Financing Receivables: (Tables)

6 Months Ended

Jun. 30, 2012

Financing Receivables:

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

	At June 30,		At December 31,
(Dollars in millions)	2012		2011
Current:
Net investment in sales-type and direct financing leases	$	3,762	$	3,765
Commercial financing receivables	5,441		7,095
Client loan receivables	4,784		5,195
Installment payment receivables	995		846
Total	$	14,982	$	16,901
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,195	$	5,406
Commercial financing receivables	7		34
Client loan receivables	5,139		4,925
Installment payment receivables	454		410
Total	$	10,795	$	10,776

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

(Dollars in millions)	Major			Growth
At June 30, 2012	Markets			Markets			Total
Financing receivables:
Lease Receivables	$	6,423		$	1,836		$	8,259
Loan Receivables	8,682			2,879			11,561
Ending balance	$	15,105		$	4,715		$	19,820
Collectively evaluated for impairment	$	14,971		$	4,610		$	19,581
Individually evaluated for impairment	$	134		$	105		$	239
Allowance for credit losses:
Beginning balance at January 1, 2012
Lease Receivables	$	79		$	40		$	118
Loan Receivables	125			64			189
Total	$	203		$	104		$	307
Write-offs	(4		)	(1		)	(5		)
Provision	(9		)	8			(1		)
Other	(2		)	(1		)	(3		)
Ending balance at June 30, 2012	$	188		$	110		$	298
Lease Receivables	$	71		$	45		$	116
Loan Receivables	$	117		$	65		$	182
Collectively evaluated for impairment	$	85		$	19		$	104
Individually evaluated for impairment	$	103		$	91		$	194

(Dollars in millions)	Major			Growth
At December 31, 2011	Markets			Markets			Total
Financing receivables:
Lease receivables	$	6,510		$	1,921		$	8,430
Loan receivables	9,077			2,552			11,629
Ending balance	$	15,587		$	4,472		$	20,060
Collectively evaluated for impairment	$	15,321		$	4,370		$	19,692
Individually evaluated for impairment	$	266		$	102		$	368
Allowance for credit losses:
Beginning balance at January 1, 2011
Lease receivables	$	84		$	42		$	126
Loan receivables	150			76			226
Total	$	234		$	119		$	353
Write-offs	(68		)	(16		)	(84		)
Provision	39			5			44
Other	(1		)	(4		)	(5		)
Ending balance at December 31, 2011	$	203		$	104		$	307
Lease receivables	$	79		$	40		$	118
Loan receivables	$	125		$	64		$	189
Collectively evaluated for impairment	$	82		$	15		$	96
Individually evaluated for impairment	$	122		$	89		$	211

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

	At June 30,		At December 31,
(Dollars in millions)	2012		2011
Major markets	$	27	$	46
Growth markets	22		20
Total lease receivables	$	50	$	66
Major markets	$	52	$	75
Growth markets	28		24
Total loan receivables	$	80	$	99
Total receivables	$	130	$	165

Schedule of impaired client loan receivables

	At June 30, 2012				At December 31, 2011
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	76	$	65	$	110	$	70
Growth markets	62		53		62		53
Total	$	139	$	118	$	172	$	123

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended June 30, 2012:	Investment		Recognized*		Cash Basis
Major markets	$	81	$	0	$	0
Growth markets	64		0		0
Total	$	145	$	0	$	0

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

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized 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.

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the six months ended June 30 2012:	Investment		Recognized*		Cash Basis
Major markets	$	91	$	0	$	0
Growth markets	63		0		0
Total	$	154	$	0	$	0

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

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized 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, 2012:	Markets		Markets		Markets		Markets
Credit Rating:
Aaa – Aa3	$	552	$	95	$	746	$	149
A1 – A3	1,522		231		2,057		362
Baal – Baa3	2,244		644		3,033		1,011
Bal – Ba2	1,218		422		1,647		662
Ba3 – B1	542		315		733		495
B2 – B3	270		107		366		168
Caa – D	75		20		101		32
Total	$	6,423	$	1,836	$	8,682	$	2,879

	Lease Receivables				Loan Receivables
(Dollars in millions)	Major		Growth		Major		Growth
At December 31, 2011:	Markets		Markets		Markets		Markets
Credit Rating:
Aaa – Aa3	$	697	$	139	$	971	$	185
A1 – A3	1,459		306		2,034		407
Baal – Baa3	2,334		654		3,255		869
Bal – Ba2	1,118		457		1,559		607
Ba3 – B1	534		252		744		335
B2 – B3	260		97		362		129
Caa – D	108		15		151		20
Total	$	6,510	$	1,921	$	9,077	$	2,552

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At June 30, 2012:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	9	$	6,414	$	6,423	$	5
Growth markets	13		1,823		1,836		10
Total lease receivables	$	22	$	8,237	$	8,259	$	16
Major markets	$	26	$	8,656	$	8,682	$	7
Growth markets	30		2,849		2,879		25
Total loan receivables	$	56	$	11,505	$	11,561	$	32
Total	$	78	$	19,742	$	19,820	$	48

* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2011:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	6	$	6,504	$	6,510	$	6
Growth markets	9		1,911		1,921		6
Total lease receivables	$	16	$	8,415	$	8,430	$	12
Major markets	$	23	$	9,054	$	9,077	$	7
Growth markets	22		2,530		2,552		19
Total loan receivables	$	46	$	11,584	$	11,629	$	26
Total	$	62	$	19,998	$	20,060	$	38

* Does not include accounts that are fully reserved.