Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2019

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



	March 31, 2019			December 31, 2018
Retail finance receivables
Retail finance receivables, collectively evaluated for impairment, net of fees	$	39,452		$	38,354
Retail finance receivables, individually evaluated for impairment, net of fees	2,333			2,348
Total retail finance receivables, net of fees^(a)	41,785			40,702
Less: allowance for loan losses - collective	(538		)	(523		)
Less: allowance for loan losses - specific	(324		)	(321		)
Total retail finance receivables, net	40,923			39,858
Commercial finance receivables
Commercial finance receivables, collectively evaluated for impairment, net of fees	12,334			12,680
Commercial finance receivables, individually evaluated for impairment, net of fees	34			41
Total commercial finance receivables, net of fees^(b)	12,368			12,721
Less: allowance for loan losses - collective	(60		)	(63		)
Less: allowance for loan losses - specific	(2		)	(4		)
Total commercial finance receivables, net	12,306			12,654
Total finance receivables, net	$	53,229		$	52,512
Fair value utilizing Level 2 inputs	$	12,306		$	12,654
Fair value utilizing Level 3 inputs	$	40,951		$	39,564

________________

(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $29 million and $53 million at March 31, 2019 and December 31, 2018.

(b) Net of dealer cash management balances of $1,083 million and $922 million at March 31, 2019 and December 31, 2018.

Allowance for Credit Losses on Financing Receivables



	Three Months Ended March 31,
	2019			2018
Allowance for retail loan losses beginning balance	$	844		$	889
Provision for loan losses	178			135
Charge-offs	(307		)	(295		)
Recoveries	145			123
Foreign currency translation	2			6
Allowance for retail loan losses ending balance	$	862		$	858

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, 2019				March 31, 2018
	Amount		Percent of Contractual Amount Due		Amount		Percent of Contractual Amount Due
31 - 60 days	$	1,048	2.5	%	$	1,265	3.7	%
Greater than 60 days	412		1.0		605		1.7
Total finance receivables more than 30 days delinquent	1,460		3.5		1,870		5.4
In repossession	47		0.1		53		0.2
Total finance receivables more than 30 days delinquent or in repossession	$	1,507	3.6	%	$	1,923	5.6	%

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, 2019			December 31, 2018
Outstanding recorded investment	$	2,333		$	2,348
Less: allowance for loan losses	(324		)	(321		)
Outstanding recorded investment, net of allowance	$	2,009		$	2,027
Unpaid principal balance	$	2,364		$	2,379

Additional information about loans classified as TDRs is presented below:



	Three Months Ended March 31,
	2019		2018
Average outstanding recorded investment	$	2,341	$	2,214
Finance charge income recognized	$	68	$	64
Number of loans classified as TDRs during the period	16,532		13,336
Recorded investment of loans classified as TDRs during the period	$	308	$	251

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, 2019				December 31, 2018
			Amount		Percent		Amount		Percent
Group I	-	Dealers with superior financial metrics	$	2,075	16.8	%	$	2,192	17.2	%
Group II	-	Dealers with strong financial metrics	4,897		39.6		4,500		35.4
Group III	-	Dealers with fair financial metrics	3,737		30.2		4,292		33.7
Group IV	-	Dealers with weak financial metrics	1,167		9.4		1,205		9.5
Group V	-	Dealers warranting special mention due to elevated risks	423		3.4		449		3.5
Group VI	-	Dealers with loans classified as substandard, doubtful or impaired	69		0.6		83		0.7
Balance at end of period			$	12,368	100.0	%	$	12,721	100.0	%