Financing Receivables: (Tables)

3 Months Ended

Mar. 31, 2013

Financing Receivables:

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

	At March 31,		At December 31,
(Dollars in millions)	2013		2012
Current:
Net investment in sales-type and direct financing leases	$	3,960	$	3,862
Commercial financing receivables	6,025		7,750
Client loan receivables	5,113		5,395
Installment payment receivables	1,044		1,031
Total	$	16,141	$	18,038
Noncurrent:
Net investment in sales-type and direct financing leases	$	5,732	$	6,107
Commercial financing receivables	1		5
Client loan receivables	5,582		5,966
Installment payment receivables	631		733
Total	$	11,946	$	12,812

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

(Dollars in millions)	Major			Growth
At March 31, 2013	Markets			Markets			Total
Financing receivables:
Lease receivables	$	6,823		$	2,135		$	8,958
Loan receivables	8,688			3,878			12,566
Ending balance	$	15,511		$	6,013		$	21,524
Collectively evaluated for impairment	$	15,397		$	5,862		$	21,259
Individually evaluated for impairment	$	114		$	151		$	265
Allowance for credit losses:
Beginning balance at January 1, 2013
Lease receivables	$	59		$	55		$	114
Loan receivables	121			84			204
Total	$	180		$	138		$	318
Write-offs	(16		)	(2		)	(18		)
Provision	(13		)	21			9
Other	(4		)	(0		)	(4		)
Ending balance at March 31, 2013	$	148		$	157		$	306
Lease receivables	$	52		$	60		$	112
Loan receivables	$	96		$	98		$	193
Collectively evaluated for impairment	$	56		$	29		$	85
Individually evaluated for impairment	$	92		$	129		$	220

(Dollars in millions)	Major			Growth
At December 31, 2012	Markets			Markets			Total
Financing receivables:
Lease receivables	$	7,036		$	2,138		$	9,174
Loan receivables	9,666			3,670			13,336
Ending balance	$	16,701		$	5,808		$	22,510
Collectively evaluated for impairment	$	16,570		$	5,684		$	22,254
Individually evaluated for impairment	$	131		$	125		$	256
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	(14		)	(1		)	(15		)
Provision	(9		)	38			28
Other	0			(2		)	(2		)
Ending balance at December 31, 2012	$	180		$	138		$	318
Lease receivables	$	59		$	55		$	114
Loan receivables	$	121		$	84		$	204
Collectively evaluated for impairment	$	69		$	29		$	98
Individually evaluated for impairment	$	111		$	109		$	220

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

	At March 31,		At December 31,
(Dollars in millions)	2013		2012
Major markets	$	26	$	27
Growth markets	20		21
Total lease receivables	$	46	$	47
Major markets	$	41	$	67
Growth markets	59		25
Total loan receivables	$	100	$	92
Total receivables	$	146	$	139

Schedule of impaired client loan receivables

	At March 31, 2013				At December 31, 2012
	Recorded		Related		Recorded		Related
(Dollars in millions)	Investment		Allowance		Investment		Allowance
Major markets	$	70	$	64	$	88	$	77
Growth markets	86		78		72		65
Total	$	155	$	142	$	160	$	143

					Interest
	Average		Interest		Income
(Dollars in millions)	Recorded		Income		Recognized on
For the three months ended March 31, 2013:	Investment		Recognized*		Cash Basis
Major markets	$	79	$	0	$	0
Growth markets	79		0		0
Total	$	158	$	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 March 31, 2012:	Investment		Recognized*		Cash Basis
Major markets	$	98	$	0	$	0
Growth markets	64		0		0
Total	$	162	$	0	$	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 March 31, 2013:	Markets		Markets		Markets		Markets
Credit Rating:
AAA – AA-	$	636	$	78	$	810	$	141
A+ – A-	1,556		209		1,982		379
BBB+ – BBB-	2,358		795		3,003		1,445
BB+ – BB	1,256		412		1,599		748
BB- – B+	549		408		699		741
B – B-	381		167		486		304
CCC+ – D-	86		66		109		120
Total	$	6,823	$	2,135	$	8,688	$	3,878

	Lease Receivables				Loan Receivables
(Dollars in millions)	Major		Growth		Major		Growth
At December 31, 2012:	Markets		Markets		Markets		Markets
Credit Rating:
AAA – AA-	$	646	$	86	$	887	$	148
A+ – A-	1,664		223		2,286		382
BBB+ – BBB-	2,285		776		3,139		1,333
BB+ – BB	1,367		450		1,878		773
BB- – B+	552		418		758		718
B – B-	399		127		548		218
CCC+ –D	124		58		170		99
Total	$	7,036	$	2,138	$	9,666	$	3,670

Schedule of past due financing receivables

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At March 31, 2013:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	9	$	6,814	$	6,823	$	4
Growth markets	12		2,123		2,135		9
Total lease receivables	$	21	$	8,937	$	8,958	$	13
Major markets	$	14	$	8,673	$	8,688	$	6
Growth markets	40		3,839		3,878		24
Total loan receivables	$	54	$	12,512	$	12,566	$	30
Total	$	75	$	21,449	$	21,524	$	43

* Does not include accounts that are fully reserved.

							Recorded
	Total				Total		Investment
(Dollars in millions)	Past Due				Financing		> 90 Days
At December 31, 2012:	> 90 days*		Current		Receivables		and Accruing
Major markets	$	8	$	7,028	$	7,036	$	5
Growth markets	11		2,127		2,138		8
Total lease receivables	$	20	$	9,154	$	9,174	$	13
Major markets	$	27	$	9,639	$	9,666	$	8
Growth markets	36		3,634		3,670		31
Total loan receivables	$	63	$	13,273	$	13,336	$	39
Total	$	82	$	22,428	$	22,510	$	52

* Does not include accounts that are fully reserved.