XML 33 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
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

________________
(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
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
%
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
%
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

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
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
%