Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type leases 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 customers for postage and related supplies. Loan receivables are generally due each month; however, customers may rollover outstanding balances.

Finance receivables at September 30, 2011 and December 31, 2010 consisted of the following:

	September 30, 2011
	North America		International		Total
Sales-type lease receivables
Gross finance receivables	$	1,756,200	$	463,714	$	2,219,914
Unguaranteed residual values		194,516		20,663		215,179
Unearned income		(355,257)		(103,101)		(458,358)
Allowance for credit losses		(29,744)		(13,771)		(43,515)
Net investment in sales-type lease receivables		1,565,715		367,505		1,933,220

Loan receivables
Loan receivables		430,394		41,619		472,013
Allowance for credit losses		(24,953)		(2,333)		(27,286)
Net investment in loan receivables		405,441		39,286		444,727

Net investment in finance receivables	$	1,971,156	$	406,791	$	2,377,947

	December 31, 2010
	North America		International		Total
Sales-type lease receivables
Gross finance receivables	$	1,940,833	$	474,895	$	2,415,728
Unguaranteed residual values		235,392		20,333		255,725
Unearned income		(415,891)		(107,592)		(523,483)
Allowance for credit losses		(27,792)		(13,318)		(41,110)
Net investment in sales-type lease receivables		1,732,542		374,318		2,106,860

Loan Receivables
Loan receivables		453,362		34,193		487,555
Allowance for credit losses		(26,208)		(2,112)		(28,320)
Net investment in loan receivables		427,154		32,081		459,235

Net investment in finance receivables	$	2,159,696	$	406,399	$	2,566,095

Activity in the allowance for credit losses for the nine months ended September 30, 2011 is as follows:

	Allowance for Credit Losses
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total

Balance January 1, 2011	$	27,792	$	13,318	$	26,208	$	2,112	$	69,430
Amounts charged to expense		12,372		10,025		9,633		2,001		34,031
Accounts written off		(10,420)		(9,572)		(10,888)		(1,780)		(32,660)
Balance September 30, 2011	$	29,744	$	13,771	$	24,953	$	2,333	$	70,801

We maintain a program for U.S. borrowers in our North America loan portfolio who are experiencing financial difficulties, but are able to make reduced payments over an extended period of time. Upon acceptance into the program, the borrower's credit line is closed, interest accrual is suspended, the borrower's minimum required payment is reduced and the account is re-aged and classified as current. There is no forgiveness of debt or reduction of balances owed. The loans in the program are considered to be Troubled Debt Restructurings because of the concessions granted to the borrower. At September 30, 2011 and December 31, 2010, loans in this program had a balance of approximately $7 million.

These modified loans are factored into the determination and evaluation of the adequacy of the allowance for credit losses and is determined by the difference between cash flows expected to be received from the borrower discounted at the original effective rate and the carrying value of the balance. The allowance for credit losses related to such loans is approximately $3 million at September 30, 2011 and is included in the balance of the allowance for credit losses of North American loans in the table above. Management believes that the allowance for credit losses is adequate for these loans and all other loans in the portfolio. Write-offs of loans in the program totaled approximately $1 million for the previous twelve months.

The aging of finance receivables at September 30, 2011 and December 31, 2010 is as follows:

	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
September 30, 2011
< 31 days past due	$	1,673,884	$	432,794	$	408,826	$	39,595	$	2,555,099
> 30 days and < 61 days		33,485		8,641		11,949		1,016		55,091
> 60 days and < 91 days		23,287		7,138		4,219		405		35,049
> 90 days and < 121 days		7,345		5,070		2,412		137		14,964
> 120 days		18,199		10,071		2,988		466		31,724
Total	$	1,756,200	$	463,714	$	430,394	$	41,619	$	2,691,927

Past due amounts > 90 days
Still accruing interest	$	7,345	$	5,070	$	-	$	-	$	12,415
Not accruing interest		18,199		10,071		5,400		603		34,273
Total	$	25,544	$	15,141	$	5,400	$	603	$	46,688

December 31, 2010
< 31 days past due	$	1,831,655	$	447,459	$	430,042	$	32,389	$	2,741,545
> 30 days and < 61 days		45,234		10,018		12,081		1,149		68,482
> 60 days and < 91 days		29,380		4,743		4,711		325		39,159
> 90 days and < 121 days		8,654		3,985		2,712		192		15,543
> 120 days		25,910		8,690		3,816		138		38,554
Total	$	1,940,833	$	474,895	$	453,362	$	34,193	$	2,903,283

Past due amounts > 90 days
Still accruing interest	$	8,654	$	3,985	$	-	$	-	$	12,639
Not accruing interest		25,910		8,690		6,528		330		41,458
Total	$	34,564	$	12,675	$	6,528	$	330	$	54,097

We use credit scores as one of many data elements in making the decision to grant credit at inception, setting credit lines at inception, managing credit lines through the life of the customer, and to assist in collections strategy.

We use a third party to score the majority of the North American portfolio on a quarterly basis using a commercial credit score. Accounts may not receive a score because of data issues related to SIC information, customer identification mismatches between the various data sources and other reasons. We do not currently score the portfolios outside of North America because the cost to do so is prohibitive, it is a fragmented process and there is no single credit score model that covers all countries. However, credit policies are similar to those in North America.

The table below shows the North American portfolio at September 30, 2011 and December 31, 2010 by relative risk class (low, medium and high) based on the relative scores of the accounts within each class. A fourth class is shown for accounts that are not scored. The degree of risk, as defined by the third party, refers to the relative risk that an account in the next 12 month period may become delinquent. Absence of a score is not indicative of the credit quality of the account.

Although the relative score of accounts within each class is used as a factor for determining the establishment of a customer credit limit, it is not indicative of our actual history of losses due to the business essential nature of our products and services.

The aging schedule included above, showing approximately 1.7% of the portfolio as greater than 90 days past due, and the roll-forward schedule of the allowance for credit losses, showing the actual losses for the nine months ended September 30, 2011 are more representative of the potential loss performance of our portfolio than relative risk based on scores, as defined by the third party.

		September 30, 2011		December 31, 2010
Sales-type lease receivables
	Risk Level
	Low	$	1,118,776	$	1,191,682
	Medium		491,033		512,419
	High		55,972		60,755
	Not Scored		90,419		175,977
	Total	$	1,756,200	$	1,940,833

Loan receivables
	Risk Level
	Low	$	263,060	$	274,156
	Medium		119,413		155,615
	High		17,605		21,768
	Not Scored		30,316		1,823
	Total	$	430,394	$	453,362

	September 30,		December 31,
	2011		2010
Rental receivables	$	794,724	$	1,802,107
Unguaranteed residual values		13,443		14,141
Principal and interest on non-recourse loans		(596,155)		(1,373,651)
Unearned income		(78,017)		(191,591)
Investment in leveraged leases		133,995		251,006
Less: deferred taxes related to leveraged leases		(98,912)		(192,128)
Net investment in leveraged leases	$	35,083	$	58,878

The components of income from leveraged leases for the three and nine months ended September 30, 2011 and 2010 is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Pre-tax leveraged lease income	$	1,457	$	1,326	$	4,551	$	4,061
Income tax effect		(641)		(68)		(804)		(215)
Income from leveraged leases	$	816	$	1,258	$	3,747	$	3,846

During the quarter, we completed a sale of non-U.S. leveraged lease assets for cash. The investment in that leveraged lease at the date of termination was approximately $109 million and an after-tax gain of $27 million was recognized.