Finance and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

At December 31,	2019			2018
Loans	$	5,241.7		$	4,630.5
Finance leases		3,906.7			3,807.2
Dealer wholesale financing		2,907.4			2,342.3
Operating lease receivables and other		142.6			174.6
	$	12,198.4		$	10,954.6
Less allowance for losses:
Loans and leases		(104.4	)		(103.8	)
Dealer wholesale financing		(4.3	)		(6.8	)
Operating lease receivables and other		(3.7	)		(3.2	)
	$	12,086.0		$	10,840.8

Annual Minimum Payments Due on Loans

Annual minimum payments due on loans are as follows:

Beginning January 1, 2020	LOANS
2020	$	1,633.6
2021		1,323.6
2022		1,043.9
2023		759.9
2024		377.3
Thereafter		103.4
	$	5,241.7

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
Beginning January 1, 2020	LEASES
2020	$	1,360.6
2021		1,032.1
2022		757.3
2023		506.6
2024		246.5
Thereafter		100.0
		4,003.1
Unguaranteed residual values		316.3
Unearned interest on finance leases		(412.7	)
Net investment in finance leases	$	3,906.7

Allowance for Credit Losses

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		(1.6	)		(1.0	)		14.2			3.8			15.4
Charge-offs		(.6	)					(24.2	)		(3.6	)		(28.4	)
Recoveries								10.7			.3			11.0
Currency translation and other		(.3	)		.2			.7						.6
Balance at December 31	$	4.3		$	9.2		$	95.2		$	3.7		$	112.4

	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		1.0			.7			13.6			1.2			16.5
Charge-offs								(20.0	)		(7.5	)		(27.5	)
Recoveries								9.9			.4			10.3
Currency translation and other		(.2	)		(.1	)		(2.2	)		(.2	)		(2.7	)
Balance at December 31	$	6.8		$	10.0		$	93.8		$	3.2		$	113.8

* Operating lease and other trade receivables.

	2017
	DEALER					CUSTOMER
	WHOLESALE		RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	5.5	$	9.6		$	87.5		$	8.6		$	111.2
Provision for losses				(.3	)		21.1			1.5			22.3
Charge-offs							(24.8	)		(1.9	)		(26.7	)
Recoveries							5.0			.3			5.3
Currency translation and other		.5		.1			3.7			.8			5.1
Balance at December 31	$	6.0	$	9.4		$	92.5		$	9.3		$	117.2

* Operating lease 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 December 31, 2019	WHOLESALE		RETAIL		RETAIL		TOTAL
Recorded investment for impaired finance    receivables evaluated individually			$	2.3	$	47.6	$	49.9
Allowance for impaired finance receivables    determined individually						6.5		6.5
Recorded investment for finance receivables    evaluated collectively	$	2,907.4		1,643.3		7,455.2		12,005.9
Allowance for finance receivables determined    collectively		4.3		9.2		88.7		102.2

	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:

At December 31,	2019			2018
Dealer:
Wholesale			$	.1
Retail	$	2.3
Customer retail:
Fleet		40.2		27.5
Owner/operator		7.2		7.9
	$	49.7	$	35.5

Impaired Loans and Specific Reserve

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

	DEALER				CUSTOMER RETAIL
At December 31, 2019	WHOLESALE		RETAIL		FLEET			OWNER/ OPERATOR			TOTAL
Impaired loans with a specific reserve					$	10.9		$	3.1		$	14.0
Associated allowance						(2.1	)		(.6	)		(2.7	)
						8.8			2.5			11.3
Impaired loans with no specific reserve			$	2.3		6.7			.4			9.4
Net carrying amount of impaired loans			$	2.3	$	15.5		$	2.9		$	20.7
Average recorded investment	$	4.9	$	2.4	$	16.6		$	3.4		$	27.3

	DEALER					CUSTOMER RETAIL
At December 31, 2018	WHOLESALE			RETAIL		FLEET			OWNER/ 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		$	3.2	$	29.3		$	2.8		$	35.4

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:

Year Ended December 31,	2019		2018		2017
Dealer:
Retail	$	.2
Customer retail:
Fleet		1.3	$	2.0	$	1.6
Owner/operator		.2		.2		.1
	$	1.7	$	2.2	$	1.7

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.

	DEALER				CUSTOMER RETAIL
At December 31, 2019	WHOLESALE		RETAIL		FLEET		OWNER/ OPERATOR		TOTAL
Performing	$	2,897.3	$	1,643.3	$	6,251.0	$	1,138.0	$	11,929.6
Watch		10.1				56.4		9.8		76.3
At-risk				2.3		40.3		7.3		49.9
	$	2,907.4	$	1,645.6	$	6,347.7	$	1,155.1	$	12,055.8

	DEALER				CUSTOMER RETAIL
At December 31, 2018	WHOLESALE		RETAIL		FLEET		OWNER/ 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
At December 31, 2019	WHOLESALE		RETAIL		FLEET		OWNER/ OPERATOR		TOTAL
Current and up to 30 days past due	$	2,907.4	$	1,645.6	$	6,297.1	$	1,140.7	$	11,990.8
31 – 60 days past due						23.0		8.7		31.7
Greater than 60 days past due						27.6		5.7		33.3
	$	2,907.4	$	1,645.6	$	6,347.7	$	1,155.1	$	12,055.8

	DEALER				CUSTOMER RETAIL
At December 31, 2018	WHOLESALE		RETAIL		FLEET		OWNER/ 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 were as follows:

	2019				2018
	RECORDED INVESTMENT				RECORDED INVESTMENT
	PRE-MODIFICATION		POST-MODIFICATION		PRE-MODIFICATION		POST-MODIFICATION
Fleet	$	2.2	$	2.2	$	12.1	$	12.1
Owner/operator		.3		.3		1.0		1.0
	$	2.5	$	2.5	$	13.1	$	13.1