XML 83 R34.htm IDEA: XBRL DOCUMENT v3.19.3
RECEIVABLES (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Summary of Financing Receivables
A summary of financing receivables as of September 30, 2019 and December 31, 2018 is as follows:
 
September 30, 2019
 
December 31, 2018
 
(in millions)
Retail
$
9,002

 
$
9,350

Wholesale
9,382

 
9,749

Other
71

 
68

Total
$
18,455

 
$
19,167
Summary of Aging of Financing Receivables
The aging of financing receivables as of September 30, 2019 and December 31, 2018 is as follows (in millions):
 
September 30, 2019
 
31-60 Days
Past Due
 
61-90 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Total
Performing
 
Non-
Performing
 
Total
Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
24

 
$
6

 
$
—

 
$
30

 
$
6,210

 
$
6,240

 
$
9

 
$
6,249

Europe
—

 
—

 
—

 
—

 
146

 
146

 
—

 
146

South America
13

 
2

 
8

 
23

 
1,739

 
1,762

 
38

 
1,800

Rest of World
3

 
2

 
1

 
6

 
801

 
807

 
—

 
807

Total Retail
$
40


$
10


$
9


$
59


$
8,896


$
8,955


$
47


$
9,002

Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
4

 
$
—

 
$
—

 
$
4

 
$
3,669

 
$
3,673

 
$
3

 
$
3,676

Europe
14

 
13

 
32

 
59

 
4,207

 
4,266

 
—

 
4,266

South America
—

 
—

 
1

 
1

 
722

 
723

 
53

 
776

Rest of World
8

 
6

 
5

 
19

 
645

 
664

 
—

 
664

Total Wholesale
$
26


$
19


$
38


$
83


$
9,243


$
9,326


$
56


$
9,382

 
December 31, 2018
 
31-60 Days
Past Due
 
61-90 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Total
Performing
 
Non-
Performing
 
Total
Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
21

 
$
5

 
$
—

 
$
26

 
$
6,285

 
$
6,311

 
$
12

 
$
6,323

Europe
1

 
—

 
10

 
11

 
164

 
175

 
40

 
215

South America
11

 
9

 
7

 
27

 
1,885

 
1,912

 
83

 
1,995

Rest of World
2

 
1

 
—

 
3

 
814

 
817

 
—

 
817

Total Retail
$
35


$
15


$
17


$
67


$
9,148


$
9,215


$
135


$
9,350

Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
—

 
$
—

 
$
—

 
$
—

 
$
3,613

 
$
3,613

 
$
18

 
$
3,631

Europe
20

 
9

 
—

 
29

 
4,727

 
4,756

 
—

 
4,756

South America
—

 
—

 
—

 
—

 
656

 
656

 
—

 
656

Rest of World
7

 
3

 
—

 
10

 
696

 
706

 
—

 
706

Total Wholesale
$
27


$
12


$
—


$
39


$
9,692


$
9,731


$
18


$
9,749
Summary of Allowance for Credit Loss Activity
Allowance for credit losses activity for the three and nine months ended September 30, 2019 and 2018 is as follows:
 
Three Months Ended September 30, 2019
 
Retail
 
Wholesale
 
Other
 
Total
Opening balance
$
319

 
$
158

 
$
—

 
$
477

Provision
11

 
2

 
—

 
13

Charge-offs, net of recoveries
(17
)
 
(2
)
 
—

 
(19
)
Foreign currency translation and other
(18
)
 
(3
)
 
—

 
(21
)
Ending balance
$
295

 
$
155

 
$
—

 
$
450

 
Nine Months Ended September 30, 2019
 
Retail
 
Wholesale
 
Other
 
Total
Opening Balance
$
326

 
$
164

 
$
—

 
$
490

Provision (benefit)
34

 
3

 
—

 
37

Charge-offs, net of recoveries
(44
)
 
(8
)
 
—

 
(52
)
Foreign Currency Translation and Other
(21
)
 
(4
)
 
—

 
(25
)
Ending Balance
295

 
155

 
—

 
450

Ending Balance: Individually Evaluated for Impairment
188

 
123

 
—

 
311

Ending Balance: Collectively Evaluated for Impairment
107

 
32

 
—

 
139

Receivables:
 
 
 
 
 
 
 
Ending Balance
9,002

 
9,382

 
71

 
18,455

Ending Balance: Individually Evaluated for Impairment
319

 
241

 
—

 
560

Ending Balance: Collectively Evaluated for Impairment
$
8,683

 
$
9,141

 
$
71

 
$
17,895

 
Three Months Ended September 30, 2018
 
Retail
 
Wholesale
 
Other
 
Total
Opening balance
$
349

 
$
193

 
$
—

 
$
542

Provision
13

 
(12
)
 
—

 
1

Charge-offs, net of recoveries
(20
)
 
(4
)
 
—

 
(24
)
Foreign currency translation and other
(6
)
 
(5
)
 
—

 
(11
)
Ending balance
$
336

 
$
172

 
$
—

 
$
508

 
Nine Months Ended September 30, 2018
 
Retail
 
Wholesale
 
Other
 
Total
Opening Balance
$
383

 
$
200

 
$
—

 
$
583

Provision (benefit)
38

 
(9
)
 
—

 
29

Charge-offs, net of recoveries
(60
)
 
(5
)
 
—

 
(65
)
Foreign Currency Translation and Other
(25
)
 
(14
)
 
—

 
(39
)
Ending Balance
336

 
172

 
—

 
508

Ending Balance: Individually Evaluated for Impairment
217

 
143

 
—

 
360

Ending Balance: Collectively Evaluated for Impairment
119

 
29

 
—

 
148

Receivables:
 
 
 
 
 
 
 
Ending Balance
9,152

 
9,140

 
74

 
18,366

Ending Balance: Individually Evaluated for Impairment
329

 
330

 
—

 
659

Ending Balance: Collectively Evaluated for Impairment
$
8,823

 
$
8,810

 
$
74

 
$
17,707

Allowance for credit losses activity for the year ended December 31, 2018 is as follows:
 
December 31, 2018
 
Retail
 
Wholesale
 
Other
 
Total
Opening Balance
$
383

 
$
200

 
$
—

 
$
583

Provision (benefit)
53

 
(5
)
 
—

 
48

Charge-offs, net of recoveries
(85
)
 
(15
)
 
—

 
(100
)
Foreign Currency Translation and Other
(25
)
 
(16
)
 
—

 
(41
)
Ending Balance
326

 
164

 
—

 
490

Ending Balance: Individually Evaluated for Impairment
204

 
135

 
—

 
339

Ending Balance: Collectively Evaluated for Impairment
122

 
29

 
—

 
151

Receivables:
 
 
 
 
 
 
 
Ending Balance
9,350

 
9,749

 
68

 
19,167

Ending Balance: Individually Evaluated for Impairment
359

 
314

 
—

 
673

Ending Balance: Collectively Evaluated for Impairment
$
8,991

 
$
9,435

 
$
68

 
$
18,494
Summary of Financing Receivable Impairment
Financing receivables are considered impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, have provided bankruptcy notification, or require significant collection efforts. Impaired receivables are generally classified as non-performing.
 
September 30, 2019
 
December 31, 2018
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Investment
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Investment
 
(in millions)
With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
37

 
$
36

 
$
19

 
$
39

 
$
31

 
$
30

 
$
16

 
$
33

Europe
$
204

 
$
204

 
$
146

 
$
215

 
$
234

 
$
234

 
$
167

 
$
249

South America
$
76

 
$
76

 
$
21

 
$
83

 
$
91

 
$
91

 
$
20

 
$
88

Rest of World
$
2

 
$
2

 
$
2

 
$
3

 
$
3

 
$
3

 
$
1

 
$
4

Wholesale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
$
5

 
$
5

 
$
2

 
$
8

 
$
25

 
$
23

 
$
5

 
$
27

Europe
$
217

 
$
217

 
$
93

 
$
241

 
$
256

 
$
256

 
$
107

 
$
260

South America
$
15

 
$
8

 
$
16

 
$
16

 
$
23

 
$
14

 
$
16

 
$
26

Rest of World
$
4

 
$
3

 
$
12

 
$
7

 
$
10

 
$
10

 
$
7

 
$
9

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
319

 
$
318

 
$
188

 
$
340

 
$
359

 
$
358

 
$
204

 
$
374

Wholesale
$
241

 
$
233

 
$
123

 
$
272

 
$
314

 
$
303

 
$
135

 
$
322
Summary of Carrying Amount of Restricted Assets
At September 30, 2019 and December 31, 2018, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):
 
Restricted Receivables
 
September 30, 2019
 
December 31, 2018
Retail note and finance lease receivables
$
6,322

 
$
6,371

Wholesale receivables
6,480

 
7,052

Total
$
12,802

 
$
13,423