E-Z-GO 2014 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2014 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 94

  • 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

Finance receivables categorized based on the credit quality indicators discussed above are summarized as follows:
(In millions)
January 3,
2015
December 28,
2013
Performing
$ 1,062
$ 1,285
Watchlist
111
93
Nonaccrual
81
105
Total
$ 1,254
$ 1,483
Nonaccrual as a percentage of finance receivables
6.46%
7.08%
We measure delinquency based on the contractual payment terms of our finance receivables. 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 by delinquency aging category are summarized in the table below:
(In millions)
January 3,
2015
December 28,
2013
Less than 31 days past due
$ 1,080
$ 1,295
31-60 days past due
117
108
61-90 days past due
28
37
Over 90 days past due
29
43
Total
$ 1,254
$ 1,483
60+ days contractual delinquency as a percentage of finance receivables
4.55%
5.39%
Impaired Loans
On a quarterly basis, we evaluate individual finance receivables for impairment in non-homogeneous portfolios and larger balance
accounts in homogeneous loan portfolios. 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. Interest income recognized on
impaired loans was not significant in 2014 or 2013.
A summary of impaired finance receivables and the average recorded investment is provided below:
(In millions)
January 3,
2015
December 28,
2013
Recorded investment:
Impaired loans with related allowance for credit losses
$ 68
$ 59
Impaired loans with no related allowance for credit losses
42
78
Total
$ 110
$ 137
Unpaid principal balance
$ 115
$ 141
Allowance for losses on impaired loans
20
14
Average recorded investment
115
155
55 Textron Inc. Annual Report • 2014