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Allowance for Credit Losses (Disclosure)
 3 Months Ended
Jun. 30, 2011
Allowance For Loan And Lease Losses Provision For Loss Net Abstract  
Allowance For Credit Losses Text Block
Note 7 – Allowance for Credit Losses
       
The following table provides information related to our allowance for credit losses on finance
receivables and investments in operating leases:
       
   Three Months Ended
  June 30,
(Dollars in millions) 2011  2010
Allowance for credit losses at beginning of period$ 879 $ 1,705
Provision for credit losses  (203)   (289)
Charge-offs, net of recoveries  (9)   (100)
Allowance for credit losses at end of period$ 667 $ 1,316

Charge-offs are shown net of $52 million and $39 million of recoveries for the three months ended June 30, 2011 and 2010, respectively.

 

Allowance for Credit Losses and Recorded Investment in Finance Receivables by Portfolio Segment

 

The following tables provide information related to our allowance for credit losses and recorded investment in finance receivables by portfolio segment for the three months ended June 30, 2011 and 2010:

 

For the Three Months Ended June 30, 2011   
             
(Dollars in millions)Retail Loan Commercial Dealer Products Total
             
Allowance for Credit Losses for Finance Receivables:
             
Beginning Balance, April 1, 2011$ 595 $ 18 $ 141 $ 754
Charge-offs   (53)   -   -   (53)
Recoveries   44   1   -   45
Provisions   (206)   (6)   (6)   (218)
Ending Balance, June 30, 2011$ 380 $ 13   135 $ 528
             
Ending Balance: Individually Evaluated for Impairment$ - $ - $ 64 $ 64
Ending Balance: Collectively Evaluated for Impairment$ 380 $ 13 $ 71 $ 464
             
Gross Finance Receivables:           
             
Ending Balance, June 30, 2011$ 45,830 $ 407 $ 10,097 $ 56,334
Ending Balance: Individually Evaluated for Impairment$ - $ - $ 191 $ 191
Ending Balance: Collectively Evaluated for Impairment$ 45,830 $ 407 $ 9,906 $ 56,143

 Note 7 – Allowance for Credit Losses (Continued)
              
 For the Three Months Ended June 30, 2010   
              
 (Dollars in millions)Retail Loan  Commercial Dealer Products Total
              
 Allowance for Credit Losses for Finance Receivables:
              
 Beginning Balance, April 1, 2010$ 1,236 $ 33 $ 211 $ 1,480
 Charge-offs   (116)   (2)   -   (118)
 Recoveries   29   1   -   30
 Provisions   (220)   -   (52)   (272)
 Ending Balance, June 30, 2010$ 929 $ 32   159 $ 1,120
              
 Ending Balance: Individually Evaluated for           
  Impairment$ - $ - $ 76 $ 76
 Ending Balance: Collectively Evaluated for           
  Impairment$ 929 $ 32 $ 83 $ 1,044
              
 Gross Finance Receivables:1           
              
 Ending Balance, June 30, 2010$ 45,539 $ 540 $ 11,943 $ 58,022
 Ending Balance: Individually Evaluated for           
  Impairment$ - $ - $ 257 $ 257
 Ending Balance: Collectively Evaluated for           
  Impairment$ 45,539 $ 540 $ 11,686 $ 57,765
 1Prior period amounts have been reclassified to conform to the current period presentation.

We had no purchases or sales of any finance receivables during the above reporting periods. Furthermore, we acquired no finance receivables with deteriorated credit quality.

 

             
 Past Due Finance Receivables and Investments in Operating Leases
 
(Dollars in millions)    June 30, 2011March 31, 2011
Aggregate balances 60 or more days past due           
 Finance receivables     $ 190$ 157
 Operating leases        48   43
Total     $ 238$ 200

Substantially all retail, direct finance lease, and operating lease receivables do not involve recourse to the dealer in the event of customer default. Finance and operating lease receivables 60 or more days past due include accounts in bankruptcy and exclude accounts for which vehicles have been repossessed.

Note 7 – Allowance for Credit Losses (Continued)

 

Past Due Finance Receivables by Class

 

The following tables summarize the aging of finance receivables by class as of June 30, 2011 and March 31, 2011 for finance receivables that are past due:

 

(Dollars in millions)30 - 59 Days Past Due60 - 89 Days Past Due90 Days Past DueTotal Past DueCurrentTotal Finance ReceivablesCarrying Amount 90 Days Past Due and Accruing
               
As of June 30, 2011            
               
Retail Loan$ 596$ 142$ 42$ 780$ 45,050$ 45,830$ 42
Commercial  12  4  2  18  389  407  2
Wholesale  -  -  -  -  4,838  4,838  -
Real estate  1  -  -  1  4,105  4,106  -
Working capital  1  -  -  1  1,152  1,153  -
Total$ 610$ 146$ 44$ 800$ 55,534$ 56,334$ 44
               
(Dollars in millions)30 - 59 Days Past Due60 - 89 Days Past Due90 Days Past DueTotal Past DueCurrentTotal Finance ReceivablesCarrying Amount 90 Days Past due and Accruing
               
As of March 31, 2011            
               
Retail Loan$ 562$ 108$ 39$ 709$ 45,351$ 46,060$ 39
Commercial  15  5  1  21  416  437  1
Wholesale  24  4  -  28  6,832  6,860  -
Real estate  4  -  -  4  4,069  4,073  -
Working capital  1  -  -  1  1,255  1,256  -
Total$ 606$ 117$ 40$ 763$ 57,923$ 58,686$ 40