XML 88 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Allowance for Credit Losses
 12 Months Ended
Mar. 31, 2013
Allowance for Credit Losses [Abstract]  
Allowance for Credit Losses
Note 6 – Allowance for Credit Losses
          
The following table provides information related to our allowance for credit losses on finance receivables
and investments in operating leases:
       
  Years ended March 31,
(Dollars in millions) 2013  2012  2011
Allowance for credit losses at beginning of period$ 619 $ 879 $ 1,705
Provision for credit losses  121   (98)   (433)
Charge-offs, net of recoveries  (213)   (162)   (393)
Allowance for credit losses at end of period$ 527 $ 619 $ 879

Charge-offs are shown net of $87 million, $123 million and $137 million of recoveries for fiscal 2013, 2012 and 2011, respectively.

 

Allowance for Credit Losses and Finance Receivables by Portfolio Segment

 

The following tables provide information related to our allowance for credit losses and finance receivables by portfolio segment for fiscal 2013 and 2012:

Fiscal Year Ended March 31, 2013   
             
(Dollars in millions)Retail Loan Commercial Dealer Products Total
             
Allowance for Credit Losses for Finance Receivables:
             
Beginning Balance at April 1, 2012$ 395 $ 10 $ 119 $ 524
Charge-offs   (248)   (1)   - $ (249)
Recoveries   70   1   -   71
Provisions   116   (5)   (12)   99
Ending Balance at March 31, 2013$ 333 $ 5 $ 107 $ 445
             
Ending Balance: Individually Evaluated for Impairment$ - $ - $ 33 $ 33
Ending Balance: Collectively Evaluated for Impairment$ 333 $ 5 $ 74 $ 412
             
Gross Finance Receivables:           
             
Ending Balance at March 31, 2013$ 47,808 $ 369 $ 14,995 $ 63,172
Ending Balance: Individually Evaluated for Impairment$ - $ - $ 241 $ 241
Ending Balance: Collectively Evaluated for Impairment$ 47,808 $ 369 $ 14,754 $ 62,931

The ending balance of gross finance receivables collectively evaluated for impairment includes approximately $415 million and $1 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of March 31, 2013, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.

 

Note 6 – Allowance for Credit Losses (Continued)
             
Fiscal Year Ended March 31, 2012   
             
(Dollars in millions)Retail Loan Commercial Dealer Products Total
             
Allowance for Credit Losses for Finance Receivables:
             
Beginning Balance at April 1, 2011$595 $18 $141 $754
Charge-offs  (243)  (1)  0 $(244)
Recoveries  99  4  0  103
Provisions  (56)  (11)  (22)  (89)
Ending Balance at March 31, 2012$395 $10 $119 $524
             
Ending Balance: Individually Evaluated for           
Impairment$0 $0 $45 $45
Ending Balance: Collectively Evaluated for           
Impairment$395 $10 $74 $479
             
Gross Finance Receivables:           
             
Ending Balance at March 31, 2012$45,383 $363 $12,865 $58,611
Ending Balance: Individually Evaluated for           
Impairment$0 $0 $211 $211
Ending Balance: Collectively Evaluated for           
Impairment$45,383 $363 $12,654 $58,400

The ending balance of gross finance receivables collectively evaluated for impairment includes approximately $502 million and $1 million of finance receivables within the retail loan and commercial portfolio segments, respectively, that are specifically identified as impaired. These amounts are aggregated with their respective portfolio segments when determining the allowance for credit losses as of March 31, 2012, as they are deemed to be insignificant for individual evaluation and we have determined that the allowance for credit losses would not be materially different if the amounts had been individually evaluated for impairment.

Past Due Finance Receivables and Investments in Operating Leases
 
(Dollars in millions)    March 31, 2013March 31, 2012
Aggregate balances 60 or more days past due:           
 Finance receivables      $ 119 $ 111
 Operating leases        36   31
Total      $ 155 $ 142

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 6 – Allowance for Credit Losses (Continued)

 

Past Due Finance Receivables by Class

 

The following tables summarize the aging of finance receivables by class as of March 31, 2013 and 2012 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 March 31, 2013            
               
Retail Loan$ 454$ 87$ 31$ 572$ 47,236$ 47,808$ 31
Commercial  6  1  -   7  362  369  -
Wholesale  -   -   -   -   8,689  8,689  -
Real estate  -   -   -   -   4,580  4,580  -
Working capital  -   -   -   -   1,726  1,726  -
Total$ 460$ 88$ 31$ 579$ 62,593$ 63,172$ 31
               
               
(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, 2012            
               
Retail Loan$ 433$ 80$ 28$ 541$ 44,842$ 45,383$ 28
Commercial  8  2  1  11  352  363  1
Wholesale  -   -   -   -   7,008  7,008  -
Real estate  -   -   -   -   4,361  4,361  -
Working capital  1  -   -   1  1,495  1,496  -
Total$ 442$ 82$ 29$ 553$ 58,058$ 58,611$ 29