Financing Receivables: (Tables)

9 Months Ended

Sep. 30, 2013

Financing Receivables:

Financing receivables, net of allowances for credit losses, including residual values

	At September 30,		At December 31,
(Dollars in millions)	2013		2012
Current:
Net investment in sales-type and direct financing leases	$	4,078	$	3,862
Commercial financing receivables		6,278		7,750
Client loan receivables		5,218		5,395
Installment payment receivables		1,212		1,031
Total	$	16,786	$	18,038
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,454	$	6,107
Commercial financing receivables		—		5
Client loan receivables		5,555		5,966
Installment payment receivables		666		733
Total	$	11,675	$	12,812

Schedule of financing receivables and allowance for credit losses by portfolio segment

(Dollars in millions)		Major		Growth
At September 30, 2013		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	6,705	$	2,104	$	8,809
	Loan receivables		9,042		3,830		12,871
Ending balance		$	15,747	$	5,934	$	21,681
Collectively evaluated for impairment		$	15,629	$	5,767	$	21,395
Individually evaluated for impairment		$	118	$	167	$	285
Allowance for credit losses:
Beginning balance at January 1, 2013
	Lease receivables	$	59	$	55	$	114
	Loan receivables		121		84		204
Total		$	180	$	138	$	318
	Write-offs		(21)		(9)		(30)
	Provision		(26)		66		40
	Other		—		(4)		(4)
Ending balance at September 30, 2013		$	134	$	190	$	324
	Lease receivables	$	42	$	64	$	106
	Loan receivables	$	92	$	126	$	218
Collectively evaluated for impairment		$	40	$	37	$	77
Individually evaluated for impairment		$	94	$	153	$	247

(Dollars in millions)		Major		Growth
At December 31, 2012		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	7,036	$	2,138	$	9,174
	Loan receivables		9,666		3,670		13,336
Ending balance		$	16,701	$	5,808	$	22,510
Collectively evaluated for impairment		$	16,570	$	5,684	$	22,254
Individually evaluated for impairment		$	131	$	125	$	256
Allowance for credit losses:
Beginning balance at January 1, 2012
	Lease receivables	$	79	$	40	$	118
	Loan receivables		125		64		189
Total		$	203	$	104	$	307
	Write-offs		(14)		(1)		(15)
	Provision		(9)		38		28
	Other		0		(2)		(2)
Ending balance at December 31, 2012		$	180	$	138	$	318
	Lease receivables	$	59	$	55	$	114
	Loan receivables	$	121	$	84	$	204
Collectively evaluated for impairment		$	69	$	29	$	98
Individually evaluated for impairment		$	111	$	109	$	220

Schedule of recorded investment in financing receivables which are on Non-Accrual Status

	At September 30,		At December 31,
(Dollars in millions)	2013		2012
Major markets	$	21	$	27
Growth markets		24		21
Total lease receivables	$	45	$	47
Major markets	$	48	$	67
Growth markets		79		25
Total loan receivables	$	127	$	92
Total receivables	$	172	$	139

Schedule of impaired client loan receivables

	At September 30, 2013				At December 31, 2012
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	74	$	68	$	88	$	77
Growth markets		109		102		72		65
Total	$	183	$	170	$	160	$	143

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended September 30, 2013:	Investment		Recognized		Cash Basis
Major markets	$	73	$	0	$	0
Growth markets		102		0		0
Total	$	174	$	0	$	0
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended September 30, 2012:	Investment		Recognized		Cash Basis
Major markets	$	84	$	0	$	0
Growth markets		63		0		0
Total	$	147	$	0	$	0

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the nine months ended September 30, 2013:	Investment		Recognized		Cash Basis
Major markets	$	76	$	0	$	0
Growth markets		90		0		0
Total	$	166	$	0	$	0
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the nine months ended September 30, 2012:	Investment		Recognized		Cash Basis
Major markets	$	91	$	0	$	0
Growth markets		64		0		0
Total	$	154	$	0	$	0

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At September 30, 2013:		Markets		Markets		Markets		Markets
Credit Rating:
	AAA – AA-	$	606	$	71	$	817	$	129
	A+ – A-		1,520		178		2,049		324
	BBB+ – BBB-		2,154		875		2,904		1,593
	BB+ – BB		1,421		306		1,916		557
	BB- – B+		533		412		719		750
	B – B-		356		198		480		361
	CCC+ – D		115		64		155		116
Total		$	6,705	$	2,104	$	9,042	$	3,830

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At December 31, 2012:		Markets		Markets		Markets		Markets
Credit Rating:
	AAA – AA-	$	646	$	86	$	887	$	148
	A+ – A-		1,664		223		2,286		382
	BBB+ – BBB-		2,285		776		3,139		1,333
	BB+ – BB		1,367		450		1,878		773
	BB- – B+		552		418		758		718
	B – B-		399		127		548		218
	CCC+ – D		124		58		170		99
Total		$	7,036	$	2,138	$	9,666	$	3,670

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At September 30, 2013:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	9	$	6,696	$	6,705	$	9
Growth markets		16		2,089		2,104		11
Total lease receivables	$	25	$	8,785	$	8,809	$	20
Major markets	$	15	$	9,027	$	9,042	$	14
Growth markets		29		3,801		3,830		10
Total loan receivables	$	43	$	12,828	$	12,871	$	24
Total	$	68	$	21,612	$	21,681	$	44
* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2012:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	8	$	7,028	$	7,036	$	5
Growth markets		11		2,127		2,138		8
Total lease receivables	$	20	$	9,154	$	9,174	$	13
Major markets	$	27	$	9,639	$	9,666	$	8
Growth markets		36		3,634		3,670		31
Total loan receivables	$	63	$	13,273	$	13,336	$	39
Total	$	82	$	22,428	$	22,510	$	52
* Does not include accounts that are fully reserved.