E-Z-GO 2010 Annual Report Download - page 66

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54
A summary of finance receivables held for investment categorized based on the internally assigned credit quality indicators discussed
above is as follows:
January 1, 2011
January 2, 2010
(In millions) Performing Watchlist Nonaccrual Total Performing Watchlist Nonaccrual Total
Aviation
$ 1,713
$ 238
$ 169
$ 2,120
$ 1,974
$ 275
$ 286
$ 2,535
Golf equipment
138
51
23
212
243
74
16
333
Golf mortgage
163
303
219
685
386
249
254
889
Timeshare
222
77
382
681
450
474
378
1,302
Structured capital
290
27
—
317
313
31
5
349
Other liquidating
130
11
57
198
533
164
101
798
Total
$ 2,656
$ 707
$ 850
$ 4,213
$ 3,899
$ 1,267
$ 1,040
$ 6,206
% of Total
63.0%
16.8%
20.2%
62.8%
20.4%
16.8%
Nonaccrual finance receivables decreased $190 million from the year-end balance, with a $117 million reduction in the aviation
product line, $55 million reduction in the distribution finance line included within the other liquidating line and a $35 million
reduction in the golf mortgage product line. These net reductions were primarily due to the resolution of several significant accounts
through the repossession of collateral, restructure of finance receivables and cash collections, partially offset by new finance
receivables identified as nonaccrual in 2010.
We measure delinquency based on the contractual payment terms of our loans and leases. In determining the delinquency aging
category of an account, any/all principal and interest received is applied to the most past-due principal and/or interest amounts due. If
a significant portion of the contractually due payment is delinquent, the entire finance receivable balance is reported in accordance
with the most past-due delinquency aging category.
Finance receivables held for investment by delinquency aging category is summarized in the tables below:
(In millions)
Less Than
31 Days
Past Due
31-60 Days
Past Due
61-90 Days
Past Due
Greater Than
90 Days
Past Due
Total
January 1, 2011
Aviation $ 1,964 $ 67 $ 41 $ 48 $ 2,120
Golf equipment
171
13
9
19
212
Golf mortgage
543
12
7
123
685
Timeshare
533
14
6
128
681
Structured capital
317
—
—
—
317
Other liquidating
166
2
1
29
198
Total
$ 3,694
$ 108
$ 64
$ 347
$ 4,213
January 2, 2010
Aviation
$ 2,259
$ 102
$ 96
$ 78
$ 2,535
Golf equipment
300
11
11
11
333
Golf mortgage
615
60
106
108
889
Timeshare
1,213
6
—
83
1,302
Structured capital
344
—
—
5
349
Other liquidating
703
24
4
67
798
Total
$ 5,434
$ 203
$ 217
$ 352
$ 6,206
We had no recorded investment in accrual status loans that were 90 days past due in 2010 or in 2009. For the year ended January 1,
2011 and January 2, 2010, 60+ days contractual delinquency as a percentage of finance receivables held for investment was 9.77%
and 9.17%, respectively.
Impaired Loans
We evaluate individual finance receivables held for investment in non-homogeneous portfolios and larger accounts in homogeneous
loan portfolios for impairment on a quarterly basis. Finance receivables classified as held for sale are reflected at the lower of cost or
fair value and are excluded from these evaluations. A finance receivable is considered impaired when it is probable that we will be
unable to collect all amounts due according to the contractual terms of the loan agreement based on our review of the credit quality
indicators discussed above. Impaired finance receivables include both nonaccrual accounts and accounts for which full collection of
principal and interest remains probable, but the account’s original terms have been, or are expected to be, significantly modified. If
the modification specifies an interest rate equal to or greater than a market rate for a finance receivable with comparable risk, the