XML 32 R17.htm IDEA: XBRL DOCUMENT v3.22.4
Finance Assets and Lessor Operating Leases
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Finance Assets and Lessor Operating Leases Finance Assets and Lessor Operating Leases
Finance Assets
All finance receivables are in our SendTech segment. We segregate our finance receivables into a North America portfolio and International portfolio. Finance receivables consisted of the following:
December 31, 2022December 31, 2021
North AmericaInternationalTotalNorth AmericaInternationalTotal
Sales-type lease receivables   
Gross finance receivables$967,298 $158,167 $1,125,465 $958,440 $187,831 $1,146,271 
Unguaranteed residual values38,832 8,798 47,630 37,896 10,717 48,613 
Unearned income(239,238)(48,334)(287,572)(246,381)(56,643)(303,024)
Allowance for credit losses(14,131)(2,893)(17,024)(19,546)(3,246)(22,792)
Net investment in sales-type lease receivables752,761 115,738 868,499 730,409 138,659 869,068 
Loan receivables      
Loan receivables311,887 16,636 328,523 262,310 20,155 282,465 
Allowance for credit losses(4,787)(139)(4,926)(3,259)(167)(3,426)
Net investment in loan receivables307,100 16,497 323,597 259,051 19,988 279,039 
Net investment in finance receivables$1,059,861 $132,235 $1,192,096 $989,460 $158,647 $1,148,107 


Maturities of finance receivables at December 31, 2022 were as follows:
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalTotalNorth AmericaInternationalTotal
2023$367,414 $62,334 $429,748 $242,529 $16,636 $259,165 
2024274,086 45,140 319,226 26,861 — 26,861 
2025181,627 28,088 209,715 20,702 — 20,702 
2026104,521 15,769 120,290 12,308 — 12,308 
202739,018 5,631 44,649 7,331 — 7,331 
Thereafter632 1,205 1,837 2,156 — 2,156 
Total$967,298 $158,167 $1,125,465 $311,887 $16,636 $328,523 
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, 2019$10,920 $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, 202022,917 6,006 6,484 462 35,869 
Amounts charged to expense648 (1,788)(426)19 (1,547)
Write-offs(7,120)(846)(6,045)(302)(14,313)
Recoveries3,097 173 3,245 3 6,518 
Other4 (299)1 (15)(309)
Balance at December 31, 202119,546 3,246 3,259 167 26,218 
Amounts charged to expense(2,476)712 3,992 288 2,516 
Write-offs(6,043)(791)(4,903)(295)(12,032)
Recoveries3,184 39 2,447 1 5,671 
Other(80)(313)(8)(22)(423)
Balance at December 31, 2022$14,131 $2,893 $4,787 $139 $21,950 

Aging of Receivables
The aging of gross finance receivables was as follows:
December 31, 2022
Sales-type Lease ReceivablesLoan Receivables
North
America		InternationalNorth
America		InternationalTotal
Past due amounts 0 - 90 days$959,203 $155,596 $308,872 $16,503 $1,440,174 
Past due amounts > 90 days8,095 2,571 3,015 133 13,814 
Total$967,298 $158,167 $311,887 $16,636 $1,453,988 
December 31, 2021
Sales-type Lease ReceivablesLoan Receivables
North
America		InternationalNorth
America		InternationalTotal
Past due amounts 0 - 90 days$950,138 $185,057 $258,514 $20,018 $1,413,727 
Past due amounts > 90 days8,302 2,774 3,796 137 15,009 
Total$958,440 $187,831 $262,310 $20,155 $1,428,736 
Past due amounts > 90 days (1)
     
Still accruing interest$4,964 $682 $— $— $5,646 
Not accruing interest3,338 2,092 3,796 137 9,363 
Total$8,302 $2,774 $3,796 $137 $15,009 
(1) In 2021, our policy was to cease financing revenue recognition for sales-type lease receivables that were more than 120 days past due.
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, a detailed manual review of their financial condition and payment history or an automated process. 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 and enhanced tools and processes are implemented as needed.
Over 85% of our finance receivables are within our North American portfolio. We use a third party to score the majority of this portfolio on a quarterly basis using a proprietary commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. We stratify the third party's credit scores of our clients into low, medium and high-risk accounts. Due to timing and other issues, our entire portfolio may not be scored at period end. We report these amounts as "Not Scored"; however, absence of a score is not indicative of the credit quality of the account. The third-party credit score is used to predict the payment behaviors of our clients and the probability that an account will become greater than 90 days past due during the subsequent 12-month period.
•Low risk accounts are companies with very good credit scores and a predicted delinquency rate of less than 5%.
•Medium risk accounts are companies with average to good credit scores and a predicted delinquency rate between 5% and 10%.
•High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent. The predicted delinquency rate would be greater than 10%.
We do not use a third party to score our International portfolio because the cost to do so is prohibitive as there is no single credit score model that covers all countries. Accordingly, the entire International portfolio is reported in the Not Scored category. This portfolio comprises less than 15% of total finance receivables. Most of the International credit applications are small dollar applications (i.e. below $50 thousand) and are subjected to an automated review process. Larger credit applications are manually reviewed, which includes obtaining client financial information, credit reports and other available information.
The table below shows gross finance receivables by relative risk class and year of origination based on the relative scores of the accounts within each class as of December 31, 2022 and 2021.

Sales Type Lease ReceivablesLoan ReceivablesTotal
20222021202020192018Prior
Low$286,297 $206,511 $140,800 $95,485 $34,721 $12,674 $239,635 $1,016,123 
Medium53,419 40,669 27,013 19,668 6,751 3,441 56,048 207,009 
High6,492 3,840 3,119 1,942 750 508 6,800 23,451 
Not Scored71,435 53,831 29,957 19,232 5,889 1,021 26,040 207,405 
Total$417,643 $304,851 $200,889 $136,327 $48,111 $17,644 $328,523 $1,453,988 

Sales Type Lease ReceivablesLoan ReceivablesTotal
20212020201920182017Prior
Low$274,191 $195,421 $162,479 $95,661 $33,698 $14,862 $192,161 $968,473 
Medium43,403 34,955 31,038 17,895 6,981 3,619 55,708 193,599 
High5,474 5,017 4,044 2,708 849 889 4,822 23,803 
Not Scored45,644 54,097 47,973 33,998 19,161 12,214 29,774 242,861 
Total$368,712 $289,490 $245,534 $150,262 $60,689 $31,584 $282,465 $1,428,736 

Lease Income
Lease income from sales-type leases, excluding variable lease payments, was as follows:
Years Ended December 31,
202220212020
Profit recognized at commencement $134,717 $127,469 $117,359 
Interest income163,485 186,532 206,517 
Total lease income from sales-type leases$298,202 $314,001 $323,876 
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:
2023$24,375 
202417,423 
202518,656 
20264,398 
20272,008 
Thereafter5 
Total$66,865