Allowance for Doubtful Accounts

Our two portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 4, Finance Receivables.

The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables:



	Three Months Ended July 31, 2014											Three Months Ended July 31, 2013
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables			Total			Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables			Total
Allowance for doubtful accounts, at beginning of period	$	22		$	2	$	38		$	62		$	22		$	2	$	34		$	58
Provision for doubtful accounts, net of recoveries	3			—		—			3			2			—		3			5
Charge-off of accounts^(A)	(2		)	—		(3		)	(5		)	(1		)	—		—			(1		)
Other^(B)	1			—		(1		)	—			(1		)	—		(2		)	(3		)
Allowance for doubtful accounts, at end of period	$	24		$	2	$	34		$	60		$	22		$	2	$	35		$	59



	Nine Months Ended July 31, 2014											Nine Months Ended July 31, 2013
(in millions)	Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables			Total			Retail Portfolio			Wholesale Portfolio		Trade and Other Receivables			Total
Allowance for doubtful accounts, at beginning of period	$	21		$	2	$	37		$	60		$	27		$	—	$	24		$	51
Provision for doubtful accounts, net of recoveries	10			—		3			13			1			2		13			16
Charge-off of accounts^(A)	(7		)	—		(5		)	(12		)	(7		)	—		—			(7		)
Other^(B)	—			—		(1		)	(1		)	1			—		(2		)	(1		)
Allowance for doubtful accounts, at end of period	$	24		$	2	$	34		$	60		$	22		$	2	$	35		$	59

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(A)	We repossess sold and leased vehicles on defaulted finance receivables and leases, and place them into Inventories. Losses recognized at the time of repossession and charged against the allowance for doubtful accounts were less than $1 million for the three and nine months ended July 31, 2014 as well as for the three and nine months ended July 31, 2013.


(B)	Amounts include currency translation.

The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables.

The following table presents information regarding impaired finance receivables:



	July 31, 2014						October 31, 2013
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Impaired finance receivables with specific loss reserves	$	18	$	—	$	18	$	15	$	—	$	15
Impaired finance receivables without specific loss reserves	2		—		2		1		—		1
Specific loss reserves on impaired finance receivables	7		—		7		6		—		6
Finance receivables on non-accrual status	19		—		19		10		—		10

For the impaired finance receivables in the retail portfolio as of July 31, 2014 and 2013, the average balances of those receivables were $15 million and $12 million during the nine months ended July 31, 2014 and 2013, respectively.

The Company uses the aging of its receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables:



	July 31, 2014						October 31, 2013
(in millions)	Retail Portfolio		Wholesale Portfolio		Total		Retail Portfolio		Wholesale Portfolio		Total
Current, and up to 30 days past due	$	649	$	1,290	$	1,939	$	699	$	1,204	$	1,903
30-90 days past due	72		2		74		44		2		46
Over 90 days past due	18		4		22		8		1		9
Total finance receivables	$	739	$	1,296	$	2,035	$	751	$	1,207	$	1,958