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Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Finance Receivables Portfolio
 
December 31, 2019
 
December 31, 2018
Retail finance receivables
 
 
 
Retail finance receivables, collectively evaluated for impairment, net of fees
$
39,890

 
$
38,354

Retail finance receivables, individually evaluated for impairment, net of fees
2,378

 
2,348

Total retail finance receivables, net of fees(a)
42,268

 
40,702

Less: allowance for loan losses - collective
(536
)
 
(523
)
Less: allowance for loan losses - specific
(330
)
 
(321
)
Total retail finance receivables, net
41,402

 
39,858

Commercial finance receivables
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
12,073

 
12,680

Commercial finance receivables, individually evaluated for impairment, net of fees
76

 
41

Total commercial finance receivables, net of fees(b)
12,149

 
12,721

Less: allowance for loan losses - collective
(60
)
 
(63
)
Less: allowance for loan losses - specific
(18
)
 
(4
)
Total commercial finance receivables, net
12,071

 
12,654

Total finance receivables, net
$
53,473

 
$
52,512

Fair value utilizing Level 2 inputs
$
12,071

 
$
12,654

Fair value utilizing Level 3 inputs
$
42,012

 
$
39,564


________________
(a)
Net of unearned income, unamortized premiums and discounts, and deferred fees and costs of $83 million and $53 million at December 31, 2019 and 2018.
(b)
Net of dealer cash management balances of $1.2 billion and $922 million at December 31, 2019 and 2018.
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,
 
2019
 
2018
 
2017
Allowance for retail loan losses beginning balance
$
844

 
$
889

 
$
765

Provision for loan losses
690

 
624

 
742

Charge-offs
(1,218
)
 
(1,196
)
 
(1,171
)
Recoveries
548

 
536

 
552

Foreign currency translation
2

 
(9
)
 
1

Allowance for retail loan losses ending balance
$
866

 
$
844

 
$
889
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, 2019
 
December 31, 2018
 
Amount
 
Percent of Contractual Amount Due
 
Amount
 
Percent of Contractual Amount Due
31 - 60 days
$
1,354

 
3.2
%
 
$
1,349

 
3.3
%
Greater than 60 days
542

 
1.3

 
547

 
1.4

Total finance receivables more than 30 days delinquent
1,896

 
4.5

 
1,896

 
4.7

In repossession
44

 
0.1

 
44

 
0.1

Total finance receivables more than 30 days delinquent or in repossession
$
1,940

 
4.6
%
 
$
1,940

 
4.8
%
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, 2019
 
December 31, 2018
Outstanding recorded investment
$
2,378

 
$
2,348

Less: allowance for loan losses
(330
)
 
(321
)
Outstanding recorded investment, net of allowance
$
2,048

 
$
2,027

Unpaid principal balance(a)
$
2,404

 
$
2,379

________________
(a)
Includes $366 million in nonaccrual loans at both December 31, 2019 and 2018.
Additional information about loans classified as TDRs is presented below:
 
Years Ended December 31,
 
2019
 
2018
 
2017
Average outstanding recorded investment
$
2,363

 
$
2,288

 
$
2,074

Finance charge income recognized
$
245

 
$
239

 
$
228

Number of loans classified as TDRs during the period
69,863

 
69,298

 
74,784

Recorded investment of loans classified as TDRs during the period
$
1,269

 
$
1,267

 
$
1,309
Commercial Finance Receivables [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Financing Receivable Credit Quality Indicators
The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables: 
 
 
 
December 31, 2019
 
December 31, 2018
 
 
 
Amount
 
Percent
 
Amount
 
Percent
Group I
-
Dealers with superior financial metrics
$
1,953

 
16.1
%
 
$
2,192

 
17.2
%
Group II
-
Dealers with strong financial metrics
4,666

 
38.4

 
4,500

 
35.4

Group III
-
Dealers with fair financial metrics
3,989

 
32.8

 
4,292

 
33.7

Group IV
-
Dealers with weak financial metrics
1,043

 
8.6

 
1,205

 
9.5

Group V
-
Dealers warranting special mention due to elevated risks
370

 
3.0

 
449

 
3.5

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
128

 
1.1

 
83

 
0.7

Balance at end of period
$
12,149

 
100.0
%
 
$
12,721

 
100.0
%