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Allowance for Credit Losses (Disclosure)
 9 Months Ended
Dec. 31, 2011
Allowance For Loan And Lease Losses Provision For Loss Net Abstract  
Allowance For Credit Losses [Text Block]
Note 7 – Allowance for Credit Losses
              
The following table provides information related to our allowance for credit losses on finance receivables
and investments in operating leases:
              
   Three Months Ended Nine Months Ended
  December 31, December 31,
(Dollars in millions)  2011  2010  2011  2010
Allowance for credit losses at beginning of period $ 623 $ 1,189 $ 879 $ 1,705
Provision for credit losses   56   (176)   (136)   (479)
Charge-offs, net of recoveries   (59)   (103)   (123)   (316)
Allowance for credit losses at end of period $ 620 $ 910 $ 620 $ 910

Charge-offs are shown net of $21 million and $99 million of recoveries for the three and nine months ended December 31, 2011, respectively, and $32 million and $105 million of recoveries for the three and nine months ended December 31, 2010, respectively.

Note 7 – Allowance for Credit Losses (Continued)

 

Allowance for Credit Losses and Recorded Investment in Finance Receivables by Portfolio Segment

 

The following tables provide information related to our allowance for credit losses and recorded investment in finance receivables by portfolio segment for the three and nine months ended December 31, 2011 and 2010:

 

For the Three and Nine Months Ended December 31, 2011   
             
(Dollars in millions)Retail Loan Commercial Dealer Products Total
             
Allowance for Credit Losses for Finance Receivables:
             
Beginning balance, October 1, 2011$ 375 $ 11 $ 124 $ 510
Charge-offs   (68)   (1)   -   (69)
Recoveries   17   2   -   19
Provisions   53   (3)   (2)   48
Ending balance, December 31, 2011$ 377 $ 9   122 $ 508
             
Beginning balance, April 1, 2011$ 595 $ 18 $ 141 $ 754
Charge-offs   (188)   (2)   - $ (190)
Recoveries   80   4   -   84
Provisions   (110)   (11)   (19)   (140)
Ending balance, December 31, 2011$ 377 $ 9 $ 122 $ 508
             
Ending balance: Individually evaluated for impairment$ - $ - $ 48 $ 48
Ending balance: Collectively evaluated for impairment$ 377 $ 9 $ 74 $ 460
             
Gross Finance Receivables:           
             
Ending balance, December 31, 2011$ 45,651 $ 376 $ 11,778 $ 57,805
Ending balance: Individually evaluated for impairment$ - $ - $ 203 $ 203
Ending balance: Collectively evaluated for impairment$ 45,651 $ 376 $ 11,575 $ 57,602

Included in the ending balance of gross finance receivables collectively evaluated for impairment is approximately $537 million and $1 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of December 31, 2011, as they are deemed to be insignificant for individual evaluation.

 

 

 Note 7 – Allowance for Credit Losses (Continued)
              
 For the Three and Nine Months Ended December 31, 2010   
              
 (Dollars in millions)Retail Loan1 Commercial1 Dealer Products1 Total1
              
 Allowance for Credit Losses for Finance Receivables:
              
 Beginning balance, October 1, 2010$ 821 $ 27 $ 147 $ 995
 Charge-offs   (115)   (2)   -   (117)
 Recoveries   22   3   -   25
 Provisions   (119)   (9)   1   (127)
 Ending balance, December 31, 2010$ 609 $ 19 $ 148 $ 776
              
 Beginning balance, April 1, 2010$ 1,236 $ 33 $ 211 $ 1,480
 Charge-offs   (360)   (5)   - $ (365)
 Recoveries   76   5   -   81
 Provisions   (343)   (14)   (63)   (420)
 Ending balance, December 31, 2010$ 609 $ 19 $ 148 $ 776
              
 Ending balance: Individually evaluated for           
  impairment$ - $ - $ 69 $ 69
 Ending balance: Collectively evaluated for           
  impairment$ 609 $ 19 $ 79 $ 707
              
 Gross Finance Receivables:1           
              
 Ending balance, December 31, 2010$ 45,829 $ 467 $ 12,583 $ 58,879
 Ending balance: Individually evaluated for           
  impairment$ - $ - $ 235 $ 235
 Ending balance: Collectively evaluated for           
  impairment$ 45,829 $ 467 $ 12,348 $ 58,644
              
 1 Prior period amounts have been reclassified to conform to the current period presentation.

Included in the ending balance of gross finance receivables collectively evaluated for impairment is approximately $596 million and $3 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of December 31, 2010, as they are deemed to be insignificant for individual evaluation.

Note 7 – Allowance for Credit Losses (Continued)
             
Past Due Finance Receivables and Investments in Operating Leases
 
(Dollars in millions)    December 31, 2011March 31, 2011
Aggregate balances 60 or more days past due           
 Finance receivables      $ 189 $ 157
 Operating leases        50   43
Total      $ 239 $ 200

Substantially all retail, direct finance lease, and operating lease receivables do not involve recourse to the dealer in the event of customer default. Finance and operating lease receivables 60 or more days past due include accounts in bankruptcy and exclude accounts for which vehicles have been repossessed.

 

Past Due Finance Receivables by Class

 

The following tables summarize the aging of finance receivables by class as of December 31, 2011 and March 31, 2011 for finance receivables that are past due:

 

(Dollars in millions)30 - 59 Days Past Due60 - 89 Days Past Due90 Days Past DueTotal Past DueCurrentTotal Finance ReceivablesCarrying Amount 90 Days Past Due and Accruing
               
As of December 31, 2011            
               
Retail Loan$ 643$ 135$ 47$ 825$ 44,826$ 45,651$ 47
Commercial  13  4  1  18  358  376  1
Wholesale  -  -  -  -  6,127  6,127  -
Real estate  -  1  1  2  4,281  4,283  1
Working capital  -  -  -  -  1,368  1,368  -
Total$ 656$ 140$ 49$ 845$ 56,960$ 57,805$ 49
               
(Dollars in millions)30 - 59 Days Past Due60 - 89 Days Past Due90 Days Past DueTotal Past DueCurrentTotal Finance ReceivablesCarrying Amount 90 Days Past due and Accruing
               
As of March 31, 2011            
               
Retail Loan$ 562$ 108$ 39$ 709$ 45,351$ 46,060$ 39
Commercial  15  5  1  21  416  437  1
Wholesale  24  4  -  28  6,832  6,860  -
Real estate  4  -  -  4  4,069  4,073  -
Working capital  1  -  -  1  1,255  1,256  -
Total$ 606$ 117$ 40$ 763$ 57,923$ 58,686$ 40