Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three to five years. Loan receivables arise primarily from financing services offered to our clients for postage and supplies. Most loan receivables are generally due each month; however, clients may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Client acquisition costs are expensed as incurred.



	September 30, 2019									December 31, 2018
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,064,996		$	215,110		$	1,280,106		$	1,110,898		$	242,036		$	1,352,934
Unguaranteed residual values	43,621			11,264			54,885			52,637			12,772			65,409
Unearned income	(331,085		)	(63,121		)	(394,206		)	(383,453		)	(55,113		)	(438,566		)
Allowance for credit losses	(11,172		)	(2,217		)	(13,389		)	(10,252		)	(2,356		)	(12,608		)
Net investment in sales-type lease receivables	766,360			161,036			927,396			769,830			197,339			967,169
Loan receivables
Loan receivables	285,163			28,100			313,263			300,319			29,270			329,589
Allowance for credit losses	(6,016		)	(719		)	(6,735		)	(6,777		)	(837		)	(7,614		)
Net investment in loan receivables	279,147			27,381			306,528			293,542			28,433			321,975
Net investment in finance receivables	$	1,045,507		$	188,417		$	1,233,924		$	1,063,372		$	225,772		$	1,289,144



	Sales-type Lease Receivables						Loan Receivables
	North America		International		Total		North America		International		Total
Remaining for year ending December 31, 2019	$	132,964	$	25,592	$	158,556	$	245,197	$	28,100	$	273,297
Year ending December 31, 2020	383,029		74,364		457,393		12,927		—		12,927
Year ending December 31, 2021	276,009		55,152		331,161		10,463		—		10,463
Year ending December 31, 2022	171,049		35,937		206,986		8,990		—		8,990
Year ending December 31, 2023	83,306		18,521		101,827		3,782		—		3,782
Thereafter	18,639		5,544		24,183		3,804		—		3,804
Total	$	1,064,996	$	215,110	$	1,280,106	$	285,163	$	28,100	$	313,263

We provide an allowance for probable credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves.

We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. As of September 30, 2019, we believe that our finance receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.



	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2019	$	10,252		$	2,356		$	6,777		$	837		$	20,222
Amounts charged to expense	4,587			801			3,547			440			9,375
Write-offs and other	(3,667		)	(940		)	(4,308		)	(558		)	(9,473		)
Balance at September 30, 2019	$	11,172		$	2,217		$	6,016		$	719		$	20,124

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2018	$	7,721		$	2,794		$	7,098		$	1,020		$	18,633
Amounts charged to expense	7,037			829			4,896			331			13,093
Write-offs and other	(3,979		)	(1,359		)	(5,282		)	(466		)	(11,086		)
Balance at September 30, 2018	$	10,779		$	2,264		$	6,712		$	885		$	20,640



	September 30, 2019
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,032,400	$	211,442	$	280,114	$	27,722	$	1,551,678
> 90 days	32,596		3,668		5,049		378		41,691
Total	$	1,064,996	$	215,110	$	285,163	$	28,100	$	1,593,369
Past due amounts > 90 days
Still accruing interest	$	4,751	$	1,074	$	1,797	$	53	$	7,675
Not accruing interest	27,845		2,594		3,252		325		34,016
Total	$	32,596	$	3,668	$	5,049	$	378	$	41,691



	December 31, 2018
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,069,290	$	238,114	$	294,126	$	29,079	$	1,630,609
> 90 days	41,608		3,922		6,193		191		51,914
Total	$	1,110,898	$	242,036	$	300,319	$	29,270	$	1,682,523
Past due amounts > 90 days
Still accruing interest	$	7,917	$	1,111	$	1,769	$	72	$	10,869
Not accruing interest	33,691		2,811		4,424		119		41,045
Total	$	41,608	$	3,922	$	6,193	$	191	$	51,914

The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client's financial condition and, when applicable, payment history. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct

follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes are in place to track that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed.

We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that it is a localized process, and there is no single credit score model that covers all countries.

The table below shows the North America portfolio at September 30, 2019 and December 31, 2018 by relative risk class based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months.



	September 30, 2019		December 31, 2018
Sales-type lease receivables
Low	$	853,156	$	922,414
Medium	160,969		131,650
High	22,315		22,110
Not Scored	28,556		34,724
Total	$	1,064,996	$	1,110,898
Loan receivables
Low	$	215,319	$	238,620
Medium	53,176		43,952
High	5,379		5,947
Not Scored	11,289		11,800
Total	$	285,163	$	300,319



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Profit recognized at commencement ⁽¹⁾	$	38,086	$	38,204	$	108,743	$	125,133
Interest income	56,522		60,653		174,045		183,340
Total lease income from sales-type leases	$	94,608	$	98,857	$	282,788	$	308,473



Remaining for year ending December 31, 2019	$	9,092
Year ending December 31, 2020	30,986
Year ending December 31, 2021	15,600
Year ending December 31, 2022	6,886
Year ending December 31, 2023	3,154
Thereafter	412
Total	$	66,130