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Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables Portfolio
 
December 31, 2016
 
December 31, 2015
Retail finance receivables
 
 
 
Retail finance receivables, collectively evaluated for impairment, net of fees(a)
$
30,989

 
$
27,512

Retail finance receivables, individually evaluated for impairment, net of fees
1,921

 
1,612

Total retail finance receivables(b)
32,910

 
29,124

Less: allowance for loan losses - collective
(517
)
 
(515
)
Less: allowance for loan losses - specific
(276
)
 
(220
)
Total retail finance receivables, net
32,117

 
28,389

Commercial finance receivables
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
11,053

 
8,357

Commercial finance receivables, individually evaluated for impairment, net of fees
70

 
82

Total commercial finance receivables
11,123

 
8,439

Less: allowance for loan losses - collective
(43
)
 
(38
)
Less: allowance for loan losses - specific
(7
)
 
(9
)
Total commercial finance receivables, net
11,073

 
8,392

Total finance receivables, net
$
43,190

 
$
36,781

Fair value of finance receivables
$
43,140

 
$
36,937


________________
(a)
Includes $1.3 billion and $1.1 billion of direct-financing leases at December 31, 2016 and 2015.
(b)
Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $191 million and $179 million at December 31, 2016 and 2015.
Summary of Finance Receivables
Therefore, the carrying amount, a Level 2 input, is considered to be a reasonable estimate of fair value.
Retail Finance Receivables
Years ended December 31,
 
2016
 
2015
 
2014
Retail finance receivables beginning balance
$
29,124

 
$
25,623

 
$
23,130

Purchases of retail finance receivables
18,054

 
17,537

 
15,085

Principal collections and other
(12,633
)
 
(10,968
)
 
(10,234
)
Charge-offs
(1,171
)
 
(996
)
 
(914
)
Foreign currency translation
(464
)
 
(2,072
)
 
(1,444
)
Retail finance receivables ending balance
$
32,910

 
$
29,124

 
$
25,623
Allowance for Credit Losses on Financing Receivables
A summary of the activity in the allowance for retail loan losses is as follows:
 
Years ended December 31,
 
2016
 
2015
 
2014
Allowance for retail loan losses beginning balance
$
735

 
$
655

 
$
497

Provision for loan losses
666

 
612

 
613

Charge-offs
(1,171
)
 
(996
)
 
(914
)
Recoveries
559

 
486

 
470

Foreign currency translation
4

 
(22
)
 
(11
)
Allowance for retail loan losses ending balance
$
793

 
$
735

 
$
655
Financing Receivable Credit Quality Indicators
A summary of the credit risk profile by FICO score band or equivalent scores, determined at origination, of the retail finance receivables in the North America Segment is as follows:
 
December 31, 2016
 
December 31, 2015
 
Amount
 
Percent
 
Amount
 
Percent
Prime - FICO Score 680 and greater
$
7,923

 
36.4
%
 
$
4,418

 
24.4
%
Near-prime - FICO Score 620 to 679
3,468

 
15.9
%
 
2,890

 
15.9
%
Sub-prime - FICO Score less than 620
10,395

 
47.7
%
 
10,840

 
59.7
%
Balance at end of period
$
21,786

 
100.0
%
 
$
18,148

 
100.0
%
Past Due Financing Receivables
The following is a consolidated summary of the contractual amounts of delinquent retail finance receivables, which is not significantly different than the recorded investment for such receivables. 
 
December 31, 2016
 
December 31, 2015
 
Amount
 
Percent of Contractual Amount Due
 
Amount
 
Percent of Contractual Amount Due
31 - 60 days
$
1,235

 
3.7
%
 
$
1,237

 
4.2
%
Greater than 60 days
542

 
1.7

 
481

 
1.6

Total finance receivables more than 30 days delinquent
1,777

 
5.4

 
1,718

 
5.8

In repossession
51

 
0.1

 
46

 
0.2

Total finance receivables more than 30 days delinquent or in repossession
$
1,828

 
5.5
%
 
$
1,764

 
6.0
%
Troubled Debt Restructurings on Financing Receivables
The outstanding recorded investment for retail finance receivables that are considered to be TDRs and the related allowance is presented below:
 
December 31, 2016
 
December 31, 2015
Outstanding recorded investment
$
1,920

 
$
1,612

Less: allowance for loan losses
(276
)
 
(220
)
Outstanding recorded investment, net of allowance
$
1,644

 
$
1,392

Unpaid principal balance
$
1,967

 
$
1,642

Additional information about loans classified as TDRs is presented below:
 
Years Ended December 31,
 
2016
 
2015
 
2014
Average outstanding recorded investment
$
1,766

 
$
1,455

 
$
996

Finance charge income recognized
$
205

 
$
164

 
$
123

Number of loans classified as TDRs during the period
66,926

 
58,012

 
49,490

Recorded investment of loans classified as TDRs during the period
$
1,148

 
$
982

 
$
794
Activity in Commercial Finance Receivables Portfolio
The unpaid principal balance, net of recoveries, of loans that redefaulted during the reporting period and were within 12 months of being modified as a TDR were $26 million, $20 million and $25 million for 2016, 2015 and 2014.
Commercial Finance Receivables
Years Ended December 31,
 
2016
 
2015
 
2014
Commercial finance receivables beginning balance
$
8,439

 
$
8,072

 
$
6,700

Net funding
3,017

 
984

 
1,889

Charge-offs
(2
)
 
(3
)
 
—

Foreign currency translation
(331
)
 
(614
)
 
(517
)
Commercial finance receivables ending balance
$
11,123

 
$
8,439

 
$
8,072
Credit Risk Profile of Commercial Financing Receivables
A summary of the credit risk profile by dealer risk rating of the commercial finance receivables is as follows:
 
 
 
December 31, 2016
 
December 31, 2015
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Group I
-
Dealers with superior financial metrics
$
1,596

 
14.3
%
 
$
1,299

 
15.4
%
Group II
-
Dealers with strong financial metrics
3,445

 
31.0

 
2,648

 
31.4

Group III
-
Dealers with fair financial metrics
4,039

 
36.3

 
2,703

 
32.0

Group IV
-
Dealers with weak financial metrics
1,231

 
11.1

 
1,100

 
13.0

Group V
-
Dealers warranting special mention due to potential weaknesses
642

 
5.8

 
505

 
6.0

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
170

 
1.5

 
184

 
2.2

Balance at end of period
$
11,123

 
100.0
%
 
$
8,439

 
100.0
%