Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2018

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]



	March 31, 2018			December 31, 2017
Retail finance receivables
Retail finance receivables, collectively evaluated for impairment, net of fees	$	32,121		$	30,574
Retail finance receivables, individually evaluated for impairment, net of fees	2,199			2,228
Total retail finance receivables, net of fees^(a)	34,320			32,802
Less: allowance for loan losses - collective	(551		)	(561		)
Less: allowance for loan losses - specific	(307		)	(328		)
Total retail finance receivables, net	33,462			31,913
Commercial finance receivables
Commercial finance receivables, collectively evaluated for impairment, net of fees	10,342			10,290
Commercial finance receivables, individually evaluated for impairment, net of fees	23			22
Total commercial finance receivables, net of fees	10,365			10,312
Less: allowance for loan losses - collective	(50		)	(50		)
Less: allowance for loan losses - specific	(4		)	(3		)
Total commercial finance receivables, net	10,311			10,259
Total finance receivables, net	$	43,773		$	42,172
Fair value of finance receivables	$	43,505		$	42,178

________________

(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $217 million and $228 million at March 31, 2018 and December 31, 2017.

Allowance for Credit Losses on Financing Receivables



Retail Finance Receivables	Three Months Ended March 31,
	2018			2017
Allowance for retail loan losses beginning balance	$	889		$	765
Provision for loan losses	135			207
Charge-offs	(295		)	(298		)
Recoveries	123			143
Foreign currency translation	6			6
Allowance for retail loan losses ending balance	$	858		$	823

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 is as follows:



	March 31, 2018				December 31, 2017
	Amount		Percent		Amount		Percent
Prime - FICO Score 680 and greater	$	18,392	53.6	%	$	16,892	51.5	%
Near-prime - FICO Score 620 to 679	5,451		15.9		5,226		15.9
Sub-prime - FICO Score less than 620	10,477		30.5		10,684		32.6
Balance at end of period	$	34,320	100.0	%	$	32,802	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.



	March 31, 2018				March 31, 2017
	Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
31 - 60 days	$	1,265	3.7	%	$	995	3.4	%
Greater than 60 days	605		1.7		430		1.4
Total finance receivables more than 30 days delinquent	1,870		5.4		1,425		4.8
In repossession	53		0.2		46		0.2
Total finance receivables more than 30 days delinquent or in repossession	$	1,923	5.6	%	$	1,471	5.0	%

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:



	March 31, 2018			December 31, 2017
Outstanding recorded investment	$	2,199		$	2,228
Less: allowance for loan losses	(307		)	(328		)
Outstanding recorded investment, net of allowance	$	1,892		$	1,900
Unpaid principal balance	$	2,239		$	2,266

Additional information about loans classified as TDRs is presented below:



	Three Months Ended March 31,
	2018		2017
Average outstanding recorded investment	$	2,214	$	1,939
Finance charge income recognized	$	64	$	60
Number of loans classified as TDRs during the period	13,336		16,474
Recorded investment of loans classified as TDRs during the period	$	251	$	287

Financing Receivable Credit Quality Indicators for Commercial Lending

The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables:



			March 31, 2018				December 31, 2017
			Amount		Percent		Amount		Percent
Group I	-	Dealers with superior financial metrics	$	1,799	17.4	%	$	1,915	18.6	%
Group II	-	Dealers with strong financial metrics	3,708		35.8		3,584		34.7
Group III	-	Dealers with fair financial metrics	3,414		32.9		3,424		33.2
Group IV	-	Dealers with weak financial metrics	1,111		10.7		1,048		10.2
Group V	-	Dealers warranting special mention due to elevated risks	268		2.6		260		2.5
Group VI	-	Dealers with loans classified as substandard, doubtful or impaired	65		0.6		81		0.8
Balance at end of period			$	10,365	100.0	%	$	10,312	100.0	%