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Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables Portfolio
The finance receivables portfolio consists of the following (in millions):
 
December 31, 2014
 
December 31, 2013
 
North
America
 
International
 
Total
 
North
America
 
International
 
Total
Consumer
 
 
 
 
 
 
 
 
 
 
 
Pre-acquisition consumer finance receivables - outstanding balance
$
361

 
$
147

 
$
508

 
$
931

 
$
363

 
$
1,294

Pre-acquisition consumer finance receivables - carrying value
$
313

 
$
146

 
$
459

 
$
826

 
$
348

 
$
1,174

Post-acquisition consumer finance receivables, collectively evaluated for impairment, net of fees(a)
11,814

 
12,116

 
23,930

 
9,795

 
11,394

 
21,189

Post-acquisition consumer finance receivables, individually evaluated for impairment, net of fees
1,234

 
—

 
1,234

 
767

 
—

 
767

Total post-acquisition consumer finance receivables(b)
13,048

 
12,116

 
25,164

 
10,562

 
11,394

 
21,956

Total consumer finance receivables, gross
13,361

 
12,262

 
25,623

 
11,388

 
11,742

 
23,130

Less: allowance for loan losses - collective
(405
)
 
(78
)
 
(483
)
 
(365
)
 
(29
)
 
(394
)
Less: allowance for loan losses - specific
(172
)
 
—

 
(172
)
 
(103
)
 
—

 
(103
)
Total consumer finance receivables, net
12,784

 
12,184

 
24,968

 
10,920

 
11,713

 
22,633

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
3,180

 
4,803

 
7,983

 
1,975

 
4,627

 
6,602

Commercial finance receivables, individually evaluated for impairment, net of fees
—

 
89

 
89

 
—

 
98

 
98

Total commercial finance receivables, gross
3,180

 
4,892

 
8,072

 
1,975

 
4,725

 
6,700

Less: allowance for loan losses - collective
(21
)
 
(14
)
 
(35
)
 
(17
)
 
(27
)
 
(44
)
Less: allowance for loan losses - specific
—

 
(5
)
 
(5
)
 
—

 
(7
)
 
(7
)
Total commercial finance receivables, net
3,159

 
4,873

 
8,032

 
1,958

 
4,691

 
6,649

Total finance receivables, net
$
15,943

 
$
17,057

 
$
33,000

 
$
12,878

 
$
16,404

 
$
29,282


________________
(a)
Amounts reported for International include $1.0 billion of direct-financing leases at December 31, 2014 and 2013.
(b)
Net of unamortized premiums and discounts, and deferred fees and costs of $245 million and $156 million at December 31, 2014 and 2013.
Summary of Finance Receivables
Following is a summary of activity in our pre-acquisition consumer finance receivables portfolio (in millions): 
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period
$
931

 
$
363

 
$
1,294

Pre-acquisition consumer finance receivables - carrying value, beginning of period
$
826

 
$
348

 
$
1,174

Principal collections and other
(505
)
 
(211
)
 
(716
)
Change in carrying value adjustment
(8
)
 
45

 
37

Foreign currency translation
—

 
(36
)
 
(36
)
Balance at end of period
$
313

 
$
146

 
$
459


 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Pre-acquisition consumer finance receivables - outstanding balance, beginning of period
$
2,162

 
$
—

 
$
2,162

 
$
4,366

Pre-acquisition consumer finance receivables - carrying value, beginning of period
$
1,958

 
$
—

 
$
1,958

 
$
4,027

International operations acquisition
—

 
601

 
601

 
—

Principal collections and other
(1,078
)
 
(270
)
 
(1,348
)
 
(1,899
)
Change in carrying value adjustment
(54
)
 
56

 
2

 
(170
)
Foreign currency translation
—

 
(39
)
 
(39
)
 
—

Balance at end of period
$
826

 
$
348

 
$
1,174

 
$
1,958
Schedule of International Impaired Consumer Finance Receivables Acquired
The following table provides information related to the credit-impaired consumer finance receivables acquired with the international operations on the applicable acquisition dates (in millions):
Contractually required payments receivable
 
$
799

Cash flows expected to be collected
 
$
728

Fair value
 
$
601
Activity in the Accretable Yield
A summary of the activity in the accretable yield on the pre-acquisition consumer finance receivables portfolios is as follows (in millions): 
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Balance at beginning of period
$
181

 
$
74

 
$
255

Accretion of accretable yield
(139
)
 
(50
)
 
(189
)
Transfer from non-accretable difference
46

 
6

 
52

Foreign currency translation
—

 
(7
)
 
(7
)
Balance at end of period
$
88

 
$
23

 
$
111


 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Balance at beginning of period
$
404

 
$
—

 
$
404

 
$
737

International operations acquisition
—

 
127

 
127

 
—

Accretion of accretable yield
(278
)
 
(64
)
 
(342
)
 
(503
)
Transfer from non-accretable difference
55

 
19

 
74

 
170

Foreign currency translation
—

 
(8
)
 
(8
)
 
—

Balance at end of period
$
181

 
$
74

 
$
255

 
$
404
Finance Receivables Summary - Post Acquisition Receivables
Following is a summary of activity in our post-acquisition consumer finance receivables portfolio (in millions): 
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Post-acquisition consumer finance receivables, net of fees - beginning of period
$
10,562

 
$
11,394

 
$
21,956

Loans purchased
6,808

 
8,277

 
15,085

Charge-offs
(776
)
 
(138
)
 
(914
)
Principal collections and other
(3,541
)
 
(6,014
)
 
(9,555
)
Change in carrying value adjustment
—

 
—

 
—

Foreign currency translation
(5
)
 
(1,403
)
 
(1,408
)
Balance at end of period
$
13,048

 
$
12,116

 
$
25,164



 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Post-acquisition consumer finance receivables, net of fees - beginning of period
$
8,831

 
$
—

 
$
8,831

 
$
5,314

International operations acquisition
—

 
9,709

 
9,709

 
—

Loans purchased
5,126

 
4,471

 
9,597

 
5,579

Charge-offs
(584
)
 
(54
)
 
(638
)
 
(304
)
Principal collections and other
(2,811
)
 
(2,886
)
 
(5,697
)
 
(1,758
)
Change in carrying value adjustment
—

 
14

 
14

 
—

Foreign currency translation
—

 
140

 
140

 
—

Balance at end of period
$
10,562

 
$
11,394

 
$
21,956

 
$
8,831
Allowance for Credit Losses on Financing Receivables
A summary of the activity in the allowance for consumer loan losses is as follows (in millions):
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Balance at beginning of period
$
468

 
$
29

 
$
497

Provision for loan losses
468

 
145

 
613

Charge-offs
(776
)
 
(138
)
 
(914
)
Recoveries
417

 
53

 
470

Foreign currency translation
—

 
(11
)
 
(11
)
Balance at end of period
$
577

 
$
78

 
$
655


 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Balance at beginning of period
$
345

 
$
—

 
$
345

 
$
179

Provision for loan losses
380

 
52

 
432

 
298

Charge-offs
(584
)
 
(54
)
 
(638
)
 
(304
)
Recoveries
327

 
29

 
356

 
172

Foreign currency translation
—

 
2

 
2

 
—

Balance at end of period
$
468

 
$
29

 
$
497

 
$
345
Financing Receivable Credit Quality Indicators
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):
 
December 31, 2014
 
December 31, 2013
 
Amount
 
Percent
 
Amount
 
Percent
FICO Score less than 540
$
3,805

 
28.4
%
 
$
3,511

 
30.6
%
FICO Score 540 to 619
7,308

 
54.5

 
6,645

 
57.8

FICO Score 620 to 679
1,698

 
12.7

 
1,217

 
10.6

FICO Score 680 and greater
598

 
4.4

 
120

 
1.0

Balance at end of period(a)
$
13,409

 
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
In addition, we review the credit quality of all of our consumer finance receivables based on consumer payment activity. A consumer account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date such payment was contractually due. Consumer finance receivables are collateralized by vehicle titles and, subject to local laws, we generally have the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. 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): 
 
December 31, 2014
 
December 31, 2013
 
North America
 
International
 
Total
 
Percent of Contractual Amount Due
 
North America
 
International
 
Total
 
Percent of Contractual Amount Due
31 - 60 days
$
994

 
$
89

 
$
1,083

 
4.2
%
 
$
858

 
$
94

 
$
952

 
4.1
%
Greater than 60 days
328

 
104

 
432

 
1.7

 
296

 
112

 
408

 
1.7

 
1,322

 
193

 
1,515

 
5.9

 
1,154

 
206

 
1,360

 
5.8

In repossession
36

 
4

 
40

 
0.2

 
38

 
3

 
41

 
0.2

Balance at end of period
$
1,358

 
$
197

 
$
1,555

 
6.1
%
 
$
1,192

 
$
209

 
$
1,401

 
6.0
%
Troubled Debt Restructurings on Financing Receivables
The outstanding recorded investment for consumer finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):
 
December 31, 2014
 
December 31, 2013
Outstanding recorded investment
$
1,234

 
$
767

Less: allowance for loan losses
(172
)
 
(103
)
Outstanding recorded investment, net of allowance
$
1,062

 
$
664

Unpaid principal balance
$
1,255

 
$
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):
 
Years Ended December 31,
 
2014
 
2013
 
2012
Average recorded investment
$
996

 
$
487

 
$
102

Interest income recognized
123

 
70

 
11

The following table provides information on consumer loans at the time they became classified as TDRs (dollars in millions):
 
December 31, 2014
 
December 31, 2013
 
Number of Accounts
 
Amount
 
Number of Accounts
 
Amount
Recorded investment
49,490

 
$
794

 
38,196

 
$
643
Activity in Commercial Finance Receivables Portfolio
Following is a summary of activity in our commercial finance receivables portfolio (in millions): 
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Commercial finance receivables, net of fees - beginning of period
$
1,975

 
$
4,725

 
$
6,700

Net funding of commercial finance receivables
1,228

 
661

 
1,889

Charge-offs
—

 
—

 
—

Foreign currency translation
(23
)
 
(494
)
 
(517
)
Balance at end of period
$
3,180

 
$
4,892

 
$
8,072


 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Commercial finance receivables, net of fees - beginning of period
$
560

 
$
—

 
$
560

 
$
—

International operations acquisition
—

 
4,834

 
4,834

 
—

Net funding (collections) of commercial finance receivables
1,424

 
(246
)
 
1,178

 
560

Charge-offs
(2
)
 
(3
)
 
(5
)
 
—

Foreign currency translation
(7
)
 
140

 
133

 
—

Balance at end of period
$
1,975

 
$
4,725

 
$
6,700

 
$
560
Activity of the Allowance for Commercial Loans
A summary of the activity in the allowance for commercial loan losses is as follows (in millions):
 
Year Ended December 31, 2014
 
North America
 
International
 
Total
Balance at beginning of period
$
17

 
$
34

 
$
51

Provision for loan losses
4

 
(13
)
 
(9
)
Recoveries
—

 
—

 
—

Charge-offs
—

 
—

 
—

Foreign currency translation
—

 
(2
)
 
(2
)
Balance at end of period
$
21

 
$
19

 
$
40



 
Years Ended December 31,
 
2013
 
2012
 
North America
 
International
 
Total
 
North America
Balance at beginning of period
$
6

 
$
—

 
$
6

 
$
—

Provision for loan losses
13

 
30

 
43

 
6

Recoveries
—

 
6

 
6

 
—

Charge-offs
(2
)
 
(3
)
 
(5
)
 
—

Foreign currency translation
—

 
1

 
1

 
—

Balance at end of period
$
17

 
$
34

 
$
51

 
$
6
Credit Risk Profile of Commercial Financing Receivables
A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions): 
 
 
 
December 31, 2014
 
December 31, 2013
Group I
-
Dealers with superior financial metrics
$
1,062

 
$
598

Group II
-
Dealers with strong financial metrics
2,090

 
1,588

Group III
-
Dealers with fair financial metrics
2,856

 
2,174

Group IV
-
Dealers with weak financial metrics
1,250

 
1,622

Group V
-
Dealers warranting special mention due to potential weaknesses
559

 
488

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
255

 
230

Balance at end of period
$
8,072

 
$
6,700