Allowance for Credit Losses and Credit Quality

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

Allowance for Credit Losses and Credit Quality

C. Allowance for Credit Losses and Credit Quality

The following table reconciles the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2013 and 2012:

	Microticket equipment
	Three months ended September 30, 2013									Three months ended September 30, 2012
	Lease- Comm			Time- Payment			Total			Lease- Comm			Time- Payment			Total
Allowance for credit losses:
Beginning balance	$	108		$	15,468		$	15,576		$	126		$	12,904		$	13,030
Charge-offs		(84	)		(6,042	)		(6,126	)		(121	)		(5,575	)		(5,696	)
Recoveries		37			1,257			1,294			68			1,110			1,178
Provisions		37			4,753			4,790			38			4,809			4,847
Ending balance, allowance for credit losses	$	98		$	15,436		$	15,534		$	111		$	13,248		$	13,359

The following table reconciles the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2013 and 2012:

	Microticket equipment
	Nine months ended September 30, 2013									Nine months ended September 30, 2012
	Lease- Comm			Time- Payment			Total			Lease- Comm			Time- Payment			Total
Allowance for credit losses:
Beginning balance	$	103		$	13,935		$	14,038		$	162		$	13,018		$	13,180
Charge-offs		(254	)		(17,050	)		(17,304	)		(454	)		(17,463	)		(17,917	)
Recoveries		126			4,260			4,386			205			3,600			3,805
Provisions		123			14,291			14,414			198			14,093			14,291
Ending balance, allowance for credit losses	$	98		$	15,436		$	15,534		$	111		$	13,248		$	13,359

The following table presents the allowance for credit losses and financing receivables by portfolio segment as of September 30, 2013, and December 31, 2012, classified according to the impairment evaluation method:

	As of September 30, 2013						As of December 31, 2012
	Lease- Comm		Time- Payment		Total		Lease- Comm		Time- Payment		Total
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		98		15,436		15,534		103		13,935		14,038
Contracts acquired with deteriorated credit quality		—		—		—		—		—		—
Ending balance, allowance for credit losses	$	98	$	15,436	$	15,534	$	103	$	13,935	$	14,038

	As of September 30, 2013						As of December 31, 2012
	Lease- Comm		Time- Payment		Total		Lease- Comm		Time- Payment		Total
Financing receivables:(1)
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		188		177,236		177,424		174		173,697		173,871
Contracts acquired with deteriorated credit quality		—		—		—		—		—		—
Ending balance, financing receivables	$	188	$	177,236	$	177,424	$	174	$	173,697	$	173,871

(1) Total financing receivables include net investment in leases. For purposes of asset quality and allowance calculations, the allowance for credit losses is excluded.

The following table presents the aging status of the recorded investment in leases as of September 30, 2013, classified according to the original score granted by our internally-developed proprietary scoring model:

				31 to 60 Days			61 to 90 Days			Over 90 Days						Over 90 Days
	Current			Past Due			Past Due			Past Due			Total			Accruing
LeaseComm	$	92		$	4		$	4		$	88		$	188		$	88
TimePayment
Gold		56,727			1,782			1,156			3,508			63,173			3,508
Silver		83,505			2,671			2,768			14,016			102,960			14,016
Bronze		7,541			491			490			2,581			11,103			2,581
TimePayment subtotal		147,773			4,944			4,414			20,105			177,236			20,105
Total financing receivables	$	147,865		$	4,948		$	4,418		$	20,193		$	177,424		$	20,193
Percent of total financing receivables		83.3	%		2.8	%		2.5	%		11.4	%		100.0	%

The following table presents the aging status of the recorded investment in leases as of December 31, 2012, classified according to the original score granted by our internally-developed proprietary scoring model:

				31 to 60 Days			61 to 90 Days			Over 90 Days						Over 90 Days
	Current			Past Due			Past Due			Past Due			Total			Accruing
LeaseComm	$	90		$	5		$	5		$	74		$	174		$	74
TimePayment
Gold		54,446			2,763			1,042			2,309			60,560			2,309
Silver		84,268			2,883			3,281			13,312			103,744			13,312
Bronze		6,341			493			441			2,118			9,393			2,118
TimePayment subtotal		145,055			6,139			4,764			17,739			173,697			17,739
Total financing receivables	$	145,145		$	6,144		$	4,769		$	17,813		$	173,871		$	17,813
Percent of total financing receivables		83.5	%		3.5	%		2.7	%		10.3	%		100	%