Portfolio Quality (Tables)

9 Months Ended

Sep. 30, 2012

The following table reconciles the activity in the allowance for losses on receivables for the nine months ended September 30:


	2012			2011
Allowance for losses on receivables at beginning of period	$	53		$	87
Recovery of losses		(5	)		(20	)
Write-offs		–			(11	)
Allowance for losses on receivables at end of period	$	48		$	56

Allowance as a percentage of total receivables		2.2	%		2.4	%
Allowance for losses on receivables collectively evaluated for impairment	$	48		$	56

Receivable Balances by the Internal Rating Category

The following table details our receivable balances by the internal rating category which was used as a factor in determining our allowance for losses on receivables:


	September 30, 2012						December 31, 2011
Rating categories	Out-of- Production Aircraft		In- Production Aircraft/Other		Total		Out-of- Production Aircraft		In- Production Aircraft/Other		Total
A	$	–	$	34	$	34	$	–	$	–	$	–
BBB		1,221		–		1,221		1,316		–		1,316
BB		–		62		62		–		67		67
B		54		–		54		103		–		103
CCC		298		239		537		194		318		512
D		205		73		278		171		179		350
Total carrying value	$	1,778	$	408	$	2,186	$	1,784	$	564	$	2,348

Details of Average Recorded Investment and the Related Income Recognized

The following table details our average recorded investment and the related income recognized in the period of impairment on the impaired receivables for the nine months ended September 30:


2012	Average Carrying Value		Income Recognized
Out-of-production aircraft	$	181	$	5	⁽¹⁾

⁽¹⁾

For the nine months ended September 30, 2012, of the income recognized we received in cash $5.

Non-Performing Assets

Non-performing assets (assets not earning income on an accrual basis) consisted of the following:


	September 30, 2012			December 31, 2011
Assets placed on non-accrual status:
Receivables:
Out-of-production aircraft	$	165		$	171
Equipment under operating leases, net⁽¹⁾		21			14
Assets held for sale or re-lease, net⁽¹⁾		134	⁽²⁾		50
	$	320		$	235

Percent of total non-performing assets to total portfolio		7.9	%		5.4	%