Financing Receivables (Tables)

6 Months Ended

Jun. 30, 2011

Financing Receivables

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

	At June 30,		At December 31,
(Dollars in millions)	2011		2010
Current:
Net investment in sales-type and direct financing leases	$	3,958	$	3,945
Commercial financing receivables	5,198		6,777
Client loan receivables	4,719		4,718
Installment payment receivables	840		816
Total	$	14,715	$	16,257
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,369	$	5,384
Commercial financing receivables	41		43
Client loan receivables	4,612		4,734
Installment payment receivables	399		388
Total	$	10,422	$	10,548

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

(Dollars in millions) At June 30, 2011	Major Markets			Growth Markets			Total
Financing receivables:
Lease receivables	$	6,543		$	2,043		$	8,586
Loan receivables	8,717			2,090			10,807
Ending balance	$	15,260		$	4,133		$	19,393
Collectively evaluated for impairment	$	14,931		$	4,017		$	18,948
Individually evaluated for impairment	$	329		$	116		$	445
Allowance for credit losses:
Lease receivables	$	84		$	42		$	126
Loan receivables	150			76			226
Beginning balance at January 1, 2011	$	234		$	119		$	353
Charge-offs	(53		)	(12		)	(65		)
Provision	(8		)	(3		)	(11		)
Other	10			2			12
Lease receivables	68			43			111
Loan receivables	116			62			178
Ending balance at June 30, 2011	$	184		$	105		$	289
Collectively evaluated for impairment	$	48		$	12		$	60
Individually evaluated for impairment	$	136		$	93		$	229

(Dollars in millions) At December 31, 2010	Major Markets		Growth Markets		Total
Financing receivables:
Lease receivables	$	6,562	$	1,983	$	8,545
Loan receivables	9,087		1,993		11,080
Ending balance	$	15,650	$	3,975	$	19,625
Collectively evaluated for impairment	$	15,199	$	3,794	$	18,993
Individually evaluated for impairment	$	451	$	181	$	632
Allowance for credit losses:
Lease receivables*	$	84	$	42	$	126
Loan receivables*	150		76		226
Ending balance at December 31, 2010	$	234	$	119	$	353
Collectively evaluated for impairment	$	60	$	11	$	71
Individually evaluated for impairment	$	174	$	108	$	282

* Reclassified to conform with 2011 presentation.

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

(Dollars in millions)	At June 30,2011		At December 31,2010
Major markets	$	50	$	69
Growth markets	24		33
Total lease receivables	$	73	$	101
Major markets	$	73	$	141
Growth markets	21		123
Total loan receivables	$	94	$	264
Total receivables	$	168	$	366

Schedule of impaired client loan receivables

	At June 30, 2011				At December 31, 2010
(Dollars in millions)	RecordedInvestment		RelatedAllowance		RecordedInvestment		Related Allowance
Major markets	$	139	$	83	$	196	$	119
Growth markets	62		55		132		68
Total	$	201	$	139	$	328	$	187

(Dollars in millions)	AverageRecorded		InterestIncome		InterestIncomeRecognized on
For the three months ended June 30, 2011:	Investment		Recognized*		Cash Basis
Major markets	$	147	$	1	$	0
Growth markets	99		0		0
Total	$	246	$	1	$	0

* Impaired loans are placed on non-accrual status, depending on the level of impairment.

(Dollars in millions)	AverageRecorded		InterestIncome		InterestIncomeRecognized on
For the six months ended June 30, 2011:	Investment		Recognized*		Cash Basis
Major markets	$	163	$	1	$	0
Growth markets	110		0		0
Total	$	273	$	2	$	0

* Impaired loans are placed on non-accrual status, depending on the level of impairment.

Schedule of gross recorded investment by credit quality indicator

	Lease Receivables				Loan Receivables
(Dollars in millions)	Major		Growth		Major		Growth
At June 30, 2011:	Markets		Markets		Markets		Markets
Credit Rating:
Aaa – Aa3	$	910	$	153	$	1,213	$	157
A1 – A3	1,306		198		1,740		202
Baal – Baa3	2,413		866		3,215		886
Bal – Ba2	979		446		1,305		456
Ba3 – B1	557		259		742		265
B2 – B3	247		98		329		100
Caa – D	131		23		174		23
Total	$	6,543	$	2,043	$	8,717	$	2,090

	Lease Receivables*				Loan Receivables*
(Dollars in millions)	Major		Growth		Major		Growth
At December 31, 2010:	Markets		Markets		Markets		Markets
Credit Rating:
Aaa – Aa3	$	794	$	173	$	1,100	$	173
A1 – A3	1,463		182		2,026		183
Baal – Baa3	2,494		837		3,453		841
Bal – Ba2	899		403		1,245		405
Ba3 – B1	518		242		718		243
B2 – B3	230		93		318		94
Caa – D	164		54		227		54
Total	$	6,562	$	1,983	$	9,087	$	1,993

* Reclassified to conform with 2011 presentation.

Schedule of past due financing receivables

(Dollars in millions)	Total Past Due				Total Financing		Recorded Investment > 90 Days
At June 30, 2011:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	15	$	6,528	$	6,543	$	12
Growth markets	12		2,031		2,043		7
Total lease receivables	$	26	$	8,560	$	8,586	$	20
Major markets	$	17	$	8,700	$	8,717	$	14
Growth markets	15		2,075		2,090		14
Total loan receivables	$	32	$	10,775	$	10,807	$	28
Total	$	58	$	19,334	$	19,393	$	48

* Does not include accounts that are fully reserved.

(Dollars in millions)	Total Past Due				Total Financing		Recorded Investment > 90 Days
At December 31, 2010:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	10	$	6,552	$	6,562	$	5
Growth markets	13		1,970		1,983		5
Total lease receivables	$	22	$	8,523	$	8,545	$	10
Major markets	$	11	$	9,076	$	9,087	$	4
Growth markets	32		1,961		1,993		17
Total loan receivables	$	43	$	11,037	$	11,080	$	21
Total	$	65	$	19,560	$	19,625	$	31

* Does not include accounts that are fully reserved.