Finance and Other Receivables (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2019			2018
Loans	$	5,021.1		$	4,630.5
Finance leases		3,795.0			3,807.2
Dealer wholesale financing		2,813.5			2,342.3
Operating lease receivables and other		157.0			174.6
		11,786.6			10,954.6
Less allowance for losses:
Loans and leases		(105.0	)		(103.8	)
Dealer wholesale financing		(6.4	)		(6.8	)
Operating lease receivables and other		(3.5	)		(3.2	)
	$	11,671.7		$	10,840.8

Annual Minimum Payments Due on Finance Lease Receivables and a Reconciliation of the Undiscounted Cash Flows to the Net Investment in Finance Leases

Annual minimum payments due on finance lease receivables and a reconciliation of the undiscounted cash flows to the net investment in finance leases are as follows:

	FINANCE
At September 30, 2019	LEASES
Remainder of 2019	$	463.4
2020		1,189.3
2021		935.3
2022		648.4
2023		404.3
Thereafter		244.1
		3,884.8
Unguaranteed residual values		311.0
Unearned interest on finance leases		(400.8	)
Net investment in finance leases	$	3,795.0

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2019
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	6.8		$	10.0		$	93.8		$	3.2		$	113.8
Provision for losses					(.9	)		9.7			3.0			11.8
Charge-offs		(.2	)					(15.6	)		(2.7	)		(18.5	)
Recoveries								8.8			.1			8.9
Currency translation and other		(.2	)		.2			(1.0	)		(.1	)		(1.1	)
Balance at September 30	$	6.4		$	9.3		$	95.7		$	3.5		$	114.9

	2018
	DEALER					CUSTOMER
	WHOLESALE		RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	6.0	$	9.4		$	92.5		$	9.3		$	117.2
Provision for losses		.6		(.1	)		12.8			1.5			14.8
Charge-offs							(15.5	)		(6.5	)		(22.0	)
Recoveries							6.7			.3			7.0
Currency translation and other							(1.1	)		(.2	)		(1.3	)
Balance at September 30	$	6.6	$	9.3		$	95.4		$	4.4		$	115.7

* 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 September 30, 2019	WHOLESALE		RETAIL		RETAIL		TOTAL
Recorded investment for impaired finance    receivables evaluated individually	$	24.3	$	2.3	$	51.3	$	77.9
Allowance for impaired finance receivables    determined individually		2.0				7.1		9.1
Recorded investment for finance receivables    evaluated collectively		2,789.2		1,557.6		7,204.9		11,551.7
Allowance for finance receivables    determined collectively		4.4		9.3		88.6		102.3

	DEALER				CUSTOMER
At December 31, 2018	WHOLESALE		RETAIL		RETAIL		TOTAL
Recorded investment for impaired finance    receivables evaluated individually	$	.1	$	2.5	$	36.7	$	39.3
Allowance for impaired finance receivables    determined individually		.1				5.8		5.9
Recorded investment for finance receivables    evaluated collectively		2,342.2		1,462.1		6,936.4		10,740.7
Allowance for finance receivables    determined collectively		6.7		10.0		88.0		104.7

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:

	September 30		December 31
	2019		2018
Dealer:
Wholesale	$	24.3	$	.1
Retail		2.3
Customer retail:
Fleet		44.3		27.5
Owner/operator		6.8		7.9
	$	77.7	$	35.5

Impaired Loans and Specific Reserve

The recorded investment of impaired loans as of September 30, 2019 and December 31, 2018 was not significantly different than the unpaid principal balance.

	DEALER					CUSTOMER RETAIL
									OWNER/
At September 30, 2019	WHOLESALE			RETAIL		FLEET			OPERATOR			TOTAL
Impaired loans with a specific reserve	$	24.3				$	11.2		$	2.9		$	38.4
Associated allowance		(2.0	)				(1.8	)		(.6	)		(4.4	)
		22.3					9.4			2.3			34.0
Impaired loans with no specific reserve				$	2.3		1.6			.4			4.3
Net carrying amount of impaired loans	$	22.3		$	2.3	$	11.0		$	2.7		$	38.3
Average recorded investment*	$	4.9		$	2.4	$	18.1		$	3.4		$	28.8

* Represents the average during the 12 months ended September 30, 2019.

	DEALER					CUSTOMER RETAIL
									OWNER/
At December 31, 2018	WHOLESALE			RETAIL		FLEET			OPERATOR			TOTAL
Impaired loans with a specific reserve	$	.1				$	14.5		$	3.4		$	18.0
Associated allowance		(.1	)				(2.3	)		(1.0	)		(3.4	)
							12.2			2.4			14.6
Impaired loans with no specific reserve				$	2.5		4.9			.3			7.7
Net carrying amount of impaired loans				$	2.5	$	17.1		$	2.7		$	22.3
Average recorded investment*	$	.1		$	3.5	$	31.1		$	2.3		$	37.0

* Represents the average during the 12 months ended September 30, 2018.

Interest Income Recognized on Cash Basis

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018		2019		2018
Interest income recognized:
Dealer:
Retail	$	.1			$	.1
Customer Retail:
Fleet		.4	$	.6		1.0	$	1.6
Owner/operator		.1				.2
	$	.6	$	.6	$	1.3	$	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
							OWNER/
At September 30, 2019	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Performing	$	2,768.7	$	1,557.6	$	6,033.9	$	1,108.4	$	11,468.6
Watch		20.5				54.3		8.3		83.1
At-risk		24.3		2.3		44.3		7.0		77.9
	$	2,813.5	$	1,559.9	$	6,132.5	$	1,123.7	$	11,629.6

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2018	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Performing	$	2,329.5	$	1,462.1	$	5,759.0	$	1,099.3	$	10,649.9
Watch		12.6				70.0		8.2		90.8
At-risk		.2		2.5		28.5		8.1		39.3
	$	2,342.3	$	1,464.6	$	5,857.5	$	1,115.6	$	10,780.0

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
							OWNER/
At September 30, 2019	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,778.7	$	1,559.9	$	6,080.0	$	1,111.0	$	11,529.6
31 – 60 days past due		34.8				14.5		6.7		56.0
Greater than 60 days past due						38.0		6.0		44.0
	$	2,813.5	$	1,559.9	$	6,132.5	$	1,123.7	$	11,629.6

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2018	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,342.1	$	1,464.6	$	5,835.6	$	1,103.1	$	10,745.4
31 – 60 days past due		.1				11.2		6.7		18.0
Greater than 60 days past due		.1				10.7		5.8		16.6
	$	2,342.3	$	1,464.6	$	5,857.5	$	1,115.6	$	10,780.0

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				Nine Months Ended
	September 30, 2019				September 30, 2019
	RECORDED INVESTMENT				RECORDED INVESTMENT
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.6	$	1.6	$	2.2	$	2.2
Owner/operator		.1		.1		.3		.3
	$	1.7	$	1.7	$	2.5	$	2.5

	Three Months Ended				Nine Months Ended
	September 30, 2018				September 30, 2018
	RECORDED INVESTMENT				RECORDED INVESTMENT
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	.5	$	.5	$	8.4	$	8.4
Owner/operator		.1		.1		.5		.5
	$	.6	$	.6	$	8.9	$	8.9