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Finance Receivables (Tables)
 3 Months Ended
Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
The finance receivables portfolio consists of the following (in millions): 
 
 
March 31, 2016
 
December 31, 2015

Retail
 
 
 
 
Retail finance receivables, collectively evaluated for impairment, net of fees(a)
 
$
28,613

 
$
27,512

Retail finance receivables, individually evaluated for impairment, net of fees
 
1,659

 
1,612

Total retail finance receivables(b)
 
30,272

 
29,124

Less: allowance for loan losses - collective
 
(567
)
 
(515
)
Less: allowance for loan losses - specific
 
(229
)
 
(220
)
Total retail finance receivables, net
 
29,476

 
28,389

Commercial
 
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
 
9,116

 
8,357

Commercial finance receivables, individually evaluated for impairment, net of fees
 
113

 
82

Total commercial finance receivables
 
9,229

 
8,439

Less: allowance for loan losses - collective
 
(37
)
 
(38
)
Less: allowance for loan losses - specific
 
(10
)
 
(9
)
Total commercial finance receivables, net
 
9,182

 
8,392

Total finance receivables, net
 
$
38,658

 
$
36,781

________________
(a) Includes $1.2 billion and $1.1 billion of direct-financing leases at March 31, 2016 and December 31, 2015.
(b) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $195 million and $179 million at March 31, 2016 and December 31, 2015.
Finance Receivables Summary
Following is a summary of activity in our retail finance receivables portfolio (in millions): 
 
 
Three Months Ended March 31,
 
 
2016
 
2015
Beginning balance
 
$
29,124

 
$
25,623

Purchases
 
4,143

 
4,078

Principal collections and other
 
(3,067
)
 
(2,593
)
Charge-offs
 
(293
)
 
(234
)
Foreign currency translation
 
365

 
(1,283
)
Ending balance
 
$
30,272

 
$
25,591
Allowance for Credit Losses on Financing Receivables
A summary of the activity in the allowance for retail loan losses is as follows (in millions):
 
 
Three Months Ended March 31,
 
 
2016
 
2015
Beginning balance
 
$
735

 
$
655

Provision for loan losses
 
197

 
157

Charge-offs
 
(293
)
 
(234
)
Recoveries
 
150

 
122

Foreign currency translation
 
7

 
(8
)
Ending balance
 
$
796

 
$
692
Financing Receivable Credit Quality Indicators
 
 
March 31, 2016
 
December 31, 2015
 
 
Amount
 
Percent
 
Amount
 
Percent
Prime - FICO Score 680 and greater
 
$
5,063

 
26.9
%
 
$
4,418

 
24.4
%
Near-prime - FICO Score 620 to 679
 
3,001

 
16.0
%
 
2,890

 
15.9
%
Sub-prime - FICO Score less than 620
 
10,742

 
57.1
%
 
10,840

 
59.7
%
Balance at end of period
 
$
18,806

 
100.0
%
 
$
18,148

 
100.0
%
Past Due Financing Receivables
 
 
March 31, 2016
 
March 31, 2015
 
 
Total
 
Percent of Contractual Amount Due
 
Total
 
Percent of Contractual Amount Due
31 - 60 days
 
$
963

 
3.1
%
 
$
880

 
3.4
%
Greater than 60 days
 
421

 
1.4

 
357

 
1.4

 
 
1,384

 
4.5

 
1,237

 
4.8

In repossession
 
48

 
0.2

 
42

 
0.2

 
 
$
1,432

 
4.7
%
 
$
1,279

 
5.0
%
Troubled Debt Restructurings on Financing Receivables
At March 31, 2016 and December 31, 2015, the outstanding balance of retail finance receivables in the International Segment determined to be TDRs was insignificant; therefore, the following information is presented with regard to the TDRs in the North America Segment only.
The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below (in millions):
 
 
March 31, 2016
 
December 31, 2015
Outstanding recorded investment
 
$
1,659

 
$
1,612

Less: allowance for loan losses
 
(229
)
 
(220
)
Outstanding recorded investment, net of allowance
 
$
1,430

 
$
1,392

Unpaid principal balance
 
$
1,700

 
$
1,642

Additional information about loans classified as TDRs is presented below (in millions, except for number of loans):
 
 
Three Months Ended March 31,
 
 
2016
 
2015
Average outstanding recorded investment
 
$
1,636

 
$
1,264

Finance charge income recognized
 
$
51

 
$
40

Number of loans classified as TDRs during the period
 
14,646

 
11,752

Recorded investment of loans classified as TDRs during the period
 
$
254

 
$
199
Finance Receivables Summary - Post-acquisition - Commercial
Following is a summary of activity in our commercial finance receivables portfolio (in millions): 
 
 
Three Months Ended March 31,
 
 
2016
 
2015
Beginning balance
 
$
8,439

 
$
8,072

Net funding (collections)
 
665

 
(40
)
Charge-offs
 
—

 
—

Foreign currency translation
 
125

 
(425
)
Ending balance
 
$
9,229

 
$
7,607
Financing Receivable Credit Quality Indicators for Commercial Lending
A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions): 
 
 
 
 
March 31, 2016
 
December 31, 2015
Group I
-
Dealers with superior financial metrics
 
$
1,318

 
$
1,299

Group II
-
Dealers with strong financial metrics
 
2,881

 
2,648

Group III
-
Dealers with fair financial metrics
 
3,001

 
2,703

Group IV
-
Dealers with weak financial metrics
 
1,249

 
1,100

Group V
-
Dealers warranting special mention due to potential weaknesses
 
630

 
505

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
 
150

 
184

Ending balance
 
$
9,229

 
$
8,439