XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.0.1
Finance and Other Receivables
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Finance and Other Receivables
E.
FINANCE AND OTHER RECEIVABLES

Finance and other receivables include the following:

 

At December 31,

 

2023

 

 

2022

 

Loans

 

$

8,594.7

 

 

$

7,229.1

 

Finance leases

 

 

4,785.7

 

 

 

3,786.4

 

Dealer wholesale financing

 

 

4,147.8

 

 

 

2,772.1

 

Operating lease receivables and other

 

 

176.5

 

 

 

125.4

 

 

$

17,704.7

 

 

$

13,913.0

 

Less allowance for losses:

 

 

 

 

 

 

Loans and leases

 

 

(127.0

)

 

 

(114.8

)

Dealer wholesale financing

 

 

(2.7

)

 

 

(3.4

)

Operating lease receivables and other

 

 

(3.3

)

 

 

(2.9

)

 

 

$

17,571.7

 

 

$

13,791.9

 

Included in Finance and other receivables, net on the Consolidated Balance Sheets is accrued interest receivable (net of allowance for credit losses) of $88.4 and $44.1 as of December 31, 2023 and December 31, 2022, respectively. The net activity of dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory.

Annual minimum payments due on loans are as follows:

 

Beginning January 1,

 

 

 

LOANS

 

2024

 

 

 

$

2,840.0

 

2025

 

 

 

 

2,126.0

 

2026

 

 

 

 

1,679.9

 

2027

 

 

 

 

1,181.3

 

2028

 

 

 

 

619.3

 

Thereafter

 

 

 

 

148.2

 

 

 

 

$

8,594.7

 

 

Annual minimum payments due on finance lease receivables and a reconciliation of the undiscounted cash flows to the net investment in finance leases are as follows:

 

 

 

 

 

FINANCE

 

Beginning January 1,

 

 

 

LEASES

 

2024

 

 

 

$

1,651.1

 

2025

 

 

 

 

1,359.9

 

2026

 

 

 

 

1,036.1

 

2027

 

 

 

 

714.6

 

2028

 

 

 

 

367.0

 

Thereafter

 

 

 

 

162.2

 

 

 

 

$

5,290.9

 

Unguaranteed residual values

 

 

 

 

205.2

 

Unearned interest on finance leases

 

 

 

 

(710.4

)

Net investment in finance leases

 

 

 

$

4,785.7

 

 

Experience indicates substantially all of dealer wholesale financing will be repaid within one year. In addition, repayment experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while others may be extended or modified.

For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk.

Allowance for Credit Losses: The allowance for credit losses is summarized as follows:

 

 

 

2023

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

3.4

 

 

$

2.2

 

 

$

112.6

 

 

$

2.9

 

 

$

121.1

 

Provision for losses

 

 

(.6

)

 

 

(.3

)

 

 

31.8

 

 

 

.4

 

 

 

31.3

 

Charge-offs

 

 

(.2

)

 

 

 

 

 

(28.4

)

 

 

(1.7

)

 

 

(30.3

)

Recoveries

 

 

 

 

 

 

 

 

5.6

 

 

 

1.4

 

 

 

7.0

 

Currency translation and other

 

 

.1

 

 

 

 

 

 

3.5

 

 

 

.3

 

 

 

3.9

 

Balance at December 31

 

$

2.7

 

 

$

1.9

 

 

$

125.1

 

 

$

3.3

 

 

$

133.0

 

 

 

 

2022

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

3.3

 

 

$

7.1

 

 

$

104.4

 

 

$

2.1

 

 

$

116.9

 

Provision for losses

 

 

.1

 

 

 

(4.9

)

 

 

12.0

 

 

 

(1.7

)

 

 

5.5

 

Charge-offs

 

 

 

 

 

 

 

 

(8.5

)

 

 

(.5

)

 

 

(9.0

)

Recoveries

 

 

 

 

 

 

 

 

7.5

 

 

 

2.2

 

 

 

9.7

 

Currency translation and other

 

 

 

 

 

 

 

 

(2.8

)

 

 

.8

 

 

 

(2.0

)

Balance at December 31

 

$

3.4

 

 

$

2.2

 

 

$

112.6

 

 

$

2.9

 

 

$

121.1

 

 

* Operating lease and other trade receivables.

 

 

2021

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

3.4

 

 

$

8.4

 

 

$

112.0

 

 

$

3.2

 

 

$

127.0

 

Provision for losses

 

 

 

 

 

(1.3

)

 

 

.6

 

 

 

1.2

 

 

 

.5

 

Charge-offs

 

 

 

 

 

 

 

 

(12.3

)

 

 

(2.5

)

 

 

(14.8

)

Recoveries

 

 

 

 

 

 

 

 

6.2

 

 

 

.3

 

 

 

6.5

 

Currency translation and other

 

 

(.1

)

 

 

 

 

 

(2.1

)

 

 

(.1

)

 

 

(2.3

)

Balance at December 31

 

$

3.3

 

 

$

7.1

 

 

$

104.4

 

 

$

2.1

 

 

$

116.9

 

 

* Operating lease and other trade receivables.

Credit Quality: The Company’s customers are principally concentrated in the transportation industry in North America, Europe, Australia and Brasil. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment.

At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss.

The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high‑risk. Watch accounts are not collateral dependent. At-risk accounts are collateral dependent, including accounts over 90 days past due and other accounts on non-accrual status.

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.

 

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2023

LOANS

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

PRIOR

 

 

TOTAL

 

Amortized Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

4,129.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,129.8

 

Watch

 

18.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18.0

 

$

4,147.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,147.8

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

280.7

 

 

$

789.1

 

 

$

520.0

 

 

$

291.2

 

 

$

162.8

 

 

$

161.8

 

 

$

125.2

 

 

$

2,330.8

 

 

$

280.7

 

 

$

789.1

 

 

$

520.0

 

 

$

291.2

 

 

$

162.8

 

 

$

161.8

 

 

$

125.2

 

 

$

2,330.8

 

Total dealer

$

4,428.5

 

 

$

789.1

 

 

$

520.0

 

 

$

291.2

 

 

$

162.8

 

 

$

161.8

 

 

$

125.2

 

 

$

6,478.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

4,601.7

 

 

$

2,667.2

 

 

$

1,309.5

 

 

$

719.2

 

 

$

226.7

 

 

$

64.1

 

 

$

9,588.4

 

Watch

 

 

 

 

46.0

 

 

 

32.0

 

 

 

7.5

 

 

 

5.7

 

 

 

1.3

 

 

 

.9

 

 

 

93.4

 

At-risk

 

 

 

 

42.0

 

 

 

31.0

 

 

 

12.9

 

 

 

5.6

 

 

 

1.2

 

 

 

.1

 

 

 

92.8

 

 

 

 

$

4,689.7

 

 

$

2,730.2

 

 

$

1,329.9

 

 

$

730.5

 

 

$

229.2

 

 

$

65.1

 

 

$

9,774.6

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

460.9

 

 

$

332.9

 

 

$

263.6

 

 

$

142.1

 

 

$

52.8

 

 

$

8.6

 

 

$

1,260.9

 

Watch

 

 

 

 

2.0

 

 

 

3.2

 

 

 

2.2

 

 

 

1.3

 

 

 

.3

 

 

 

 

 

 

9.0

 

At-risk

 

 

 

 

.6

 

 

 

1.3

 

 

 

1.1

 

 

 

1.5

 

 

 

.2

 

 

 

.4

 

 

 

5.1

 

 

 

 

 

$

463.5

 

 

$

337.4

 

 

$

266.9

 

 

$

144.9

 

 

$

53.3

 

 

$

9.0

 

 

$

1,275.0

 

Total customer retail

 

 

 

$

5,153.2

 

 

$

3,067.6

 

 

$

1,596.8

 

 

$

875.4

 

 

$

282.5

 

 

$

74.1

 

 

$

11,049.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

4,428.5

 

 

$

5,942.3

 

 

$

3,587.6

 

 

$

1,888.0

 

 

$

1,038.2

 

 

$

444.3

 

 

$

199.3

 

 

$

17,528.2

 

 

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended December 31, 2023

LOANS

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

PRIOR

 

 

TOTAL

 

Gross charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

$

.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

.2

 

Total dealer

$

.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

$

1.0

 

 

$

9.4

 

 

$

5.1

 

 

$

4.2

 

 

$

4.2

 

 

$

.6

 

 

$

24.5

 

Owner/operator

 

 

 

 

.5

 

 

 

1.1

 

 

 

1.5

 

 

 

.5

 

 

 

 

 

 

.3

 

 

 

3.9

 

Total customer retail

 

 

 

$

1.5

 

 

$

10.5

 

 

$

6.6

 

 

$

4.7

 

 

$

4.2

 

 

$

.9

 

 

$

28.4

 

Total

$

.2

 

 

$

1.5

 

 

$

10.5

 

 

$

6.6

 

 

$

4.7

 

 

$

4.2

 

 

$

.9

 

 

$

28.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVOLVING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2022

LOANS

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

PRIOR

 

 

TOTAL

 

Amortized Cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

2,766.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,766.0

 

Watch

 

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.1

 

$

2,772.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,772.1

 

Retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

206.2

 

 

$

609.7

 

 

$

348.6

 

 

$

223.1

 

 

$

241.7

 

 

$

120.8

 

 

$

121.1

 

 

$

1,871.2

 

At-risk

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.7

 

 

 

.7

 

 

$

206.2

 

 

$

609.7

 

 

$

348.6

 

 

$

223.1

 

 

$

241.7

 

 

$

120.8

 

 

$

121.8

 

 

$

1,871.9

 

Total dealer

$

2,978.3

 

 

$

609.7

 

 

$

348.6

 

 

$

223.1

 

 

$

241.7

 

 

$

120.8

 

 

$

121.8

 

 

$

4,644.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

3,558.0

 

 

$

1,981.9

 

 

$

1,306.5

 

 

$

603.7

 

 

$

203.4

 

 

$

65.6

 

 

$

7,719.1

 

Watch

 

 

 

 

7.5

 

 

 

7.3

 

 

 

1.8

 

 

 

3.4

 

 

 

2.4

 

 

 

.5

 

 

 

22.9

 

At-risk

 

 

 

 

6.7

 

 

 

17.7

 

 

 

18.8

 

 

 

17.2

 

 

 

5.9

 

 

 

.5

 

 

 

66.8

 

 

 

 

$

3,572.2

 

 

$

2,006.9

 

 

$

1,327.1

 

 

$

624.3

 

 

$

211.7

 

 

$

66.6

 

 

$

7,808.8

 

Owner/operator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

 

$

478.2

 

 

$

425.9

 

 

$

251.2

 

 

$

120.9

 

 

$

45.3

 

 

$

6.0

 

 

$

1,327.5

 

Watch

 

 

 

 

1.8

 

 

 

.9

 

 

 

.4

 

 

 

.3

 

 

 

 

 

 

.1

 

 

 

3.5

 

At-risk

 

 

 

 

.4

 

 

 

.8

 

 

 

1.1

 

 

 

.8

 

 

 

.7

 

 

 

 

 

 

3.8

 

 

 

 

 

$

480.4

 

 

$

427.6

 

 

$

252.7

 

 

$

122.0

 

 

$

46.0

 

 

$

6.1

 

 

$

1,334.8

 

Total customer retail

 

 

 

$

4,052.6

 

 

$

2,434.5

 

 

$

1,579.8

 

 

$

746.3

 

 

$

257.7

 

 

$

72.7

 

 

$

9,143.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

2,978.3

 

 

$

4,662.3

 

 

$

2,783.1

 

 

$

1,802.9

 

 

$

988.0

 

 

$

378.5

 

 

$

194.5

 

 

$

13,787.6

 

The tables below summarize 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

 

 

 

 

At December 31, 2023

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

4,131.7

 

 

$

2,330.8

 

 

$

9,656.4

 

 

$

1,262.4

 

 

$

17,381.3

 

31 – 60 days past due

 

 

15.0

 

 

 

 

 

 

61.0

 

 

 

8.5

 

 

 

84.5

 

Greater than 60 days past due

 

 

1.1

 

 

 

 

 

 

57.2

 

 

 

4.1

 

 

 

62.4

 

 

$

4,147.8

 

 

$

2,330.8

 

 

$

9,774.6

 

 

$

1,275.0

 

 

$

17,528.2

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

At December 31, 2022

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

2,772.1

 

 

$

1,871.9

 

 

$

7,768.5

 

 

$

1,329.1

 

 

$

13,741.6

 

31 – 60 days past due

 

 

 

 

 

 

 

 

14.7

 

 

 

3.1

 

 

 

17.8

 

Greater than 60 days past due

 

 

 

 

 

 

 

 

25.6

 

 

 

2.6

 

 

 

28.2

 

 

$

2,772.1

 

 

$

1,871.9

 

 

$

7,808.8

 

 

$

1,334.8

 

 

$

13,787.6

 

 

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

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

At December 31, 2023

WHOLESALE

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

$

69.8

 

 

$

4.3

 

 

$

74.1

 

Amortized cost basis with no specific reserve

 

 

 

 

 

 

22.8

 

 

 

.8

 

 

 

23.6

 

Total

 

 

 

 

 

$

92.6

 

 

$

5.1

 

 

$

97.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

At December 31, 2022

WHOLESALE

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Amortized cost basis with a specific reserve

 

 

 

 

 

$

33.9

 

 

$

3.6

 

 

$

37.5

 

Amortized cost basis with no specific reserve

 

 

$

.7

 

 

 

16.2

 

 

 

 

 

 

16.9

 

Total

 

 

$

.7

 

 

$

50.1

 

 

$

3.6

 

 

$

54.4

 

 

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

 

Year Ended December 31,

 

2023

 

 

2022

 

 

2021

 

 

Dealer:

 

 

 

 

 

 

 

 

 

 

Retail

 

 

 

 

$

.1

 

 

$

.2

 

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

2.2

 

 

 

2.5

 

 

 

3.1

 

 

Owner/operator

 

 

.4

 

 

 

.2

 

 

 

.5

 

 

 

$

2.6

 

 

$

2.8

 

 

$

3.8

 

 

Customers Experiencing Financial Difficulty: The Company adopted ASU 2022-02 on January 1, 2023. The amortized cost basis of finance receivables modified for fleet customers experiencing financial difficulty was $7.5 for the year ended December 31, 2023. The amortized cost basis of finance receivables modified for owner/operator customers experiencing financial difficulty was nil for the year ended December 31, 2023. Total modifications with customers experiencing financial difficulty represented less than .1% of the total retail portfolio for the year ended December 31, 2023. The modifications provided term extensions and granted customers additional time to pay, primarily in Brasil. The financial effects of the term extensions added a weighted-average of 19 months to the life of the modified contracts for the year ended December 31, 2023. The effect on the allowance for credit losses from such modifications was not significant for the year ended December 31, 2023.

All of the finance receivables modified with customers experiencing financial difficulty are current. There were no finance receivables modified with customers experiencing financial difficulty on or after January 1, 2023 that had a payment default in the year ended December 31, 2023.

Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02: Prior to the adoption of ASU 2022-02, when considering whether to modify customer accounts for credit reasons, the Company evaluated the creditworthiness of the customers and modified those accounts that the Company considered likely to perform under the modified terms. When the Company modified a loan or finance lease for credit reasons and granted a concession, the modification was classified as a troubled debt restructuring (TDR). The Company did not typically grant credit modifications for customers that did not meet minimum underwriting standards since the Company normally repossesses the financed equipment in those circumstances. When such modifications did occur, they were considered TDRs. The balance of TDRs was $31.1 at December 31, 2022. At modification date, the pre- and post-modification amortized cost basis was $11.7 for fleet finance receivables during the period.

The effect on the allowance for credit losses from such modifications was not significant at December 31, 2022.

Repossessions: When the Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Financial Services Other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at December 31, 2023 and 2022 was $30.4 and $9.2, respectively. Proceeds from the sales of repossessed assets were $27.7, $20.8 and $45.3 for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts are included in Proceeds from asset disposals in the Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services Depreciation and other expenses on the Consolidated Statements of Income.