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Accounting Policies
 3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Accounting Policies ACCOUNTING POLICIES

Provision for Income Taxes

For interim tax reporting we estimate one single effective tax rate, which is applied to the year-to-date ordinary income / (loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

Adoption of New Accounting Standards
Accounting Standards Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods.

The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020 for the adoption of ASU 2016-13 was as follows (in millions):
 
 
Balance at
December 31,
2019
 
Adjustments
due to
ASU 2016-13
 
Balance at
January 1,
 2020
Assets
 
 
 
 
 
 
Retail installment contracts, dealer financing, and other financing
 
$
106,131

 
$
(230
)
 
$
105,901

Finance leases
 
8,186

 
(22
)
 
8,164

Other assets
 
3,398

 
(8
)
 
3,390

Liabilities
 
 
 
 
 
 
Deferred income tax
 
2,593

 
(58
)
 
2,535

Equity
 
 
 
 
 
 
Retained earnings
 
9,905

 
(202
)
 
9,703


NOTE 2. ACCOUNTING POLICIES (Continued)

We also adopted the following ASUs during 2020, none of which had a material impact to our financial statements or financial statement disclosures:
ASU
 
 
Effective Date
2020-01
Clarifying the Interaction between Equity Securities, Equity Method and Joint Ventures, and Derivatives and Hedging
 
January 1, 2020
2018-18
Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers
 
January 1, 2020
2018-15
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
 
January 1, 2020


Accounting Standards Issued But Not Yet Adopted

The Company considers the applicability and impacts of all ASUs. ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.