Finance Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2016

The following is a summary of our prior sales activity.



	Year Ended December 31,
	2013		2012
Net carrying value (NCV) sold	$	676	$	682
Allowance included in NCV	17		18
Cash proceeds received	635		630
Beneficial interests received	86		101

The net impact from the sales of finance receivables on operating cash flows is summarized below:



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Impact from prior sales of finance receivables⁽¹⁾	$	(51	)	$	(89	)	$	(110	)	$	(194	)
Collections on beneficial interest	8			15			18			33
Estimated decrease to operating cash flows	$	(43	)	$	(74	)	$	(92	)	$	(161	)

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(1) Represents cash that would have been collected had we not sold finance receivables.

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:



Allowance for Credit Losses:	United States			Canada			Europe			Other⁽²⁾			Total
Balance at December 31, 2015⁽¹⁾	$	54		$	17		$	45		$	2		$	118
Provision	4			1			5			—			10
Charge-offs	(2		)	(2		)	(2		)	—			(6		)
Recoveries and other⁽³⁾	1			2			1			—			4
Balance at March 31, 2016	$	57		$	18		$	49		$	2		$	126
Provision	—			1			7						8
Charge-offs	(3		)	(2		)	(3		)	—			(8		)
Recoveries and other⁽³⁾	—			1			(2		)	—			(1		)
Balance at June 30, 2016	$	54		$	18		$	51		$	2		$	125
Finance receivables as of June 30, 2016 collectively evaluated for impairment⁽⁴⁾	$	2,149		$	389		$	1,424		$	64		$	4,026

Balance at December 31, 2014⁽¹⁾	$	51		$	20		$	58		$	2		$	131
Provision	4			1			5			1			11
Charge-offs	—			(3		)	(1		)	(1		)	(5		)
Recoveries and other⁽³⁾	—			—			(6		)	—			(6		)
Balance at March 31, 2015	$	55		$	18		$	56		$	2		$	131
Provision	3			1			6			—			10
Charge-offs	(3		)	(2		)	(5		)	—			(10		)
Recoveries and other⁽³⁾	(1		)	1			3			—			3
Balance at June 30, 2015	$	54		$	18		$	60		$	2		$	134
Finance receivables as of June 30, 2015 collectively evaluated for impairment^(1),(4)	$	2,074		$	397		$	1,619		$	66		$	4,156

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(1)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been revised to conform to current year presentation.


(2)	Includes developing market countries and smaller units.


(3)	Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.


(4)	Total Finance receivables exclude the allowance for credit losses of $125 and $134 at June 30, 2016 and 2015, respectively.

Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:

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(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows:

_____________________________


(1)	Switzerland, Germany, Austria, Belgium and Holland.


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified in Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.