Finance receivables, net consist of retail and dealer accounts including accrued interest and deferred fees and costs, net of the allowance for credit losses and deferred income. Pledged receivables represent retail loan receivables that have been sold for legal purposes to securitization trusts but continue to be included in our consolidated financial statements. Cash flows from these receivables are available only for the repayment of debt issued by these trusts and other obligations arising from the securitization transactions. They are not available for payment of our other obligations or to satisfy claims of our other creditors.

(Dollars in millions)			March 31, 2014		March 31, 2013
Retail receivables			$	40,216	$	40,508
Pledged retail receivables				9,633		7,669
Dealer financing				15,925		14,995
				65,774		63,172

Deferred origination (fees) and costs, net				651		634
Deferred income				(863)		(794)
Allowance for credit losses
	Retail and pledged retail receivables			(298)		(338)
	Dealer financing			(88)		(107)
		Total allowance for credit losses		(386)		(445)
Finance receivables, net			$	65,176	$	62,567

Contractual maturities on retail receivables and dealer financing are as follows (dollars in millions):

	Contractual maturities
Years ending March 31,	Retail receivables		Dealer financing
2015	$	14,336	$	11,345
2016		12,719		1,546
2017		10,397		1,020
2018		7,473		731
2019		3,768		806
Thereafter		1,150		477
Total	$	49,843	$	15,925

Finance receivables, net and retail receivables presented in the previous tables include direct finance lease receivables, net of $274 million and $235 million at March 31, 2014 and 2013, respectively. Contractual maturities of retail receivables exclude $6 million of estimated unguaranteed residual values related to direct finance leases.

A significant portion of our finance receivables has historically settled prior to contractual maturity. Contractual maturities shown above should not be considered indicative of future cash collections.

We are exposed to credit risk on our finance receivables. Credit risk is the risk of loss arising from the failure of customers or dealers to meet the terms of their contracts with us or otherwise fail to perform as agreed.

Retail loan and commercial portfolio segments each consist of one class of finance receivables. While we use various credit quality metrics to develop our allowance for credit losses on the retail loan and commercial portfolio segments, we primarily utilize the aging of the individual accounts to monitor the credit quality of these finance receivables. Based on our experience, the payment status of borrowers is the strongest indicator of the credit quality of the underlying receivables. Payment status also impacts charge-offs.

Individual borrower accounts for each class of finance receivables within the retail loan and commercial portfolio segments are segregated into one of four aging categories based on the number of days outstanding. The aging for each class of finance receivables is updated quarterly.

For three classes of finance receivables within the dealer products portfolio segment (wholesale, real estate and working capital), all loans outstanding for an individual dealer or dealer group, and affiliated entities, are aggregated and evaluated collectively by dealer or dealer group. This reflects the interconnected nature of financing provided to our individual dealer and dealer group customers, and their affiliated entities.

When assessing the credit quality of the finance receivables within the dealer products portfolio segment, we segregate the finance receivables account balances into four distinct credit quality indicators based on internal risk assessments. The internal risk assessments for all finance receivables within the dealer products portfolio segment are updated on a monthly basis.

Note 4 - Finance Receivables, Net (Continued)

The tables below present each credit quality indicator by class of finance receivable as of March 31, 2014 and 2013:

		Retail Loan				Commercial
(Dollars in millions)		March 31, 2014		March 31, 2013		March 31, 2014		March 31, 2013

Aging of finance receivables:
	Current	$	48,828	$	47,236	$	432	$	362
	30-59 days past due		459		454		6		6
	60-89 days past due		90		87		1		1
	90 days or greater past due		33		31		-		-
Total		$	49,410	$	47,808	$	439	$	369

		Wholesale				Real Estate				Working Capital
(Dollars in millions)		March 31, 2014		March 31, 2013¹		March 31, 2014		March 31, 2013		March 31, 2014		March 31, 2013

Credit quality indicators:
	Performing	$	8,129	$	7,740	$	3,791	$	3,968	$	1,642	$	1,616
	Credit Watch		1,282		915		855		583		158		80
	At Risk		24		33		12		28		25		28
	Default		1		1		-		1		6		2
Total		$	9,436	$	8,689	$	4,658	$	4,580	$	1,831	$	1,726
¹Certain prior period amounts have been reclassified to conform to the current period presentation.

Note 4 – Finance Receivables, Net (Continued)

Impaired Finance Receivables
The following table summarizes the information related to our impaired loans by class of finance receivable as of March 31, 2014 and 2013:

	Impaired								Individually Evaluated
	Finance Receivables				Unpaid Principal Balance				Allowance
(Dollars in millions)	2014		2013		2014		2013		2014		2013

Impaired account balances individually evaluated for impairment with an allowance:

Wholesale	$	13	$	16	$	13	$	16	$	1	$	3
Real estate		27		33		27		33		8		7
Working capital		23		24		23		24		22		23
Total	$	63	$	73	$	63	$	73	$	31	$	33

Impaired account balances individually evaluated for impairment without an allowance:

Wholesale	$	51	$	66	$	51	$	66
Real estate		90		97		90		97
Working capital		4		5		4		5
Total	$	145	$	168	$	145	$	168

Impaired account balances aggregated and evaluated for impairment:

Retail loan	$	322	$	415	$	318	$	410
Commercial		1		1		1		1
Total	$	323	$	416	$	319	$	411

Total impaired account balances:

Retail loan	$	322	$	415	$	318	$	410
Commercial		1		1		1		1
Wholesale		64		82		64		82
Real estate		117		130		117		130
Working capital		27		29		27		29
Total	$	531	$	657	$	527	$	652

As of March 31, 2014 and 2013, the impaired finance receivables balance for accounts in the dealer products portfolio segment that were on nonaccrual status was $54 million and $69 million, respectively and there were no charge-offs against the allowance for credit losses. Therefore, the impaired finance receivables balance is equal to the unpaid principal balance.

The following table summarizes the average impaired finance receivables as of the balance sheet date and the interest income recognized on these loans during fiscal 2014 and 2013:

	Average Impaired Finance Receivables				Interest Income Recognized
	Years ended March 31,				Years ended March 31,
(Dollars in millions)	2014		2013		2014		2013

Impaired account balances individually evaluated for impairment with an allowance:

Wholesale	$	16	$	22	$	-	$	-
Real estate		32		75		1		1
Working capital		24		24		2		1
Total	$	72	$	121	$	3	$	2

Impaired account balances individually evaluated for impairment without an allowance:

Wholesale	$	59	$	63	$	1	$	2
Real estate		93		59		4		4
Working capital		4		2		-		-
Total	$	156	$	124	$	5	$	6

Impaired account balances aggregated and evaluated for impairment:

Retail loan	$	368	$	462	$	27	$	37
Commercial		1		1		-		-
Total	$	369	$	463	$	27	$	37

Total impaired account balances:

Retail loan	$	368	$	462	$	27	$	37
Commercial		1		1		-		-
Wholesale		75		85		1		2
Real estate		125		134		5		5
Working capital		28		26		2		1
Total	$	597	$	708	$	35	$	45

Interest income recognized using a cash-basis method of accounting during fiscal 2014 and 2013 was not significant.

For accounts not under bankruptcy protection, the amount of finance receivables modified as a troubled debt restructuring during fiscal 2014 and 2013 was not significant for each class of finance receivables. Troubled debt restructurings for accounts within the retail loan class of finance receivables are comprised exclusively of contract term extensions that reduce the monthly payment due from the customer. Troubled debt restructurings for accounts within the commercial class of finance receivables consist of contract term extensions, interest rate adjustments, or a combination of the two. For the three classes of finance receivables within the dealer products portfolio segment, troubled debt restructurings include contract term extensions, interest rate adjustments, waivers of loan covenants, or any combination of the three. Troubled debt restructurings of accounts not under bankruptcy protection did not include forgiveness of principal during fiscal 2014 and 2013.

We consider finance receivables under bankruptcy protection within the retail loan and commercial classes troubled debt restructurings as of the date we receive notice of a customer filing for bankruptcy protection, regardless of the ultimate outcome of the bankruptcy proceedings. The bankruptcy court may impose modifications as part of the proceedings, including interest rate adjustments and forgiveness of principal. For fiscal 2014 and 2013, the financial impact of troubled debt restructurings related to accounts under bankruptcy protection was not significant to our Consolidated Statement of Income and Consolidated Balance Sheet.

Finance receivables modified as troubled debt restructurings for which there was a subsequent payment default during fiscal 2014 and 2013, and for which the modification occurred within twelve months of the payment default, were not significant for all classes of receivables.