Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2015

Financing Receivables:

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

	At June 30,		At December 31,
(Dollars in millions)	2015		2014
Current:
Net investment in sales-type and direct financing leases	$	3,436	$	3,781
Commercial financing receivables		6,546		8,423
Client loan and installment payment receivables (loans)		6,906		7,631
Total	$	16,888	$	19,835
Noncurrent:
Net investment in sales-type and direct financing leases	$	4,398	$	4,449
Client loan and installment payment receivables (loans)		5,941		6,660
Total	$	10,339	$	11,109

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

(Dollars in millions)		Major		Growth
At June 30, 2015		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,555	$	1,733	$	7,288
	Loan receivables		9,370		3,900		13,270
Ending balance		$	14,925	$	5,633	$	20,558
Collectively evaluated for impairment		$	14,844	$	5,108	$	19,952
Individually evaluated for impairment		$	81	$	525	$	607
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		(2)		(5)		(7)
	Provision		6		88		94
	Other		(5)		(10)		(15)
Ending balance at June 30, 2015		$	110	$	524	$	633
	Lease receivables	$	31	$	180	$	210
	Loan receivables	$	79	$	344	$	423
Collectively evaluated for impairment		$	41	$	35	$	76
Individually evaluated for impairment		$	69	$	489	$	558

(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 June 30,		At December 31,
(Dollars in millions)	2015		2014
Major markets	$	12	$	13
Growth markets		82		40
Total lease receivables	$	94	$	53
Major markets	$	23	$	27
Growth markets		128		151
Total loan receivables	$	151	$	178
Total receivables	$	245	$	231

Schedule of impaired client loan receivables

	At June 30, 2015				At December 31, 2014
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	53	$	50	$	54	$	47
Growth markets		351		340		299		293
Total	$	404	$	390	$	353	$	340

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended June 30, 2015:	Investment		Recognized		Cash Basis
Major markets	$	51	$	—	$	—
Growth markets		341		0		—
Total	$	392	$	0	$	—
					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	$	—
Growth markets		169		0		—
Total	$	240	$	0	$	—

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the six months ended June 30, 2015:	Investment		Recognized		Cash Basis
Major markets	$	52	$	—	$	—
Growth markets		327		0		—
Total	$	379	$	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	$	—
Growth markets		153		0		—
Total	$	227	$	0	$	—

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At June 30, 2015:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	608	$	47	$	1,025	$	106
	A1 – A3		1,277		178		2,154		400
	Baa1 – Baa3		1,523		738		2,568		1,661
	Ba1 – Ba2		1,212		257		2,043		577
	Ba3 – B1		473		264		799		595
	B2 – B3		420		172		709		388
	Caa – D		42		77		72		173
Total		$	5,555	$	1,733	$	9,370	$	3,900

		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 June 30, 2015:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	6	$	5,549	$	5,555	$	6
Growth markets		35		1,697		1,733		16
Total lease receivables	$	42	$	7,247	$	7,288	$	22
Major markets	$	9	$	9,361	$	9,370	$	8
Growth markets		26		3,874		3,900		9
Total loan receivables	$	35	$	13,235	$	13,270	$	18
Total	$	76	$	20,482	$	20,558	$	40
* 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.