Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Finance receivables, net [Table Text Block]

The finance receivables portfolio consists of the following (in millions): 

	March 31, 2014									December 31, 2013
	North America			International			Total			North America			International			Total
Consumer
Pre-acquisition consumer finance receivables - outstanding balance	$	735		$	293		$	1,028		$	931		$	363		$	1,294
Pre-acquisition consumer finance receivables - carrying value	$	645		$	285		$	930		$	826		$	348		$	1,174
Post-acquisition consumer finance receivables, collectively evaluated for impairment, net of fees(a)	10,047			12,183			22,230			9,795			11,394			21,189
Post-acquisition consumer finance receivables, individually evaluated for impairment, net of fees	864			—			864			767			—			767
	11,556			12,468			24,024			11,388			11,742			23,130
Less: allowance for loan losses - collective	(387		)	(46		)	(433		)	(365		)	(29		)	(394		)
Less: allowance for loan losses - specific	(104		)	—			(104		)	(103		)	—			(103		)
Total consumer finance receivables, net	11,065			12,422			23,487			10,920			11,713			22,633
Commercial
Commercial finance receivables, collectively evaluated for impairment, net of fees	2,190			4,840			7,030			1,975			4,627			6,602
Commercial finance receivables, individually evaluated for impairment, net of fees	—			78			78			—			98			98
	2,190			4,918			7,108			1,975			4,725			6,700
Less: allowance for loan losses - collective	(16		)	(27		)	(43		)	(17		)	(27		)	(44		)
Less: allowance for loan losses - specific	—			(6		)	(6		)	—			(7		)	(7		)
Total commercial finance receivables, net	2,174			4,885			7,059			1,958			4,691			6,649
Total finance receivables, net	$	13,239		$	17,307		$	30,546		$	12,878		$	16,404		$	29,282

Finance Receivables Summary [Table Text Block]

Following is a summary of activity in our pre-acquisition consumer finance receivables portfolio (in millions):

	Three Months Ended March 31,
	2014									2013
	North America			International			Total			North America
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period	$	931		$	363		$	1,294		$	2,162
Pre-acquisition consumer finance receivables - carrying value, beginning of period	$	826		$	348		$	1,174		$	1,958
Principal collections and other	(172		)	(68		)	(240		)	(350		)
Change in carrying value adjustment	(9		)	16			7			(28		)
Foreign currency translation	—			(11		)	(11		)	—
Balance at end of period	$	645		$	285		$	930		$	1,580

Accretable Yield [Table Text Block]

A summary of the activity in the accretable yield on the pre-acquisition consumer finance receivables portfolios is as follows (in millions):

	Three Months Ended March 31,
	2014									2013
	North America			International			Total			North America
Balance at beginning of period	$	181		$	74		$	255		$	404
Accretion of accretable yield	(40		)	(17		)	(57		)	(81		)
Transfer from non-accretable difference	33			—			33			48
Foreign currency translation	—			(2		)	(2		)	—
Balance at end of period	$	174		$	55		$	229		$	371

Finance Receivables Summary - Post Acquisition Receivables [Table Text Block]

Following is a summary of activity in our post-acquisition consumer finance receivables portfolio (in millions):

	Three Months Ended March 31,
	2014									2013
	North America			International			Total			North America
Post-acquisition consumer finance receivables, net of fees - beginning of period	$	10,562		$	11,394		$	21,956		$	8,831
Loans purchased	1,364			2,048			3,412			1,359
Charge-offs	(192		)	(32		)	(224		)	(132		)
Principal collections and other	(822		)	(1,412		)	(2,234		)	(625		)
Foreign currency translation	(1		)	185			184			—
Balance at end of period	$	10,911		$	12,183		$	23,094		$	9,433

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the allowance for consumer loan losses is as follows (in millions):

	Three Months Ended March 31,
	2014									2013
	North America			International			Total			North America
Balance at beginning of period	$	468		$	29		$	497		$	345
Provision for loan losses	104			33			137			89
Charge-offs	(192		)	(32		)	(224		)	(132		)
Recoveries	111			16			127			80
Balance at end of period	$	491		$	46		$	537		$	382

Financing Receivable Credit Quality Indicators [Table Text Block]

A summary of the credit risk profile by FICO score band, determined at origination, of the consumer finance receivables in the North America Segment is as follows (dollars in millions):

	March 31, 2014				December 31, 2013
	Amount		Percent		Amount		Percent
FICO Score less than 540	$	3,611	31.0	%	$	3,511	30.6	%
FICO Score 540 to 599	5,539		47.6		5,435		47.3
FICO Score 600 to 659	2,250		19.3		2,277		19.8
FICO Score 660 and greater	246		2.1		270		2.3
Balance at end of period(a)	$	11,646	100.0	%	$	11,493	100.0	%

_________________ 

(a) Balance at the end of the period is the sum of pre-acquisition consumer finance receivables-outstanding balance and post-acquisition consumer finance receivables, net of fees for North America Segment.

Past Due Financing Receivables [Table Text Block]

The following is a summary of the contractual amounts of consumer finance receivables, which is not significantly different than recorded investment, that are (i) more than 30 days delinquent, not yet in repossession, and (ii) in repossession, but not yet charged off (dollars in millions):

	March 31,
	2014								2013
	North America		International		Total				North America
	Amount		Amount		Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
31 - 60 days	$	579	$	138	$	717	3.1	%	$	477	4.3	%
Greater than 60 days	210		126		336		1.4		169		1.5
	789		264		1,053		4.5		646		5.8
In repossession	33		5		38		0.1		32		0.3
	$	822	$	269	$	1,091	4.6	%	$	678	6.1	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):

	March 31, 2014			December 31, 2013
Outstanding recorded investment	$	864		$	767
Less: allowance for loan losses	(104		)	(103		)
Outstanding recorded investment, net of allowance	$	760		$	664
Unpaid principal balance	$	880		$	779

Finance charge income from loans classified as TDRs is accounted for in the same manner as other accruing loans. Cash collections on these loans are allocated according to the same payment hierarchy methodology applied to loans that are not classified as TDRs. Additional information about loans classified as TDRs is presented below (in millions):

	Three Months Ended March 31,
	2014		2013
Average recorded investment	$	816	$	282
Finance charge income recognized	$	29	$	10

The following table provides information on consumer loans at the time they became classified as TDRs (dollars in millions):

	Three Months Ended March 31,
	2014			2013
	Number of Accounts	Amount		Number of Accounts	Amount
Recorded investment	10,127	$	183	6,992	$	131

Finance Receivables Summary - Post-acquisition - Commercial [Table Text Block]

Following is a summary of activity in our commercial finance receivables portfolio (in millions):

	Three Months Ended March 31,
	2014							2013
	North America			International		Total		North America
Commercial finance receivables, net of fees - beginning of period	$	1,975		$	4,725	$	6,700	$	560
Net funding of commercial finance receivables	223			154		377		323
Charge-offs	—			—		—		—
Foreign currency translation	(8		)	39		31		—
Balance at end of period	$	2,190		$	4,918	$	7,108	$	883

Allowance for Loan Losses - Commercial Loans [Table Text Block]

A summary of the activity in the allowance for commercial loan losses is as follows (in millions):

	Three Months Ended March 31,
	2014									2013
	North America			International			Total			North America
Balance at beginning of period	$	17		$	34		$	51		$	6
Provision for loan losses	(1		)	(1		)	(2		)	5
Recoveries	—			—			—			—
Charge-offs	—			—			—			—
Balance at end of period	$	16		$	33		$	49		$	11

Financing Receivable Credit Quality Indicators for Commercial Lending [Table Text Block]

A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions):

		March 31, 2014		December 31, 2013
Group I -	Dealers with strong to superior financial metrics	$	609	$	598
Group II -	Dealers with fair to favorable financial metrics	1,626		1,588
Group III -	Dealers with marginal to weak financial metrics	2,422		2,174
Group IV -	Dealers with poor financial metrics	1,680		1,622
Group V -	Dealers warranting special mention due to potential weaknesses	543		488
Group VI -	Dealers with loans classified as substandard, doubtful or impaired	228		230
Balance at end of period		$	7,108	$	6,700