Finance Assets, net (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Allowance for Losses on Finance Assets

The activity in the allowance for losses on finance assets was as follows:



	For the Nine Months Ended September 30,
	2016			2015
	(in millions)
Balance at beginning of the year	$	42		$	42
Decrease to allowance	(9		)	—
Balance at September 30	$	33		$	42

Schedule of Credit Quality of Investments in Finance Assets

The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at September 30, 2016 and December 31, 2015 was as follows:



	September 30, 2016		December 31, 2015
	(in millions)
Credit Rating by Standard & Poor’s/Moody’s:
“AAA/Aaa” to “A-/A3”	$	217	$	212
“BBB+/Baa1” to “BBB-/Baa3”	528		702
“BB+/Ba1” and Lower	334		367
Total	$	1,079	$	1,281