Finance and Other Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Finance and Other Receivables

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

	March 31			December 31
		2022		2021
Retail loans	$	4,374.2		$	4,300.5
Retail financing leases		1,362.4			1,381.9
Dealer wholesale financing		762.1			737.6
Dealer master notes		405.3			322.7
Operating lease receivables and other		54.2			51.4
		6,958.2			6,794.1
Less allowance for credit losses:
Loans and leases		(61.7	)		(63.6	)
Dealer wholesale financing		(1.1	)		(1.0	)
Operating lease receivables and other		(.9	)		(1.1	)
	$	6,894.5		$	6,728.4

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2022
	Dealer					Customer
	Wholesale		Retail			Retail			Other*			Total
Balance at January 1	$	1.0	$	6.5		$	57.1		$	1.1		$	65.7
Provision for losses		.1		(1.9	)		(.5	)		(.2	)		(2.5	)
Charge-offs							(.2	)					(.2	)
Recoveries							.7						.7
Balance at March 31	$	1.1	$	4.6		$	57.1		$	.9		$	63.7

	2021
	Dealer					Customer
	Wholesale		Retail			Retail			Other*		Total
Balance at January 1	$	1.3	$	7.5		$	57.7		$	1.7	$	68.2
Provision for losses				(.2	)		.7			.1		.6
Charge-offs							(.7	)				(.7	)
Recoveries							.5					.5
Balance at March 31	$	1.3	$	7.3		$	58.2		$	1.8	$	68.6

* 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 by credit quality indicator by year of origination and portfolio class.

At March 31, 2022	Revolving Loans		2022		2021		2020		2019		2018		Prior		Total
Dealer:
Wholesale:
Performing	$	756.8													$	756.8
Watch		5.3														5.3
At-risk
	$	762.1													$	762.1
Retail:
Performing	$	188.6	$	213.2	$	367.6	$	221.5	$	265.2	$	128.7	$	161.9	$	1,546.7
Watch
At-risk
	$	188.6	$	213.2	$	367.6	$	221.5	$	265.2	$	128.7	$	161.9	$	1,546.7
Total Dealer	$	950.7	$	213.2	$	367.6	$	221.5	$	265.2	$	128.7	$	161.9	$	2,308.8
Customer Retail:
Fleet:
Performing			$	444.2	$	1,466.2	$	1,012.7	$	609.2	$	255.0	$	102.9	$	3,890.2
Watch								3.0		1.0		2.2		.2		6.4
At-risk				.5		3.7		.6		10.9		6.1		1.3		23.1
			$	444.7	$	1,469.9	$	1,016.3	$	621.1	$	263.3	$	104.4	$	3,919.7
Owner/Operator:
Performing			$	68.5	$	290.3	$	176.9	$	90.0	$	36.7	$	12.1	$	674.5
Watch						.1				.1						.2
At-risk								.1		.2		.3		.2		.8
			$	68.5	$	290.4	$	177.0	$	90.3	$	37.0	$	12.3	$	675.5
Total Customer Retail			$	513.2	$	1,760.3	$	1,193.3	$	711.4	$	300.3	$	116.7	$	4,595.2
Total	$	950.7	$	726.4	$	2,127.9	$	1,414.8	$	976.6	$	429.0	$	278.6	$	6,904.0

At December 31, 2021	Revolving Loans		2021		2020		2019		2018		2017		Prior		Total
Dealer:
Wholesale:
Performing	$	731.8													$	731.8
Watch		5.8														5.8
At-risk
	$	737.6													$	737.6
Retail:
Performing	$	201.9	$	389.9	$	258.5	$	271.0	$	135.2	$	97.4	$	83.4	$	1,437.3
Watch				7.0		3.7		9.2		4.4		1.1				25.4
At-risk
	$	201.9	$	396.9	$	262.2	$	280.2	$	139.6	$	98.5	$	83.4	$	1,462.7
Total Dealer	$	939.5	$	396.9	$	262.2	$	280.2	$	139.6	$	98.5	$	83.4	$	2,200.3
Customer Retail:
Fleet:
Performing			$	1,568.6	$	1,109.5	$	691.9	$	312.1	$	103.8	$	36.2	$	3,822.1
Watch				.5		1.2		1.1		2.3		.3		.1		5.5
At-risk				4.1		3.2		11.9		6.5		1.7		.2		27.6
			$	1,573.2	$	1,113.9	$	704.9	$	320.9	$	105.8	$	36.5	$	3,855.2
Owner/Operator:
Performing			$	315.5	$	201.5	$	104.5	$	46.3	$	14.4	$	3.8	$	686.0
Watch				.3						.2						.5
At-risk								.3		.3				.1		.7
			$	315.8	$	201.5	$	104.8	$	46.8	$	14.4	$	3.9	$	687.2
Total Customer Retail			$	1,889.0	$	1,315.4	$	809.7	$	367.7	$	120.2	$	40.4	$	4,542.4
Total	$	939.5	$	2,285.9	$	1,577.6	$	1,089.9	$	507.3	$	218.7	$	123.8	$	6,742.7

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 March 31, 2022	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	762.1	$	1,546.7	$	3,917.6	$	674.9	$	6,901.3
31 – 60 days past due						2.0		.3		2.3
Greater than 60 days past due						.1		.3		.4
	$	762.1	$	1,546.7	$	3,919.7	$	675.5	$	6,904.0

	Dealer				Customer Retail
							Owner/
At December 31, 2021	Wholesale		Retail		Fleet		Operator		Total
Current and up to 30 days past due	$	737.6	$	1,462.7	$	3,853.5	$	686.6	$	6,740.4
31 – 60 days past due						1.7		.4		2.1
Greater than 60 days past due								.2		.2
	$	737.6	$	1,462.7	$	3,855.2	$	687.2	$	6,742.7

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:

	Dealer		Customer Retail
					Owner/
At March 31, 2022	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	13.0	$	.8	$	13.8
Amortized cost basis with no specific reserve				1.3				1.3
Total			$	14.3	$	.8	$	15.1

	Dealer		Customer Retail
					Owner/
At December 31, 2021	Wholesale	Retail	Fleet		Operator		Total
Amortized cost basis with a specific reserve			$	14.2	$	.8	$	15.0
Amortized cost basis with no specific reserve				3.7				3.7
Total			$	17.9	$	.8	$	18.7

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 is as follows:

	Three Month Ended
	March 31
	2022		2021
Fleet	$	.2	$	.4
Owner/Operator
	$	.2	$	.4

Pre-Modification and Post-Modification Amortized Cost Basis Balances by Portfolio Class

At modification date, the pre- and post-modification amortized cost basis balances for finance receivables modified during the periods by portfolio class are as follows:

	Three Months Ended		Three Months Ended
	March 31, 2022		March 31, 2021
	Amortized Cost Basis		Amortized Cost Basis
	Pre-Modification	Post-Modification	Pre-Modification		Post-Modification
Fleet			$	.7	$	.6
Owner/Operator				.1		.1
			$	.8	$	.7