XML 48 R34.htm IDEA: XBRL DOCUMENT v3.20.4
Finance and Other Receivables (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables include the following:

 

At December 31,

 

2020

 

 

2019

 

Loans

 

$

5,839.1

 

 

$

5,241.7

 

Finance leases

 

 

3,944.7

 

 

 

3,906.7

 

Dealer wholesale financing

 

 

2,012.4

 

 

 

2,907.4

 

Operating lease receivables and other

 

 

151.5

 

 

 

142.6

 

 

 

$

11,947.7

 

 

$

12,198.4

 

Less allowance for losses:

 

 

 

 

 

 

 

 

Loans and leases

 

 

(120.4

)

 

 

(104.4

)

Dealer wholesale financing

 

 

(3.4

)

 

 

(4.3

)

Operating lease receivables and other

 

 

(3.2

)

 

 

(3.7

)

 

 

$

11,820.7

 

 

$

12,086.0

 
Annual Minimum Payments Due on Loans

Annual minimum payments due on loans are as follows:

 

Beginning January 1,

 

 

 

LOANS

 

2021

 

 

 

$

1,758.4

 

2022

 

 

 

 

1,480.1

 

2023

 

 

 

 

1,223.6

 

2024

 

 

 

 

881.8

 

2025

 

 

 

 

380.0

 

Thereafter

 

 

 

 

115.2

 

 

 

 

 

$

5,839.1

 
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,

 

 

 

LEASES

 

2021

 

 

 

$

1,310.4

 

2022

 

 

 

 

1,030.5

 

2023

 

 

 

 

775.0

 

2024

 

 

 

 

458.8

 

2025

 

 

 

 

223.4

 

Thereafter

 

 

 

 

82.5

 

 

 

 

 

 

3,880.6

 

Unguaranteed residual values

 

 

 

 

458.8

 

Unearned interest on finance leases

 

 

 

 

(394.7

)

Net investment in finance leases

 

 

 

$

3,944.7

 
Allowance for Credit Losses

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

 

 

(1.0

)

 

 

(.8

)

 

 

30.1

 

 

 

.5

 

 

 

28.8

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(26.6

)

 

 

(1.4

)

 

 

(28.0

)

Recoveries

 

 

 

 

 

 

 

 

 

 

5.3

 

 

 

.4

 

 

 

5.7

 

Currency translation and other

 

 

.1

 

 

 

 

 

 

 

1.8

 

 

 

 

 

 

 

1.9

 

Balance at December 31

 

$

3.4

 

 

 

8.4

 

 

$

112.0

 

 

$

3.2

 

 

$

127.0

 

 

 

 

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

 

 

*

Operating lease and other trade receivables.

**

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

 

 

 

 

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.
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, 2020

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Amortized cost basis for impaired finance

   receivables evaluated individually

 

 

 

 

 

 

 

$

1.2

 

 

$

86.7

 

 

$

87.9

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

 

 

 

 

 

 

 

 

5.6

 

 

 

5.6

 

Amortized cost basis for finance receivables

   evaluated collectively

 

 

 

$

2,012.4

 

 

 

1,701.9

 

 

 

7,994.0

 

 

 

11,708.3

 

Allowance for finance receivables determined

   collectively

 

 

 

 

3.4

 

 

 

8.4

 

 

 

106.4

 

 

 

118.2

 

 

 

 

 

 

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 for Finance Receivables that are on Non-Accrual Status

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

 

At December 31,

 

 

 

 

 

 

 

2020

 

 

 

2019

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

 

 

$

1.2

 

 

$

2.3

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

 

 

 

 

 

78.6

 

 

 

40.2

 

Owner/operator

 

 

 

 

 

 

 

 

8.1

 

 

 

7.2

 

 

 

 

 

 

 

 

 

$

87.9

 

 

$

49.7

 

 

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

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

At December 31, 2020

 

WHOLESALE

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

 

 

 

 

 

 

$

22.6

 

 

$

2.1

 

 

$

24.7

 

Associated allowance

 

 

 

 

 

 

 

 

(1.6

)

 

 

(.3

)

 

 

(1.9

)

 

 

 

 

 

 

 

 

 

21.0

 

 

 

1.8

 

 

 

22.8

 

Impaired loans with no specific reserve

 

 

 

$

1.2

 

 

 

 

 

 

 

 

 

 

 

1.2

 

Net carrying amount of impaired loans

 

 

 

$

1.2

 

 

$

21.0

 

 

$

1.8

 

 

$

24.0

 

Average amortized cost basis

 

 

 

$

1.6

 

 

$

26.5

 

 

$

2.8

 

 

$

30.9

 

 

 

 

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 amortized cost basis

 

$

4.9

 

 

$

2.4

 

 

$

16.6

 

 

$

3.4

 

 

$

27.3

 
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,

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

 

$

.2

 

 

$

.2

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

 

 

 

1.5

 

 

 

1.3

 

 

$

2.0

 

Owner/operator

 

 

 

 

 

 

.2

 

 

 

.2

 

 

 

.2

 

 

 

 

 

 

 

$

1.9

 

 

$

1.7

 

 

$

2.2

 
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 December 31, 2020

Loans

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Total

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

2,004.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,004.5

 

Watch

 

7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.9

 

 

$

2,012.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,012.4

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

20.7

 

 

$

504.2

 

 

$

474.9

 

 

$

268.0

 

 

$

180.1

 

 

$

100.4

 

 

$

132.0

 

 

$

1,680.3

 

Watch

 

 

 

 

 

5.2

 

 

 

10.5

 

 

 

4.5

 

 

 

1.4

 

 

 

 

 

 

 

 

 

 

 

21.6

 

At-risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.2

 

 

 

 

 

 

 

1.2

 

 

$

20.7

 

 

$

509.4

 

 

$

485.4

 

 

$

272.5

 

 

$

181.5

 

 

$

101.6

 

 

$

132.0

 

 

$

1,703.1

 

Total Dealer

$

2,033.1

 

 

$

509.4

 

 

$

485.4

 

 

$

272.5

 

 

$

181.5

 

 

$

101.6

 

 

$

132.0

 

 

$

3,715.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

 

$

2,664.9

 

 

$

1,921.6

 

 

$

1,203.7

 

 

$

533.7

 

 

$

234.2

 

 

$

65.2

 

 

$

6,623.3

 

Watch

 

 

 

 

 

13.5

 

 

 

17.8

 

 

 

11.8

 

 

 

5.9

 

 

 

1.5

 

 

 

1.2

 

 

 

51.7

 

At-risk

 

 

 

 

 

8.0

 

 

 

37.0

 

 

 

18.2

 

 

 

12.2

 

 

 

2.4

 

 

 

.8

 

 

 

78.6

 

 

 

 

 

 

$

2,686.4

 

 

$

1,976.4

 

 

$

1,233.7

 

 

$

551.8

 

 

$

238.1

 

 

$

67.2

 

 

$

6,753.6

 

Owner/Operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

 

$

554.6

 

 

$

376.4

 

 

$

225.1

 

 

$

105.2

 

 

$

41.2

 

 

$

9.1

 

 

$

1,311.6

 

Watch

 

 

 

 

 

1.6

 

 

 

2.7

 

 

 

2.0

 

 

 

.7

 

 

 

.2

 

 

 

.2

 

 

 

7.4

 

At-risk

 

 

 

 

 

.9

 

 

 

2.1

 

 

 

3.2

 

 

 

1.2

 

 

 

.4

 

 

 

.3

 

 

 

8.1

 

 

 

 

 

 

$

557.1

 

 

$

381.2

 

 

$

230.3

 

 

$

107.1

 

 

$

41.8

 

 

$

9.6

 

 

$

1,327.1

 

Total Customer Retail

 

 

 

 

$

3,243.5

 

 

$

2,357.6

 

 

$

1,464.0

 

 

$

658.9

 

 

$

279.9

 

 

$

76.8

 

 

$

8,080.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

2,033.1

 

 

$

3,752.9

 

 

$

2,843.0

 

 

$

1,736.5

 

 

$

840.4

 

 

$

381.5

 

 

$

208.8

 

 

$

11,796.2

 
Finance 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, 2020

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

2,012.4

 

 

$

1,703.1

 

 

$

6,718.3

 

 

$

1,314.7

 

 

$

11,748.5

 

31 – 60 days past due

 

 

 

 

 

 

 

 

 

 

12.3

 

 

 

6.5

 

 

 

18.8

 

Greater than 60 days past due

 

 

 

 

 

 

 

 

 

 

23.0

 

 

 

5.9

 

 

 

28.9

 

 

 

$

2,012.4

 

 

$

1,703.1

 

 

$

6,753.6

 

 

$

1,327.1

 

 

$

11,796.2

 

 

 

 

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

 

 

 
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 were as follows:

 

 

 

2020

 

 

2019

 

 

 

AMORTIZED COST BASIS

 

 

AMORTIZED COST BASIS

 

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

Fleet

 

$

72.5

 

 

$

72.5

 

 

$

2.2

 

 

$

2.2

 

Owner/operator

 

 

2.2

 

 

 

2.2

 

 

 

.3

 

 

 

.3

 

 

 

$

74.7

 

 

$

74.7

 

 

$

2.5

 

 

$

2.5