Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2016

Financing Receivables:

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

	At March 31,		At December 31,
(Dollars in millions)	2016		2015
Current:
Net investment in sales-type and direct financing leases	$	3,145	$	3,057
Commercial financing receivables		6,906		8,948
Client loan and installment payment receivables (loans)		6,596		7,015
Total	$	16,646	$	19,020
Noncurrent:
Net investment in sales-type and direct financing leases	$	4,350	$	4,501
Client loan and installment payment receivables (loans)		4,915		5,512
Total	$	9,266	$	10,013

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

(Dollars in millions)		Major		Growth
At March 31, 2016		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,461	$	1,566	$	7,027
	Loan receivables		9,034		2,897		11,931
Ending balance		$	14,495	$	4,463	$	18,959
Collectively evaluated for impairment		$	14,404	$	4,005	$	18,409
Individually evaluated for impairment		$	92	$	458	$	550
Allowance for credit losses:
Beginning balance at January 1, 2016
	Lease receivables	$	25	$	188	$	213
	Loan receivables		83		293		377
Total		$	109	$	481	$	590
	Write-offs		(1)		(17)		(19)
	Provision		6		74		80
	Other		4		10		14
Ending balance at March 31, 2016		$	118	$	548	$	666
	Lease receivables	$	32	$	214	$	246
	Loan receivables	$	86	$	334	$	420
Collectively evaluated for impairment		$	39	$	105	$	144
Individually evaluated for impairment		$	79	$	443	$	522

(Dollars in millions)		Major		Growth
At December 31, 2015		Markets		Markets		Total
Financing receivables:
	Lease receivables	$	5,517	$	1,524	$	7,041
	Loan receivables		9,739		3,165		12,904
Ending balance		$	15,256	$	4,689	$	19,945
Collectively evaluated for impairment		$	15,180	$	4,227	$	19,406
Individually evaluated for impairment		$	76	$	462	$	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		(14)		(48)		(62)
	Provision		20		122		141
	Other		(8)		(43)		(51)
Ending balance at December 31, 2015		$	109	$	481	$	590
	Lease receivables	$	25	$	188	$	213
	Loan receivables	$	83	$	293	$	377
Collectively evaluated for impairment		$	43	$	36	$	79
Individually evaluated for impairment		$	65	$	445	$	511

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

	At March 31,		At December 31,
(Dollars in millions)	2016		2015
Major markets	$	2	$	2
Growth markets		49		63
Total lease receivables	$	52	$	65
Major markets	$	15	$	13
Growth markets		107		91
Total loan receivables	$	123	$	104
Total receivables	$	174	$	168

Schedule of impaired client loan receivables

	At March 31, 2016				At December 31, 2015
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	66	$	63	$	50	$	47
Growth markets		296		281		297		284
Total	$	362	$	343	$	347	$	331

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended March 31, 2016:	Investment		Recognized		Cash Basis
Major markets	$	58	$	0	$	—
Growth markets		296		0		—
Total	$	354	$	0	$	—
					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	$	—

Schedule of gross recorded investment by credit quality indicator

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At March 31, 2016:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	514	$	40	$	850	$	73
	A1 – A3		1,230		138		2,035		254
	Baa1 – Baa3		1,506		246		2,491		455
	Ba1 – Ba2		1,240		385		2,051		712
	Ba3 – B1		543		414		899		765
	B2 – B3		391		245		648		454
	Caa – D		37		99		61		183
Total		$	5,461	$	1,566	$	9,034	$	2,897

		Lease Receivables				Loan Receivables
(Dollars in millions)		Major		Growth		Major		Growth
At December 31, 2015:		Markets		Markets		Markets		Markets
Credit Rating:
	Aaa – Aa3	$	538	$	39	$	949	$	80
	A1 – A3		1,324		162		2,338		336
	Baa1 – Baa3		1,493		392		2,635		813
	Ba1 – Ba2		1,214		352		2,143		732
	Ba3 – B1		513		277		905		576
	B2 – B3		403		215		711		447
	Caa – D		33		87		59		181
Total		$	5,517	$	1,524	$	9,739	$	3,165

Schedule of past due financing receivables

			Fully		<90 Days				Recorded
	Total		Reserved		or Unbilled		Total		Investment
(Dollars in millions)	Past Due		Financing		Financing		Financing		> 90 Days and
At March 31, 2016:	> 90 days (1)		Receivables		Receivables		Receivables		Accruing (2)
Major markets	$	7	$	33	$	5,420	$	5,461	$	128
Growth markets		26		182		1,358		1,566		64
Total lease receivables	$	33	$	215	$	6,779	$	7,027	$	192
Major markets	$	10	$	36	$	8,989	$	9,034	$	150
Growth markets		33		279		2,585		2,897		74
Total loan receivables	$	42	$	315	$	11,574	$	11,931	$	224
Total	$	76	$	530	$	18,353	$	18,959	$	416
(1) Only the portion of a financing receivable which is greater than 90 days past due, excluding amounts that are fully reserved.
(2) At a contract level, which includes total billed and unbilled amounts for aged financing receivables greater than 90 days.

			Fully		<90 Days				Recorded
	Total		Reserved		or Unbilled		Total		Investment
(Dollars in millions)	Past Due		Financing		Financing		Financing		> 90 Days and
At December 31, 2015*:	> 90 days (1)		Receivables		Receivables		Receivables		Accruing (2)
Major markets	$	5	$	33	$	5,479	$	5,517	$	108
Growth markets		30		140		1,355		1,524		60
Total lease receivables	$	35	$	173	$	6,834	$	7,041	$	168
Major markets	$	7	$	35	$	9,696	$	9,739	$	134
Growth markets		31		309		2,825		3,165		86
Total loan receivables	$	38	$	344	$	12,521	$	12,904	$	220
Total	$	73	$	517	$	19,355	$	19,945	$	388
(1) Only the portion of a financing receivable which is greater than 90 days past due, excluding amounts that are fully reserved.
(2) At a contract level, which includes total billed and unbilled amounts for aged financing receivables greater than 90 days.
* Reclassified to conform with 2016 presentation.