XML 44 R30.htm IDEA: XBRL DOCUMENT v3.19.1
Financing Receivables (Tables)
 3 Months Ended
Mar. 31, 2019
Financing Receivables  
Summary of the components of financing receivables

 

 

 

Investment in

 

 

 

Client Loan and

 

 

 

 

 

Sales-Type and

 

Commercial

 

Installment Payment

 

 

 

(Dollars in millions)

 

Direct Financing

 

Financing

 

Receivables/

 

 

 

At March 31, 2019:

 

Leases

 

Receivables

 

(Loans)

 

Total

 

Financing receivables, gross

 

$
6,477

 

$
10,385

 

$
12,582

 

$
29,444

 

Unearned income

 
(497

)
(34

)
(617

)
(1,148

)

 

 

 

 

 

 

 

 

 

 

Recorded investment

 

$
5,980

 

$
10,351

 

$
11,965

 

$
28,296

 

Allowance for credit losses

 
(95

)
(18

)
(174

)
(287

)

Unguaranteed residual value

 
566

 

—

 

—

 
566

 

Guaranteed residual value

 
72

 

—

 

—

 
72

 

 

 

 

 

 

 

 

 

 

 

Total financing receivables, net

 

$
6,523

 

$
10,333

 

$
11,791

 

$
28,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion

 

$
2,712

 

$
10,333

 

$
7,241

 

$
20,287

 

Noncurrent portion

 

$
3,811

 

$

—

 

$
4,550

 

$
8,361

 

 

 

 

Investment in

 

 

 

Client Loan and

 

 

 

 

 

Sales-Type and

 

Commercial

 

Installment Payment

 

 

 

(Dollars in millions)

 

Direct Financing

 

Financing

 

Receivables/

 

 

 

At December 31, 2018:

 

Leases

 

Receivables

 

(Loans)

 

Total

 

Financing receivables, gross

 

$
6,846

 

$
11,889

 

$
13,614

 

$
32,348

 

Unearned income

 
(526

)
(37

)
(632

)
(1,195

)

 

 

 

 

 

 

 

 

 

 

Recorded investment

 

$
6,320

 

$
11,852

 

$
12,981

 

$
31,153

 

Allowance for credit losses

 
(99

)
(13

)
(179

)
(292

)

Unguaranteed residual value

 
589

 

—

 

—

 
589

 

Guaranteed residual value

 
85

 

—

 

—

 
85

 

 

 

 

 

 

 

 

 

 

 

Total financing receivables, net

 

$
6,895

 

$
11,838

 

$
12,802

 

$
31,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion

 

$
2,834

 

$
11,838

 

$
7,716

 

$
22,388

 

Noncurrent portion

 

$
4,061

 

$

—

 

$
5,086

 

$
9,148

 

 

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

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

At March 31, 2019:

 

Americas

 

EMEA

 

Asia Pacific

 

Total

 

Recorded investment

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
3,617

 

$
1,230

 

$
1,133

 

$
5,980

 

Loan receivables

 
6,203

 
3,374

 
2,388

 
11,965

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$
9,820

 

$
4,603

 

$
3,522

 

$
17,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded investment collectively evaluated for impairment

 

$
9,672

 

$
4,555

 

$
3,471

 

$
17,699

 

Recorded investment individually evaluated for impairment

 

$
148

 

$
48

 

$
50

 

$
247

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

Beginning balance at January 1, 2019

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
53

 

$
22

 

$
24

 

$
99

 

Loan receivables

 
105

 
43

 
32

 
179

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
158

 

$
65

 

$
56

 

$
279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 

$
(4

)

$
(1

)

$
(2

)

$
(8

)

Recoveries

 
0

 
0

 
0

 
0

 

Provision

 
3

 
(5

)
0

 
(1

)

Other *

 
(1

)
0

 
1

 
(1

)

 

 

 

 

 

 

 

 

 

 

Ending balance at March 31, 2019

 

$
155

 

$
59

 

$
55

 

$
269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
49

 

$
22

 

$
24

 

$
95

 

Loan receivables

 

$
106

 

$
37

 

$
31

 

$
174

 

 

 

 

 

 

 

 

 

 

 

Related allowance, collectively evaluated for impairment

 

$
33

 

$
14

 

$
5

 

$
52

 

Related allowance, individually evaluated for impairment

 

$
122

 

$
45

 

$
50

 

$
217

 

 

 

* Primarily represents translation adjustments.

 

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

At December 31, 2018:

 

Americas

 

EMEA

 

Asia Pacific

 

Total

 

Recorded investment

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
3,827

 

$
1,341

 

$
1,152

 

$
6,320

 

Loan receivables

 
6,817

 
3,675

 
2,489

 
12,981

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$
10,644

 

$
5,016

 

$
3,641

 

$
19,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded investment collectively evaluated for impairment

 

$
10,498

 

$
4,964

 

$
3,590

 

$
19,052

 

Recorded investment individually evaluated for impairment

 

$
146

 

$
52

 

$
51

 

$
249

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

Beginning balance at January 1, 2018

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
63

 

$
9

 

$
31

 

$
103

 

Loan receivables

 
108

 
52

 
51

 
211

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
172

 

$
61

 

$
82

 

$
314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-offs

 

$
(10

)

$
(2

)

$
(23

)

$
(35

)

Recoveries

 
0

 
0

 
2

 
2

 

Provision

 
7

 
9

 
0

 
16

 

Other*

 
(11

)
(3

)
(4

)
(19

)

 

 

 

 

 

 

 

 

 

 

Ending balance at December 31, 2018

 

$
158

 

$
65

 

$
56

 

$
279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease receivables

 

$
53

 

$
22

 

$
24

 

$
99

 

Loan receivables

 

$
105

 

$
43

 

$
32

 

$
179

 

 

 

 

 

 

 

 

 

 

 

Related allowance, collectively evaluated for impairment

 

$
39

 

$
16

 

$
5

 

$
59

 

Related allowance, individually evaluated for impairment

 

$
119

 

$
49

 

$
51

 

$
219

 

 

 

* Primarily represents translation adjustments.

 

 

Schedule of past due financing receivables

 

 

 

 

 

 

 

Recorded

 

Billed

 

Recorded

 

 

 

Total

 

Recorded

 

Investment

 

Invoices

 

Investment

 

(Dollars in millions)

 

Recorded

 

Investment

 

> 90 Days and

 

> 90 Days and

 

Not

 

At March 31, 2019:

 

Investment

 

> 90 Days (1)

 

Accruing (1)

 

Accruing

 

Accruing (2)

 

Americas

 

$
3,617

 

$
294

 

$
240

 

$
13

 

$
54

 

EMEA

 
1,230

 
40

 
22

 
3

 
17

 

Asia Pacific

 
1,133

 
37

 
13

 
2

 
23

 

 

 

 

 

 

 

 

 

 

 

 

 

Total lease receivables

 

$
5,980

 

$
370

 

$
276

 

$
18

 

$
94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$
6,203

 

$
232

 

$
131

 

$
23

 

$
101

 

EMEA

 
3,374

 
83

 
14

 
4

 
68

 

Asia Pacific

 
2,388

 
32

 
4

 
2

 
28

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan receivables

 

$
11,965

 

$
347

 

$
150

 

$
29

 

$
197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
17,945

 

$
717

 

$
426

 

$
47

 

$
291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.

(2) Of the recorded investment not accruing, $247 million is individually evaluated for impairment with a related allowance of $217 million.

 

 

 

 

 

 

 

Recorded

 

Billed

 

Recorded

 

 

 

Total

 

Recorded

 

Investment

 

Invoices

 

Investment

 

(Dollars in millions)

 

Recorded

 

Investment

 

> 90 Days and

 

> 90 Days and

 

Not

 

At December 31, 2018:

 

Investment

 

> 90 Days (1)

 

Accruing (1)

 

Accruing

 

Accruing (2)

 

Americas

 

$
3,827

 

$
310

 

$
256

 

$
19

 

$
57

 

EMEA

 
1,341

 
25

 
9

 
1

 
16

 

Asia Pacific

 
1,152

 
49

 
27

 
3

 
24

 

 

 

 

 

 

 

 

 

 

 

 

 

Total lease receivables

 

$
6,320

 

$
385

 

$
292

 

$
24

 

$
97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$
6,817

 

$
259

 

$
166

 

$
24

 

$
99

 

EMEA

 
3,675

 
98

 
25

 
3

 
73

 

Asia Pacific

 
2,489

 
40

 
11

 
1

 
31

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan receivables

 

$
12,981

 

$
397

 

$
202

 

$
29

 

$
203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
19,301

 

$
782

 

$
494

 

$
52

 

$
300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.

(2) Of the recorded investment not accruing, $249 million is individually evaluated for impairment with a related allowance of $219 million.

 

Schedule of net recorded investment by credit quality indicator

 

(Dollars in millions)

 

Lease Receivables

 

Loan Receivables

 

At March 31, 2019:

 

Americas

 

EMEA

 

Asia Pacific

 

Americas

 

EMEA

 

Asia Pacific

 

Credit ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Aaa – Aa3

 

$
454

 

$
15

 

$
67

 

$
916

 

$
127

 

$
159

 

A1 – A3

 
804

 
136

 
540

 
892

 
238

 
792

 

Baa1 – Baa3

 
932

 
386

 
199

 
1,602

 
1,233

 
653

 

Ba1 – Ba2

 
679

 
437

 
135

 
1,459

 
944

 
535

 

Ba3 – B1

 
454

 
147

 
99

 
604

 
481

 
126

 

B2 – B3

 
198

 
69

 
54

 
521

 
284

 
75

 

Caa – D

 
47

 
18

 
15

 
104

 
31

 
19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
3,568

 

$
1,208

 

$
1,109

 

$
6,097

 

$
3,337

 

$
2,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

Lease Receivables

 

Loan Receivables

 

At December 31, 2018:

 

Americas

 

EMEA

 

Asia Pacific

 

Americas

 

EMEA

 

Asia Pacific

 

Credit ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Aaa – Aa3

 

$
593

 

$
45

 

$
85

 

$
1,055

 

$
125

 

$
185

 

A1 – A3

 
678

 
158

 
413

 
1,206

 
436

 
901

 

Baa1 – Baa3

 
892

 
417

 
297

 
1,587

 
1,148

 
648

 

Ba1 – Ba2

 
852

 
426

 
191

 
1,516

 
1,175

 
417

 

Ba3 – B1

 
433

 
171

 
84

 
770

 
472

 
184

 

B2 – B3

 
299

 
90

 
50

 
531

 
249

 
109

 

Caa – D

 
26

 
10

 
7

 
47

 
28

 
15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
3,774

 

$
1,319

 

$
1,128

 

$
6,712

 

$
3,633

 

$
2,457