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Finance and Other Receivables (Tables)
 9 Months Ended
Sep. 30, 2012
Finance and Other Receivables

Finance and other receivables include the following:

 

     September 30
2012		     December 31
2011		  

Loans

    $ 3,554.8      $ 3,114.8   

Retail direct financing leases

      2,401.7        2,187.8   

Sales-type finance leases

      857.9        795.8   

Dealer wholesale financing

      1,702.4        1,517.1   

Accrued rents and other trade receivables

      111.5        111.0   

Unearned interest on finance leases

      (356.2 )      (327.8 ) 
  

 

 

    

 

 

  
     8,272.1        7,398.7   

Less allowance for losses:

     

Loans and leases

      (120.6 )      (118.5 ) 

Dealer wholesale financing

      (12.4 )      (11.7 ) 

Accrued rents and other trade receivables

      (6.1 )      (8.8 ) 
  

 

 

    

 

 

  
   $ 8,133.0      $ 7,259.7   
  

 

 

    

 

 

  
Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

 

     2012  
     WHOLESALE     RETAIL     OTHER*     TOTAL  

Balance at January 1

    $ 11.7      $ 118.5      $ 8.8      $ 139.0   

Provision for losses

      2.3        10.5        2.4        15.2   

Charge-offs

        (17.1 )      (4.8 )      (21.9 ) 

Recoveries

      .1        4.6        .3        5.0   

Currency translation and other

      (1.7 )      4.1        (.6 )      1.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at September 30

    $ 12.4      $ 120.6      $ 6.1      $ 139.1   
  

 

 

    

 

 

    

 

 

    

 

 

  
     2011  
     WHOLESALE     RETAIL     OTHER*     TOTAL  

Balance at January 1

    $ 7.5      $ 131.5      $ 6.0      $ 145.0   

Provision for losses

      4.4        17.1        10.7        32.2   

Charge-offs

      (1.0 )      (29.6 )      (8.7 )      (39.3 ) 

Recoveries

        7.0        .8        7.8   

Currency translation

      (.1 )      (2.9 )      .7        (2.3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at September 30

    $ 10.8      $ 123.1      $ 9.5      $ 143.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

* Accrued rents and other trade receivables.
Finance Receivables Summary by those Evaluated Collectively and Individually

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

 

At September 30, 2012

    WHOLESALE      RETAIL      TOTAL  

Recorded investment for impaired finance receivables evaluated individually

    $ 3.3       $ 82.9       $ 86.2   

Allowance for impaired finance receivables determined individually

    $ 2.2       $ 19.3       $ 21.5   

Recorded investment for finance receivables evaluated collectively

    $ 1,699.1       $ 6,375.3       $ 8,074.4   

Allowance for finance receivables determined collectively

    $ 10.2       $ 101.3       $ 111.5   
  

 

 

     

 

 

     

 

 

  

At December 31, 2011

    WHOLESALE      RETAIL      TOTAL  

Recorded investment for impaired finance receivables evaluated individually

    $ 18.4       $ 96.0       $ 114.4   

Allowance for impaired 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       $ 92.8       $ 102.3   
  

 

 

     

 

 

     

 

 

  
Summary of Impaired Loans and Specific Reserve

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

 

At September 30, 2012

    WHOLESALE     FLEET     OWNER /
OPERATOR		     TOTAL  

Impaired loans with specific reserve

    $ 3.3      $ 42.4      $ 8.3      $ 54.0   

Associated allowance

      (2.2 )      (8.5 )      (1.7 )      (12.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net carrying amount of impaired loans

    $ 1.1      $ 33.9      $ 6.6      $ 41.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Average recorded investment*

    $ 12.9      $ 23.6      $ 10.2      $ 46.7   

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   
  

 

 

    

 

 

    

 

 

    

 

 

  

Average recorded investment*

    $ 11.7      $ 30.9      $ 15.1      $ 57.7   

 

* Represents the average during the 12 months ended September 30, 2012 and 2011.
Finance Receivables by Credit Quality Indicator and Portfolio Class

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

 

At September 30, 2012

    WHOLESALE      FLEET      OWNER /
OPERATOR		      TOTAL  

Performing

    $ 1,663.8       $ 4,984.4       $ 1,355.9       $ 8,004.1   

Watch

      35.3         21.9         13.1         70.3   

At-risk

      3.3         68.8         14.1         86.2   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,702.4       $ 5,075.1       $ 1,383.1       $ 8,160.6   
  

 

 

     

 

 

     

 

 

     

 

 

  

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 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.

 

At September 30, 2012

    WHOLESALE      FLEET      OWNER /
OPERATOR		      TOTAL  

Current and up to 30 days past due

    $ 1,697.3       $ 5,037.5       $ 1,359.4       $ 8,094.2   

31 – 60 days past due

      1.3         7.2         10.7         19.2   

Greater than 60 days past due

      3.8         30.4         13.0         47.2   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,702.4       $ 5,075.1       $ 1,383.1       $ 8,160.6   
  

 

 

     

 

 

     

 

 

     

 

 

  

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      Nine Months Ended  
     September 30, 2012      September 30, 2012  
     Recorded Investment      Recorded Investment  
     Pre-
Modification		      Post-
Modification		      Pre-
Modification		      Post-
Modification		  

Fleet

    $ 14.7       $ 13.9       $ 45.3       $ 43.8   

Owner / Operator

      .6         .6         2.1         2.1   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 15.3       $ 14.5       $ 47.4       $ 45.9   
  

 

 

     

 

 

     

 

 

     

 

 

  
     Three Months Ended      Nine Months Ended  
     September 30, 2011      September 30, 2011  
     Recorded Investment      Recorded Investment  
     Pre-
Modification		      Post-
Modification		      Pre-
Modification		      Post-
Modification		  

Fleet

    $ 3.4       $ 3.4       $ 24.5       $ 24.3   

Owner / Operator

      .7         .7         5.2         5.2   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $   4.1       $   4.1       $ 29.7       $ 29.5   
  

 

 

     

 

 

     

 

 

     

 

 

  
Cash basis method
  
Summary of Impaired Loans and Specific Reserve

During the period the loans above were considered impaired, all interest income recognized was recorded on a cash basis:

 

     Three Months Ended
September 30		      Nine Months Ended
September 30		  
     2012      2011      2012      2011  

Interest income recognized:

            

Wholesale

          $ .1       $ .3   

Fleet

    $ .2       $ .3         .9         1.2   

Owner / Operator

      .2         .2         .6         .7   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ .4       $ .5       $ 1.6       $ 2.2