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Finance Receivables (Tables)
 3 Months Ended
Mar. 31, 2015
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Finance Receivables, Net
The finance receivables portfolio consists of the following (in millions): 
 
 
March 31, 2015
 
December 31, 2014
 
 
North
America
 
International
 
Total
 
North
America
 
International
 
Total
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
Consumer finance receivables, collectively evaluated for impairment, net of fees(a)
 
$
13,000

 
$
11,297

 
$
24,297

 
$
12,127

 
$
12,262

 
$
24,389

Consumer finance receivables, individually evaluated for impairment, net of fees
 
1,294

 
—

 
1,294

 
1,234

 
—

 
1,234

Total consumer finance receivables(b)
 
14,294

 
11,297

 
25,591

 
13,361

 
12,262

 
25,623

Less: allowance for loan losses - collective
 
(441
)
 
(87
)
 
(528
)
 
(405
)
 
(78
)
 
(483
)
Less: allowance for loan losses - specific
 
(164
)
 
—

 
(164
)
 
(172
)
 
—

 
(172
)
Total consumer finance receivables, net
 
13,689

 
11,210

 
24,899

 
12,784

 
12,184

 
24,968

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial finance receivables, collectively evaluated for impairment, net of fees
 
3,260

 
4,278

 
7,538

 
3,180

 
4,803

 
7,983

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

 
69

 
69

 
—

 
89

 
89

Total commercial finance receivables
 
3,260

 
4,347

 
7,607

 
3,180

 
4,892

 
8,072

Less: allowance for loan losses - collective
 
(20
)
 
(11
)
 
(31
)
 
(21
)
 
(14
)
 
(35
)
Less: allowance for loan losses - specific
 
—

 
(5
)
 
(5
)
 
—

 
(5
)
 
(5
)
Total commercial finance receivables, net
 
3,240

 
4,331

 
7,571

 
3,159

 
4,873

 
8,032

Total finance receivables, net
 
$
16,929

 
$
15,541

 
$
32,470

 
$
15,943

 
$
17,057

 
$
33,000

________________
(a) Amounts reported for International include $1.0 billion of direct-financing leases at March 31, 2015 and December 31, 2014.
(b) Net of unamortized premiums and discounts, and deferred fees and costs of $191 million and $245 million at March 31, 2015 and December 31, 2014.
Finance Receivables Summary
Following is a summary of activity in our consumer finance receivables portfolio (in millions): 
 
 
Three Months Ended March 31,
 
 
2015
 
2014
 
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Consumer finance receivables, net of fees - beginning of period
 
$
13,361

 
$
12,262

 
$
25,623

 
$
11,388

 
$
11,742

 
$
23,130

Loans purchased
 
2,273

 
1,805

 
4,078

 
1,364

 
2,048

 
3,412

Principal collections and other
 
(1,134
)
 
(1,459
)
 
(2,593
)
 
(1,003
)
 
(1,464
)
 
(2,467
)
Charge-offs
 
(200
)
 
(34
)
 
(234
)
 
(192
)
 
(32
)
 
(224
)
Foreign currency translation
 
(6
)
 
(1,277
)
 
(1,283
)
 
(1
)
 
174

 
173

Balance at end of period
 
$
14,294

 
$
11,297

 
$
25,591

 
$
11,556

 
$
12,468

 
$
24,024
Allowance for Credit Losses on Financing Receivables
A summary of the activity in the allowance for consumer loan losses is as follows (in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Three Months Ended March 31,
 
 
2015
 
2014
 
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Balance at beginning of period
 
$
577

 
$
78

 
$
655

 
$
468

 
$
29

 
$
497

Provision for loan losses
 
118

 
39

 
157

 
104

 
33

 
137

Charge-offs
 
(200
)
 
(34
)
 
(234
)
 
(192
)
 
(32
)
 
(224
)
Recoveries
 
110

 
12

 
122

 
111

 
16

 
127

Foreign currency translation
 
—

 
(8
)
 
(8
)
 
—

 
—

 
—

Balance at end of period
 
$
605

 
$
87

 
$
692

 
$
491

 
$
46

 
$
537
Financing Receivable Credit Quality Indicators
A summary of the credit risk profile by FICO score band, determined at origination, of the consumer finance receivables in the North America Segment is as follows (dollars in millions):
 
 
March 31, 2015
 
December 31, 2014
 
 
Amount
 
Percent
 
Amount
 
Percent
Prime - FICO Score 680 and greater
 
$
1,161

 
8.1
%
 
$
596

 
4.4
%
Near Prime - FICO Score 620 to 679
 
2,138

 
15.0

 
1,691

 
12.7

Sub-prime - FICO Score less than 620
 
10,995

 
76.9

 
11,074

 
82.9

Balance at end of period
 
$
14,294

 
100.0
%
 
$
13,361

 
100.0
%
Past Due Financing Receivables
The following is a summary of the contractual amounts of delinquent consumer finance receivables, which is not significantly different than recorded investment, that are (i) more than 30 days delinquent, but not yet in repossession and (ii) in repossession, but not yet charged off (dollars in millions): 
 
 
Three Months Ended March 31,
 
 
2015
 
2014
 
 
North America
 
International
 
Total
 
Percent of Contractual Amount Due
 
North America
 
International
 
Total
 
Percent of Contractual Amount Due
31 - 60 days
 
$
767

 
$
113

 
$
880

 
3.4
%
 
$
579

 
$
138

 
$
717

 
3.1
%
Greater than 60 days
 
259

 
98

 
357

 
1.4

 
210

 
126

 
336

 
1.4

 
 
1,026

 
211

 
1,237

 
4.8

 
789

 
264

 
1,053

 
4.5

In repossession
 
34

 
8

 
42

 
0.2

 
33

 
5

 
38

 
0.1

 
 
$
1,060

 
$
219

 
$
1,279

 
5.0
%
 
$
822

 
$
269

 
$
1,091

 
4.6
%
Troubled Debt Restructurings on Financing Receivables
At March 31, 2015 and December 31, 2014, the outstanding balance of consumer finance receivables in the International Segment determined to be TDRs was insignificant; therefore, the following information is presented with regard to the TDRs in the North America Segment only (in millions):
 
 
March 31, 2015
 
December 31, 2014
Outstanding recorded investment
 
$
1,294

 
$
1,234

Less: allowance for loan losses
 
(164
)
 
(172
)
Outstanding recorded investment, net of allowance
 
$
1,130

 
$
1,062

Unpaid principal balance
 
$
1,319

 
$
1,255

Additional information about loans classified as TDRs is presented below (in millions, except for number of loans):
 
 
Three Months Ended March 31,
 
 
2015
 
2014
Average recorded investment
 
$
1,264

 
$
816

Finance charge income recognized
 
$
40

 
$
29

Number of loans classified as TDRs during the period
 
11,752

 
10,127

Recorded investment of loans classified as TDRs during the period
 
$
199

 
$
183
Finance Receivables Summary - Post-acquisition - Commercial
Following is a summary of activity in our commercial finance receivables portfolio (in millions): 
 
 
Three Months Ended March 31,
 
 
2015
 
2014
 
 
North America
 
International
 
Total
 
North America
 
International
 
Total
Commercial finance receivables, net of fees - beginning of period
 
$
3,180

 
$
4,892

 
$
8,072

 
$
1,975

 
$
4,725

 
$
6,700

Net funding (collections) of commercial finance receivables
 
110

 
(150
)
 
(40
)
 
223

 
154

 
377

Charge-offs
 
—

 
—

 
—

 
—

 
—

 
—

Foreign currency translation
 
(30
)
 
(395
)
 
(425
)
 
(8
)
 
39

 
31

Balance at end of period
 
$
3,260

 
$
4,347

 
$
7,607

 
$
2,190

 
$
4,918

 
$
7,108
Financing Receivable Credit Quality Indicators for Commercial Lending
A summary of the credit risk profile by dealer grouping of the commercial finance receivables is as follows (in millions): 
 
 
 
 
March 31, 2015
 
December 31, 2014
Group I
-
Dealers with superior financial metrics
 
$
954

 
$
1,062

Group II
-
Dealers with strong financial metrics
 
2,149

 
2,090

Group III
-
Dealers with fair financial metrics
 
2,690

 
2,856

Group IV
-
Dealers with weak financial metrics
 
1,108

 
1,250

Group V
-
Dealers warranting special mention due to potential weaknesses
 
515

 
559

Group VI
-
Dealers with loans classified as substandard, doubtful or impaired
 
191

 
255

Balance at end of period
 
$
7,607

 
$
8,072