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Allowance for Credit Losses
 3 Months Ended
Sep. 30, 2012
Allowance For Credit Losses [Abstract]  
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES

Automotive Sector

Following is an analysis of the allowance for credit losses for the periods ended September 30 (in millions):
 
Third Quarter
 
First Nine Months
 
2012
 
2011
 
2012
 
2011
Allowance for credit losses
 
 
 
 
 
 
 
Beginning balance
$
34

 
$
57

 
$
29

 
$
120

Charge-offs
(7
)
 
—

 
(7
)
 
—

Recoveries
(4
)
 
(20
)
 
(6
)
 
(79
)
Provision for credit losses
3

 
—

 
5

 
2

Other
1

 
(2
)
 
6

 
(8
)
Ending balance
$
27

 
$
35

 
$
27

 
$
35



NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

Financial Services Sector

Following is an analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended September 30 (in millions):
 
Third Quarter 2012
 
Finance Receivables
 
Net Investment in
Operating Leases
 
 
 
Consumer
 
Non-Consumer
 
Total
 
 
Total Allowance
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
365

 
$
19

 
$
384

 
$
26

 
$
410

Charge-offs
(78
)
 
(1
)
 
(79
)
 
(11
)
 
(90
)
Recoveries
41

 
3

 
44

 
11

 
55

Provision for credit losses
45

 
(2
)
 
43

 
(1
)
 
42

Other (a)
3

 
(1
)
 
2

 
1

 
3

Ending balance
$
376

 
$
18

 
$
394

 
$
26

 
$
420

 
 
First Nine Months 2012
 
Finance Receivables
 
Net Investment in
Operating Leases
 
 
 
Consumer
 
Non-Consumer
 
Total
 
 
Total Allowance
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
457

 
$
44

 
$
501

 
$
40

 
$
541

Charge-offs
(230
)
 
(8
)
 
(238
)
 
(35
)
 
(273
)
Recoveries
135

 
10

 
145

 
39

 
184

Provision for credit losses
13

 
(28
)
 
(15
)
 
(18
)
 
(33
)
Other (a)
1

 
—

 
1

 
—

 
1

Ending balance
$
376

 
$
18

 
$
394

 
$
26

 
$
420

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for
credit losses
 

 
 

 
 

 
 

 
 

Collective impairment allowance
$
358

 
$
16

 
$
374

 
$
26

 
$
400

Specific impairment allowance
18

 
2

 
20

 
—

 
20

Ending balance
$
376

 
$
18

 
$
394

 
$
26

 
$
420

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 

 
 

 
 

 
 

 
 

Collectively evaluated for impairment
$
47,796

 
$
24,724

 
$
72,520

 
$
14,315

 
 

Specifically evaluated for impairment
411

 
61

 
472

 
—

 
 

Recorded investment (b)
$
48,207

 
$
24,785

 
$
72,992

 
$
14,315

 
 

 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
47,831

 
$
24,767

 
$
72,598

 
$
14,289

 
 

__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.













NOTE 6. ALLOWANCE FOR CREDIT LOSSES (Continued)

 
Third Quarter 2011
 
Finance Receivables
 
Net Investment in
Operating Leases
 
 
 
Consumer
 
Non-Consumer
 
Total
 
 
Total Allowance
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
570

 
$
49

 
$
619

 
$
64

 
$
683

Charge-offs
(98
)
 
(2
)
 
(100
)
 
(20
)
 
(120
)
Recoveries
51

 
2

 
53

 
20

 
73

Provision for credit losses
(3
)
 
(4
)
 
(7
)
 
(13
)
 
(20
)
Other (a)
(8
)
 
(2
)
 
(10
)
 
—

 
(10
)
Ending balance
$
512

 
$
43

 
$
555

 
$
51

 
$
606

 
 
First Nine Months 2011
 
Finance Receivables
 
Net Investment in
Operating Leases
 
 
 
Consumer
 
Non-Consumer
 
Total
 
 
Total Allowance
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
707

 
$
70

 
$
777

 
$
87

 
$
864

Charge-offs
(304
)
 
(9
)
 
(313
)
 
(75
)
 
(388
)
Recoveries
162

 
4

 
166

 
70

 
236

Provision for credit losses
(54
)
 
(22
)
 
(76
)
 
(32
)
 
(108
)
Other (a)
1

 
—

 
1

 
1

 
2

Ending balance
$
512

 
$
43

 
$
555

 
$
51

 
$
606

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for
credit losses
 

 
 

 
 

 
 

 
 

Collective impairment allowance
$
499

 
$
34

 
$
533

 
$
51

 
$
584

Specific impairment allowance
13

 
9

 
22

 
—

 
22

Ending balance
$
512

 
$
43

 
$
555

 
$
51

 
$
606

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 

 
 

 
 

 
 

 
 

Collectively evaluated for impairment
$
47,652

 
$
24,243

 
$
71,895

 
$
10,844

 
 

Specifically evaluated for impairment
352

 
68

 
420

 
—

 
 

Recorded investment (b)
$
48,004

 
$
24,311

 
$
72,315

 
$
10,844

 
 

 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
47,492

 
$
24,268

 
$
71,760

 
$
10,793

 
 

__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.