Finance Receivables (Tables)

9 Months Ended

Sep. 30, 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): 

	September 30, 2014									December 31, 2013
	North America			International			Total			North America			International			Total
Consumer
Pre-acquisition consumer finance receivables - outstanding balance	$	460		$	200		$	660		$	931		$	363		$	1,294
Pre-acquisition consumer finance receivables - carrying value	$	401		$	197		$	598		$	826		$	348		$	1,174
Post-acquisition consumer finance receivables, collectively evaluated for impairment, net of fees(a)	11,091			12,404			23,495			9,795			11,394			21,189
Post-acquisition consumer finance receivables, individually evaluated for impairment, net of fees	1,123			—			1,123			767			—			767
	12,615			12,601			25,216			11,388			11,742			23,130
Less: allowance for loan losses - collective	(396		)	(72		)	(468		)	(365		)	(29		)	(394		)
Less: allowance for loan losses - specific	(140		)	—			(140		)	(103		)	—			(103		)
Total consumer finance receivables, net	12,079			12,529			24,608			10,920			11,713			22,633
Commercial
Commercial finance receivables, collectively evaluated for impairment, net of fees	2,513			4,559			7,072			1,975			4,627			6,602
Commercial finance receivables, individually evaluated for impairment, net of fees	—			79			79			—			98			98
	2,513			4,638			7,151			1,975			4,725			6,700
Less: allowance for loan losses - collective	(17		)	(15		)	(32		)	(17		)	(27		)	(44		)
Less: allowance for loan losses - specific	—			(5		)	(5		)	—			(7		)	(7		)
Total commercial finance receivables, net	2,496			4,618			7,114			1,958			4,691			6,649
Total finance receivables, net	$	14,575		$	17,147		$	31,722		$	12,878		$	16,404		$	29,282

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(a) Amounts reported for International include $1.0 billion of direct-financing leases at September 30, 2014 and December 31, 2013

Finance Receivables Summary [Table Text Block]

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

	Nine Months Ended September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period	$	931		$	363		$	1,294		$	2,162		$	—		$	2,162
Pre-acquisition consumer finance receivables - carrying value, beginning of period	$	826		$	348		$	1,174		$	1,958		$	—		$	1,958
International operations acquisition	—			—			—			—			601			601
Principal collections and other	(418		)	(171		)	(589		)	(885		)	(192		)	(1,077		)
Change in carrying value adjustment	(7		)	36			29			(45		)	8			(37		)
Foreign currency translation	—			(16		)	(16		)	—			7			7
Balance at end of period	$	401		$	197		$	598		$	1,028		$	424		$	1,452

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 September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Balance at beginning of period	$	133		$	44		$	177		$	298		$	96		$	394
International operations acquisition	—			—			—			—			—			—
Accretion of accretable yield	(32		)	(11		)	(43		)	(65		)	(20		)	(85		)
Transfer from non-accretable difference	—			7			7			—			19			19
Foreign currency translation	—			(3		)	(3		)	—			1			1
Balance at end of period	$	101		$	37		$	138		$	233		$	96		$	329

	Nine Months Ended September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Balance at beginning of period	$	181		$	74		$	255		$	404		$	—		$	404
International operations acquisition	—			—			—			—			127			127
Accretion of accretable yield	(113		)	(41		)	(154		)	(225		)	(44		)	(269		)
Transfer from non-accretable difference	33			7			40			54			19			73
Foreign currency translation	—			(3		)	(3		)	—			(6		)	(6		)
Balance at end of period	$	101		$	37		$	138		$	233		$	96		$	329

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):

	Nine Months Ended September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Post-acquisition consumer finance receivables, net of fees - beginning of period	$	10,562		$	11,394		$	21,956		$	8,831		$	—		$	8,831
International operations acquisition	—			—			—			—			6,378			6,378
Loans purchased	4,874			6,255			11,129			3,980			2,350			6,330
Charge-offs	(543		)	(102		)	(645		)	(401		)	(18		)	(419		)
Principal collections and other	(2,677		)	(4,487		)	(7,164		)	(2,097		)	(1,579		)	(3,676		)
Foreign currency translation	(2		)	(656		)	(658		)	—			221			221
Balance at end of period	$	12,214		$	12,404		$	24,618		$	10,313		$	7,352		$	17,665

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 September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Balance at beginning of period	$	515		$	60		$	575		$	415		$	8		$	423
Provision for loan losses	119			43			162			107			9			116
Charge-offs	(194		)	(36		)	(230		)	(153		)	(18		)	(171		)
Recoveries	96			10			106			84			15			99
Foreign currency translation	—			(5		)	(5		)	—			—			—
Balance at end of period	$	536		$	72		$	608		$	453		$	14		$	467

	Nine Months Ended September 30,
	2014									2013
	North America			International			Total			North America			International			Total
Balance at beginning of period	$	468		$	29		$	497		$	345		$	—		$	345
Provision for loan losses	312			109			421			276			17			293
Charge-offs	(543		)	(102		)	(645		)	(401		)	(18		)	(419		)
Recoveries	299			41			340			233			15			248
Foreign currency translation	—			(5		)	(5		)	—			—			—
Balance at end of period	$	536		$	72		$	608		$	453		$	14		$	467

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):

	September 30, 2014				December 31, 2013
	Amount		Percent		Amount		Percent
FICO Score less than 540	$	3,802	30.0	%	$	3,511	30.6	%
FICO Score 540 to 599	5,934		46.8		5,435		47.3
FICO Score 600 to 659	2,511		19.8		2,277		19.8
FICO Score 660 and greater	427		3.4		270		2.3
Balance at end of period(a)	$	12,674	100.0	%	$	11,493	100.0	%

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(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, but not yet in repossession, and (ii) in repossession, but not yet charged off (dollars in millions):

	September 30,
	2014								2013
	North America		International		Total		Percent of Contractual Amount Due		North America		International		Total		Percent of Contractual Amount Due
31 - 60 days	$	865	$	114	$	979	3.9	%	$	690	$	49	$	739	3.8	%
Greater than 60 days	305		120		425		1.7		247		44		291		1.5
	1,170		234		1,404		5.6		937		93		1,030		5.3
In repossession	44		5		49		0.2		41		4		45		0.3
	$	1,214	$	239	$	1,453	5.8	%	$	978	$	97	$	1,075	5.6	%

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):

	September 30, 2014			December 31, 2013
Outstanding recorded investment	$	1,123		$	767
Less: allowance for loan losses	(140		)	(103		)
Outstanding recorded investment, net of allowance	$	983		$	664
Unpaid principal balance	$	1,142		$	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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Average recorded investment	$	1,057	$	552	$	937	$	417
Finance charge income recognized	$	124	$	20	$	183	$	45

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	Number of Accounts	Amount		Number of Accounts	Amount		Number of Accounts	Amount		Number of Accounts	Amount
Recorded investment	13,543	$	232	11,364	$	204	35,748	$	598	27,302	$	478

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

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

	Nine Months Ended September 30,
	2014									2013
	North America			International			Total			North America		International			Total
Commercial finance receivables, net of fees - beginning of period	$	1,975		$	4,725		$	6,700		$	560	$	—		$	560
International operations acquisition	—			—			—			—		3,990			3,990
Net funding (collections) of commercial finance receivables	551			144			695			797		(229		)	568
Charge-offs	—			—			—			—		—			—
Foreign currency translation	(13		)	(231		)	(244		)	—		128			128
Balance at end of period	$	2,513		$	4,638		$	7,151		$	1,357	$	3,889		$	5,246

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 September 30,
	2014								2013
	North America		International			Total			North America		International		Total
Balance at beginning of period	$	17	$	23		$	40		$	12	$	12	$	24
Provision for loan losses	—		(2		)	(2		)	1		—		1
Charge-offs	—		—			—			—		—		—
Recoveries	—		—			—			—		4		4
Foreign currency translation	—		(1		)	(1		)	—		—		—
Balance at end of period	$	17	$	20		$	37		$	13	$	16	$	29

	Nine Months Ended September 30,
	2014								2013
	North America		International			Total			North America		International		Total
Balance at beginning of period	$	17	$	34		$	51		$	6	$	—	$	6
Provision for loan losses	—		(13		)	(13		)	7		11		18
Charge-offs	—		—			—			—		—		—
Recoveries	—		—			—			—		5		5
Foreign currency translation	—		(1		)	(1		)	—		—		—
Balance at end of period	$	17	$	20		$	37		$	13	$	16	$	29

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):

			September 30, 2014		December 31, 2013
Group I	-	Dealers with superior financial metrics	$	711	$	598
Group II	-	Dealers with strong financial metrics	1,732		1,588
Group III -	-	Dealers with fair financial metrics	2,606		2,174
Group IV -	-	Dealers with weak financial metrics	1,315		1,622
Group V	-	Dealers warranting special mention due to potential weaknesses	604		488
Group VI -	-	Dealers with loans classified as substandard, doubtful or impaired	183		230
Balance at end of period			$	7,151	$	6,700