XML 52 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Finance and Other Receivables (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Finance and Other Receivables

Finance and other receivables include the following:

 

At December 31,

 

2018

 

 

2017

 

Loans

 

$

4,630.5

 

 

$

4,147.8

 

Direct financing leases

 

 

3,459.4

 

 

 

3,211.7

 

Sales-type finance leases

 

 

735.3

 

 

 

781.1

 

Dealer wholesale financing

 

 

2,342.3

 

 

 

1,880.6

 

Operating lease receivables and other

 

 

174.6

 

 

 

161.1

 

Unearned interest: Finance leases

 

 

(387.5

)

 

 

(368.0

)

 

 

$

10,954.6

 

 

$

9,814.3

 

Less allowance for losses:

 

 

 

 

 

 

 

 

Loans and leases

 

 

(103.8

)

 

 

(101.9

)

Dealer wholesale financing

 

 

(6.8

)

 

 

(6.0

)

Operating lease receivables and other

 

 

(3.2

)

 

 

(9.3

)

 

 

$

10,840.8

 

 

$

9,697.1

 

 
Annual Minimum Payments Due on Finance Receivables

Annual minimum payments due on finance receivables are as follows:

 

 

 

 

 

 

 

FINANCE

 

Beginning January 1, 2019

 

LOANS

 

 

LEASES

 

2019

 

$

1,491.1

 

 

$

1,343.6

 

2020

 

 

1,203.1

 

 

 

1,016.8

 

2021

 

 

916.1

 

 

 

747.4

 

2022

 

 

616.6

 

 

 

443.1

 

2023

 

 

363.4

 

 

 

246.3

 

Thereafter

 

 

40.2

 

 

 

84.6

 

 

 

$

4,630.5

 

 

$

3,881.8

 

 
Allowance for Credit Losses

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

 

 

1.0

 

 

 

.7

 

 

 

13.6

 

 

 

1.2

 

 

 

16.5

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(20.0

)

 

 

(7.5

)

 

 

(27.5

)

Recoveries

 

 

 

 

 

 

 

 

 

 

9.9

 

 

 

.4

 

 

 

10.3

 

Currency translation and other

 

 

(.2

)

 

 

(.1

)

 

 

(2.2

)

 

 

(.2

)

 

 

(2.7

)

Balance at December 31

 

$

6.8

 

 

$

10.0

 

 

$

93.8

 

 

$

3.2

 

 

$

113.8

 

 

 

 

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

)

 

 

21.1

 

 

 

1.5

 

 

 

22.3

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(24.8

)

 

 

(1.9

)

 

 

(26.7

)

Recoveries

 

 

 

 

 

 

 

 

 

 

5.0

 

 

 

.3

 

 

 

5.3

 

Currency translation and other

 

 

.5

 

 

 

.1

 

 

 

3.7

 

 

 

.8

 

 

 

5.1

 

Balance at December 31

 

$

6.0

 

 

$

9.4

 

 

$

92.5

 

 

$

9.3

 

 

$

117.2

 

 

 

 

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

 

 

(1.7

)

 

 

(.7

)

 

 

18.6

 

 

 

2.2

 

 

 

18.4

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

(22.9

)

 

 

(2.1

)

 

 

(25.0

)

Recoveries

 

 

 

 

 

 

 

 

 

 

5.5

 

 

 

.3

 

 

 

5.8

 

Currency translation and other

 

 

(.1

)

 

 

 

 

 

 

(2.6

)

 

 

(.1

)

 

 

(2.8

)

Balance at December 31

 

$

5.5

 

 

$

9.6

 

 

$

87.5

 

 

$

8.6

 

 

$

111.2

 

 

*

Operating lease 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 December 31, 2018

 

 

 

WHOLESALE

 

 

RETAIL

 

 

RETAIL

 

 

TOTAL

 

Recorded investment for impaired finance

   receivables evaluated individually

 

 

 

$

.1

 

 

$

2.5

 

 

$

36.7

 

 

$

39.3

 

Allowance for impaired finance receivables

   determined individually

 

 

 

 

.1

 

 

 

 

 

 

 

5.8

 

 

 

5.9

 

Recorded investment for finance receivables

   evaluated collectively

 

 

 

 

2,342.2

 

 

 

1,462.1

 

 

 

6,936.4

 

 

 

10,740.7

 

Allowance for finance receivables determined

   collectively

 

 

 

 

6.7

 

 

 

10.0

 

 

 

88.0

 

 

 

104.7

 

 

 

 

 

 

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:

 

At December 31,

 

 

 

 

 

 

 

2018

 

 

 

2017

 

Dealer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

 

 

 

 

 

$

.1

 

 

$

.1

 

Customer retail:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

 

 

 

 

 

 

 

27.5

 

 

 

44.4

 

Owner/operator

 

 

 

 

 

 

 

 

7.9

 

 

 

6.0

 

 

 

 

 

 

 

 

 

$

35.5

 

 

$

50.5

 

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

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

At December 31, 2018

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Impaired loans with a specific reserve

 

$

.1

 

 

 

 

 

 

$

14.5

 

 

$

3.4

 

 

$

18.0

 

Associated allowance

 

 

(.1

)

 

 

 

 

 

 

(2.3

)

 

 

(1.0

)

 

 

(3.4

)

 

 

 

 

 

 

 

 

 

 

 

12.2

 

 

 

2.4

 

 

 

14.6

 

Impaired loans with no specific reserve

 

 

 

 

 

$

2.5

 

 

 

4.9

 

 

 

.3

 

 

 

7.7

 

Net carrying amount of impaired loans

 

 

 

 

 

$

2.5

 

 

$

17.1

 

 

$

2.7

 

 

$

22.3

 

Average recorded investment

 

$

.1

 

 

$

3.2

 

 

$

29.3

 

 

$

2.8

 

 

$

35.4

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

At December 31, 2017

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ 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

 

 

$

4.0

 

 

$

31.3

 

 

$

1.8

 

 

$

37.2

 
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:

 

Year Ended December 31,

 

 

 

 

 

2018

 

 

2017

 

 

2016

 

Fleet

 

 

 

 

 

$

2.0

 

 

$

1.6

 

 

$

1.1

 

Owner/operator

 

 

 

 

 

 

.2

 

 

 

.1

 

 

 

.4

 

 

 

 

 

 

 

$

2.2

 

 

$

1.7

 

 

$

1.5

 
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

 

 

 

 

 

At December 31, 2018

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Performing

 

$

2,329.5

 

 

$

1,462.1

 

 

$

5,759.0

 

 

$

1,099.3

 

 

$

10,649.9

 

Watch

 

 

12.6

 

 

 

 

 

 

 

70.0

 

 

 

8.2

 

 

 

90.8

 

At-risk

 

 

.2

 

 

 

2.5

 

 

 

28.5

 

 

 

8.1

 

 

 

39.3

 

 

 

$

2,342.3

 

 

$

1,464.6

 

 

$

5,857.5

 

 

$

1,115.6

 

 

$

10,780.0

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

At December 31, 2017

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ 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

 

 

 

 

 

At December 31, 2018

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ OPERATOR

 

 

TOTAL

 

Current and up to 30 days past due

 

$

2,342.1

 

 

$

1,464.6

 

 

$

5,835.6

 

 

$

1,103.1

 

 

$

10,745.4

 

31 – 60 days past due

 

 

.1

 

 

 

 

 

 

 

11.2

 

 

 

6.7

 

 

 

18.0

 

Greater than 60 days past due

 

 

.1

 

 

 

 

 

 

 

10.7

 

 

 

5.8

 

 

 

16.6

 

 

 

$

2,342.3

 

 

$

1,464.6

 

 

$

5,857.5

 

 

$

1,115.6

 

 

$

10,780.0

 

 

 

 

DEALER

 

 

CUSTOMER RETAIL

 

 

 

 

 

At December 31, 2017

 

WHOLESALE

 

 

RETAIL

 

 

FLEET

 

 

OWNER/ 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:

 

 

 

2018

 

 

2017

 

 

 

RECORDED INVESTMENT

 

 

RECORDED INVESTMENT

 

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

 

PRE-MODIFICATION

 

 

POST-MODIFICATION

 

Fleet

 

$

12.1

 

 

$

12.1

 

 

$

19.9

 

 

$

19.9

 

Owner/operator

 

 

1.0

 

 

 

1.0

 

 

 

.6

 

 

 

.6

 

 

 

$

13.1

 

 

$

13.1

 

 

$

20.5

 

 

$

20.5

 

 
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) in the years ended December 31, 2018 and 2017 were nil and $4.9, respectively, as shown below by portfolio class:

 

Year Ended December 31,

 

 

 

 

 

2018

 

2017

 

Fleet

 

 

 

 

 

$

 

$

4.7

 

Owner/operator

 

 

 

 

 

 

 

 

.2

 

 

 

 

 

 

 

$

 

$

4.9