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Finance and Other Receivables (Tables)
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables include the following:

 

 

 

March 31

 

 

December 31

 

 

 

2018

 

 

2017

 

Loans

 

$

4,284.2

 

 

$

4,147.8

 

Direct financing leases

 

 

3,306.8

 

 

 

3,211.7

 

Sales-type finance leases

 

 

738.7

 

 

 

781.1

 

Dealer wholesale financing

 

 

2,103.9

 

 

 

1,880.6

 

Operating lease receivables and other

 

 

165.3

 

 

 

161.1

 

Unearned interest: Finance leases

 

 

(373.2

)

 

 

(368.0

)

 

 

$

10,225.7

 

 

$

9,814.3

 

Less allowance for losses:

 

 

 

 

 

 

 

 

Loans and leases

 

 

(105.4

)

 

 

(101.9

)

Dealer wholesale financing

 

 

(6.5

)

 

 

(6.0

)

Operating lease receivables and other

 

 

(9.9

)

 

 

(9.3

)

 

 

$

10,103.9

 

 

$

9,697.1

 

 
Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

 

 

 

2018

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

 

 

 

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

OTHER*

 

 

TOTAL

 

Balance at January 1

 

$

6.0

 

 

$

9.4

 

 

$

92.5

 

 

$

9.3

 

 

$

117.2

 

Provision for losses

 

 

.3

 

 

 

 

 

 

 

5.0

 

 

 

.6

 

 

 

5.9

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(4.2

)

 

 

(.2

)

 

 

(4.4

)

Recoveries

 

 

.1

 

 

 

 

 

 

 

1.6

 

 

 

 

 

 

 

1.7

 

Currency translation and other

 

 

.1

 

 

 

 

 

 

 

1.1

 

 

 

.2

 

 

 

1.4

 

Balance at March 31

 

$

6.5

 

 

$

9.4

 

 

$

96.0

 

 

$

9.9

 

 

$

121.8

 

 

 

 

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

 

 

 

 

 

 

(.3

)

 

 

5.9

 

 

 

.3

 

 

 

5.9

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(6.5

)

 

 

(.3

)

 

 

(6.8

)

Recoveries

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

 

 

 

 

1.4

 

Currency translation and other

 

 

.1

 

 

 

.1

 

 

 

2.0

 

 

 

 

 

 

 

2.2

 

Balance at March 31

 

$

5.6

 

 

$

9.4

 

 

$

90.3

 

 

$

8.6

 

 

$

113.9

 

 

*

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 March 31, 2018

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Recorded investment for impaired finance

   receivables evaluated individually

 

 

 

$

.1

 

 

$

4.0

 

 

$

71.7

 

 

$

75.8

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

.1

 

 

 

 

 

 

 

8.9

 

 

 

9.0

 

Recorded investment for finance receivables

   evaluated collectively

 

 

 

 

2,103.8

 

 

 

1,363.1

 

 

 

6,517.7

 

 

 

9,984.6

 

Allowance for finance receivables

   determined collectively

 

 

 

 

6.4

 

 

 

9.4

 

 

 

87.1

 

 

 

102.9

 

 

 

 

 

 

DEALER

 

 

CUSTOMER

 

 

 

 

 

At December 31, 2017

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Recorded investment for impaired finance

   receivables evaluated individually

 

 

 

$

.1

 

 

$

4.0

 

 

$

50.8

 

 

$

54.9

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

.1

 

 

 

 

 

 

 

6.6

 

 

 

6.7

 

Recorded investment for finance receivables

   evaluated collectively

 

 

 

 

1,880.5

 

 

 

1,354.7

 

 

 

6,363.1

 

 

 

9,598.3

 

Allowance for finance receivables

   determined collectively

 

 

 

 

5.9

 

 

 

9.4

 

 

 

85.9

 

 

 

101.2

 

 
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:

 

 

March 31

 

 

December 31

 

 

2018

 

 

2017

 

Dealer:

 

 

 

 

 

 

 

Wholesale

$

.1

 

 

$

.1

 

Customer retail:

 

 

 

 

 

 

 

Fleet

 

63.8

 

 

 

44.4

 

Owner/operator

 

7.1

 

 

 

6.0

 

 

$

71.0

 

 

$

50.5

 

 
Impaired Loans and Specific Reserve

The recorded investment of impaired loans as of March 31, 2018 and December 31, 2017 was not significantly different than the unpaid principal balance.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At March 31, 2018

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

$

.1

 

 

 

 

 

 

$

29.5

 

 

$

2.8

 

 

$

32.4

 

Associated allowance

 

 

(.1

)

 

 

 

 

 

 

(4.0

)

 

 

(.6

)

 

 

(4.7

)

 

 

 

 

 

 

 

 

 

 

$

25.5

 

 

$

2.2

 

 

$

27.7

 

Impaired loans with no specific reserve

 

 

 

 

 

$

4.0

 

 

 

12.2

 

 

 

.2

 

 

 

16.4

 

Net carrying amount of impaired loans

 

 

 

 

 

$

4.0

 

 

$

37.7

 

 

$

2.4

 

 

$

44.1

 

Average recorded investment*

 

$

.1

 

 

$

4.0

 

 

$

33.4

 

 

$

2.0

 

 

$

39.5

 

 

*

Represents the average during the 12 months ended March 31, 2018.

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2017

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

$

.1

 

 

 

 

 

 

$

18.8

 

 

$

1.0

 

 

$

19.9

 

Associated allowance

 

 

(.1

)

 

 

 

 

 

 

(3.0

)

 

 

(.2

)

 

 

(3.3

)

 

 

 

 

 

 

 

 

 

 

$

15.8

 

 

$

.8

 

 

$

16.6

 

Impaired loans with no specific reserve

 

 

 

 

 

$

3.9

 

 

 

13.1

 

 

 

.2

 

 

 

17.2

 

Net carrying amount of impaired loans

 

 

 

 

 

$

3.9

 

 

$

28.9

 

 

$

1.0

 

 

$

33.8

 

Average recorded investment*

 

$

1.8

 

 

$

3.6

 

 

$

29.6

 

 

$

2.4

 

 

$

37.4

 

 

*

Represents the average during the 12 months ended March 31, 2017.
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 March 31,

 

 

 

 

2018

 

 

2017

 

Interest income recognized:

 

 

 

 

 

 

 

 

 

 

 

Customer retail - fleet

 

 

 

 

$

.5

 

 

$

.3

 

 
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 March 31, 2018

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Performing

$

2,098.3

 

 

$

1,363.1

 

 

$

5,373.3

 

 

$

1,029.9

 

 

$

9,864.6

 

Watch

 

5.5

 

 

 

 

 

 

 

107.2

 

 

 

7.3

 

 

 

120.0

 

At-risk

 

.1

 

 

 

4.0

 

 

 

64.6

 

 

 

7.1

 

 

 

75.8

 

 

$

2,103.9

 

 

$

1,367.1

 

 

$

5,545.1

 

 

$

1,044.3

 

 

$

10,060.4

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2017

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Performing

$

1,874.5

 

 

$

1,354.7

 

 

$

5,290.3

 

 

$

1,005.2

 

 

$

9,524.7

 

Watch

 

6.0

 

 

 

 

 

 

 

62.9

 

 

 

4.7

 

 

 

73.6

 

At-risk

 

.1

 

 

 

4.0

 

 

 

44.7

 

 

 

6.1

 

 

 

54.9

 

 

$

1,880.6

 

 

$

1,358.7

 

 

$

5,397.9

 

 

$

1,016.0

 

 

$

9,653.2

 

 
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 March 31, 2018

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

$

2,103.7

 

 

$

1,367.1

 

 

$

5,506.8

 

 

$

1,033.2

 

 

$

10,010.8

 

31 – 60 days past due

 

.1

 

 

 

 

 

 

 

18.6

 

 

 

5.8

 

 

 

24.5

 

Greater than 60 days past due

 

.1

 

 

 

 

 

 

 

19.7

 

 

 

5.3

 

 

 

25.1

 

 

$

2,103.9

 

 

$

1,367.1

 

 

$

5,545.1

 

 

$

1,044.3

 

 

$

10,060.4

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNER/

 

 

 

 

 

At December 31, 2017

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

$

1,880.5

 

 

$

1,358.7

 

 

$

5,365.7

 

 

$

1,007.4

 

 

$

9,612.3

 

31 – 60 days past due

 

 

 

 

 

 

 

 

 

14.7

 

 

 

4.0

 

 

 

18.7

 

Greater than 60 days past due

 

.1

 

 

 

 

 

 

 

17.5

 

 

 

4.6

 

 

 

22.2

 

 

$

1,880.6

 

 

$

1,358.7

 

 

$

5,397.9

 

 

$

1,016.0

 

 

$

9,653.2

 

 
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 March 31,

 

2018

 

 

2017

 

 

 

RECORDED INVESTMENT

 

 

RECORDED INVESTMENT

 

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

Fleet

 

$

.2

 

 

$

.2

 

 

$

8.8

 

 

$

8.8

 

Owner/operator

 

 

.2

 

 

 

.2

 

 

 

.2

 

 

 

.1

 

 

 

$

.4

 

 

$

.4

 

 

$

9.0

 

 

$

8.9

 

 
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:

 

Three Months Ended March 31,

 

2018

 

 

2017

 

Fleet

 

$

.4

 

 

$

.2

 

Owner/operator

 

 

 

 

 

 

.2

 

 

 

$

.4

 

 

$

.4