Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three to five years. Loan receivables arise primarily from financing services offered to our clients for postage and supplies. Loan receivables are generally due each month; however, clients may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Client acquisition costs are expensed as incurred.



	June 30, 2019									December 31, 2018
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,081,063		$	197,145		$	1,278,208		$	1,110,896		$	242,036		$	1,352,932
Unguaranteed residual values	45,279			11,676			56,955			52,637			12,772			65,409
Unearned income	(349,996		)	(47,367		)	(397,363		)	(383,453		)	(55,113		)	(438,566		)
Allowance for credit losses	(11,322		)	(2,262		)	(13,584		)	(10,252		)	(2,356		)	(12,608		)
Net investment in sales-type lease receivables	765,024			159,192			924,216			769,828			197,339			967,167
Loan receivables
Loan receivables	289,694			30,126			319,820			300,319			29,270			329,589
Allowance for credit losses	(6,374		)	(759		)	(7,133		)	(6,777		)	(837		)	(7,614		)
Net investment in loan receivables	283,320			29,367			312,687			293,542			28,433			321,975
Net investment in finance receivables	$	1,048,344		$	188,559		$	1,236,903		$	1,063,370		$	225,772		$	1,289,142



	Sales-type Lease Receivables
	North America		International		Total
Remaining for year ending December 31, 2019	$	381,156	$	39,908	$	421,064
Year ending December 31, 2020	298,935		56,712		355,647
Year ending December 31, 2021	209,673		44,544		254,217
Year ending December 31, 2022	125,705		29,828		155,533
Year ending December 31, 2023	57,256		16,823		74,079
Thereafter	8,338		9,330		17,668
Total	$	1,081,063	$	197,145	$	1,278,208

We provide an allowance for probable credit losses based on historical loss experience, the nature and volume of our portfolios, adverse situations that may affect a client's ability to pay, prevailing economic conditions and our ability to manage the collateral. We continually evaluate the adequacy of the allowance for credit losses and make adjustments as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves.

We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. As of June 30, 2019, we believe that our finance receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.



	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2019	$	10,252		$	2,356		$	6,777		$	837		$	20,222
Amounts charged to expense	3,660			455			2,329			315			6,759
Write-offs and other	(2,590		)	(549		)	(2,732		)	(393		)	(6,264		)
Balance at June 30, 2019	$	11,322		$	2,262		$	6,374		$	759		$	20,717

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2018	$	7,721		$	2,794		$	7,098		$	1,020		$	18,633
Amounts charged to expense	5,946			545			3,506			250			10,247
Write-offs and other	(2,538		)	(933		)	(3,735		)	(330		)	(7,536		)
Balance at June 30, 2018	$	11,129		$	2,406		$	6,869		$	940		$	21,344



	June 30, 2019
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,051,352	$	192,135	$	283,809	$	29,866	$	1,557,162
> 90 days	29,711		5,010		5,885		260		40,866
Total	$	1,081,063	$	197,145	$	289,694	$	30,126	$	1,598,028
Past due amounts > 90 days
Still accruing interest	$	6,467	$	1,410	$	1,932	$	116	$	9,925
Not accruing interest	23,244		3,600		3,953		144		30,941
Total	$	29,711	$	5,010	$	5,885	$	260	$	40,866



	December 31, 2018
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
1 - 90 days	$	1,069,288	$	238,114	$	294,126	$	29,079	$	1,630,607
> 90 days	41,608		3,922		6,193		191		51,914
Total	$	1,110,896	$	242,036	$	300,319	$	29,270	$	1,682,521
Past due amounts > 90 days
Still accruing interest	$	7,917	$	1,111	$	1,769	$	72	$	10,869
Not accruing interest	33,691		2,811		4,424		119		41,045
Total	$	41,608	$	3,922	$	6,193	$	191	$	51,914

The extension of credit and management of credit lines to new and existing clients uses a combination of an automated credit score, where available, and a detailed manual review of the client's financial condition and, when applicable, payment history. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes are in place to track that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed.

We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that it is a localized process, and there is no single credit score model that covers all countries.

The table below shows the North America portfolio at June 30, 2019 and December 31, 2018 by relative risk class based on the relative scores of the accounts within each class. The relative scores are determined based on a number of factors, including the company type, ownership structure, payment history and financial information. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months.



	June 30, 2019		December 31, 2018
Sales-type lease receivables
Low	$	893,068	$	922,414
Medium	131,312		131,650
High	20,930		22,110
Not Scored	35,753		34,722
Total	$	1,081,063	$	1,110,896
Loan receivables
Low	$	229,888	$	238,620
Medium	42,731		43,952
High	5,703		5,947
Not Scored	11,372		11,800
Total	$	289,694	$	300,319



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Profit recognized at commencement ⁽¹⁾	$	34,320	$	39,642	$	70,678	$	86,929
Interest income	58,045		60,855		117,523		122,687
Total lease income from sales-type leases	$	92,365	$	100,497	$	188,201	$	209,616



Remaining for year ending December 31, 2019	$	18,383
Year ending December 31, 2020	27,684
Year ending December 31, 2021	12,394
Year ending December 31, 2022	6,348
Year ending December 31, 2023	2,886
Thereafter	182
Total	$	67,877