Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations

Note 16 – Discontinued Operations

On May 24, 2004, we entered into a purchase and sale agreement with General Electric Capital Corporation (GECC) to sell substantially all of the assets related to our Commercial Financial Services business. The final asset sale closed December 27, 2004.

Part of the purchase and sale agreement with GECC includes a loss sharing arrangement for losses that may exist at the end of the initial and subsequent financing periods of the transferred portfolio assets, or in some instances, prior to the end of the financing period. Such losses may result from asset sales, provisions for loss or asset impairment charges offset by gains from asset sales. The loss sharing arrangement provides that cumulative net losses (if any) are to be shared between us and GECC. At December 31, 2012, our maximum future cash exposure to losses associated with the loss sharing arrangement, which considers the impact of the portfolio reduction, was $137 for which we have accrued a liability of $32.

The following table reconciles the reserve under the loss sharing arrangement, which is included in Other liabilities for the years ended December 31:

	2012			2011
Reserve at beginning of period	$	53		$	82
Increase (decrease) in reserve		2			(8	)
Payments to GECC		(23	)		(21	)
Reserve at end of period	$	32		$	53

Operating results of the discontinued operations were as follows for the years ended December 31:

	2012			2011		2010
Net gain (loss) on disposal of discontinued operations	$	(2	)	$	8	$	(7	)
Provision (benefit) for income tax		(1	)		3		(3	)
Net gain (loss) on disposal of discontinued operations, net of tax	$	(1	)	$	5	$	(4	)