Finance Receivables (Tables)
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6 Months Ended |
Jun. 30, 2018 |
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| Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
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| Finance Receivables, Net |
| | | | | | | | | | June 30, 2018 | | December 31, 2017 |
| Retail finance receivables | | | | Retail finance receivables, collectively evaluated for impairment, net of fees | $ | 33,398 |
| | $ | 30,574 |
| Retail finance receivables, individually evaluated for impairment, net of fees | 2,277 |
| | 2,228 |
| Total retail finance receivables, net of fees(a) | 35,675 |
| | 32,802 |
| Less: allowance for loan losses - collective | (508 | ) | | (561 | ) | Less: allowance for loan losses - specific | (307 | ) | | (328 | ) | Total retail finance receivables, net | 34,860 |
| | 31,913 |
| Commercial finance receivables | | | | Commercial finance receivables, collectively evaluated for impairment, net of fees | 10,652 |
| | 10,290 |
| Commercial finance receivables, individually evaluated for impairment, net of fees | 46 |
| | 22 |
| Total commercial finance receivables, net of fees | 10,698 |
| | 10,312 |
| Less: allowance for loan losses - collective | (52 | ) | | (50 | ) | Less: allowance for loan losses - specific | (6 | ) | | (3 | ) | Total commercial finance receivables, net | 10,640 |
| | 10,259 |
| Total finance receivables, net | $ | 45,500 |
| | $ | 42,172 |
| Fair value of finance receivables | $ | 45,128 |
| | $ | 42,178 |
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(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $184 million and $228 million at June 30, 2018 and December 31, 2017. |
| Allowance for Credit Losses on Financing Receivables |
| | | | | | | | | | | | | | | | | Retail Finance Receivables | Three Months Ended June 30, | | Six Months Ended June 30, | | 2018 | | 2017 | | 2018 | | 2017 | Allowance for retail loan losses beginning balance | $ | 858 |
| | $ | 823 |
| | $ | 889 |
| | $ | 765 |
| Provision for loan losses | 123 |
| | 152 |
| | 258 |
| | 359 |
| Charge-offs | (298 | ) | | (272 | ) | | (593 | ) | | (570 | ) | Recoveries | 145 |
| | 142 |
| | 268 |
| | 285 |
| Foreign currency translation | (13 | ) | | (1 | ) | | (7 | ) | | 5 |
| Allowance for retail loan losses ending balance | $ | 815 |
| | $ | 844 |
| | $ | 815 |
| | $ | 844 |
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| Financing Receivable Credit Quality Indicators |
A summary of the credit risk profile by FICO score band or equivalent scores, determined at origination, of the retail finance receivables is as follows: | | | | | | | | | | | | | | | | June 30, 2018 | | December 31, 2017 | | Amount | | Percent | | Amount | | Percent | Prime - FICO Score 680 and greater | $ | 19,751 |
| | 55.4 | % | | $ | 16,892 |
| | 51.5 | % | Near-prime - FICO Score 620 to 679 | 5,618 |
| | 15.7 |
| | 5,226 |
| | 15.9 |
| Sub-prime - FICO Score less than 620 | 10,306 |
| | 28.9 |
| | 10,684 |
| | 32.6 |
| Balance at end of period | $ | 35,675 |
| | 100.0 | % | | $ | 32,802 |
| | 100.0 | % |
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| Past Due Financing Receivables |
The following is a consolidated summary of the contractual amounts of delinquent retail finance receivables, which is not significantly different than the recorded investment for such receivables. | | | | | | | | | | | | | | | | June 30, 2018 | | June 30, 2017 | | Amount | | Percent of Contractual Amount Due | | Amount | | Percent of Contractual Amount Due | 31 - 60 days | $ | 1,178 |
| | 3.3 | % | | $ | 1,076 |
| | 3.4 | % | Greater than 60 days | 462 |
| | 1.3 |
| | 464 |
| | 1.5 |
| Total finance receivables more than 30 days delinquent | 1,640 |
| | 4.6 |
| | 1,540 |
| | 4.9 |
| In repossession | 57 |
| | 0.1 |
| | 43 |
| | 0.2 |
| Total finance receivables more than 30 days delinquent or in repossession | $ | 1,697 |
| | 4.7 | % | | $ | 1,583 |
| | 5.1 | % |
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| Troubled Debt Restructurings on Financing Receivables |
The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below: | | | | | | | | | | June 30, 2018 | | December 31, 2017 | Outstanding recorded investment | $ | 2,277 |
| | $ | 2,228 |
| Less: allowance for loan losses | (307 | ) | | (328 | ) | Outstanding recorded investment, net of allowance | $ | 1,970 |
| | $ | 1,900 |
| Unpaid principal balance | $ | 2,313 |
| | $ | 2,266 |
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Additional information about loans classified as TDRs is presented below: | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2018 | | 2017 | | 2018 | | 2017 | Average outstanding recorded investment | $ | 2,238 |
| | $ | 1,985 |
| | $ | 2,253 |
| | $ | 1,966 |
| Finance charge income recognized | $ | 62 |
| | $ | 57 |
| | $ | 126 |
| | $ | 117 |
| Number of loans classified as TDRs during the period | 19,662 |
| | 17,364 |
| | 33,096 |
| | 33,838 |
| Recorded investment of loans classified as TDRs during the period | $ | 360 |
| | $ | 302 |
| | $ | 613 |
| | $ | 590 |
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| Financing Receivable Credit Quality Indicators for Commercial Lending |
The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: | | | | | | | | | | | | | | | | | | | | June 30, 2018 | | December 31, 2017 | | | | Amount | | Percent | | Amount | | Percent | Group I | - | Dealers with superior financial metrics | $ | 1,971 |
| | 18.4 | % | | $ | 1,915 |
| | 18.6 | % | Group II | - | Dealers with strong financial metrics | 4,031 |
| | 37.7 |
| | 3,584 |
| | 34.7 |
| Group III | - | Dealers with fair financial metrics | 3,192 |
| | 29.8 |
| | 3,424 |
| | 33.2 |
| Group IV | - | Dealers with weak financial metrics | 1,001 |
| | 9.4 |
| | 1,048 |
| | 10.2 |
| Group V | - | Dealers warranting special mention due to elevated risks | 426 |
| | 4.0 |
| | 260 |
| | 2.5 |
| Group VI | - | Dealers with loans classified as substandard, doubtful or impaired | 77 |
| | 0.7 |
| | 81 |
| | 0.8 |
| Balance at end of period | $ | 10,698 |
| | 100.0 | % | | $ | 10,312 |
| | 100.0 | % |
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