Financing Receivables: (Tables)

9 Months Ended

Sep. 30, 2014

Financing Receivables:

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

	At September 30,		At December 31,
(Dollars in millions)	2014		2013
Current:
Net investment in sales-type and direct financing leases	$	3,963	$	4,004
Commercial financing receivables		6,437		8,541
Client loan and installment payment receivables (loans)		7,011		7,243
Total	$	17,411	$	19,787
Noncurrent:
Net investment in sales-type and direct financing leases	$	4,641	$	5,700
Client loan and installment payment receivables (loans)		6,352		7,055
Total	$	10,993	$	12,755

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

(Dollars in millions)		Major		Growth
At September 30, 2014		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,926	$	2,069	$	7,995
	Loan receivables		9,250		4,456		13,706
Ending balance		$	15,176	$	6,525	$	21,701
Collectively evaluated for impairment		$	15,081	$	6,128	$	21,209
Individually evaluated for impairment		$	95	$	397	$	492
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		(14)		(5)		(19)
	Provision		1		169		170
	Other		(8)		(4)		(12)
Ending balance at September 30, 2014		$	116	$	388	$	504
	Lease receivables	$	34	$	127	$	161
	Loan receivables	$	82	$	261	$	343
Collectively evaluated for impairment		$	40	$	35	$	75
Individually evaluated for impairment		$	76	$	352	$	428

(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 September 30,		At December 31,
(Dollars in millions)	2014		2013
Major markets	$	16	$	25
Growth markets		57		34
Total lease receivables	$	73	$	59
Major markets	$	32	$	40
Growth markets		181		92
Total loan receivables	$	213	$	132
Total receivables	$	285	$	191

Schedule of impaired client loan receivables

	At September 30, 2014				At December 31, 2013
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	65	$	55	$	79	$	67
Growth markets		280		237		122		116
Total	$	345	$	292	$	201	$	183

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended September 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	67	$	0	$	0
Growth markets		235		0		0
Total	$	302	$	0	$	0
					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 nine months ended September 30, 2014:	Investment		Recognized		Cash Basis
Major markets	$	72	$	0	$	0
Growth markets		185		0		0
Total	$	256	$	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

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At September 30, 2014:		Markets		Markets		Markets		Markets
Credit Rating:
	AAA – AA-	$	501	$	50	$	782	$	107
	A+ – A-		1,460		140		2,279		302
	BBB+ – BBB-		1,732		1,048		2,703		2,256
	BB+ – BB		1,253		347		1,957		747
	BB- – B+		547		247		854		532
	B – B-		380		148		593		318
	CCC+ – D		53		90		83		194
Total		$	5,926	$	2,069	$	9,250	$	4,456

		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 September 30, 2014:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	8	$	5,918	$	5,926	$	8
Growth markets		25		2,044		2,069		12
Total lease receivables	$	33	$	7,962	$	7,995	$	20
Major markets	$	12	$	9,238	$	9,250	$	12
Growth markets		44		4,412		4,456		19
Total loan receivables	$	57	$	13,649	$	13,706	$	31
Total	$	90	$	21,611	$	21,701	$	51
* 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.