Finance and Other Receivables (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2024			2023
Loans	$	9,408.2		$	8,594.7
Finance leases		4,889.3			4,785.7
Dealer wholesale financing		4,973.5			4,147.8
Operating lease receivables and other		169.5			176.5
		19,440.5			17,704.7
Less allowance for losses:
Loans and leases		(140.3	)		(127.0	)
Dealer wholesale financing		(3.0	)		(2.7	)
Operating lease receivables and other		(2.9	)		(3.3	)
	$	19,294.3		$	17,571.7

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	$	2.7		$	1.9		$	125.1		$	3.3		$	133.0
Provision for losses		.4			(.4	)		50.8			(.6	)		50.2
Charge-offs								(38.9	)		(.6	)		(39.5	)
Recoveries								5.7			1.1			6.8
Currency translation and other		(.1	)					(3.9	)		(.3	)		(4.3	)
Balance at September 30	$	3.0		$	1.5		$	138.8		$	2.9		$	146.2

	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		(.8	)		(.8	)		16.3			(.6	)		14.1
Charge-offs								(16.0	)		(1.2	)		(17.2	)
Recoveries								4.3			1.3			5.6
Currency translation and other								1.0			.2			1.2
Balance at September 30	$	2.6		$	1.4		$	118.2		$	2.6		$	124.8

* Operating leases and other trade receivables.

Amortized Cost Basis of Finance Receivables and Charge-offs 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.

	REVOLVING
At September 30, 2024	LOANS		2024		2023		2022		2021		2020		PRIOR		TOTAL
Amortized cost:
Dealer:
Wholesale:
Performing	$	4,960.7													$	4,960.7
Watch		12.4														12.4
At-risk		.4														.4
	$	4,973.5													$	4,973.5
Retail:
Performing	$	202.0	$	489.2	$	679.6	$	434.3	$	209.9	$	116.2	$	172.9	$	2,304.1
Watch				1.0		25.0		6.7		2.4		5.7		.7		41.5
	$	202.0	$	490.2	$	704.6	$	441.0	$	212.3	$	121.9	$	173.6	$	2,345.6
Total dealer	$	5,175.5	$	490.2	$	704.6	$	441.0	$	212.3	$	121.9	$	173.6	$	7,319.1
Customer retail:
Fleet:
Performing			$	3,526.3	$	3,509.3	$	1,921.9	$	829.7	$	389.1	$	107.8	$	10,284.1
Watch				19.1		41.0		14.1		9.4		3.0		.6		87.2
At-risk				19.7		118.0		83.1		45.0		7.5		3.4		276.7
			$	3,565.1	$	3,668.3	$	2,019.1	$	884.1	$	399.6	$	111.8	$	10,648.0
Owner/operator:
Performing			$	416.3	$	348.0	$	237.8	$	168.7	$	73.9	$	20.0	$	1,264.7
Watch				3.1		12.6		9.6		4.1		2.0		.3		31.7
At-risk				.1		2.0		2.5		1.4		1.4		.1		7.5
			$	419.5	$	362.6	$	249.9	$	174.2	$	77.3	$	20.4	$	1,303.9
Total customer retail			$	3,984.6	$	4,030.9	$	2,269.0	$	1,058.3	$	476.9	$	132.2	$	11,951.9
Total	$	5,175.5	$	4,474.8	$	4,735.5	$	2,710.0	$	1,270.6	$	598.8	$	305.8	$	19,271.0
	REVOLVING
At September 30, 2024	LOANS		2024		2023		2022		2021		2020		PRIOR		TOTAL
Gross charge-offs:
Customer retail:
Fleet			$	.9	$	10.6	$	8.9	$	5.2	$	2.4	$	5.2	$	33.2
Owner/operator				.2		1.3		2.2		.8		.7		.5		5.7
Total			$	1.1	$	11.9	$	11.1	$	6.0	$	3.1	$	5.7	$	38.9

	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
At 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

Financing Receivables by Aging Category

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
							OWNER/
At September 30, 2024	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	4,967.6	$	2,345.6	$	10,501.2	$	1,281.5	$	19,095.9
31 – 60 days past due		5.4				49.3		13.9		68.6
Greater than 60 days past due		.5				97.5		8.5		106.5
	$	4,973.5	$	2,345.6	$	10,648.0	$	1,303.9	$	19,271.0

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2023	WHOLESALE		RETAIL		FLEET		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

Summary of Amortized Cost Basis of 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 September 30, 2024	WHOLESALE		RETAIL	FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	269.0	$	6.2	$	275.2
Amortized cost basis with no specific reserve	$	.4			7.6		1.2		9.2
Total	$	.4		$	276.6	$	7.4	$	284.4

	DEALER		CUSTOMER RETAIL
					OWNER/
At December 31, 2023	WHOLESALE	RETAIL	FLEET		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

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				Nine Months Ended
	September 30				September 30
	2024		2023		2024		2023
Customer retail:
Fleet	$	.5	$	.4	$	2.6	$	1.0
Owner/operator				.1		.2		.2
	$	.5	$	.5	$	2.8	$	1.2

Amortized Cost Basis of Finance Receivables Modified by Portfolio Class

The Company modified $189.0 and $20.0 of finance receivables for customers experiencing financial difficulty during the first nine months of 2024 and 2023, respectively. The amortized cost basis of finance receivables for Other than insignificant term extensions and payment delays to customers in financial difficulty were as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2024			2023			2024			2023
Customer retail:
Fleet	$	7.8		$	.6		$	106.4		$	7.2
Owner/operator								.4
	$	7.8		$	.6		$	106.8		$	7.2
Annualized % of total retail porfolio		.2	%	<.1		%		1.0	%		.1	%