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Finance and Other Receivables (Tables)

9 Months Ended

Sep. 30, 2013

Finance and other receivables include the following:


	September 30			December 31
	2013			2012
Loans	$	3,838.1		$	3,738.2
Direct financing leases		2,621.4			2,489.3
Sales-type finance leases		875.6			916.8
Dealer wholesale financing		1,736.2			1,541.0
Operating lease and other trade receivables		118.9			112.0
Unearned interest on finance leases		(363.6	)		(369.0	)

	$	8,826.6		$	8,428.3
Less allowance for losses:
Loans and leases		(112.1	)		(112.6	)
Dealer wholesale financing		(10.9	)		(11.8	)
Operating lease and other trade receivables		(8.7	)		(5.6	)

	$	8,694.9		$	8,298.3

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:


	2013
	Dealer						Customer Retail
	Wholesale			Retail			Customer Retail			Other*			Total
Balance at January 1	$	11.8		$	13.4		$	99.2		$	5.6		$	130.0
Provision for losses		(.7	)		(.7	)		11.2			5.6			15.4
Charge-offs		(.2	)					(11.1	)		(6.7	)		(18.0	)
Recoveries								4.2			1.0			5.2
Currency translation and other					(.1	)		(4.0	)		3.2			(.9	)

Balance at September 30	$	10.9		$	12.6		$	99.5		$	8.7		$	131.7


	2012
	Dealer						Customer Retail
	Wholesale			Retail			Customer Retail			Other*			Total
Balance at January 1	$	11.7		$	11.9		$	106.6		$	8.8		$	139.0
Provision for losses		2.3			1.2			9.3			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	)		.1			4.0			(.6	)		1.8

Balance at September 30	$	12.4		$	13.2		$	107.4		$	6.1		$	139.1

*	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:

Dealer

Customer
Retail

At September 30, 2013

Wholesale

Retail

Total

Recorded investment for impaired finance receivables evaluated individually

9.1

49.4

58.5

Allowance for impaired finance receivables determined individually

1.5

7.6

9.1

Recorded investment for finance receivables evaluated collectively

1,727.1

1,403.3

5,518.8

8,649.2

Allowance for finance receivables determined collectively

9.4

12.6

91.9

113.9

Dealer

Customer
Retail

At December 31, 2012

Wholesale

Retail

Total

Recorded investment for impaired finance receivables evaluated individually

3.6

67.4

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

1,429.6

5,278.2

8,245.2

Allowance for finance receivables determined collectively

9.6

13.4

88.4

111.4

Recorded Investment for Finance Receivables that are on Non-accrual Status

The recorded investment for finance receivables that are on non-accrual status is as follows:


	September 30		December 31
	2013		2012
Dealer:
Wholesale	$	9.1	$	3.1
Retail				.1
Customer Retail:
Fleet		36.7		42.8
Owner/Operator		9.5		11.7

	$	55.3	$	57.7

Summary of Impaired Loans and Specific Reserve

The recorded investment of impaired loans as of September 30, 2013 and December 31, 2012 was not significantly different than the unpaid principal balance.

Dealer

Customer Retail

At September 30, 2013

Wholesale

Retail

Fleet

Owner/
Operator

Total

Impaired loans with a specific reserve

9.1

20.9

4.2

34.2

Associated allowance

(1.5

)

(2.9

)

(.8

)

(5.2

)

Net carrying amount of impaired loans

7.6

18.0

3.4

29.0

Average recorded investment*

4.8

31.4

6.0

42.2

* Represents the average during the 12 months ended September 30, 2013.


	Dealer				Customer Retail
At December 31, 2012	Wholesale			Retail	Fleet			Owner/ Operator			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*	$	12.7			$	32.7		$	10.2		$	55.6

* Represents the average during the 12 months ended September 30, 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				Nine Months Ended
	September 30				September 30
	2013		2012		2013		2012
Interest income recognized:
Dealer wholesale					$	.1	$	.1
Customer retail - fleet	$	.5	$	.2		1.8		.9
Customer retail - owner/operator				.2		.4		.6

	$	.5	$	.4	$	2.3	$	1.6

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.

Dealer

Customer Retail

At September 30, 2013

Wholesale

Retail

Fleet

Owner/
Operator

Total

Performing

1,681.4

1,396.3

4,235.2

1,256.7

8,569.6

Watch

45.7

7.0

20.0

6.9

79.6

At-risk

9.1

39.4

10.0

58.5

1,736.2

1,403.3

4,294.6

1,273.6

8,707.7


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

	$	1,541.0	$	1,429.7	$	3,956.6	$	1,389.0	$	8,316.3

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

At September 30, 2013

Wholesale

Retail

Fleet

Owner/
Operator

Total

Current and up to 30 days past due

1,727.8

1,403.3

4,259.3

1,259.2

8,649.6

31 – 60 days past due

1.8

20.9

5.6

28.3

Greater than 60 days past due

6.6

14.4

8.8

29.8

1,736.2

1,403.3

4,294.6

1,273.6

8,707.7


	Dealer				Customer Retail
At December 31, 2012	Wholesale		Retail		Fleet		Owner/ Operator		Total
Current and up to 30 days past due	$	1,537.0	$	1,429.7	$	3,934.8	$	1,369.0	$	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	$	1,429.7	$	3,956.6	$	1,389.0	$	8,316.3

Pre- and Post-Modification Recorded Investment Balances for Finance Receivables Modified by Portfolio Class

At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2013				September 30, 2013
	Recorded Investment				Recorded Investment
	Pre-Modification		Post-Modification		Pre-Modification		Post-Modification
Fleet	$	1.5	$	1.3	$	9.2	$	8.9
Owner / Operator		.7		.7		1.4		1.4

	$	2.2	$	2.0	$	10.6	$	10.3


	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

TDRs Modified During Previous Twelve Months that Subsequently Defaulted

TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past-due) during the period by portfolio class are as follows:


	Nine Months Ended
	September 30
	2013		2012
Fleet	$	2.5	$	7.7
Owner / Operator		.2		.5

	$	2.7	$	8.2