Finance and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

At December 31,	2022			2021
Loans	$	7,229.1		$	6,424.7
Finance leases		3,786.4			3,620.6
Dealer wholesale financing		2,772.1			1,865.8
Operating lease receivables and other		125.4			126.6
	$	13,913.0		$	12,037.7
Less allowance for losses:
Loans and leases		(114.8	)		(111.5	)
Dealer wholesale financing		(3.4	)		(3.3	)
Operating lease receivables and other		(2.9	)		(2.1	)
	$	13,791.9		$	11,920.8

Annual Minimum Payments Due on Loans

Annual minimum payments due on loans are as follows:

Beginning January 1,	LOANS
2023	$	2,482.8
2024		1,799.7
2025		1,390.9
2026		946.3
2027		527.2
Thereafter		82.2
	$	7,229.1

Annual Minimum Payments Due on Finance Lease Receivables and a Reconciliation of the Undiscounted Cash Flows to the Net Investment in Finance Leases

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
2023	$	1,427.8
2024		994.7
2025		764.0
2026		438.4
2027		248.6
Thereafter		84.5
	$	3,958.0
Unguaranteed residual values		258.0
Unearned interest on finance leases		(429.6	)
Net investment in finance leases	$	3,786.4

Allowance for Credit Losses

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

	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

	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.

	2020
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1 **	$	4.3		$	9.2		$	101.4		$	3.7		$	118.6
Provision for losses		(1.0	)		(.8	)		30.1			.5			28.8
Charge-offs								(26.6	)		(1.4	)		(28.0	)
Recoveries								5.3			.4			5.7
Currency translation and other		.1						1.8						1.9
Balance at December 31	$	3.4		$	8.4		$	112.0		$	3.2		$	127.0

* Operating lease and other trade receivables.

** The beginning balance has been adjusted for the adoption of ASU 2016-13.

Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class

The table below summarizes the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class.  

	REVOLVING
At December 31, 2022	LOANS		2022		2021		2020		2019		2018		PRIOR		TOTAL
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

	REVOLVING
At December 31, 2021	LOANS		2021		2020		2019		2018		2017		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	1,859.7													$	1,859.7
Watch		6.1														6.1
	$	1,865.8													$	1,865.8
Retail:
Performing	$	201.9	$	434.4	$	315.4	$	311.7	$	176.0	$	118.2	$	96.9	$	1,654.5
Watch				7.0		3.6		9.1		4.6		1.1				25.4
At-risk														1.1		1.1
	$	201.9	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	1,681.0
Total dealer	$	2,067.7	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	3,546.8
Customer retail:
Fleet:
Performing			$	2,851.7	$	1,913.3	$	1,227.0	$	608.4	$	220.4	$	66.5	$	6,887.3
Watch				2.6		6.5		4.3		5.3		.6		.2		19.5
At-risk				6.0		8.5		26.0		10.6		3.3		.4		54.8
			$	2,860.3	$	1,928.3	$	1,257.3	$	624.3	$	224.3	$	67.1	$	6,961.6
Owner/operator:
Performing			$	611.9	$	389.9	$	228.1	$	116.0	$	38.6	$	10.1	$	1,394.6
Watch				.7		.5		.7		.4		.1				2.4
At-risk				.2		1.3		1.5		2.0		.5		.2		5.7
			$	612.8	$	391.7	$	230.3	$	118.4	$	39.2	$	10.3	$	1,402.7
Total customer retail			$	3,473.1	$	2,320.0	$	1,487.6	$	742.7	$	263.5	$	77.4	$	8,364.3
Total	$	2,067.7	$	3,914.5	$	2,639.0	$	1,808.4	$	923.3	$	382.8	$	175.4	$	11,911.1

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, 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

	DEALER				CUSTOMER RETAIL
At December 31, 2021	WHOLESALE		RETAIL		FLEET		OWNER/ OPERATOR		TOTAL
Current and up to 30 days past due	$	1,865.4	$	1,681.0	$	6,939.7	$	1,396.4	$	11,882.5
31 – 60 days past due		.4				9.3		1.8		11.5
Greater than 60 days past due						12.6		4.5		17.1
	$	1,865.8	$	1,681.0	$	6,961.6	$	1,402.7	$	11,911.1

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
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
	DEALER			CUSTOMER RETAIL
At December 31, 2021	WHOLESALE	RETAIL		FLEET		OWNER/ OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	40.3	$	5.7	$	46.0
Amortized cost basis with no specific reserve		$	1.1		4.7				5.8
Total		$	1.1	$	45.0	$	5.7	$	51.8

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:

Year Ended December 31,	2022		2021		2020
Dealer:
Retail	$	.1	$	.2	$	.2
Customer retail:
Fleet		2.5		3.1		1.6
Owner/operator		.2		.5		.2
	$	2.8	$	3.8	$	2.0

Pre- and Post-Modification Amortized Cost Basis Balances by Portfolio Class

At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class were as follows:

	2022				2021
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE-MODIFICATION		POST-MODIFICATION		PRE-MODIFICATION		POST-MODIFICATION
Fleet	$	11.7	$	11.7	$	7.1	$	7.0
Owner/operator						1.0		1.0
	$	11.7	$	11.7	$	8.1	$	8.0