Finance and Other Receivables (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

	March 31 2016			December 31 2015
Loans	$	3,982.6		$	4,011.7
Direct financing leases		2,787.5			2,719.5
Sales-type finance leases		928.2			969.8
Dealer wholesale financing		1,912.0			1,950.1
Operating lease receivables and other		144.0			131.9
Unearned interest: Finance leases		(359.6	)		(364.6	)
	$	9,394.7		$	9,418.4
Less allowance for losses:
Loans and leases		(98.4	)		(99.2	)
Dealer wholesale financing		(7.1	)		(7.3	)
Operating lease receivables and other		(9.4	)		(8.3	)
	$	9,279.8		$	9,303.6

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2016
	Dealer						Customer
	Wholesale			Retail			Retail			Other*			Total
Balance at January 1	$	7.3		$	10.3		$	88.9		$	8.3		$	114.8
Provision for losses		(.5	)		(.5	)		3.2			1.2			3.4
Charge-offs								(5.4	)		(.5	)		(5.9	)
Recoveries		.1						.6						.7
Currency translation and other		.2			.1			1.2			.4			1.9
Balance at March 31	$	7.1		$	9.9		$	88.5		$	9.4		$	114.9
	2015
	Dealer						Customer
	Wholesale			Retail			Retail			Other*			Total
Balance at January 1	$	9.0		$	11.9		$	93.6		$	7.5		$	122.0
Provision for losses		.3			(.2	)		1.9			.7			2.7
Charge-offs								(2.5	)		(.5	)		(3.0	)
Recoveries								.8			.1			.9
Currency translation and other		(.5	)		(.2	)		(4.7	)		.6			(4.8	)
Balance at March 31	$	8.8		$	11.5		$	89.1		$	8.4		$	117.8

* Operating leases and other trade receivables.

Finance Receivable Evaluated and Determined Individually and Collectively

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

	Dealer				Customer
At March 31, 2016	Wholesale		Retail		Retail		Total
Recorded investment for impaired finance receivables evaluated individually	$	4.6			$	63.9	$	68.5
Allowance for impaired finance receivables determined individually		.3				4.7		5.0
Recorded investment for finance receivables evaluated collectively		1,907.4	$	1,493.2		5,781.6		9,182.2
Allowance for finance receivables determined collectively		6.8		9.9		83.8		100.5
	Dealer				Customer
At December 31, 2015	Wholesale		Retail		Retail		Total
Recorded investment for impaired finance receivables evaluated individually	$	5.0			$	64.0	$	69.0
Allowance for impaired finance receivables determined individually		.3				6.5		6.8
Recorded investment for finance receivables evaluated collectively		1,945.1	$	1,561.3		5,711.1		9,217.5
Allowance for finance receivables determined collectively		7.0		10.3		82.4		99.7

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:

	March 31 2016		December 31 2015
Dealer:
Wholesale	$	4.6	$	5.0
Customer retail:
Fleet		53.7		50.7
Owner/operator		10.2		10.0
	$	68.5	$	65.7

Impaired Loans and Specific Reserve

The recorded investment of impaired loans as of March 31, 2016 and December 31, 2015 was not significantly different than the unpaid principal balance.

	Dealer				Customer Retail
At March 31, 2016	Wholesale			Retail	Fleet			Owner/ Operator			Total
Impaired loans with a specific reserve	$	4.6			$	21.9		$	2.7		$	29.2
Associated allowance		(.3	)			(2.0	)		(.5	)		(2.8	)
	$	4.3			$	19.9		$	2.2		$	26.4
Impaired loans with no specific reserve						5.8			.2			6.0
Net carrying amount of impaired loans	$	4.3			$	25.7		$	2.4		$	32.4
Average recorded investment*	$	4.4			$	27.2		$	2.4		$	34.0
*  Represents the average during the 12 months ended March 31, 2016.
	Dealer				Customer Retail
At December 31, 2015	Wholesale			Retail	Fleet			Owner/ Operator			Total
Impaired loans with a specific reserve	$	5.0			$	21.7		$	2.4		$	29.1
Associated allowance		(.3	)			(3.5	)		(.5	)		(4.3	)
	$	4.7			$	18.2		$	1.9		$	24.8
Impaired loans with no specific reserve						6.5			.3			6.8
Net carrying amount of impaired loans	$	4.7			$	24.7		$	2.2		$	31.6
Average recorded investment*	$	7.7			$	23.2		$	2.6		$	33.5

* Represents the average during the 12 months ended March 31, 2015.

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,	2016		2015
Interest income recognized:
Dealer wholesale
Customer retail - fleet	$	.3	$	.3
Customer retail - owner/operator		.1		.1
	$	.4	$	.4

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 March 31, 2016	Wholesale		Retail		Fleet		Owner/ Operator		Total
Performing	$	1,892.0	$	1,493.2	$	4,774.7	$	973.5	$	9,133.4
Watch		15.4				25.1		8.3		48.8
At-risk		4.6				53.6		10.3		68.5
	$	1,912.0	$	1,493.2	$	4,853.4	$	992.1	$	9,250.7
	Dealer				Customer Retail
At December 31, 2015	Wholesale		Retail		Fleet		Owner/ Operator		Total
Performing	$	1,922.4	$	1,561.3	$	4,680.6	$	996.6	$	9,160.9
Watch		22.7				27.0		6.9		56.6
At-risk		5.0				53.8		10.2		69.0
	$	1,950.1	$	1,561.3	$	4,761.4	$	1,013.7	$	9,286.5

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 March 31, 2016	Wholesale		Retail		Fleet		Owner/ Operator		Total
Current and up to 30 days past due	$	1,911.3	$	1,493.2	$	4,827.1	$	979.7	$	9,211.3
31 – 60 days past due		.4				10.8		5.8		17.0
Greater than 60 days past due		.3				15.5		6.6		22.4
	$	1,912.0	$	1,493.2	$	4,853.4	$	992.1	$	9,250.7
	Dealer				Customer Retail
At December 31, 2015	Wholesale		Retail		Fleet		Owner/ Operator		Total
Current and up to 30 days past due	$	1,949.8	$	1,561.3	$	4,733.6	$	1,002.7	$	9,247.4
31 – 60 days past due						8.3		5.4		13.7
Greater than 60 days past due		.3				19.5		5.6		25.4
	$	1,950.1	$	1,561.3	$	4,761.4	$	1,013.7	$	9,286.5

Pre- and Post-Modification Recorded Investment Balances 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 March 31,	2016				2015
	Recorded Investment				Recorded Investment
	Pre-Modification		Post-Modification		Pre-Modification		Post-Modification
Fleet	$	7.6	$	7.5	$	3.9	$	3.8
Owner/operator		1.9		1.9		.9		.9
	$	9.5	$	9.4	$	4.8	$	4.7

TDRs Modified that Subsequently Defaulted (i.e., Became More than 30 Days Past-Due) by Portfolio Class

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:

Three Months Ended March 31,	2016		2015
Fleet			$	2.0
Owner/operator	$	.2		.4
	$	.2	$	2.4