Finance and Other Receivables (Tables)

3 Months Ended

Mar. 31, 2013

Finance and Other Receivables

Finance and other receivables include the following:

	March 31 2013			December 31 2012
Loans	$	3,735.3		$	3,738.2
Retail direct financing leases		2,473.4			2,489.3
Sales-type finance leases		888.8			916.8
Dealer wholesale financing		1,526.0			1,541.0
Operating lease and other trade receivables		116.3			112.0
Unearned interest: Finance leases		(357.7	)		(369.0	)
		8,382.1			8,428.3
Less allowance for losses:
Loans and leases		(114.4	)		(112.6	)
Dealer wholesale financing		(11.8	)		(11.8	)
Operating lease and other trade receivables		(6.7	)		(5.6	)
	$	8,249.2		$	8,298.3

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2013
				Retail
	Wholesale			Customer			Dealer			Other*			Total
Balance at January 1	$	11.8		$	99.2		$	13.4		$	5.6		$	130.0
Provision for losses		.3			5.5			(.8	)		1.5			6.5
Charge-offs		(.1	)		(4.6	)					(.4	)		(5.1	)
Recoveries					1.4						.2			1.6
Currency translation and other		(.2	)		.4			(.1	)		(.2	)		(.1	)
Balance at March 31	$	11.8		$	101.9		$	12.5		$	6.7		$	132.9
	2012
				Retail
	Wholesale			Customer			Dealer			Other*			Total
Balance at January 1	$	11.7		$	106.5		$	12.0		$	8.8		$	139.0
Provision for losses		2.7			3.4			.1			1.3			7.5
Charge-offs					(6.7	)					(2.1	)		(8.8	)
Recoveries					1.3						.1			1.4
Currency translation and other		.2			2.0									2.2
Balance at March 31	$	14.6		$	106.5		$	12.1		$	8.1		$	141.3

* Operating lease 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:

			Retail
At March 31, 2013	Wholesale		Customer		Dealer		Total
Recorded investment for impaired finance receivables evaluated individually	$	3.7	$	68.3			$	72.0
Allowance for impaired finance receivables determined individually		2.2		12.6				14.8
Recorded investment for finance receivables evaluated collectively		1,522.3		5,283.5	$	1,388.0		8,193.8
Allowance for finance receivables determined collectively		9.6		89.3		12.5		111.4
			Retail
At December 31, 2012	Wholesale		Customer		Dealer		Total
Recorded investment for impaired finance receivables evaluated individually	$	3.6	$	67.4	$	.1	$	71.1
Allowance for impaired finance receivables determined individually		2.2		10.8				13.0
Recorded investment for finance receivables evaluated collectively		1,537.4		5,278.2		1,429.6		8,245.2
Allowance for finance receivables determined collectively		9.6		88.4		13.4		111.4

Summary of Impaired Loans and Specific Reserve

The impaired loans with specific reserve represent the unpaid principal balance.

				Retail Customer
At March 31, 2013	Wholesale			Fleet			Owner / Operator			Retail Dealer	Total
Impaired loans with a specific reserve	$	3.7		$	39.6		$	5.9			$	49.2
Associated allowance		(2.2	)		(8.4	)		(1.2	)			(11.8	)
Net carrying amount of impaired loans	$	1.5		$	31.2		$	4.7			$	37.4
Average recorded investment*	$	6.3		$	39.3		$	8.1			$	53.7

* Represents the average during the 12 months ended March 31, 2013.

				Retail Customer
At December 31, 2012	Wholesale			Fleet			Owner / Operator			Retail Dealer	Total
Impaired loans with a specific reserve	$	3.6		$	43.9		$	6.8			$	54.3
Associated allowance		(2.2	)		(7.3	)		(1.2	)			(10.7	)
Net carrying amount of impaired loans	$	1.4		$	36.6		$	5.6			$	43.6
Average recorded investment*	$	17.9		$	31.9		$	11.4			$	61.2

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

Summary of Interest Income Recognized on Cash Basis

During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows:

Three Months Ended March 31,	2013		2012
Interest income recognized:
Fleet	$	.4	$	.4
Owner/Operator		.2		.3
	$	.6	$	.7

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.

			Retail Customer
At March 31, 2013	Wholesale		Fleet		Owner / Operator		Retail Dealer		Total
Performing	$	1,467.4	$	3,921.8	$	1,317.7	$	1,382.6	$	8,089.5
Watch		54.9		31.5		12.5		5.4		104.3
At-risk		3.7		56.2		12.1				72.0
	$	1,526.0	$	4,009.5	$	1,342.3	$	1,388.0	$	8,265.8

			Retail Customer
At December 31, 2012	Wholesale		Fleet		Owner / Operator		Retail Dealer		Total
Performing	$	1,479.1	$	3,878.4	$	1,365.6	$	1,423.3	$	8,146.4
Watch		58.3		23.5		10.7		6.3		98.8
At-risk		3.6		54.7		12.7		.1		71.1
	$	1,541.0	$	3,956.6	$	1,389.0	$	1,429.7	$	8,316.3

Financing Receivables by Aging Category

Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

			Retail Customer
At March 31, 2013	Wholesale		Fleet		Owner / Operator		Retail Dealer		Total
Current and up to 30 days past due	$	1,520.2	$	3,980.8	$	1,321.1	$	1,388.0	$	8,210.1
31 – 60 days past due		1.9		11.8		9.3				23.0
Greater than 60 days past due		3.9		16.9		11.9				32.7
	$	1,526.0	$	4,009.5	$	1,342.3	$	1,388.0	$	8,265.8
			Retail Customer
At December 31, 2012	Wholesale		Fleet		Owner / Operator		Retail Dealer		Total
Current and up to 30 days past due	$	1,537.0	$	3,934.8	$	1,369.0	$	1,429.7	$	8,270.5
31 – 60 days past due		.5		9.4		7.9				17.8
Greater than 60 days past due		3.5		12.4		12.1				28.0
	$	1,541.0	$	3,956.6	$	1,389.0	$	1,429.7	$	8,316.3

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,	2013				2012
	Recorded Investment				Recorded Investment
	Pre-Modification		Post-Modification		Pre-Modification		Post-Modification
Fleet	$	4.2	$	4.1	$	11.9	$	11.2
Owner / Operator		.5		.5		1.0		1.0
	$	4.7	$	4.6	$	12.9	$	12.2