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Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2014
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]  
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES

An analysis of the allowance for credit losses related to finance receivables and net investment in operating leases for the periods ended September 30 (in millions) was as follows:
 
Third Quarter 2014
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
303

 
$
24

 
$
327

 
$
26

 
$
353

Charge-offs
(68
)
 
(2
)
 
(70
)
 
(28
)
 
(98
)
Recoveries
33

 
2

 
35

 
15

 
50

Provision for credit losses
42

 
(3
)
 
39

 
18

 
57

Other (a)
(5
)
 
(1
)
 
(6
)
 
—

 
(6
)
Ending balance
$
305

 
$
20

 
$
325

 
$
31

 
$
356


 
First Nine Months 2014
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
327

 
$
30

 
$
357

 
$
23

 
$
380

Charge-offs
(200
)
 
(7
)
 
(207
)
 
(82
)
 
(289
)
Recoveries
101

 
8

 
109

 
47

 
156

Provision for credit losses
82

 
(10
)
 
72

 
43

 
115

Other (a)
(5
)
 
(1
)
 
(6
)
 
—

 
(6
)
Ending balance
$
305

 
$
20

 
$
325

 
$
31

 
$
356

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
283

 
$
19

 
$
302

 
$
31

 
$
333

Specific impairment allowance
22

 
1

 
23

 
—

 
23

Ending balance
305

 
20

 
325

 
31

 
$
356

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
53,150

 
31,815

 
84,965

 
20,947

 
 
Specifically evaluated for impairment
421

 
136

 
557

 
—

 
 
Recorded investment
53,571

 
31,951

 
85,522

 
20,947

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
53,266

 
$
31,931

 
$
85,197

 
$
20,916

 
 
__________
(a)
Primarily represents amounts related to translation adjustments.


NOTE 4. ALLOWANCE FOR CREDIT LOSSES (Continued)
 
Third Quarter 2013
 
Finance Receivables
 
Net Investment in Operating Leases
 
Total Allowance
 
Consumer
 
Non-Consumer
 
Total
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
Beginning balance
$
322

 
$
31

 
$
353

 
$
23

 
$
376

Charge-offs
(73
)
 
(3
)
 
(76
)
 
(17
)
 
(93
)
Recoveries
34

 
1

 
35

 
11

 
46

Provision for credit losses
32

 
(1
)
 
31

 
1

 
32

Other (a)
5

 
1

 
6

 
1

 
7

Ending balance
$
320

 
$
29

 
$
349

 
$
19

 
$
368


 
First Nine Months 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
(213
)
 
(13
)
 
(226
)
 
(47
)
 
(273
)
Recoveries
110

 
4

 
114

 
35

 
149

Provision for credit losses
65

 
8

 
73

 
8

 
81

Other (a)
2

 
1

 
3

 
—

 
3

Ending balance
$
320

 
$
29

 
$
349

 
$
19

 
$
368

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of allowance for credit losses
 
 
 
 
 
 
 
 
 
Collective impairment allowance
$
298

 
$
27

 
$
325

 
$
19

 
$
344

Specific impairment allowance
22

 
2

 
24

 
—

 
24

Ending balance
320

 
29

 
349

 
19

 
$
368

 
 
 
 
 
 
 
 
 
 
Analysis of ending balance of finance receivables and net investment in operating leases
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
48,897

 
29,696

 
78,593

 
17,367

 
 
Specifically evaluated for impairment
424

 
58

 
482

 
—

 
 
Recorded investment
49,321

 
29,754

 
79,075

 
17,367

 
 
 
 
 
 
 
 
 
 
 
 
Ending balance, net of allowance for credit losses
$
49,001

 
$
29,725

 
$
78,726

 
$
17,348

 
 
__________
(a)
Primarily represents amounts related to translation adjustments.