amounts recognized during the three months ended March 31, 2012 and 2011. All interest income recognized during the period these loans were considered impaired was recorded on a cash basis.

Finance Receivables by Credit Quality Indicator and Portfolio Class

The table below summarizes the Company’s finance receivables by credit quality indicator and portfolio class.

At March 31, 2012	WHOLESALE		FLEET		OWNER / OPERATOR		TOTAL
Performing	$	1,744.1	$	4,459.3	$	1,369.2	$	7,572.6
Watch		43.7		28.8		13.3		85.8
At-risk		18.1		72.5		17.4		108.0
	$	1,805.9	$	4,560.6	$	1,399.9	$	7,766.4

At December 31, 2011	WHOLESALE		FLEET		OWNER / OPERATOR		TOTAL
Performing	$	1,451.9	$	4,262.8	$	1,361.0	$	7,075.7
Watch		46.7		37.2		13.7		97.6
At-risk		18.4		76.5		19.5		114.4
	$	1,517.0	$	4,376.5	$	1,394.2	$	7,287.7

Financing Receivables by Aging Category

The table below summarizes 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. Customer accounts that were greater than 30 days past due prior to modification become current upon modification for aging purposes.

At March 31, 2012	WHOLESALE		FLEET		OWNER / OPERATOR		TOTAL
Current and up to 30 days past due	$	1,786.3	$	4,500.2	$	1,373.2	$	7,659.7
31 – 60 days past due		1.5		17.7		11.6		30.8
Greater than 60 days past due		18.1		42.7		15.1		75.9
	$	1,805.9	$	4,560.6	$	1,399.9	$	7,766.4
At December 31, 2011	WHOLESALE		FLEET		OWNER / OPERATOR		TOTAL
Current and up to 30 days past due	$	1,490.0	$	4,321.8	$	1,365.2	$	7,177.0
31 – 60 days past due		9.1		8.7		11.9		29.7
Greater than 60 days past due		17.9		46.0		17.1		81.0
	$	1,517.0	$	4,376.5	$	1,394.2	$	7,287.7

Pre- and Post-Modification Recorded Investment Balances by Portfolio Class

At modification date, the pre-modification and post-modification recorded investment balances by portfolio class are as follows:

Three Months Ended March 31, 2012	FLEET		OWNER / OPERATOR		TOTAL
Pre-Modification Recorded Investment	$	11.9	$	1.0	$	12.9
Post-Modification Recorded Investment	$	11.2	$	1.0	$	12.2