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FINANCING RECEIVABLES (Tables)
 12 Months Ended
Dec. 31, 2016
FINANCING RECEIVABLES  
Financing receivables, net of allowances for credit losses, including residual values

 

($ in millions)

 

At December 31:

 

2016

 

2015

 

Current

 

 

 

 

 

Net investment in sales-type and direct financing leases

 

$
2,909 

 

$
3,057 

 

Commercial financing receivables

 
9,706 

 
8,948 

 

Client loan and installment payment receivables (loans)

 
6,390 

 
7,015 

 

 

 

 

 

 

 

Total

 

$
19,006 

 

$
19,020 

 

 

 

 

 

 

 

 

 

Noncurrent

 

 

 

 

 

Net investment in sales-type and direct financing leases

 

$
3,950 

 

$
4,501 

 

Client loan and installment payment receivables (loans)

 
5,071 

 
5,512 

 

 

 

 

 

 

 

Total

 

$
9,021 

 

$
10,013 

 

 

 

 

 

 

 

 

 

 

Schedule of financing receivables and allowance for credit losses by portfolio segment

 

($ in millions)

 

 

 

Major

 

Growth

 

 

 

At December 31, 2016:

 

Markets

 

Markets

 

Total

 

Financing receivables

 

 

 

 

 

 

 

Lease receivables

 

$
5,013

 

$
1,323

 

$
6,336

 

Loan receivables

 
9,148

 
2,589

 
11,737

 

Ending balance

 

$
14,161

 

$
3,912

 

$
18,073

 

Collectively evaluated for impairment

 

$
14,119

 

$
3,646

 

$
17,765

 

Individually evaluated for impairment

 

$
43

 

$
266

 

$
309

 

Allowance for credit losses

 

 

 

 

 

 

 

Beginning balance at January 1, 2016

 

 

 

 

 

 

 

Lease receivables

 

$
25

 

$
188

 

$
213

 

Loan receivables

 
83

 
293

 
377

 

 

 

 

 

 

 

 

 

Total

 

$
109

 

$
481

 

$
590

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 
(59

)
(176

)
(235

)

Provision

 
7

 
51

 
58

 

Other

 
0

 
(3

)
(3

)

Ending balance at December 31, 2016

 

$
57

 

$
353

 

$
410

 

Lease receivables

 

$
6

 

$
127

 

$
133

 

Loan receivables

 

$
51

 

$
225

 

$
276

 

Collectively evaluated for impairment

 

$
30

 

$
98

 

$
128

 

Individually evaluated for impairment

 

$
27

 

$
255

 

$
281

 

 

($ in millions)

 

 

 

Major

 

Growth

 

 

 

At December 31, 2015:

 

Markets

 

Markets

 

Total

 

Financing receivables

 

 

 

 

 

 

 

Lease receivables

 

$
5,517

 

$
1,524

 

$
7,041

 

Loan receivables

 
9,739

 
3,165

 
12,904

 

Ending balance

 

$
15,256

 

$
4,689

 

$
19,945

 

Collectively evaluated for impairment

 

$
15,180

 

$
4,227

 

$
19,406

 

Individually evaluated for impairment

 

$
76

 

$
462

 

$
539

 

Allowance for credit losses

 

 

 

 

 

 

 

Beginning balance at January 1, 2015

 

 

 

 

 

 

 

Lease receivables

 

$
32

 

$
133

 

$
165

 

Loan receivables

 
79

 
317

 
396

 

 

 

 

 

 

 

 

 

Total

 

$
111

 

$
450

 

$
561

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 
(14

)
(48

)
(62

)

Provision

 
20

 
122

 
141

 

Other

 
(8

)
(43

)
(51

)

Ending balance at December 31, 2015

 

$
109

 

$
481

 

$
590

 

Lease receivables

 

$
25

 

$
188

 

$
213

 

Loan receivables

 

$
83

 

$
293

 

$
377

 

Collectively evaluated for impairment

 

$
43

 

$
36

 

$
79

 

Individually evaluated for impairment

 

$
65

 

$
445

 

$
511

 

 

Schedule of recorded investment in financing receivables which are on non-accrual status

 

($ in millions)

 

At December 31:

 

2016

 

2015

 

Major markets

 

$
2 

 

$
2 

 

Growth markets

 
38 

 
63 

 

 

 

 

 

 

 

Total lease receivables

 

$
40 

 

$
65 

 

 

 

 

 

 

 

 

 

Major markets

 

$
19 

 

$
13 

 

Growth markets

 
127 

 
91 

 

 

 

 

 

 

 

Total loan receivables

 

$
145 

 

$
104 

 

 

 

 

 

 

 

 

 

Total receivables

 

$
185 

 

$
168 

 

 

 

 

 

 

 

 

 

 

Schedule of impaired client loan receivables

 

($ in millions)

 

 

 

Recorded

 

Related

 

At December 31, 2016:

 

Investment

 

Allowance

 

Major markets

 

$
31 

 

$
28 

 

Growth markets

 
191 

 
185 

 

 

 

 

 

 

 

Total

 

$
223 

 

$
213 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Recorded

 

Related

 

At December 31, 2015:

 

Investment

 

Allowance

 

Major markets

 

$
50 

 

$
47 

 

Growth markets

 
297 

 
284 

 

 

 

 

 

 

 

Total

 

$
347 

 

$
331 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

Income

 

 

 

Average

 

Interest

 

Recognized

 

For the year ended

 

Recorded

 

Income

 

on Cash

 

December 31, 2016:

 

Investment

 

Recognized

 

Basis

 

Major markets

 

$
55 

 

$
0 

 

$

—

 

Growth markets

 
284 

 
0 

 

—

 

 

 

 

 

 

 

 

 

Total

 

$
339 

 

$
0 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

Income

 

 

 

Average

 

Interest

 

Recognized

 

For the year ended

 

Recorded

 

Income

 

on Cash

 

December 31, 2015:

 

Investment

 

Recognized

 

Basis

 

Major markets

 

$
51 

 

$
0 

 

$

—

 

Growth markets

 
315 

 
0 

 

—

 

 

 

 

 

 

 

 

 

Total

 

$
367 

 

$
0 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of net recorded investment by credit quality indicator

 

Lease Receivables

 

($ in millions)

 

 

 

Major

 

Growth

 

At December 31, 2016:

 

Markets

 

Markets

 

Credit rating

 

 

 

 

 

Aaa – Aa3

 

$
496 

 

$
44 

 

A1 – A3

 
1,162 

 
181 

 

Baa1 – Baa3

 
1,381 

 
140 

 

Ba1 – Ba2

 
1,144 

 
246 

 

Ba3 – B1

 
566 

 
313 

 

B2 – B3

 
271 

 
163 

 

Caa – D

 
26 

 
69 

 

 

 

 

 

 

 

Total

 

$
5,047 

 

$
1,156 

 

 

 

 

 

 

 

 

 

 

Loan Receivables

 

($ in millions)

 

 

 

Major

 

Growth

 

At December 31, 2016:

 

Markets

 

Markets

 

Credit rating

 

 

 

 

 

Aaa – Aa3

 

$
904 

 

$
87 

 

A1 – A3

 
2,117 

 
355 

 

Baa1 – Baa3

 
2,515 

 
274 

 

Ba1 – Ba2

 
2,084 

 
483 

 

Ba3 – B1

 
1,031 

 
613 

 

B2 – B3

 
494 

 
320 

 

Caa – D

 
48 

 
135 

 

 

 

 

 

 

 

Total

 

$
9,193 

 

$
2,268 

 

 

 

 

 

 

 

 

 

 

Lease Receivables

 

($ in millions)

 

 

 

Major

 

Growth

 

At December 31, 2015:*

 

Markets

 

Markets

 

Credit rating

 

 

 

 

 

Aaa – Aa3

 

$
535 

 

$
34 

 

A1 – A3

 
1,318 

 
142 

 

Baa1 – Baa3

 
1,486 

 
343 

 

Ba1 – Ba2

 
1,208 

 
309 

 

Ba3 – B1

 
510 

 
243 

 

B2 – B3

 
401 

 
189 

 

Caa – D

 
33 

 
76 

 

 

 

 

 

 

 

Total

 

$
5,492 

 

$
1,336 

 

 

 

 

 

 

 

 

 

 

* Reclassified to conform to 2016 presentation

 

Loan Receivables

 

($ in millions)

 

 

 

Major

 

Growth

 

At December 31, 2015:*

 

Markets

 

Markets

 

Credit rating

 

 

 

 

 

Aaa – Aa3

 

$
941 

 

$
73 

 

A1 – A3

 
2,318 

 
305 

 

Baa1 – Baa3

 
2,613 

 
738 

 

Ba1 – Ba2

 
2,125 

 
664 

 

Ba3 – B1

 
897 

 
522 

 

B2 – B3

 
705 

 
406 

 

Caa – D

 
58 

 
164 

 

 

 

 

 

 

 

Total

 

$
9,656 

 

$
2,872 

 

 

 

 

 

 

 

 

 

 

* Reclassified to conform to 2016 presentation

 

Schedule of past due financing receivables

 

($ in millions)

 

 

 

 

 

Fully

 

<90 Days

 

 

 

Recorded

 

 

 

Total

 

Reserved

 

or Unbilled

 

Total

 

Investment

 

 

 

Past Due

 

Financing

 

Financing

 

Financing

 

>90 Days and

 

At December 31, 2016:

 

> 90 Days(1)

 

Receivables

 

Receivables

 

Receivables

 

Accruing(2)

 

Major markets

 

$
8 

 

$
11 

 

$
4,994 

 

$
5,013 

 

$
34 

 

Growth markets

 
23 

 
78 

 
1,222 

 
1,323 

 
77 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total lease receivables

 

$
31 

 

$
89 

 

$
6,216 

 

$
6,336 

 

$
111 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Major markets

 

$
15 

 

$
5 

 

$
9,129 

 

$
9,148 

 

$
62 

 

Growth markets

 
16 

 
177 

 
2,396 

 
2,589 

 
80 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan receivables

 

$
31 

 

$
182 

 

$
11,524 

 

$
11,737 

 

$
141 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
62 

 

$
271 

 

$
17,740 

 

$
18,073 

 

$
253 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only the portion of a financing receivable which is greater than 90 days past due, excluding amounts that are fully reserved.

(2)

At a contract level, which includes total billed and unbilled amounts for aged financing receivables greater than 90 days

 

($ in millions)

 

 

 

 

 

Fully

 

<90 Days

 

 

 

Recorded

 

 

 

Total

 

Reserved

 

or Unbilled

 

Total

 

Investment

 

 

 

Past Due

 

Financing

 

Financing

 

Financing

 

>90 Days and

 

At December 31, 2015:*

 

> 90 Days(1)

 

Receivables

 

Receivables

 

Receivables

 

Accruing(2)

 

Major markets

 

$
5 

 

$
33 

 

$
5,479 

 

$
5,517 

 

$
108 

 

Growth markets

 
30 

 
140 

 
1,355 

 
1,524 

 
60 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total lease receivables

 

$
35 

 

$
173 

 

$
6,834 

 

$
7,041 

 

$
168 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Major markets

 

$
7 

 

$
35 

 

$
9,696 

 

$
9,739 

 

$
134 

 

Growth markets

 
31 

 
309 

 
2,825 

 
3,165 

 
86 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan receivables

 

$
38 

 

$
344 

 

$
12,521 

 

$
12,904 

 

$
220 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
73 

 

$
517 

 

$
19,355 

 

$
19,945 

 

$
388 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Only the portion of a financing receivable which is greater than 90 days past due, excluding amounts that are fully reserved.

(2)

At a contract level, which includes total billed and unbilled amounts for aged financing receivables greater than 90 days

*

Reclassified to conform to 2016 presentation