Allowance for Credit Losses

12 Months Ended

Mar. 31, 2012

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

Note 6 – Allowance for Credit Losses
The following table provides information related to our allowance for credit losses on finance receivables
and investments in operating leases:
	Years ended March 31,
(Dollars in millions)		2012		2011		2010
Allowance for credit losses at beginning of period	$	879	$	1,705	$	1,864
Provision for credit losses		(98)		(433)		604
Charge-offs, net of recoveries		(162)		(393)		(763)
Allowance for credit losses at end of period	$	619	$	879	$	1,705

Charge-offs are shown net of $123 million, $137 million and $145 million of recoveries for fiscal 2012, 2011 and 2010, respectively.

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment for fiscal 2012 and 2011:

Fiscal Year Ended March 31, 2012
(Dollars in millions)	Retail Loan		Commercial		Dealer Products		Total
Allowance for Credit Losses for Finance Receivables:
Beginning Balance at April 1, 2011	$	595	$	18	$	141	$	754
Charge-offs		(243)		(1)		-	$	(244)
Recoveries		99		4		-		103
Provisions		(56)		(11)		(22)		(89)
Ending Balance at March 31, 2012	$	395	$	10	$	119	$	524
Ending Balance: Individually Evaluated for Impairment	$	-	$	-	$	45	$	45
Ending Balance: Collectively Evaluated for Impairment	$	395	$	10	$	74	$	479
Gross Finance Receivables:
Ending Balance at March 31, 2012	$	45,383	$	363	$	12,865	$	58,611
Ending Balance: Individually Evaluated for Impairment	$	-	$	-	$	211	$	211
Ending Balance: Collectively Evaluated for Impairment	$	45,383	$	363	$	12,654	$	58,400
Included in the ending balance of gross finance receivables collectively evaluated for impairment is approximately $502 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 March 31, 2012, as they are deemed to be insignificant for individual evaluation.

Note 6 – Allowance for Credit Losses (Continued)
Fiscal Year Ended March 31, 2011
(Dollars in millions)	Retail Loan			Commercial	Dealer Products		Total
Allowance for Credit Losses for Finance Receivables:
Beginning Balance at April 1, 2010	$	1,236	$	33	$	211	$	1,480
Charge-offs		(456)		(6)		-	$	(462)
Recoveries		100		8		-		108
Provisions		(285)		(17)		(70)		(372)
Ending Balance at March 31, 2011	$	595	$	18	$	141	$	754
Ending Balance: Individually Evaluated for
Impairment	$	-	$	-	$	67	$	67
Ending Balance: Collectively Evaluated for
Impairment	$	595	$	18	$	74	$	687
Gross Finance Receivables:
Ending Balance at March 31, 2011	$	46,060	$	437	$	12,189	$	58,686
Ending Balance: Individually Evaluated for
Impairment	$	-	$	-	$	258	$	258
Ending Balance: Collectively Evaluated for
Impairment	$	46,060	$	437	$	11,931	$	58,428

Included in the ending balance of gross finance receivables collectively evaluated for impairment is approximately $581 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 March 31, 2011, as they are deemed to be insignificant for individual evaluation.

Past Due Finance Receivables and Investments in Operating Leases
(Dollars in millions)		March 31, 2012			March 31, 2011
Aggregate balances 60 or more days past due:
	Finance receivables		$	111		$	157
	Operating leases			31			43
Total			$	142		$	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.

Note 6 – Allowance for Credit Losses (Continued)

Past Due Finance Receivables by Class

The following tables summarize the aging of finance receivables by class as of March 31, 2012 and 2011 for finance receivables that are past due:

(Dollars in millions)	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Finance Receivables		Carrying Amount 90 Days Past Due and Accruing
As of March 31, 2012
Retail Loan	$	433	$	80	$	28	$	541	$	44,842	$	45,383	$	28
Commercial		8		2		1		11		352		363		1
Wholesale		-		-		-		-		7,008		7,008		-
Real estate		-		-		-		-		4,361		4,361		-
Working capital		1		-		-		1		1,495		1,496		-
Total	$	442	$	82	$	29	$	553	$	58,058	$	58,611	$	29
(Dollars in millions)	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Current		Total Finance Receivables		Carrying 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