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Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
 
June 30, 2019
 
December 31, 2018

Retail finance receivables
 
 
 
Retail finance receivables, collectively evaluated for impairment, net of fees
$
40,345

 
$
38,354

Retail finance receivables, individually evaluated for impairment, net of fees
2,354

 
2,348

Total retail finance receivables, net of fees(a)
42,699

 
40,702

Less: allowance for loan losses - collective
(540
)
 
(523
)
Less: allowance for loan losses - specific
(341
)
 
(321
)
Total retail finance receivables, net
41,818

 
39,858

Commercial finance receivables
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
12,997

 
12,680

Commercial finance receivables, individually evaluated for impairment, net of fees
49

 
41

Total commercial finance receivables, net of fees(b)
13,046

 
12,721

Less: allowance for loan losses - collective
(65
)
 
(63
)
Less: allowance for loan losses - specific
(11
)
 
(4
)
Total commercial finance receivables, net
12,970

 
12,654

Total finance receivables, net
$
54,788

 
$
52,512

Fair value utilizing Level 2 inputs
$
12,970

 
$
12,654

Fair value utilizing Level 3 inputs
$
42,158

 
$
39,564

________________
(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $44 million and $53 million at June 30, 2019 and December 31, 2018.
(b) Net of dealer cash management balances of $1.1 billion and $922 million at June 30, 2019 and December 31, 2018.
Allowance for Credit Losses on Financing Receivables
A summary of the activity in the allowance for retail loan losses is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Allowance for retail loan losses beginning balance
$
862

 
$
858

 
$
844

 
$
889

Provision for loan losses
165

 
123

 
343

 
258

Charge-offs
(279
)
 
(298
)
 
(586
)
 
(593
)
Recoveries
132

 
145

 
277

 
268

Foreign currency translation
1

 
(13
)
 
3

 
(7
)
Allowance for retail loan losses ending balance
$
881

 
$
815

 
$
881

 
$
815
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: 
 
June 30, 2019
 
June 30, 2018
 
Amount
 
Percent of Contractual Amount Due
 
Amount
 
Percent of Contractual Amount Due
31 - 60 days
$
1,083

 
2.5
%
 
$
1,178

 
3.3
%
Greater than 60 days
498

 
1.2

 
462

 
1.3

Total finance receivables more than 30 days delinquent
1,581

 
3.7

 
1,640

 
4.6

In repossession
48

 
0.1

 
57

 
0.1

Total finance receivables more than 30 days delinquent or in repossession
$
1,629

 
3.8
%
 
$
1,697

 
4.7
%
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:
 
June 30, 2019
 
December 31, 2018
Outstanding recorded investment
$
2,354

 
$
2,348

Less: allowance for loan losses
(341
)
 
(321
)
Outstanding recorded investment, net of allowance
$
2,013

 
$
2,027

Unpaid principal balance
$
2,382

 
$
2,379

Additional information about loans classified as TDRs is presented below:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Average outstanding recorded investment
$
2,344

 
$
2,238

 
$
2,351

 
$
2,253

Finance charge income recognized
$
63

 
$
62

 
$
131

 
$
126

Number of loans classified as TDRs during the period
17,407

 
19,662

 
33,939

 
33,096

Recorded investment of loans classified as TDRs during the period
$
318

 
$
360

 
$
626

 
$
613
Financing Receivable Credit Quality Indicators for Commercial Lending
The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: 
 
 
 
June 30, 2019
 
December 31, 2018
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Group I
-
Dealers with superior financial metrics
$
1,939

 
14.9
%
 
$
2,192

 
17.2
%
Group II
-
Dealers with strong financial metrics
5,241

 
40.2

 
4,500

 
35.4

Group III
-
Dealers with fair financial metrics
4,108

 
31.5

 
4,292

 
33.7

Group IV
-
Dealers with weak financial metrics
1,229

 
9.4

 
1,205

 
9.5

Group V
-
Dealers warranting special mention due to elevated risks
419

 
3.2

 
449

 
3.5

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
110

 
0.8

 
83

 
0.7

Balance at end of period
$
13,046

 
100.0
%
 
$
12,721

 
100.0
%