Customer Financing (Tables)

12 Months Ended

Dec. 31, 2012

Customer financing at December 31 consisted of the following:



	2012			2011
Financing receivables:
Investment in sales-type/finance leases		$1,850			$2,037
Notes	592			814
Operating lease equipment, at cost, less accumulated depreciation of $628 and $765	2,038			1,991
Gross customer financing	4,480			4,842
Less allowance for losses on receivables	(60		)	(70		)
Total		$4,420			$4,772

The components of investment in sales-type/finance leases at December 31 were as follows:



	2012			2011
Minimum lease payments receivable		$1,987			$2,272
Estimated residual value of leased assets	544			541
Unearned income	(681		)	(776		)
Total		$1,850			$2,037

Financing receivable balances evaluated for impairment at December 31 were as follows:



	2012		2011
Individually evaluated for impairment		$616		$854
Collectively evaluated for impairment	1,826		1,997
Total financing receivables		$2,442		$2,851

The change in the allowance for losses on financing receivables for the years ended December 31, 2012, 2011 and 2010, consisted of the following:



	2012			2011			2010
Beginning balance - January 1		($70	)		($353	)		($302	)
Customer financing valuation benefit/(provision)	10			269			(51		)
Reduction in customer financing assets				14
Ending balance - December 31		($60	)		($70	)		($353	)
Collectively evaluated for impairment		($60	)		($70	)		($353	)

Our financing receivable balances at December 31 by internal credit rating category are shown below:



Rating categories	2012		2011
BBB		$1,201		$1,316
BB	63		67
B	51		103
CCC	511		512
D	524		653
Other	92		200
Total carrying value of financing receivables		$2,442		$2,851

The majority of customer financing carrying values are concentrated in the following aircraft models:



	2012		2011
717 Aircraft ($465 and $480 accounted for as operating leases)⁽¹⁾		$1,781		$1,906
757 Aircraft ($454 and $451 accounted for as operating leases)⁽¹⁾	561		631
MD-80 Aircraft ($0 and $0 accounted for as operating leases)⁽¹⁾⁽²⁾	446		485
737 Aircraft ($193 and $242 accounted for as operating leases)	316		394
787 Aircraft ($286 and $0 accounted for as operating leases)	286
MD-11 Aircraft ($269 and $321 accounted for as operating leases)⁽¹⁾	269		321
767 Aircraft ($63 and $103 accounted for as operating leases)	223		307


⁽¹⁾	Out-of-production aircraft


⁽²⁾	Disclosure omitted from 2011 financial statements

Charges related to customer financing asset impairment for the years ended December 31 were as follows:

Scheduled receipts on customer financing are as follows:



Year	2013		2014		2015		2016		2017		Beyond 2017
Principal payments on notes receivable		$194		$101		$57		$41		$42		$157
Sales-type/finance lease payments receivable	290		231		230		226		207		803
Operating lease equipment payments receivable	474		172		162		97		55		104