Financing Receivables (Tables)

9 Months Ended

Sep. 30, 2011

Financing Receivables

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

(Dollars in millions)	At September 30, 2011		At December 31, 2010
Current:
Net investment in sales-type and direct financing leases	$	3,834	$	3,945
Commercial financing receivables	5,027		6,777
Client loan receivables	4,531		4,718
Installment payment receivables	754		816
Total	$	14,145	$	16,257
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,117	$	5,384
Commercial financing receivables	37		43
Client loan receivables	4,303		4,734
Installment payment receivables	372		388
Total	$	9,830	$	10,548

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

(Dollars in millions) At September 30, 2011	Major Markets			Growth Markets			Total
Financing receivables:
Lease receivables	$	6,290		$	1,935		$	8,225
Loan receivables	8,105			2,079			10,184
Ending balance	$	14,395		$	4,014		$	18,409
Collectively evaluated for impairment	$	14,111		$	3,905		$	18,016
Individually evaluated for impairment	$	284		$	109		$	393
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	(56		)	(13		)	(69		)
Provision	(15		)	1			(14		)
Other	2			(4		)	(2		)
Lease receivables	68			41			109
Loan receivables	96			62			158
Ending balance at September 30, 2011	$	165		$	102		$	267
Collectively evaluated for impairment	$	43		$	13		$	56
Individually evaluated for impairment	$	122		$	89		$	211

(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 September 30,2011		At December 31, 2010
Major markets	$	46	$	69
Growth markets	20		33
Total lease receivables	$	66	$	101
Major markets	$	77	$	141
Growth markets	18		123
Total loan receivables	$	95	$	264
Total receivables	$	161	$	366

Schedule of impaired client loan receivables

	At September 30, 2011				At December 31, 2010
(Dollars in millions)	RecordedInvestment		RelatedAllowance		RecordedInvestment		Related Allowance
Major markets	$	111	$	75	$	196	$	119
Growth markets	59		52		132		68
Total	$	170	$	127	$	328	$	187

(Dollars in millions) For the three months ended September 30, 2011:	AverageRecordedInvestment		InterestIncomeRecognized*		InterestIncomeRecognized on Cash Basis
Major markets	$	125	$	1	$	0
Growth markets	60		0		0
Total	$	185	$	1	$	0

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

(Dollars in millions) For the nine months ended September 30, 2011:	AverageRecordedInvestment		InterestIncomeRecognized*		InterestIncomeRecognized on Cash Basis
Major markets	$	150	$	2	$	0
Growth markets	97		0		0
Total	$	248	$	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) At September 30, 2011:	MajorMarkets		GrowthMarkets		MajorMarkets		GrowthMarkets
Credit Rating:
Aaa — Aa3	$	810	$	151	$	1,043	$	162
A1 — A3	1,357		188		1,748		202
Baal — Baa3	2,296		738		2,958		793
Bal — Ba2	944		471		1,217		506
Ba3 — B1	548		259		706		278
B2 — B3	230		109		297		117
Caa — D	105		19		135		20
Total	$	6,290	$	1,935	$	8,105	$	2,079

	Lease Receivables*				Loan Receivables*
(Dollars in millions) At December 31, 2010:	MajorMarkets		GrowthMarkets		MajorMarkets		GrowthMarkets
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) At September 30, 2011:	Total Past Due > 90 days*		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Major markets	$	10	$	6,279	$	6,290	$	10
Growth markets	13		1,923		1,935		10
Total lease receivables	$	23	$	8,202	$	8,225	$	19
Major markets	$	28	$	8,077	$	8,105	$	11
Growth markets	20		2,059		2,079		18
Total loan receivables	$	48	$	10,136	$	10,184	$	30
Total	$	71	$	18,337	$	18,409	$	49

* Does not include accounts that are fully reserved.

(Dollars in millions) At December 31, 2010:	Total Past Due > 90 days*		Current		Total Financing Receivables		Recorded Investment > 90 Days 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.