FINANCIAL SERVICES SECTOR ALLOWANCE FOR CREDIT LOSSES

An analysis of the allowance for credit losses related to finance receivables for the periods ended March 31 was as follows (in millions):



	First Quarter 2015
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	305		$	16		$	321
Charge-offs	(80		)	1			(79		)
Recoveries	30			2			32
Provision for credit losses	53			(4		)	49
Other (a)	(7		)	(2		)	(9		)
Ending balance (b)	$	301		$	13		$	314

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	280		$	12		$	292
Specific impairment allowance	21			1			22
Ending balance (b)	301			13			314

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	53,135			32,356			85,491
Specifically evaluated for impairment	396			126			522
Recorded investment	53,531			32,482			86,013

Ending balance, net of allowance for credit losses	$	53,230		$	32,469		$	85,699

__________


(a)	Primarily represents amounts related to translation adjustments.


(b)	Total allowance, including reserves for operating leases, was $355 million.



	First Quarter 2014
	Consumer			Non-Consumer			Total
Allowance for credit losses
Beginning balance	$	327		$	30		$	357
Charge-offs	(75		)	(2		)	(77		)
Recoveries	34			5			39
Provision for credit losses	23			(7		)	16
Other (a)	(2		)	1			(1		)
Ending balance (b)	$	307		$	27		$	334

Analysis of ending balance of allowance for credit losses
Collective impairment allowance	$	284		$	24		$	308
Specific impairment allowance	23			3			26
Ending balance (b)	307			27			334

Analysis of ending balance of finance receivables
Collectively evaluated for impairment	50,116			33,012			83,128
Specifically evaluated for impairment	424			92			516
Recorded investment	50,540			33,104			83,644

Ending balance, net of allowance for credit losses	$	50,233		$	33,077		$	83,310

__________


(a)	Primarily represents amounts related to translation adjustments.


(b)	Total allowance, including reserves for operating leases, was $358 million.