NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  December 31, 2011, 2010 and 2009 (currencies in millions) Impaired Loans:  The Company’s impaired loans are segregated by portfolio class. A portfolio class of receivables is a  subdivision of a portfolio segment with similar measurement attributes, risk characteristics and common methods  to monitor and assess credit risk. The Company’s retail segment is subdivided into the fleet and owner/operator  classes. Fleet consists of retail accounts with customers operating more than five trucks. All others are owner/ operator. All impaired loans have a specific reserve and are summarized as follows: Credit Quality:  The Company’s customers are principally concentrated in the transportation industry in North  America, Europe and Australia. On a geographic basis, there is a proportionate concentration of credit risk in each  area. The Company retains as collateral a security interest in the related equipment. At the inception of each contract, the Company considers the credit risk based on a variety of criteria, including  prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and  other internal metrics. On an ongoing basis, the Company monitors the credit exposure based on past-due status and  collection experience as the Company has found a meaningful correlation between the past-due status of customers  and the risk of loss.  The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in  accordance with the contractual terms and are not considered high risk. Watch accounts include past-due and large  high-risk accounts that are not impaired. At-risk accounts are accounts that are impaired including TDRs, accounts  OWNER/ At December 31, 2011 WHOLESALE  FLEET  OPERATOR TOTAL Impaired loans with specific reserve  $  18.4  $  27.9  $  11.5  $  57.8 Associated allowance  (2.2) (6.0) (2.6) (10.8) Net carrying amount of impaired loans  $  16.2  $  21.9  $  8.9  $  47.0 Unpaid principal balance  18.4 27.9 11.5 57.8 Average recorded investment 14.4 28.7 13.6 56.7 Interest income recognized  .4 2.7  2.0 5.1 OWNER/ At December 31, 2010 WHOLESALE  FLEET  OPERATOR TOTAL Impaired loans with specific reserve  $  3.4  $  21.5  $  17.8  $  42.7 Associated allowance  (1.3) (4.4) (3.8)  (9.5) Net carrying amount of impaired loans  $  2.1  $  17.1  $  14.0  $  33.2 Unpaid principal balance  3.4 21.5 17.8 42.7 Average recorded investment 7.8 31.7 18.8 58.3 Interest income recognized  .1 1.7 .2 2.0