E-Z-GO 2011 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2011 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 109

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109

A summary of finance receivables held for investment categorized based on the credit quality indicators discussed above is as
follows:
December 31, 2011
January 1, 2011
(In millions)
Performing
Watchlist
Nonaccrual
Total
Performing
Watchlist
Nonaccrual
Total
Aviation
$ 1,537
$ 214
$ 125
$ 1,876
$ 1,713
$ 238
$ 169
$ 2,120
Golf Equipment
21
37
11
69
138
51
23
212
Timeshare
89
25
167
281
222
77
382
681
Structured Capital
203
5
—
208
290
27
—
317
Golf Mortgage
—
—
—
—
163
303
219
685
Other liquidating
25
—
18
43
130
11
57
198
Total
$ 1,875
$ 281
$ 321
$ 2,477
$ 2,656
$ 707
$ 850
$ 4,213
% of Total
75.7%
11.3%
13.0%
63.0%
16.8%
20.2%
Nonaccrual finance receivables decreased $529 million in 2011, primarily due to the transfer of the remaining Golf Mortgage
portfolio to the held for sale classification and a $215 million reduction in Timeshare, largely due to the resolution of several
significant accounts and cash collections on several other accounts. These factors were also the primary reason for the
improvement in contractual delinquencies reported below.
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 table below:
December 31, 2011
January 1, 2011
(In millions)
Less Than
31 Days
Past Due
31-60
Days
Past Due
61-90
Days
Past Due
Over
90 Days
Past Due
Total
Less Than
31 Days
Past Due
31-60
Days
Past Due
61-90
Days
Past Due
Over
90 Days
Past Due
Total
Aviation
$ 1,705
$ 66
$ 37
$ 68
$ 1,876
$ 1,964
$ 67
$ 41
$ 48
$ 2,120
Golf Equipment
53
3
6
7
69
171
13
9
19
212
Timeshare
238
3
—
40
281
533
14
6
128
681
Structured Capital
208
—
—
—
208
317
—
—
—
317
Golf Mortgage
—
—
—
—
—
543
12
7
123
685
Other liquidating
35
—
—
8
43
166
2
1
29
198
Total
$ 2,239
$ 72
$ 43
$ 123
$ 2,477
$ 3,694
$ 108
$ 64
$ 347
$ 4,213
We had no recorded investment in accrual status loans that were greater than 90 days past due in 2011 or in 2010. For the year
ended December 31, 2011 and January 1, 2011, 60+ days contractual delinquency as a percentage of finance receivables held for
investment was 6.70% and 9.77%, 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 account is not considered impaired in years subsequent to the modification. There
was no significant interest income recognized on impaired loans in either 2011 or 2010.
58
58 Textron Inc. Annual Report • 2011