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

Retail finance receivables
 
 
 
Retail finance receivables, collectively evaluated for impairment, net of fees
$
39,577

 
$
38,354

Retail finance receivables, individually evaluated for impairment, net of fees
2,390

 
2,348

Total retail finance receivables, net of fees(a)
41,967

 
40,702

Less: allowance for loan losses - collective
(519
)
 
(523
)
Less: allowance for loan losses - specific
(337
)
 
(321
)
Total retail finance receivables, net
41,111

 
39,858

Commercial finance receivables
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
13,258

 
12,680

Commercial finance receivables, individually evaluated for impairment, net of fees
40

 
41

Total commercial finance receivables, net of fees(b)
13,298

 
12,721

Less: allowance for loan losses - collective
(66
)
 
(63
)
Less: allowance for loan losses - specific
(11
)
 
(4
)
Total commercial finance receivables, net
13,221

 
12,654

Total finance receivables, net
$
54,332

 
$
52,512

Fair value utilizing Level 2 inputs
$
13,221

 
$
12,654

Fair value utilizing Level 3 inputs
$
41,627

 
$
39,564

________________
(a) Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $72 million and $53 million at September 30, 2019 and December 31, 2018.
(b) Net of dealer cash management balances of $1.2 billion and $922 million at September 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 September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Allowance for retail loan losses beginning balance
$
881

 
$
815

 
$
844

 
$
889

Provision for loan losses
149

 
176

 
492

 
434

Charge-offs
(300
)
 
(285
)
 
(886
)
 
(878
)
Recoveries
133

 
130

 
410

 
398

Foreign currency translation
(7
)
 
3

 
(4
)
 
(4
)
Allowance for retail loan losses ending balance
$
856

 
$
839

 
$
856

 
$
839
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: 
 
September 30, 2019
 
September 30, 2018
 
Amount
 
Percent of Contractual Amount Due
 
Amount
 
Percent of Contractual Amount Due
31 - 60 days
$
1,252

 
3.0
%
 
$
1,302

 
3.4
%
Greater than 60 days
514

 
1.2

 
498

 
1.3

Total finance receivables more than 30 days delinquent
1,766

 
4.2

 
1,800

 
4.7

In repossession
48

 
0.1

 
53

 
0.2

Total finance receivables more than 30 days delinquent or in repossession
$
1,814

 
4.3
%
 
$
1,853

 
4.9
%
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:
 
September 30, 2019
 
December 31, 2018
Outstanding recorded investment
$
2,390

 
$
2,348

Less: allowance for loan losses
(337
)
 
(321
)
Outstanding recorded investment, net of allowance
$
2,053

 
$
2,027

Unpaid principal balance
$
2,416

 
$
2,379

Additional information about loans classified as TDRs is presented below:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Average outstanding recorded investment
$
2,372

 
$
2,293

 
$
2,369

 
$
2,268

Finance charge income recognized
$
60

 
$
59

 
$
191

 
$
185

Number of loans classified as TDRs during the period
19,074

 
17,924

 
53,013

 
51,020

Recorded investment of loans classified as TDRs during the period
$
343

 
$
319

 
$
969

 
$
932
Financing Receivable Credit Quality Indicators for Commercial Lending
The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: 
 
 
 
September 30, 2019
 
December 31, 2018
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Group I
-
Dealers with superior financial metrics
$
1,924

 
14.5
%
 
$
2,192

 
17.2
%
Group II
-
Dealers with strong financial metrics
5,398

 
40.6

 
4,500

 
35.4

Group III
-
Dealers with fair financial metrics
4,243

 
31.9

 
4,292

 
33.7

Group IV
-
Dealers with weak financial metrics
1,327

 
10.0

 
1,205

 
9.5

Group V
-
Dealers warranting special mention due to elevated risks
332

 
2.5

 
449

 
3.5

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
74

 
0.5

 
83

 
0.7

Balance at end of period
$
13,298

 
100.0
%
 
$
12,721

 
100.0
%