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Finance and Other Receivables (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables include the following:

 

 

September 30

 

 

December 31

 

 

 

2017

 

 

 

2016

 

Loans

$

4,024.3

 

 

$

3,948.6

 

Direct financing leases

 

3,142.1

 

 

 

2,798.0

 

Sales-type finance leases

 

761.3

 

 

 

867.3

 

Dealer wholesale financing

 

1,910.6

 

 

 

1,528.5

 

Operating lease receivables and other

 

192.1

 

 

 

150.9

 

Unearned interest: Finance leases

 

(362.0

)

 

 

(344.7

)

 

$

9,668.4

 

 

$

8,948.6

 

Less allowance for losses:

 

 

 

 

 

 

 

Loans and leases

 

(104.0

)

 

 

(97.1

)

Dealer wholesale financing

 

(6.5

)

 

 

(5.5

)

Operating lease receivables and other

 

(9.2

)

 

 

(8.6

)

 

$

9,548.7

 

 

$

8,837.4

 

 
Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

 

 

 

2017

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

5.5

 

 

$

9.6

 

 

$

87.5

 

 

$

8.6

 

 

$

111.2

 

Provision for losses

 

 

.4

 

 

 

(.6

)

 

 

17.2

 

 

 

.4

 

 

 

17.4

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(17.7

)

 

 

(.6

)

 

 

(18.3

)

Recoveries

 

 

 

 

 

 

 

 

 

 

3.3

 

 

 

.2

 

 

 

3.5

 

Currency translation and other

 

 

.6

 

 

 

.2

 

 

 

4.5

 

 

 

.6

 

 

 

5.9

 

Balance at September 30

 

$

6.5

 

 

$

9.2

 

 

$

94.8

 

 

$

9.2

 

 

$

119.7

 

 

 

 

2016

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

7.3

 

 

$

10.3

 

 

$

88.9

 

 

$

8.3

 

 

$

114.8

 

Provision for losses

 

 

(1.0

)

 

 

(.7

)

 

 

14.5

 

 

 

1.7

 

 

 

14.5

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(17.0

)

 

 

(1.9

)

 

 

(18.9

)

Recoveries

 

 

 

 

 

 

 

 

 

 

4.0

 

 

 

.1

 

 

 

4.1

 

Currency translation and other

 

 

.2

 

 

 

.1

 

 

 

(.6

)

 

 

.2

 

 

 

(.1

)

Balance at September 30

 

$

6.5

 

 

$

9.7

 

 

$

89.8

 

 

$

8.4

 

 

$

114.4

 

 

*

Operating leases and other trade receivables.
Finance Receivable Evaluated and Determined Individually and Collectively

Information regarding finance receivables evaluated and determined individually and collectively is as follows:

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

At September 30, 2017

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Recorded investment for impaired finance  receivables

     evaluated individually

 

$

.1

 

 

$

4.1

 

 

$

49.4

 

 

$

53.6

 

Allowance for impaired finance receivables determined

     individually

 

 

.1

 

 

 

 

 

 

 

7.6

 

 

 

7.7

 

Recorded investment for finance receivables evaluated

     collectively

 

 

1,910.5

 

 

 

1,327.0

 

 

 

6,185.2

 

 

 

9,422.7

 

Allowance for finance receivables determined collectively

 

 

6.4

 

 

 

9.2

 

 

 

87.2

 

 

 

102.8

 

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

At December 31, 2016

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Recorded investment for impaired finance receivables

     evaluated individually

 

$

.1

 

 

 

 

 

 

$

57.3

 

 

$

57.4

 

Allowance for impaired finance receivables determined

     individually

 

 

.1

 

 

 

 

 

 

 

4.9

 

 

 

5.0

 

Recorded investment for finance receivables evaluated

     collectively

 

 

1,528.4

 

 

$

1,406.0

 

 

 

5,805.9

 

 

 

8,740.3

 

Allowance for finance receivables determined collectively

 

 

5.4

 

 

 

9.6

 

 

 

82.6

 

 

 

97.6

 

 
Recorded Investment for Finance Receivables that are on Non-Accrual Status

The recorded investment for finance receivables that are on non-accrual status is as follows:

 

 

September 30

 

 

December 31

 

 

 

2017

 

 

 

2016

 

Dealer:

 

 

 

 

 

 

 

Wholesale

$

.1

 

 

$

.1

 

Customer retail:

 

 

 

 

 

 

 

Fleet

 

41.5

 

 

 

49.5

 

Owner/operator

 

7.3

 

 

 

6.9

 

 

$

48.9

 

 

$

56.5

 

 
Impaired Loans and Specific Reserve

The recorded investment of impaired loans as of September 30, 2017 and December 31, 2016 was not significantly different than the unpaid principal balance.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At September 30, 2017

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

$

.1

 

 

 

 

 

 

$

20.0

 

 

$

1.2

 

 

$

21.3

 

Associated allowance

 

 

(.1

)

 

 

 

 

 

 

(3.8

)

 

 

(.3

)

 

 

(4.2

)

 

 

 

 

 

 

 

 

 

 

$

16.2

 

 

$

.9

 

 

$

17.1

 

Impaired loans with no specific reserve

 

 

 

 

 

$

4.1

 

 

 

8.5

 

 

 

 

 

 

 

12.6

 

Net carrying amount of impaired loans

 

 

 

 

 

$

4.1

 

 

$

24.7

 

 

$

.9

 

 

$

29.7

 

Average recorded investment*

 

$

.4

 

 

$

4.0

 

 

$

30.3

 

 

$

2.0

 

 

$

36.7

 

 

*

Represents the average during the 12 months ended September 30, 2017.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2016

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

$

.1

 

 

 

 

 

 

$

18.9

 

 

$

1.8

 

 

$

20.8

 

Associated allowance

 

 

(.1

)

 

 

 

 

 

 

(2.8

)

 

 

(.3

)

 

 

(3.2

)

 

 

 

 

 

 

 

 

 

 

$

16.1

 

 

$

1.5

 

 

$

17.6

 

Impaired loans with no specific reserve

 

 

 

 

 

 

 

 

 

 

10.8

 

 

 

.2

 

 

 

11.0

 

Net carrying amount of impaired loans

 

 

 

 

 

 

 

 

 

$

26.9

 

 

$

1.7

 

 

$

28.6

 

Average recorded investment*

 

$

3.7

 

 

 

 

 

 

$

27.8

 

 

$

2.4

 

 

$

33.9

 

 

*

Represents the average during the 12 months ended September 30, 2016.
Interest Income Recognized on Cash Basis

During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30

 

 

September 30

 

 

 

2017

 

 

 

2016

 

 

 

2017

 

 

 

2016

 

Interest income recognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer retail - fleet

$

.4

 

 

$

.2

 

 

$

1.0

 

 

$

.8

 

Customer retail - owner/operator

 

 

 

 

 

.1

 

 

 

 

 

 

 

.3

 

 

$

.4

 

 

$

.3

 

 

$

1.0

 

 

$

1.1

 

 
Finance Receivables by Credit Quality Indicator and Portfolio Class

The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class.

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At September 30, 2017

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Performing

$

1,905.6

 

 

$

1,327.0

 

 

$

4,916.7

 

 

$

1,197.5

 

 

$

9,346.8

 

Watch

 

4.9

 

 

 

 

 

 

 

64.8

 

 

 

6.2

 

 

 

75.9

 

At-risk

 

.1

 

 

 

4.1

 

 

 

42.1

 

 

 

7.3

 

 

 

53.6

 

 

$

1,910.6

 

 

$

1,331.1

 

 

$

5,023.6

 

 

$

1,211.0

 

 

$

9,476.3

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2016

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Performing

$

1,519.3

 

 

$

1,406.0

 

 

$

4,863.4

 

 

$

922.1

 

 

$

8,710.8

 

Watch

 

9.1

 

 

 

 

 

 

 

14.9

 

 

 

5.5

 

 

 

29.5

 

At-risk

 

.1

 

 

 

 

 

 

 

50.4

 

 

 

6.9

 

 

 

57.4

 

 

$

1,528.5

 

 

$

1,406.0

 

 

$

4,928.7

 

 

$

934.5

 

 

$

8,797.7

 

 
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, 2017

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

$

1,910.3

 

 

$

1,331.1

 

 

$

4,987.0

 

 

$

1,199.6

 

 

$

9,428.0

 

31 – 60 days past due

 

.2

 

 

 

 

 

 

 

15.7

 

 

 

5.6

 

 

 

21.5

 

Greater than 60 days past due

 

.1

 

 

 

 

 

 

 

20.9

 

 

 

5.8

 

 

 

26.8

 

 

$

1,910.6

 

 

$

1,331.1

 

 

$

5,023.6

 

 

$

1,211.0

 

 

$

9,476.3

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2016

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

$

1,528.4

 

 

$

1,406.0

 

 

$

4,898.4

 

 

$

926.4

 

 

$

8,759.2

 

31 – 60 days past due

 

 

 

 

 

 

 

 

 

12.6

 

 

 

3.9

 

 

 

16.5

 

Greater than 60 days past due

 

.1

 

 

 

 

 

 

 

17.7

 

 

 

4.2

 

 

 

22.0

 

 

$

1,528.5

 

 

$

1,406.0

 

 

$

4,928.7

 

 

$

934.5

 

 

$

8,797.7

 

 
Pre- and Post-Modification Recorded Investment Balances by Portfolio Class

At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2017

 

 

September 30, 2017

 

 

 

RECORDED INVESTMENT

 

 

RECORDED INVESTMENT

 

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

Fleet

 

$

.9

 

 

$

.9

 

 

$

17.5

 

 

$

17.5

 

Owner/operator

 

 

.1

 

 

 

.1

 

 

 

.5

 

 

 

.5

 

 

 

$

1.0

 

 

$

1.0

 

 

$

18.0

 

 

$

18.0

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2016

 

 

September 30, 2016

 

 

 

RECORDED INVESTMENT

 

 

RECORDED INVESTMENT

 

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

Fleet

 

$

9.1

 

 

$

9.1

 

 

$

23.1

 

 

$

23.0

 

Owner/operator

 

 

.4

 

 

 

.4

 

 

 

3.7

 

 

 

3.7

 

 

 

$

9.5

 

 

$

9.5

 

 

$

26.8

 

 

$

26.7

 

 
TDRs Modified that Subsequently Defaulted (i.e., Became More than 30 Days Past-Due) by Portfolio Class

TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) during the period by portfolio class are as follows:

 

Nine Months Ended September 30,

 

 

2017

 

 

 

2016

 

Fleet

 

$

5.1

 

 

$

.1

 

Owner/operator

 

 

.3

 

 

 

.4

 

 

 

$

5.4

 

 

$

.5