Financing Receivables: (Tables)

6 Months Ended

Jun. 30, 2014

Financing Receivables:

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

	At June 30,		At December 31,
(Dollars in millions)	2014		2013
Current:
Net investment in sales-type and direct financing leases	$	4,131	$	4,004
Commercial financing receivables		7,064		8,541
Client loan and installment payment receivables (loans)		7,425		7,243
Total	$	18,620	$	19,787
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,170	$	5,700
Commercial financing receivables		––		—
Client loan and installment payment receivables (loans)		6,969		7,055
Total	$	12,140	$	12,755

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

(Dollars in millions)		Major		Growth
At June 30, 2014		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	6,371	$	2,264	$	8,635
	Loan receivables		10,136		4,565		14,700
Ending balance		$	16,507	$	6,828	$	23,335
Collectively evaluated for impairment		$	16,398	$	6,547	$	22,945
Individually evaluated for impairment		$	108	$	281	$	390
Allowance for credit losses:
Beginning balance at January 1, 2014
	Lease receivables	$	42	$	80	$	123
	Loan receivables		95		147		242
Total		$	137	$	228	$	365
	Write-offs		(10)		(3)		(13)
	Provision		6		97		103
	Other		0		0		0
Ending balance at June 30, 2014		$	133	$	321	$	454
	Lease receivables	$	38	$	111	$	149
	Loan receivables	$	95	$	210	$	306
Collectively evaluated for impairment		$	44	$	48	$	92
Individually evaluated for impairment		$	89	$	273	$	363

(Dollars in millions)		Major		Growth
At December 31, 2013		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	6,796	$	2,200	$	8,996
	Loan receivables		10,529		4,012		14,542
Ending balance		$	17,325	$	6,212	$	23,537
Collectively evaluated for impairment		$	17,206	$	6,013	$	23,219
Individually evaluated for impairment		$	119	$	199	$	318
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		(23)		(10)		(33)
	Provision		(21)		105		84
	Other		1		(6)		(5)
Ending balance at December 31, 2013		$	137	$	228	$	365
	Lease receivables	$	42	$	80	$	123
	Loan receivables	$	95	$	147	$	242
Collectively evaluated for impairment		$	45	$	48	$	93
Individually evaluated for impairment		$	93	$	179	$	272

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

	At June 30,		At December 31,
(Dollars in millions)	2014		2013
Major markets	$	17	$	25
Growth markets		45		34
Total lease receivables	$	62	$	59
Major markets	$	35	$	40
Growth markets		90		92
Total loan receivables	$	126	$	132
Total receivables	$	188	$	191

Schedule of impaired client loan receivables

	At June 30, 2014				At December 31, 2013
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	68	$	60	$	79	$	67
Growth markets		190		179		122		116
Total	$	258	$	239	$	201	$	183

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended June 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	71	$	0	$	0
Growth markets		169		0		0
Total	$	240	$	0	$	0
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended June 30, 2013:	Investment		Recognized		Cash Basis
Major markets	$	70	$	0	$	0
Growth markets		90		0		0
Total	$	161	$	0	$	0

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the six months ended June 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	74	$	0	$	0
Growth markets		153		0		0
Total	$	227	$	0	$	0
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the six months ended June 30, 2013:	Investment		Recognized		Cash Basis
Major markets	$	76	$	0	$	0
Growth markets		84		0		0
Total	$	161	$	0	$	0

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At June 30, 2014:		Markets		Markets		Markets		Markets
Credit Rating:
	AAA – AA-	$	484	$	75	$	770	$	150
	A+ – A-		931		147		1,481		297
	BBB+ – BBB-		2,472		947		3,933		1,909
	BB+ – BB		1,380		387		2,195		781
	BB- – B+		692		362		1,101		729
	B – B-		348		266		554		536
	CCC+ – D		64		81		102		163
Total		$	6,371	$	2,264	$	10,136	$	4,565

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At December 31, 2013:		Markets		Markets		Markets		Markets
Credit Rating:
	AAA – AA-	$	743	$	68	$	1,151	$	125
	A+ – A-		1,513		168		2,344		307
	BBB+ – BBB-		2,111		957		3,271		1,745
	BB+ – BB		1,393		350		2,158		638
	BB- – B+		595		368		922		672
	B – B-		365		214		565		391
	CCC+ – D		76		74		118		134
Total		$	6,796	$	2,200	$	10,529	$	4,012

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At June 30, 2014:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	8	$	6,363	$	6,371	$	8
Growth markets		23		2,241		2,264		15
Total lease receivables	$	31	$	8,604	$	8,635	$	23
Major markets	$	12	$	10,123	$	10,136	$	12
Growth markets		57		4,508		4,565		20
Total loan receivables	$	69	$	14,631	$	14,700	$	33
Total	$	100	$	23,235	$	23,335	$	55
* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2013:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	6	$	6,789	$	6,796	$	5
Growth markets		19		2,181		2,200		11
Total lease receivables	$	25	$	8,970	$	8,996	$	16
Major markets	$	9	$	10,520	$	10,529	$	6
Growth markets		34		3,979		4,012		18
Total loan receivables	$	43	$	14,499	$	14,542	$	25
Total	$	68	$	23,469	$	23,537	$	41
* Does not include accounts that are fully reserved.