Finance and Other Receivables (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Finance and Other Receivables

The Company’s finance and other receivables include the following:

	June 30			December 31
		2024		2023
Retail loans	$	5,323.2		$	5,028.2
Retail financing leases		1,720.2			1,710.4
Dealer wholesale financing		2,251.6			1,953.3
Dealer master notes		462.5			509.2
Operating lease receivables and other		53.6			65.3
		9,811.1			9,266.4
Less allowance for credit losses:
Loans and leases		(61.8	)		(58.6	)
Dealer wholesale financing		(1.0	)		(1.0	)
Operating lease receivables and other		(1.5	)		(1.4	)
	$	9,746.8		$	9,205.4

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2024
	Dealer					Customer
	Wholesale		Retail			Retail			Other*		Total
Balance at January 1	$	1.0	$	1.7		$	56.9		$	1.4	$	61.0
Provision for losses				(.6	)		13.7			.1		13.2
Charge-offs							(10.1	)				(10.1	)
Recoveries							.2					.2
Balance at June 30	$	1.0	$	1.1		$	60.7		$	1.5	$	64.3

	2023
	Dealer						Customer
	Wholesale			Retail			Retail			Other*		Total
Balance at January 1	$	1.0		$	1.8		$	57.9		$	1.0	$	61.7
Provision for losses		(.1	)		(.1	)		1.6					1.4
Charge-offs								(2.6	)				(2.6	)
Recoveries								.7			.1		.8
Balance at June 30	$	.9		$	1.7		$	57.6		$	1.1	$	61.3

* Operating lease and other trade receivables.

Finance Receivables by Credit Quality Indicator and Portfolio Class

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class.

At June 30, 2024	Revolving Loans		2024		2023		2022		2021		2020		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	2,247.8													$	2,247.8
Watch		3.8														3.8
	$	2,251.6													$	2,251.6
Retail:
Performing	$	202.4	$	279.1	$	649.4	$	424.3	$	212.8	$	114.8	$	182.7	$	2,065.5
	$	202.4	$	279.1	$	649.4	$	424.3	$	212.8	$	114.8	$	182.7	$	2,065.5
Total dealer	$	2,454.0	$	279.1	$	649.4	$	424.3	$	212.8	$	114.8	$	182.7	$	4,317.1
Customer retail:
Fleet:
Performing			$	1,066.9	$	1,741.6	$	1,024.6	$	547.4	$	309.5	$	87.3	$	4,777.3
Watch				1.3		6.7		6.1		4.8		.9		1.1		20.9
At-risk						53.7		36.5		20.4		4.2		.4		115.2
			$	1,068.2	$	1,802.0	$	1,067.2	$	572.6	$	314.6	$	88.8	$	4,913.4
Owner/operator:
Performing			$	116.9	$	131.5	$	114.4	$	98.2	$	43.3	$	13.2	$	517.5
Watch				1.1		.6		1.5		1.5		.7		.2		5.6
At-risk						.8		1.4		.8		.7		.2		3.9
			$	118.0	$	132.9	$	117.3	$	100.5	$	44.7	$	13.6	$	527.0
Total customer retail			$	1,186.2	$	1,934.9	$	1,184.5	$	673.1	$	359.3	$	102.4	$	5,440.4
Total	$	2,454.0	$	1,465.3	$	2,584.3	$	1,608.8	$	885.9	$	474.1	$	285.1	$	9,757.5

At June 30, 2024	Revolving Loans	2024		2023		2022		2021		2020		Prior		Total
Gross charge-offs:
Customer retail:
Fleet		$	.1	$	.9	$	2.1	$	.6	$	.8	$	3.6	$	8.1
Owner/operator					.6		.7		.2		.2		.3		2.0
Total		$	.1	$	1.5	$	2.8	$	.8	$	1.0	$	3.9	$	10.1

At December 31, 2023	Revolving Loans		2023		2022		2021		2020		2019		Prior		Total
Amortized cost:
Dealer:
Wholesale:
Performing	$	1,951.4													$	1,951.4
Watch		1.9														1.9
	$	1,953.3													$	1,953.3
Retail:
Performing	$	280.7	$	677.3	$	467.2	$	267.6	$	135.2	$	146.3	$	106.6	$	2,080.9
	$	280.7	$	677.3	$	467.2	$	267.6	$	135.2	$	146.3	$	106.6	$	2,080.9
Total dealer	$	2,234.0	$	677.3	$	467.2	$	267.6	$	135.2	$	146.3	$	106.6	$	4,034.2
Customer retail:
Fleet:
Performing			$	1,967.2	$	1,244.9	$	725.3	$	453.3	$	151.5	$	38.9	$	4,581.1
Watch				24.2		16.6		3.3		2.0		.5		.9		47.5
At-risk				2.4		4.0		4.5		2.0		.6		.1		13.6
			$	1,993.8	$	1,265.5	$	733.1	$	457.3	$	152.6	$	39.9	$	4,642.2
Owner/operator:
Performing			$	151.8	$	140.5	$	130.5	$	66.3	$	24.5	$	4.0	$	517.6
Watch				.9		1.9		1.1		.5		.2				4.6
At-risk				.6		.8		.8		.2		.1				2.5
			$	153.3	$	143.2	$	132.4	$	67.0	$	24.8	$	4.0	$	524.7
Total customer retail			$	2,147.1	$	1,408.7	$	865.5	$	524.3	$	177.4	$	43.9	$	5,166.9
Total	$	2,234.0	$	2,824.4	$	1,875.9	$	1,133.1	$	659.5	$	323.7	$	150.5	$	9,201.1

At June 30, 2023	Revolving Loans	2023	2022		2021		2020		2019	Prior	Total
Gross charge-offs:
Customer retail:
Fleet			$	1.6	$	.1					$	1.7
Owner/operator				.4		.4	$	.1				.9
Total			$	2.0	$	.5	$	.1			$	2.6

Summary of 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 June 30, 2024	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	2,251.6	$	2,065.5	$	4,853.9	$	518.7	$	9,689.7
31 – 60 days past due						22.4		5.4		27.8
Greater than 60 days past due						37.1		2.9		40.0
	$	2,251.6	$	2,065.5	$	4,913.4	$	527.0	$	9,757.5

	Dealer				Customer Retail
							Owner/
At December 31, 2023	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	1,953.3	$	2,080.9	$	4,589.2	$	518.2	$	9,141.6
31 – 60 days past due						45.3		4.8		50.1
Greater than 60 days past due						7.7		1.7		9.4
	$	1,953.3	$	2,080.9	$	4,642.2	$	524.7	$	9,201.1

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

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

	Dealer		Customer Retail
					Owner/
At June 30, 2024	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	110.7	$	2.8	$	113.5
Amortized cost basis with no specific reserve				4.6		1.1		5.7
			$	115.3	$	3.9	$	119.2

	Dealer		Customer Retail
					Owner/
At December 31, 2023	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	8.2	$	1.8	$	10.0
Amortized cost basis with no specific reserve				5.3		.8		6.1
			$	13.5	$	2.6	$	16.1

Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-accrual Status

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2024		2023		2024		2023
Fleet	$	.6	$	.1	$	1.0	$	.2
Owner/operator						.1		.1
	$	.6	$	.1	$	1.1	$	.3