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FINANCING RECEIVABLES (Tables)
12 Months Ended
Dec. 31, 2017
FINANCING RECEIVABLES  
Financing receivables, net of allowances for credit losses, including residual values

 

($ in millions)

 

At December 31:

 

2017

 

2016

 

Current

 

 

 

 

 

Net investment in sales-type and direct financing leases

 

$

2,900

 

$

2,909

 

Commercial financing receivables

 

11,596

 

9,706

 

Client loan and installment payment receivables (loans)

 

7,226

 

6,390

 

 

 

 

 

 

 

Total

 

$

21,721

 

$

19,006

 

 

 

 

 

 

 

 

 

Noncurrent

 

 

 

 

 

Net investment in sales-type and direct financing leases

 

$

4,320

 

$

3,950

 

Client loan and installment payment receivables (loans)

 

5,230

 

5,071

 

 

 

 

 

 

 

Total

 

$

9,550

 

$

9,021

 

 

 

 

 

 

 

 

 

 

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

 

($ in millions)

 

At December 31, 2017:

 

Americas

 

EMEA

 

Asia Pacific

 

Total

 

Financing receivables

 

 

 

 

 

 

 

 

 

Lease receivables

 

$

3,911

 

$

1,349

 

$

1,333

 

$

6,593

 

Loan receivables

 

6,715

 

3,597

 

2,354

 

12,667

 

Ending balance

 

$

10,626

 

$

4,946

 

$

3,687

 

$

19,259

 

Collectively evaluated for impairment

 

$

10,497

 

$

4,889

 

$

3,604

 

$

18,990

 

Individually evaluated for impairment

 

$

129

 

$

57

 

$

83

 

$

269

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

Beginning balance at January 1, 2017

 

 

 

 

 

 

 

 

 

Lease receivables

 

$

54

 

$

4

 

$

76

 

$

133

 

Loan receivables

 

169

 

18

 

89

 

276

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

223

 

$

22

 

$

165

 

$

410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 

(51

)

(1

)

(85

)

(137

)

Recoveries

 

1

 

1

 

0

 

2

 

Provision

 

(8

)

29

 

(4

)

16

 

Other

 

7

 

11

 

6

 

24

 

Ending balance at December 31, 2017

 

$

172

 

$

61

 

$

82

 

$

314

 

Lease receivables

 

$

63

 

$

9

 

$

31

 

$

103

 

Loan receivables

 

$

108

 

$

52

 

$

51

 

$

211

 

Collectively evaluated for impairment

 

$

43

 

$

15

 

$

6

 

$

64

 

Individually evaluated for impairment

 

$

128

 

$

46

 

$

76

 

$

250

 

 

($ in millions)

 

At December 31, 2016:

 

Americas

 

EMEA

 

Asia Pacific

 

Total

 

Financing receivables

 

 

 

 

 

 

 

 

 

Lease receivables

 

$

3,830

 

$

1,171

 

$

1,335

 

$

6,336

 

Loan receivables

 

6,185

 

3,309

 

2,243

 

11,737

 

Ending balance

 

$

10,015

 

$

4,480

 

$

3,578

 

$

18,073

 

Collectively evaluated for impairment

 

$

9,847

 

$

4,460

 

$

3,419

 

$

17,726

 

Individually evaluated for impairment

 

$

168

 

$

20

 

$

159

 

$

347

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

Beginning balance at January 1, 2016

 

 

 

 

 

 

 

 

 

Lease receivables

 

$

52

 

$

17

 

$

143

 

$

213

 

Loan receivables

 

122

 

55

 

200

 

377

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

175

 

$

72

 

$

343

 

$

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 

(36

)

(48

)

(154

)

(237

)

Recoveries

 

2

 

0

 

0

 

2

 

Provision

 

65

 

(1

)

(6

)

58

 

Other

 

17

 

(1

)

(18

)

(3

)

Ending balance at December 31, 2016

 

$

223

 

$

22

 

$

165

 

$

410

 

Lease receivables

 

$

54

 

$

4

 

$

76

 

$

133

 

Loan receivables

 

$

169

 

$

18

 

$

89

 

$

276

 

Collectively evaluated for impairment

 

$

62

 

$

13

 

$

15

 

$

90

 

Individually evaluated for impairment

 

$

161

 

$

9

 

$

150

 

$

320

 

 

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

 

($ in millions)

 

At December 31:

 

2017

 

2016

 

Americas

 

$

22

 

$

23

 

EMEA

 

14

 

2

 

Asia Pacific

 

3

 

14

 

 

 

 

 

 

 

Total lease receivables

 

$

38

 

$

40

 

 

 

 

 

 

 

 

 

Americas

 

$

71

 

$

128

 

EMEA

 

59

 

5

 

Asia Pacific

 

9

 

12

 

 

 

 

 

 

 

Total loan receivables

 

$

138

 

$

145

 

 

 

 

 

 

 

 

 

Total receivables

 

$

177

 

$

185

 

 

 

 

 

 

 

 

 

 

Schedule of impaired client loan and lease receivables

 

($ in millions)

 

 

 

Recorded

 

Related

 

At December 31, 2017:

 

Investment

 

Allowance

 

Americas

 

$

129

 

$

128

 

EMEA

 

57

 

46

 

Asia Pacific

 

83

 

76

 

 

 

 

 

 

 

Total

 

$

269

 

$

250

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

Recorded

 

Related

 

At December 31, 2016:

 

Investment

 

Allowance

 

Americas

 

$

168

 

$

161

 

EMEA

 

20

 

9

 

Asia Pacific

 

159

 

150

 

 

 

 

 

 

 

Total

 

$

347

 

$

320

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

Income

 

 

 

Average

 

Interest

 

Recognized

 

For the year ended

 

Recorded

 

Income

 

on Cash

 

December 31, 2017:

 

Investment

 

Recognized

 

Basis

 

Americas

 

$

158

 

$

0

 

$

 

EMEA

 

33

 

0

 

 

Asia Pacific

 

122

 

0

 

 

 

 

 

 

 

 

 

 

Total

 

$

312

 

$

0

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

Income

 

 

 

Average

 

Interest

 

Recognized

 

For the year ended

 

Recorded

 

Income

 

on Cash

 

December 31, 2016:

 

Investment

 

Recognized

 

Basis

 

Americas

 

$

160

 

$

0

 

$

 

EMEA

 

56

 

0

 

 

Asia Pacific

 

290

 

0

 

 

 

 

 

 

 

 

 

 

Total

 

$

505

 

$

0

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of net recorded investment by credit quality indicator

 

Lease Receivables

 

($ in millions)

 

At December 31, 2017:

 

Americas

 

EMEA

 

Asia Pacific

 

Credit rating

 

 

 

 

 

 

 

Aaa–Aa3

 

$

422

 

$

49

 

$

68

 

A1–A3

 

855

 

190

 

544

 

Baa1–Baa3

 

980

 

371

 

337

 

Ba1–Ba2

 

730

 

448

 

184

 

Ba3–B1

 

443

 

192

 

89

 

B2–B3

 

367

 

77

 

64

 

Caa–D

 

51

 

13

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,847

 

$

1,340

 

$

1,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Receivables

 

($ in millions)

 

At December 31, 2017:

 

Americas

 

EMEA

 

Asia Pacific

 

Credit rating

 

 

 

 

 

 

 

Aaa–Aa3

 

$

724

 

$

129

 

$

120

 

A1–A3

 

1,469

 

502

 

961

 

Baa1–Baa3

 

1,683

 

982

 

596

 

Ba1–Ba2

 

1,253

 

1,186

 

325

 

Ba3–B1

 

760

 

508

 

157

 

B2–B3

 

630

 

204

 

113

 

Caa–D

 

88

 

34

 

31

 

 

 

 

 

 

 

 

 

Total

 

$

6,607

 

$

3,545

 

$

2,303

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Receivables

 

($ in millions)

 

At December 31, 2016:

 

Americas

 

EMEA

 

Asia Pacific

 

Credit rating

 

 

 

 

 

 

 

Aaa–Aa3

 

$

447

 

$

51

 

$

53

 

A1–A3

 

782

 

113

 

486

 

Baa1–Baa3

 

772

 

366

 

330

 

Ba1–Ba2

 

822

 

350

 

185

 

Ba3–B1

 

574

 

208

 

106

 

B2–B3

 

297

 

71

 

84

 

Caa–D

 

83

 

9

 

15

 

 

 

 

 

 

 

 

 

Total

 

$

3,776

 

$

1,167

 

$

1,259

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Receivables

 

($ in millions)

 

At December 31, 2016:

 

Americas

 

EMEA

 

Asia Pacific

 

Credit rating

 

 

 

 

 

 

 

Aaa–Aa3

 

$

712

 

$

143

 

$

90

 

A1–A3

 

1,246

 

318

 

832

 

Baa1–Baa3

 

1,230

 

1,032

 

565

 

Ba1–Ba2

 

1,309

 

987

 

316

 

Ba3–B1

 

914

 

585

 

182

 

B2–B3

 

472

 

201

 

143

 

Caa–D

 

133

 

25

 

25

 

 

 

 

 

 

 

 

 

Total

 

$

6,016

 

$

3,291

 

$

2,154

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2017:

 

>90 Days (1)

 

Receivables

 

Receivables

 

Receivables

 

Accruing(2)

 

Americas

 

$

30

 

$

29

 

$

3,852

 

$

3,911

 

$

197

 

EMEA

 

3

 

5

 

1,340

 

1,349

 

5

 

Asia Pacific

 

5

 

28

 

1,301

 

1,333

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

Total lease receivables

 

$

37

 

$

62

 

$

6,493

 

$

6,593

 

$

225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

39

 

$

96

 

$

6,581

 

$

6,715

 

$

254

 

EMEA

 

12

 

35

 

3,551

 

3,597

 

17

 

Asia Pacific

 

3

 

46

 

2,305

 

2,354

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan receivables

 

$

53

 

$

176

 

$

12,437

 

$

12,667

 

$

283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

91

 

$

239

 

$

18,930

 

$

19,259

 

$

508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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, 2016:

 

>90 Days(1)

 

Receivables

 

Receivables

 

Receivables

 

Accruing(2)

 

Americas

 

$

17

 

$

20

 

$

3,793

 

$

3,830

 

$

66

 

EMEA

 

2

 

10

 

1,159

 

1,171

 

6

 

Asia Pacific

 

12

 

59

 

1,264

 

1,335

 

40

 

Total lease receivables

 

$

31

 

$

89

 

$

6,216

 

$

6,336

 

$

111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

19

 

$

90

 

$

6,075

 

$

6,185

 

$

80

 

EMEA

 

5

 

5

 

3,299

 

3,309

 

15

 

Asia Pacific

 

6

 

87

 

2,150

 

2,243

 

46

 

 

 

 

 

 

 

 

 

 

 

 

 

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.