XML 31 R16.htm IDEA: XBRL DOCUMENT v3.20.4
Finance Assets and Lessor Operating Leases
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Finance Assets and Lessor Operating Leases Finance Assets and Lessor Operating Leases
Finance Assets
Finance receivables consisted of the following:
December 31, 2020December 31, 2019
North AmericaInternationalTotalNorth AmericaInternationalTotal
Sales-type lease receivables   
Gross finance receivables$994,985 $211,944 $1,206,929 $1,055,852 $224,202 $1,280,054 
Unguaranteed residual values36,405 12,140 48,545 41,934 11,789 53,723 
Unearned income(275,359)(61,686)(337,045)(319,281)(65,888)(385,169)
Allowance for credit losses(22,917)(6,006)(28,923)(10,920)(2,085)(13,005)
Net investment in sales-type lease receivables733,114 156,392 889,506 767,585 168,018 935,603 
Loan receivables      
Loan receivables268,690 22,092 290,782 298,247 27,926 326,173 
Allowance for credit losses(6,484)(462)(6,946)(5,906)(740)(6,646)
Net investment in loan receivables262,206 21,630 283,836 292,341 27,186 319,527 
Net investment in finance receivables$995,320 $178,022 $1,173,342 $1,059,926 $195,204 $1,255,130 

Maturities of finance receivables at December 31, 2020 were as follows:
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalTotalNorth AmericaInternationalTotal
2021$397,662 $82,625 $480,287 $228,274 $22,092 $250,366 
2022287,397 60,501 347,898 14,455 — 14,455 
2023185,401 38,753 224,154 8,584 — 8,584 
202492,183 20,607 112,790 8,420 — 8,420 
202530,488 7,661 38,149 7,903 — 7,903 
Thereafter1,854 1,797 3,651 1,054 — 1,054 
Total$994,985 $211,944 $1,206,929 $268,690 $22,092 $290,782 
Allowance for Credit Losses
Activity in the allowance for credit losses on finance receivables was as follows:
Sales-type Lease ReceivablesLoan Receivables
North
America		InternationalNorth
America		InternationalTotal
Balance at December 31, 2017$7,721 $2,794 $7,098 $1,020 $18,633 
Amounts charged to expense7,928 1,315 6,825 532 16,600 
Write-offs (5,753)(1,909)(14,467)(733)(22,862)
Recoveries1,572 285 7,349 15 9,221 
Other(1,215)(130)(28)3 (1,370)
Balance at December 31, 201810,253 2,355 6,777 837 20,222 
Amounts charged to expense5,672 1,157 4,746 569 12,144 
Write-offs(6,971)(1,505)(8,971)(849)(18,296)
Recoveries1,717 181 3,519 9 5,426 
Other249 (103)(165)174 155 
Balance at December 31, 201910,920 2,085 5,906 740 19,651 
Cumulative effect of accounting change9,271 1,750 (1,116)(402)9,503 
Amounts charged to expense10,789 2,902 8,158 555 22,404 
Write-offs(7,609)(1,068)(9,955)(551)(19,183)
Recoveries2,070 194 3,474 4 5,742 
Other(2,524)143 17 116 (2,248)
Balance at December 31, 2020$22,917 $6,006 $6,484 $462 $35,869 

Aging of Receivables
The aging of gross finance receivables was as follows:
December 31, 2020
Sales-type Lease ReceivablesLoan Receivables
North
America		InternationalNorth
America		InternationalTotal
Past due amounts 0 - 90 days$972,266 $208,968 $264,484 $21,932 $1,467,650 
Past due amounts > 90 days22,719 2,976 4,206 160 30,061 
Total$994,985 $211,944 $268,690 $22,092 $1,497,711 
Past due amounts > 90 days     
Still accruing interest$5,128 $463 $1,797 $59 $7,447 
Not accruing interest17,591 2,513 2,409 101 22,614 
Total$22,719 $2,976 $4,206 $160 $30,061 
December 31, 2019
Sales-type Lease ReceivablesLoan Receivables
North
America		InternationalNorth
America		InternationalTotal
Past due amounts 0 - 90 days$1,032,912 $220,819 $294,001 $27,697 $1,575,429 
Past due amounts > 90 days22,940 3,383 4,246 229 30,798 
Total$1,055,852 $224,202 $298,247 $27,926 $1,606,227 
Past due amounts > 90 days     
Still accruing interest$4,835 $1,081 $2,094 $121 $8,131 
Not accruing interest18,105 2,302 2,152 108 22,667 
Total$22,940 $3,383 $4,246 $229 $30,798 
Credit Quality
The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, and a detailed manual review of their financial condition and payment history or an automated process for certain small dollar applications. 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 to ensure 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. The relative scores are determined based on several factors, including financial information, payment history, company type and ownership structure. Certain accounts are not scored; however, absence of a score is not indicative of poor credit quality. The degree of risk (low, medium, high), refers to the relative risk that an account may become delinquent in the next 12 months.
•Low risk accounts are companies with very good credit scores and are considered to approximate the top 30% of all commercial borrowers.
•Medium risk accounts are companies with average to good credit scores and are considered to approximate the middle 40% of all commercial borrowers.
•High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent and are considered to approximate the bottom 30% of all commercial borrowers.

The table below shows the gross finance receivable balances by relative risk class and year of origination based on the relative scores of the accounts within each class.

Sales Type Lease ReceivablesLoan ReceivablesTotal
20202019201820172016Prior
Low$256,573 $228,344 $165,244 $87,346 $30,518 $12,249 $192,971 $973,245 
Medium50,785 49,946 37,168 21,388 6,470 2,375 61,625 229,757 
High6,182 5,396 3,782 1,974 1,051 143 4,518 23,046 
Not Scored80,854 77,362 48,704 24,291 7,813 971 31,668 271,663 
Total$394,394 $361,048 $254,898 $134,999 $45,852 $15,738 $290,782 $1,497,711 

The majority of the Not Scored amounts above is within our International portfolio. 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. Approximately 80% of credit applications are approved or denied through an automated review process. All other credit applications are manually reviewed by obtaining client financial information, credit reports and other available financial information.

Lease Income
Lease income from sales-type leases, excluding variable lease payments, was as follows:
Years Ended December 31,
202020192018
Profit recognized at commencement $117,359 $146,923 $173,060 
Interest income206,517 229,719 245,751 
Total lease income from sales-type leases$323,876 $376,642 $418,811 
Lessor Operating Leases
We also lease mailing equipment under operating leases with terms of one to five years. Maturities of these operating leases are as follows:
2021$35,275 
202213,780 
202310,815 
20243,911 
2025744 
Total$64,525