Finance Assets, net (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Summary of Net Investments in Finance Leases

A summary of the net investments in finance leases, substantially all of which were leveraged leases, at December 31, 2017 and 2016, before allowance for losses was as follows:

(in millions)	2017			2016
Rents receivable, net	$	696		$	805
Unguaranteed residual values	427			495
Unearned income	(201		)	(240		)
Investments in finance leases	922			1,060
Deferred income taxes	(407		)	(717		)
Net investments in finance leases	$	515		$	343

Schedule of Rents Receivable in Excess of Debt Service Requirements

Rents receivable in excess of debt service requirements on third-party nonrecourse debt at December 31, 2017 were as follows:

(in millions)
2018	$	96
2019	173
2020	116
2021	96
2022	142
Thereafter	73
Total	$	696

Schedule of Allowance for Losses on Finance Assets

The activity in the allowance for losses on finance assets for the years ended December 31, 2017, 2016 and 2015 was as follows:

(in millions)	2017			2016			2015
Balance at beginning of year	$	32		$	42		$	42
Decrease to allowance	(9		)	(10		)	—
Balance at end of year	$	23		$	32		$	42

All

Schedule of Credit Quality of Investments in Finance Leases

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 December 31, 2017 and 2016 was as follows:

(in millions)	2017		2016
Credit Rating by Standard & Poor’s/Moody’s:
“AAA/Aaa” to “A-/A3”	$	220	$	218
“BBB+/Baa1” to “BBB-/Baa3”	550		559
“BB+/Ba1” and Lower	152		283
Total	$	922	$	1,060