XML 36 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Finance and Other Receivables (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables include the following:

 

 

 

September 30

 

 

December 31

 

 

 

2020

 

 

2019

 

Loans

 

$

5,518.6

 

 

$

5,241.7

 

Finance leases

 

 

3,695.0

 

 

 

3,906.7

 

Dealer wholesale financing

 

 

2,079.7

 

 

 

2,907.4

 

Operating lease receivables and other

 

 

155.9

 

 

 

142.6

 

 

 

 

11,449.2

 

 

 

12,198.4

 

Less allowance for losses:

 

 

 

 

 

 

 

 

Loans and leases

 

 

(117.8

)

 

 

(104.4

)

Dealer wholesale financing

 

 

(3.2

)

 

 

(4.3

)

Operating lease receivables and other

 

 

(3.7

)

 

 

(3.7

)

 

 

$

11,324.5

 

 

$

12,086.0

 

 
Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

 

 

 

2020

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL**

 

Balance at January 1

 

$

4.3

 

 

$

9.2

 

 

$

101.4

 

 

$

3.7

 

 

$

118.6

 

Provision for losses

 

 

(1.1

)

 

 

(.8

)

 

 

28.5

 

 

 

1.0

 

 

 

27.6

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(22.3

)

 

 

(1.2

)

 

 

(23.5

)

Recoveries

 

 

 

 

 

 

 

 

 

 

3.6

 

 

 

.4

 

 

 

4.0

 

Currency translation and other

 

 

 

 

 

 

 

 

 

 

(1.8

)

 

 

(.2

)

 

 

(2.0

)

Balance at September 30

 

$

3.2

 

 

$

8.4

 

 

$

109.4

 

 

$

3.7

 

 

$

124.7

 

 

 

 

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

 

 

*

Operating leases and other trade receivables.

**

The beginning balance has been adjusted for the adoption of ASU 2016-13.
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, 2020

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Amortized cost basis for impaired finance

   receivables evaluated individually

 

 

 

 

 

 

 

$

1.5

 

 

$

72.9

 

 

$

74.4

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

 

 

 

 

 

 

 

 

6.0

 

 

 

6.0

 

Amortized cost basis for finance receivables

   evaluated collectively

 

 

 

$

2,079.7

 

 

 

1,648.7

 

 

 

7,490.5

 

 

 

11,218.9

 

Allowance for finance receivables

   determined collectively

 

 

 

 

3.2

 

 

 

8.4

 

 

 

103.4

 

 

 

115.0

 

 

 

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

At December 31, 2019

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Amortized cost basis for impaired finance

   receivables evaluated individually

 

 

 

 

 

 

 

$

2.3

 

 

$

47.6

 

 

$

49.9

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

 

 

 

 

 

 

 

 

6.5

 

 

 

6.5

 

Amortized cost basis 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

 

 
Amortized Cost Basis of Finance Receivables that are on Non-accrual Status

The amortized cost basis of finance receivables that are on non-accrual status is as follows:

 

 

 

September 30

 

 

December 31

 

 

 

2020

 

 

2019

 

Dealer:

 

 

 

 

 

 

 

 

Retail

 

$

1.5

 

 

$

2.3

 

Customer retail:

 

 

 

 

 

 

 

 

Fleet

 

 

62.8

 

 

 

40.2

 

Owner/operator

 

 

10.1

 

 

 

7.2

 

 

 

$

74.4

 

 

$

49.7

 

 
Amortized Cost Basis of Impaired Loans and Specific Reserve The amortized cost basis of impaired loans as of September 30, 2020 and December 31, 2019 was not significantly different than the unpaid principal balance.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At September 30, 2020

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

 

 

 

 

 

 

 

 

$

27.4

 

 

$

1.9

 

 

$

29.3

 

Associated allowance

 

 

 

 

 

 

 

 

 

 

(1.7

)

 

 

(.2

)

 

 

(1.9

)

 

 

 

 

 

 

 

 

 

 

 

25.7

 

 

 

1.7

 

 

 

27.4

 

Impaired loans with no specific reserve

 

 

 

 

 

$

1.5

 

 

 

1.0

 

 

 

.1

 

 

 

2.6

 

Net carrying amount of impaired loans

 

 

 

 

 

$

1.5

 

 

$

26.7

 

 

$

1.8

 

 

$

30.0

 

Average recorded investment*

 

$

4.9

 

 

$

1.9

 

 

$

24.5

 

 

$

3.0

 

 

$

34.3

 

 

*

Represents the average during the 12 months ended September 30, 2020.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2019

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

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

 

 

$

18.1

 

 

$

3.4

 

 

$

28.8

 

 

*

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

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

$

.1

 

 

$

.1

 

 

$

.1

 

Customer Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

.4

 

 

 

.4

 

 

 

1.2

 

 

 

1.0

 

Owner/operator

 

 

.1

 

 

 

.1

 

 

 

.2

 

 

 

.2

 

 

 

$

.5

 

 

$

.6

 

 

$

1.5

 

 

$

1.3

 

 
Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class The table below summarizes the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class.

 

 

Revolving

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2020

Loans

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Total

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

2,066.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,066.3

 

Watch

 

13.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.4

 

At-risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,079.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,079.7

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

23.6

 

 

$

345.1

 

 

$

508.8

 

 

$

285.0

 

 

$

192.4

 

 

$

110.1

 

 

$

162.7

 

 

$

1,627.7

 

Watch

 

 

 

 

 

2.8

 

 

 

11.0

 

 

 

5.7

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

21.0

 

At-risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

 

 

 

 

1.5

 

 

$

23.6

 

 

$

347.9

 

 

$

519.8

 

 

$

290.7

 

 

$

193.9

 

 

$

111.6

 

 

$

162.7

 

 

$

1,650.2

 

Total Dealer

$

2,103.3

 

 

$

347.9

 

 

$

519.8

 

 

$

290.7

 

 

$

193.9

 

 

$

111.6

 

 

$

162.7

 

 

$

3,729.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

 

$

1,787.1

 

 

$

2,058.4

 

 

$

1,306.4

 

 

$

632.2

 

 

$

283.7

 

 

$

100.1

 

 

$

6,167.9

 

Watch

 

 

 

 

 

12.2

 

 

 

31.2

 

 

 

22.5

 

 

 

18.4

 

 

 

3.0

 

 

 

1.8

 

 

 

89.1

 

At-risk

 

 

 

 

 

17.4

 

 

 

19.9

 

 

 

14.4

 

 

 

8.2

 

 

 

1.8

 

 

 

1.1

 

 

 

62.8

 

 

 

 

 

 

$

1,816.7

 

 

$

2,109.5

 

 

$

1,343.3

 

 

$

658.8

 

 

$

288.5

 

 

$

103.0

 

 

$

6,319.8

 

Owner/Operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

 

$

390.2

 

 

$

389.0

 

 

$

248.9

 

 

$

124.4

 

 

$

55.5

 

 

$

15.7

 

 

$

1,223.7

 

Watch

 

 

 

 

 

1.6

 

 

 

3.8

 

 

 

2.4

 

 

 

1.4

 

 

 

.5

 

 

 

.1

 

 

 

9.8

 

At-risk

 

 

 

 

 

.7

 

 

 

2.8

 

 

 

3.8

 

 

 

1.7

 

 

 

.6

 

 

 

.5

 

 

 

10.1

 

 

 

 

 

 

$

392.5

 

 

$

395.6

 

 

$

255.1

 

 

$

127.5

 

 

$

56.6

 

 

$

16.3

 

 

$

1,243.6

 

Total Customer Retail

 

 

 

 

$

2,209.2

 

 

$

2,505.1

 

 

$

1,598.4

 

 

$

786.3

 

 

$

345.1

 

 

$

119.3

 

 

$

7,563.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

2,103.3

 

 

$

2,557.1

 

 

$

3,024.9

 

 

$

1,889.1

 

 

$

980.2

 

 

$

456.7

 

 

$

282.0

 

 

$

11,293.3

 

 
Amortized Cost Basis of Financing Receivables by Aging Category

The tables below summarize the amortized cost basis of 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, 2020

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

2,079.7

 

 

$

1,650.2

 

 

$

6,277.4

 

 

$

1,227.4

 

 

$

11,234.7

 

31 – 60 days past due

 

 

 

 

 

 

 

 

 

 

18.1

 

 

 

7.4

 

 

 

25.5

 

Greater than 60 days past due

 

 

 

 

 

 

 

 

 

 

24.3

 

 

 

8.8

 

 

 

33.1

 

 

 

$

2,079.7

 

 

$

1,650.2

 

 

$

6,319.8

 

 

$

1,243.6

 

 

$

11,293.3

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2019

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

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

 

 
Pre- and Post-Modification Amortized Cost Basis Balances by Portfolio Class At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2020

 

 

 

AMORTIZED COST BASIS

 

 

AMORTIZED COST BASIS

 

 

 

PRE-

MODIFICATION

 

 

POST-

MODIFICATION

 

 

PRE-

MODIFICATION

 

 

POST-

MODIFICATION

 

Fleet

 

$

7.5

 

 

$

7.5

 

 

$

46.5

 

 

$

46.5

 

Owner/operator

 

 

1.1

 

 

 

1.1

 

 

 

2.2

 

 

 

2.2

 

 

 

$

8.6

 

 

$

8.6

 

 

$

48.7

 

 

$

48.7

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2019

 

 

 

AMORTIZED COST BASIS

 

 

AMORTIZED COST BASIS

 

 

 

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