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.



	June 30, 2020									December 31, 2019
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	998,450		$	196,767		$	1,195,217		$	1,055,852		$	224,202		$	1,280,054
Unguaranteed residual values	37,742			11,283			49,025			41,934			11,789			53,723
Unearned income	(282,027		)	(58,487		)	(340,514		)	(319,281		)	(65,888		)	(385,169		)
Allowance for credit losses	(26,603		)	(4,743		)	(31,346		)	(10,920		)	(2,085		)	(13,005		)
Net investment in sales-type lease receivables	727,562			144,820			872,382			767,585			168,018			935,603
Loan receivables
Loan receivables	254,786			18,635			273,421			298,247			27,926			326,173
Allowance for credit losses	(6,482		)	(286		)	(6,768		)	(5,906		)	(740		)	(6,646		)
Net investment in loan receivables	248,304			18,349			266,653			292,341			27,186			319,527
Net investment in finance receivables	$	975,866		$	163,169		$	1,139,035		$	1,059,926		$	195,204		$	1,255,130



	Sales-type Lease Receivables						Loan Receivables
	North America		International		Total		North America		International		Total
Remaining for year ending December 31, 2020	$	220,405	$	41,451	$	261,856	$	216,777	$	18,635	$	235,412
Year ending December 31, 2021	336,863		68,465		405,328		12,032		—		12,032
Year ending December 31, 2022	234,552		47,971		282,523		10,414		—		10,414
Year ending December 31, 2023	138,308		26,324		164,632		5,582		—		5,582
Year ending December 31, 2024	58,803		10,403		69,206		6,807		—		6,807
Thereafter	9,519		2,153		11,672		3,174		—		3,174
Total	$	998,450	$	196,767	$	1,195,217	$	254,786	$	18,635	$	273,421



	June 30, 2020
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	974,864	$	194,055	$	246,491	$	18,288	$	1,433,698
Past due amounts > 90 days	23,586		2,712		8,295		347		34,940
Total	$	998,450	$	196,767	$	254,786	$	18,635	$	1,468,638
Past due amounts > 90 days
Still accruing interest	$	4,982	$	1,091	$	5,205	$	191	$	11,469
Not accruing interest	18,604		1,621		3,090		156		23,471
Total	$	23,586	$	2,712	$	8,295	$	347	$	34,940



	December 31, 2019
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	1,032,912	$	220,819	$	294,001	$	27,697	$	1,575,429
Past due amounts > 90 days	22,940		3,383		4,246		229		30,798
Total	$	1,055,852	$	224,202	$	298,247	$	27,926	$	1,606,227
Past due amounts > 90 days
Still accruing interest	$	4,835	$	1,081	$	2,094	$	121	$	8,131
Not accruing interest	18,105		2,302		2,152		108		22,667
Total	$	22,940	$	3,383	$	4,246	$	229	$	30,798

We estimate an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Credit losses are estimated at the portfolio level based on asset type and geographic market. Historical loss experience was based on actual loss rates over the average term of the asset of five years for sales-type lease receivables and three years for loan receivables (including accrued interest). Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. The allowance for credit losses for the six months ended June 30, 2020 considers the current economic conditions and resulting impact on a client's future ability to pay amounts due.

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. We monitor delinquency rates and have experienced a slight increase in our delinquencies during this current economic situation. However, 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 December 31, 2019	$	10,920		$	2,085		$	5,906		$	740		$	19,651
Cumulative effect of accounting change	9,271			1,750			(1,116		)	(402		)	9,503
Amounts charged to expense	9,025			1,257			4,758			208			15,248
Write-offs	(3,536		)	(386		)	(4,542		)	(297		)	(8,761		)
Recoveries	946			44			1,386			1			2,377
Other	(23		)	(7		)	90			36			96
Balance at June 30, 2020	$	26,603		$	4,743		$	6,482		$	286		$	38,114

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2019	$	10,253		$	2,355		$	6,777		$	837		$	20,222
Amounts charged to expense	3,660			455			2,329			315			6,759
Write-offs	(3,452		)	(533		)	(4,649		)	(451		)	(9,085		)
Recoveries	813			167			1,909			4			2,893
Other	48			(182		)	8			54			(72		)
Balance at June 30, 2019	$	11,322		$	2,262		$	6,374		$	759		$	20,717

The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, and a detailed manual review of their financial condition and payment history or an automated process for certain small dollar applications. 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 in place 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. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. 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.



	Sales Type Lease Receivables												Loan Receivables		Total
	2020		2019		2018		2017		2016		Prior		Loan Receivables		Total
Low	$	136,197	$	252,315	$	199,078	$	118,201	$	49,013	$	19,906	$	187,311	$	962,021
Medium	25,754		57,452		45,269		28,693		10,886		5,688		53,748		227,490
High	3,249		6,342		5,295		3,380		1,802		323		4,210		24,601
Not Scored	35,880		82,099		56,596		33,466		15,450		2,883		28,152		254,526
Total	$	201,080	$	398,208	$	306,238	$	183,740	$	77,151	$	28,800	$	273,421	$	1,468,638

The majority of the Not Scored amounts above is within our International portfolio. 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. International credit applications below $50 thousand are subjected to an automated review process. All other credit applications are manually reviewed. A manual review includes obtaining client financial information, credit reports and other available financial information. Approximately 80% of credit applications are approved or denied through the automated review process.



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Profit recognized at commencement ⁽¹⁾	$	21,271	$	36,508	$	51,166	$	73,112
Interest income	34,055		58,045		68,315		117,523
Total lease income from sales-type leases	$	55,326	$	94,553	$	119,481	$	190,635



Remaining for year ending December 31, 2020	$	20,222
Year ending December 31, 2021	27,899
Year ending December 31, 2022	10,881
Year ending December 31, 2023	4,899
Year ending December 31, 2024	1,528
Thereafter	200
Total	$	65,629