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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2013
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES

Following is an analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended June 30 (in millions):
 
Second Quarter 2013
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
340

 
$
27

 
$
367

 
$
22

 
$
389

Charge-offs
(61
)
 
(9
)
 
(70
)
 
(15
)
 
(85
)
Recoveries
38

 
2

 
40

 
13

 
53

Provision for credit losses
5

 
11

 
16

 
4

 
20

Other (a)
—

 
—

 
—

 
(1
)
 
(1
)
Ending balance
$
322

 
$
31

 
$
353

 
$
23

 
$
376


 
First Half 2013
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
356

 
$
29

 
$
385

 
$
23

 
$
408

Charge-offs
(140
)
 
(10
)
 
(150
)
 
(30
)
 
(180
)
Recoveries
76

 
3

 
79

 
24

 
103

Provision for credit losses
33

 
9

 
42

 
7

 
49

Other (a)
(3
)
 
—

 
(3
)
 
(1
)
 
(4
)
Ending balance
$
322

 
$
31

 
$
353

 
$
23

 
$
376

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
300

 
$
27

 
$
327

 
$
23

 
$
350

Specific impairment allowance
22

 
4

 
26

 
—

 
26

Ending balance
$
322

 
$
31

 
$
353

 
$
23

 
$
376

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
46,759

 
$
29,541

 
$
76,300

 
$
17,592

 
 
Specifically evaluated for impairment
420

 
67

 
487

 
—

 
 
Recorded investment (b)
$
47,179

 
$
29,608

 
$
76,787

 
$
17,592

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
46,857

 
$
29,577

 
$
76,434

 
$
17,569

 
 
__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.




NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)
 
Second Quarter 2012
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
418

 
$
28

 
$
446

 
$
33

 
$
479

Charge-offs
(65
)
 
(3
)
 
(68
)
 
(11
)
 
(79
)
Recoveries
46

 
2

 
48

 
14

 
62

Provision for credit losses
(34
)
 
(8
)
 
(42
)
 
(9
)
 
(51
)
Other (a)
(4
)
 
—

 
(4
)
 
(1
)
 
(5
)
Ending balance
$
361

 
$
19

 
$
380

 
$
26

 
$
406


 
First Half 2012
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
451

 
$
43

 
$
494

 
$
40

 
$
534

Charge-offs
(149
)
 
(7
)
 
(156
)
 
(24
)
 
(180
)
Recoveries
93

 
7

 
100

 
28

 
128

Provision for credit losses
(33
)
 
(25
)
 
(58
)
 
(17
)
 
(75
)
Other (a)
(1
)
 
1

 
—

 
(1
)
 
(1
)
Ending balance
$
361

 
$
19

 
$
380

 
$
26

 
$
406

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
344

 
$
18

 
$
362

 
$
26

 
$
388

Specific impairment allowance
17

 
1

 
18

 
—

 
18

Ending balance
$
361

 
$
19

 
$
380

 
$
26

 
$
406

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
45,244

 
$
25,687

 
$
70,931

 
$
12,958

 
 
Specifically evaluated for impairment
398

 
81

 
479

 
—

 
 
Recorded investment (b)
$
45,642

 
$
25,768

 
$
71,410

 
$
12,958

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
45,281

 
$
25,749

 
$
71,030

 
$
12,932

 
 
__________
(a)
Represents amounts related to translation adjustments.
(b)
Represents finance receivables and net investment in operating leases before allowance for credit losses.