Quarterly report pursuant to Section 13 or 15(d)

Financing Receivables

v2.4.0.8
Financing Receivables
 3 Months Ended
Mar. 29, 2014
Receivables [Abstract]  
Financing Receivables
Note 9 – Financing Receivables

The Company has recorded financing receivables, which are defined as a contractual right to receive money, recognized as assets on its Condensed Consolidated Balance Sheets as of March 29, 2014, December 31, 2013 and March 30, 2013.  Substantially all of the Company’s financing receivables are for commercial customers.  The Company classifies its financing receivables into three categories: receivables repurchased under recourse provisions (Recourse Receivables); receivables sold to third-party finance companies (Third-Party Receivables); and customer notes and other (Other Receivables).  Recourse Receivables are the result of the contingent recourse arrangements discussed in Note 8 – Commitments and Contingencies.  Third-Party Receivables are accounts that have been sold to third-party finance companies, but do not meet the definition of a true sale, and are therefore recorded as an asset with an offsetting balance recorded as a secured obligation in Accrued expenses and Other long-term liabilities as discussed in Note 8 – Commitments and Contingencies.  Other Receivables are mostly comprised of notes from customers, which are originated by the Company in the normal course of business.  Financing receivables are carried at their face amounts less an allowance for doubtful accounts.

The Company sells a broad range of recreational products to a worldwide customer base and extends credit to its customers based upon an ongoing credit evaluation program.  The Company’s business units maintain credit organizations to manage financial exposure and perform credit risk assessments on an individual account basis.  Accounts are not aggregated into categories for credit risk determinations.  Due to the composition of the account portfolio, the Company does not believe that the credit risk posed by the Company’s financing receivables is significant to its operations, financial condition or cash flows.  There were no significant troubled debt restructurings during the three months ended March 29, 2014 and March 30, 2013.

The following are the Company’s financing receivables, excluding trade accounts receivable contractually due within one year, by segment as of March 29, 2014:
(in millions)
Marine
 Engine
 
Boat
 
Fitness
 
Bowling & Billiards
 
Corporate
 
Total
Recourse Receivables:
 
 
 
 
 
 
 
 
 
 
 
Short-term
$
—

 
$
—

 
$
0.7

 
$
5.0

 
$
—

 
$
5.7

Long-term
—

 
—

 
0.2

 
2.7

 
—

 
2.9

Allowance for doubtful accounts
—

 
—

 
(0.3
)
 
(4.4
)
 
—

 
(4.7
)
Total
—

 
—

 
0.6

 
3.3

 
—

 
3.9

 
 
 
 
 
 
 
 
 
 
 
 
Third-Party Receivables:
 

 
 

 
 

 
 

 
 

 
 

Short-term
11.4

 
2.3

 
19.8

 
—

 
—

 
33.5

Long-term
—

 
—

 
18.9

 
—

 
—

 
18.9

Allowance for doubtful accounts
—

 
—

 
—

 
—

 
—

 
—

Total
11.4

 
2.3

 
38.7

 
—

 
—

 
52.4

 
 
 
 
 
 
 
 
 
 
 
 
Other Receivables:
 

 
 

 
 

 
 

 
 

 
 

Short-term
9.0

 
0.3

 
0.5

 
—

 
0.2

 
10.0

Long-term
0.9

 
0.1

 
0.1

 
—

 
1.3

 
2.4

Allowance for doubtful accounts
—

 
(0.3
)
 
—

 
—

 
—

 
(0.3
)
Total
9.9

 
0.1

 
0.6

 
—

 
1.5

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
Total Financing Receivables
$
21.3

 
$
2.4

 
$
39.9

 
$
3.3

 
$
1.5

 
$
68.4


The following are the Company’s financing receivables, excluding trade accounts receivable contractually due within one year, by segment as of December 31, 2013:
(in millions)
Marine
Engine
 
Boat
 
Fitness
 
Bowling & Billiards
 
Corporate
 
Total
Recourse Receivables:
 
 
 
 
 
 
 
 
 
 
 
Short-term
$
—

 
$
—

 
$
0.7

 
$
5.2

 
$
—

 
$
5.9

Long-term
—

 
—

 
0.2

 
2.7

 
—

 
2.9

Allowance for doubtful accounts
—

 
—

 
(0.4
)
 
(4.4
)
 
—

 
(4.8
)
Total
—

 
—

 
0.5

 
3.5

 
—

 
4.0

 
 
 
 
 
 
 
 
 
 
 
 
Third-Party Receivables:
 

 
 

 
 

 
 

 
 

 
 

Short-term
12.0

 
3.1

 
21.1

 
—

 
—

 
36.2

Long-term
—

 
—

 
18.9

 
—

 
—

 
18.9

Allowance for doubtful accounts
—

 
—

 
—

 
—

 
—

 
—

Total
12.0

 
3.1

 
40.0

 
—

 
—

 
55.1

 
 
 
 
 
 
 
 
 
 
 
 
Other Receivables:
 

 
 

 
 

 
 

 
 

 
 

Short-term
10.2

 
0.3

 
0.6

 
—

 
0.2

 
11.3

Long-term
0.9

 
0.2

 
0.1

 
—

 
—

 
1.2

Allowance for doubtful accounts
—

 
(0.3
)
 
—

 
—

 
—

 
(0.3
)
Total
11.1

 
0.2

 
0.7

 
—

 
0.2

 
12.2

 
 
 
 
 
 
 
 
 
 
 
 
Total Financing Receivables
$
23.1

 
$
3.3

 
$
41.2

 
$
3.5

 
$
0.2

 
$
71.3


The following table sets forth activity related to the allowance for doubtful accounts on financing receivables during the three months ended March 29, 2014:
(in millions)
Boat
 
Fitness
 
Bowling & Billiards
 
Total
Recourse Receivables:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
0.4

 
$
4.4

 
$
4.8

Current period provision
—

 
—

 
(0.1
)
 
(0.1
)
Direct write-downs
—

 
(0.1
)
 
—

 
(0.1
)
Recoveries
—

 
—

 
0.1

 
0.1

Ending balance
$
—

 
$
0.3

 
$
4.4

 
$
4.7

 
 
 
 
 
 
 
 
Other Receivables:
 

 
 

 
 

 
 

Beginning balance
$
0.3

 
$
—

 
$
—

 
$
0.3

Current period provision
—

 
—

 
—

 
—

Direct write-downs
—

 
—

 
—

 
—

Recoveries
—

 
—

 
—

 
—

Ending balance
$
0.3

 
$
—

 
$
—

 
$
0.3






The following table sets forth activity related to the allowance for doubtful accounts on financing receivables during the three months ended March 30, 2013:
(in millions)
Boat
 
Fitness
 
Bowling & Billiards
 
Total
Recourse Receivables:
 
 
 
 
 
 
 
Beginning balance
$
—

 
$
0.9

 
$
5.4

 
$
6.3

Current period provision
—

 
0.1

 
0.1

 
0.2

Direct write-downs
—

 
—

 
—

 
—

Recoveries
—

 
(0.1
)
 
—

 
(0.1
)
Ending balance
$
—

 
$
0.9

 
$
5.5

 
$
6.4

 
 
 
 
 
 
 
 
Other Receivables:
 

 
 

 
 

 
 

Beginning balance
$
2.8

 
$
0.2

 
$
—

 
$
3.0

Current period provision
—

 
—

 
—

 
—

Direct write-downs
(1.5
)
 
—

 
—

 
(1.5
)
Recoveries
—

 
—

 
—

 
—

Ending balance
$
1.3

 
$
0.2

 
$
—

 
$
1.5