Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2015

Financing Receivables:

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

	At March 31,		At December 31,
(Dollars in millions)	2015		2014
Current:
Net investment in sales-type and direct financing leases	$	3,560	$	3,781
Commercial financing receivables		6,026		8,423
Client loan and installment payment receivables (loans)		6,717		7,631
Total	$	16,303	$	19,835
Noncurrent:
Net investment in sales-type and direct financing leases	$	4,081	$	4,449
Client loan and installment payment receivables (loans)		5,740		6,660
Total	$	9,820	$	11,109

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

(Dollars in millions)		Major		Growth
At March 31, 2015		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,265	$	1,840	$	7,105
	Loan receivables		8,911		3,953		12,864
Ending balance		$	14,176	$	5,793	$	19,970
Collectively evaluated for impairment		$	14,098	$	5,332	$	19,431
Individually evaluated for impairment		$	78	$	461	$	539
Allowance for credit losses:
Beginning balance at January 1, 2015
	Lease receivables	$	32	$	133	$	165
	Loan receivables		79		317		396
Total		$	111	$	450	$	561
	Write-offs		(1)		(1)		(1)
	Provision		5		49		54
	Other		(8)		(11)		(19)
Ending balance at March 31, 2015		$	107	$	488	$	595
	Lease receivables	$	32	$	156	$	188
	Loan receivables	$	75	$	332	$	408
Collectively evaluated for impairment		$	41	$	39	$	80
Individually evaluated for impairment		$	66	$	449	$	515

(Dollars in millions)		Major		Growth
At December 31, 2014		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,702	$	1,943	$	7,645
	Loan receivables		10,049		4,639		14,687
Ending balance		$	15,751	$	6,581	$	22,332
Collectively evaluated for impairment		$	15,665	$	6,156	$	21,821
Individually evaluated for impairment		$	86	$	425	$	511
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		(18)		(6)		(24)
	Provision		3		240		243
	Other		(12)		(11)		(23)
Ending balance at December 31, 2014		$	111	$	450	$	561
	Lease receivables	$	32	$	133	$	165
	Loan receivables	$	79	$	317	$	396
Collectively evaluated for impairment		$	42	$	39	$	81
Individually evaluated for impairment		$	69	$	411	$	480

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

	At March 31,		At December 31,
(Dollars in millions)	2015		2014
Major markets	$	13	$	13
Growth markets		78		40
Total lease receivables	$	91	$	53
Major markets	$	24	$	27
Growth markets		137		151
Total loan receivables	$	160	$	178
Total receivables	$	251	$	231

Schedule of impaired client loan receivables

	At March 31, 2015				At December 31, 2014
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	50	$	47	$	54	$	47
Growth markets		331		320		299		293
Total	$	381	$	366	$	353	$	340

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended March 31, 2015:	Investment		Recognized		Cash Basis
Major markets	$	52	$	0	$	—
Growth markets		315		0		—
Total	$	367	$	0	$	—
					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended March 31, 2014:	Investment		Recognized		Cash Basis
Major markets	$	77	$	0	$	—
Growth markets		134		0		—
Total	$	211	$	0	$	—

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At March 31, 2015:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	541	$	43	$	916	$	93
	A1 – A3		1,233		151		2,086		324
	Baa1 – Baa3		1,409		824		2,384		1,770
	Ba1 – Ba2		1,225		264		2,073		567
	Ba3 – B1		433		282		732		606
	B2 – B3		387		176		656		378
	Caa – D		38		100		64		215
Total		$	5,265	$	1,840	$	8,911	$	3,953

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At December 31, 2014:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	563	$	46	$	993	$	110
	A1 – A3		1,384		178		2,438		425
	Baa1 – Baa3		1,704		900		3,003		2,148
	Ba1 – Ba2		1,154		272		2,034		649
	Ba3 – B1		470		286		827		683
	B2 – B3		372		176		655		420
	Caa – D		55		85		98		203
Total		$	5,702	$	1,943	$	10,049	$	4,639

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At March 31, 2015:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	7	$	5,258	$	5,265	$	7
Growth markets		39		1,801		1,840		16
Total lease receivables	$	46	$	7,060	$	7,105	$	23
Major markets	$	11	$	8,901	$	8,911	$	10
Growth markets		30		3,923		3,953		13
Total loan receivables	$	41	$	12,824	$	12,864	$	23
Total	$	87	$	19,883	$	19,970	$	46
* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2014:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	6	$	5,696	$	5,702	$	6
Growth markets		32		1,911		1,943		14
Total lease receivables	$	38	$	7,607	$	7,645	$	20
Major markets	$	9	$	10,040	$	10,049	$	9
Growth markets		35		4,603		4,639		18
Total loan receivables	$	44	$	14,643	$	14,687	$	27
Total	$	82	$	22,250	$	22,332	$	47
* Does not include accounts that are fully reserved.