|
Financing Receivables: (Tables)
|
9 Months Ended |
|
Sep. 30, 2012
|
| Financing Receivables: |
|
| Financing receivables, net of allowances for credit losses, including residual values |
|
|
|
|
At September 30, |
|
At December 31, |
|
|
(Dollars in millions) |
|
2012 |
|
2011 |
|
|
Current: |
|
|
|
|
|
|
Net investment in sales-type and direct financing leases |
|
$ |
3,887 |
|
$ |
3,765 |
|
|
Commercial financing receivables |
|
5,417 |
|
7,095 |
|
|
Client loan receivables |
|
4,750 |
|
5,195 |
|
|
Installment payment receivables |
|
871 |
|
846 |
|
|
Total |
|
$ |
14,925 |
|
$ |
16,901 |
|
|
Noncurrent: |
|
|
|
|
|
|
Net investment in sales-type and direct financing leases |
|
$ |
5,091 |
|
$ |
5,406 |
|
|
Commercial financing receivables |
|
6 |
|
34 |
|
|
Client loan receivables |
|
5,223 |
|
4,925 |
|
|
Installment payment receivables |
|
470 |
|
410 |
|
|
Total |
|
$ |
10,791 |
|
$ |
10,776 |
| | |
|
| Schedule of financing receivables and allowance for credit losses by portfolio segment |
|
(Dollars in millions) |
|
Major |
|
Growth |
|
|
|
|
At September 30, 2012 |
|
Markets |
|
Markets |
|
Total |
|
|
Financing receivables: |
|
|
|
|
|
|
|
|
Lease receivables |
|
$ |
6,353 |
|
$ |
1,920 |
|
$ |
8,273 |
|
|
Loan receivables |
|
8,419 |
|
3,099 |
|
11,518 |
|
|
Ending balance |
|
$ |
14,771 |
|
$ |
5,019 |
|
$ |
19,790 |
|
|
Collectively evaluated for impairment |
|
$ |
14,628 |
|
$ |
4,911 |
|
$ |
19,539 |
|
|
Individually evaluated for impairment |
|
$ |
143 |
|
$ |
108 |
|
$ |
251 |
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
Beginning balance at January 1, 2012 |
|
|
|
|
|
|
|
|
Lease receivables |
|
$ |
79 |
|
$ |
40 |
|
$ |
118 |
|
|
Loan receivables |
|
125 |
|
64 |
|
189 |
|
|
Total |
|
$ |
203 |
|
$ |
104 |
|
$ |
307 |
|
|
Write-offs |
|
(8 |
) |
(1 |
) |
(9 |
) |
|
Provision |
|
0 |
|
18 |
|
18 |
|
|
Other |
|
(1 |
) |
(1 |
) |
(2 |
) |
|
Ending balance at September 30, 2012 |
|
$ |
194 |
|
$ |
120 |
|
$ |
314 |
|
|
Lease receivables |
|
$ |
70 |
|
$ |
48 |
|
$ |
118 |
|
|
Loan receivables |
|
$ |
124 |
|
$ |
72 |
|
$ |
196 |
|
|
|
|
|
|
|
|
|
|
|
Collectively evaluated for impairment |
|
$ |
82 |
|
$ |
22 |
|
$ |
104 |
|
|
Individually evaluated for impairment |
|
$ |
112 |
|
$ |
98 |
|
$ |
210 |
|
|
(Dollars in millions) |
|
Major |
|
Growth |
|
|
|
|
At December 31, 2011 |
|
Markets |
|
Markets |
|
Total |
|
|
Financing receivables: |
|
|
|
|
|
|
|
|
Lease receivables |
|
$ |
6,510 |
|
$ |
1,921 |
|
$ |
8,430 |
|
|
Loan receivables |
|
9,077 |
|
2,552 |
|
11,629 |
|
|
Ending balance |
|
$ |
15,587 |
|
$ |
4,472 |
|
$ |
20,060 |
|
|
Collectively evaluated for impairment |
|
$ |
15,321 |
|
$ |
4,370 |
|
$ |
19,692 |
|
|
Individually evaluated for impairment |
|
$ |
266 |
|
$ |
102 |
|
$ |
368 |
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
Beginning balance at January 1, 2011 |
|
|
|
|
|
|
|
|
Lease receivables |
|
$ |
84 |
|
$ |
42 |
|
$ |
126 |
|
|
Loan receivables |
|
150 |
|
76 |
|
226 |
|
|
Total |
|
$ |
234 |
|
$ |
119 |
|
$ |
353 |
|
|
Write-offs |
|
(68 |
) |
(16 |
) |
(84 |
) |
|
Provision |
|
39 |
|
5 |
|
44 |
|
|
Other |
|
(1 |
) |
(4 |
) |
(5 |
) |
|
Ending balance at December 31, 2011 |
|
$ |
203 |
|
$ |
104 |
|
$ |
307 |
|
|
Lease receivables |
|
$ |
79 |
|
$ |
40 |
|
$ |
118 |
|
|
Loan receivables |
|
$ |
125 |
|
$ |
64 |
|
$ |
189 |
|
|
|
|
|
|
|
|
|
|
|
Collectively evaluated for impairment |
|
$ |
82 |
|
$ |
15 |
|
$ |
96 |
|
|
Individually evaluated for impairment |
|
$ |
122 |
|
$ |
89 |
|
$ |
211 |
| | |
|
| Schedule of recorded investment in financing receivables which are on Non-Accrual Status |
|
|
|
|
At September 30, |
|
At December 31, |
|
|
(Dollars in millions) |
|
2012 |
|
2011 |
|
|
Major markets |
|
$ |
24 |
|
$ |
46 |
|
|
Growth markets |
|
15 |
|
20 |
|
|
Total lease receivables |
|
$ |
40 |
|
$ |
66 |
|
|
|
|
|
|
|
|
|
Major markets |
|
$ |
55 |
|
$ |
75 |
|
|
Growth markets |
|
23 |
|
24 |
|
|
Total loan receivables |
|
$ |
78 |
|
$ |
99 |
|
|
|
|
|
|
|
|
|
Total receivables |
|
$ |
117 |
|
$ |
165 |
| | |
|
| Schedule of impaired client loan receivables |
|
|
|
|
At September 30, 2012 |
|
At December 31, 2011 |
|
|
|
|
Recorded |
|
Related |
|
Recorded |
|
Related |
|
|
(Dollars in millions) |
|
Investment |
|
Allowance |
|
Investment |
|
Allowance |
|
|
Major markets |
|
$ |
91 |
|
$ |
76 |
|
$ |
110 |
|
$ |
70 |
|
|
Growth markets |
|
64 |
|
59 |
|
62 |
|
53 |
|
|
Total |
|
$ |
156 |
|
$ |
135 |
|
$ |
172 |
|
$ |
123 |
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Interest |
|
Income |
|
|
(Dollars in millions) |
|
Recorded |
|
Income |
|
Recognized on |
|
|
For the three months ended September 30, 2012: |
|
Investment |
|
Recognized* |
|
Cash Basis |
|
|
Major markets |
|
$ |
84 |
|
$ |
0 |
|
$ |
0 |
|
|
Growth markets |
|
63 |
|
0 |
|
0 |
|
|
Total |
|
$ |
147 |
|
$ |
0 |
|
$ |
0 |
|
* Impaired loans are placed on non-accrual status, depending on the level of impairment.
|
|
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Interest |
|
Income |
|
|
(Dollars in millions) |
|
Recorded |
|
Income |
|
Recognized on |
|
|
For the three months ended September 30, 2011: |
|
Investment |
|
Recognized* |
|
Cash Basis |
|
|
Major markets |
|
$ |
125 |
|
$ |
1 |
|
$ |
0 |
|
|
Growth markets |
|
60 |
|
0 |
|
0 |
|
|
Total |
|
$ |
185 |
|
$ |
1 |
|
$ |
0 |
|
* Impaired loans are placed on non-accrual status, depending on the level of impairment.
|
|
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Interest |
|
Income |
|
|
(Dollars in millions) |
|
Recorded |
|
Income |
|
Recognized on |
|
|
For the nine months ended September 30 2012: |
|
Investment |
|
Recognized* |
|
Cash Basis |
|
|
Major markets |
|
$ |
91 |
|
$ |
0 |
|
$ |
0 |
|
|
Growth markets |
|
64 |
|
0 |
|
0 |
|
|
Total |
|
$ |
154 |
|
$ |
0 |
|
$ |
0 |
|
* Impaired loans are placed on non-accrual status, depending on the level of impairment
|
|
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Interest |
|
Income |
|
|
(Dollars in millions) |
|
Recorded |
|
Income |
|
Recognized on |
|
|
For the nine months ended September 30 2011: |
|
Investment |
|
Recognized* |
|
Cash Basis |
|
|
Major markets |
|
$ |
150 |
|
$ |
2 |
|
$ |
0 |
|
|
Growth markets |
|
97 |
|
0 |
|
0 |
|
|
Total |
|
$ |
248 |
|
$ |
2 |
|
$ |
0 |
|
* Impaired loans are placed on non-accrual status, depending on the level of impairment | |
|
| Schedule of gross recorded investment by credit quality indicator |
|
|
|
|
Lease Receivables |
|
Loan Receivables |
|
|
(Dollars in millions) |
|
Major |
|
Growth |
|
Major |
|
Growth |
|
|
At September 30, 2012: |
|
Markets |
|
Markets |
|
Markets |
|
Markets |
|
|
Credit Rating: |
|
|
|
|
|
|
|
|
|
|
Aaa – Aa3 |
|
$ |
558 |
|
$ |
78 |
|
$ |
740 |
|
$ |
126 |
|
|
A1 – A3 |
|
1,536 |
|
210 |
|
2,036 |
|
339 |
|
|
Baal – Baa3 |
|
2,159 |
|
664 |
|
2,861 |
|
1,071 |
|
|
Bal – Ba2 |
|
1,194 |
|
428 |
|
1,583 |
|
691 |
|
|
Ba3 – B1 |
|
551 |
|
380 |
|
731 |
|
613 |
|
|
B2 – B3 |
|
285 |
|
117 |
|
377 |
|
188 |
|
|
Caa – D |
|
70 |
|
44 |
|
93 |
|
70 |
|
|
Total |
|
$ |
6,353 |
|
$ |
1,920 |
|
$ |
8,419 |
|
$ |
3,099 |
|
|
|
|
Lease Receivables |
|
Loan Receivables |
|
|
(Dollars in millions) |
|
Major |
|
Growth |
|
Major |
|
Growth |
|
|
At December 31, 2011: |
|
Markets |
|
Markets |
|
Markets |
|
Markets |
|
|
Credit Rating: |
|
|
|
|
|
|
|
|
|
|
Aaa – Aa3 |
|
$ |
697 |
|
$ |
139 |
|
$ |
971 |
|
$ |
185 |
|
|
A1 – A3 |
|
1,459 |
|
306 |
|
2,034 |
|
407 |
|
|
Baal – Baa3 |
|
2,334 |
|
654 |
|
3,255 |
|
869 |
|
|
Bal – Ba2 |
|
1,118 |
|
457 |
|
1,559 |
|
607 |
|
|
Ba3 – B1 |
|
534 |
|
252 |
|
744 |
|
335 |
|
|
B2 – B3 |
|
260 |
|
97 |
|
362 |
|
129 |
|
|
Caa – D |
|
108 |
|
15 |
|
151 |
|
20 |
|
|
Total |
|
$ |
6,510 |
|
$ |
1,921 |
|
$ |
9,077 |
|
$ |
2,552 |
| | | | |
|
| Schedule of past due financing receivables |
|
|
|
|
|
|
|
|
|
|
Recorded |
|
|
|
|
Total |
|
|
|
Total |
|
Investment |
|
|
(Dollars in millions) |
|
Past Due |
|
|
|
Financing |
|
> 90 Days |
|
|
At September 30, 2012: |
|
> 90 days* |
|
Current |
|
Receivables |
|
and Accruing |
|
|
Major markets |
|
$ |
11 |
|
$ |
6,342 |
|
$ |
6,353 |
|
$ |
8 |
|
|
Growth markets |
|
16 |
|
1,904 |
|
1,920 |
|
11 |
|
|
Total lease receivables |
|
$ |
27 |
|
$ |
8,246 |
|
$ |
8,273 |
|
$ |
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Major markets |
|
$ |
28 |
|
$ |
8,391 |
|
$ |
8,419 |
|
$ |
10 |
|
|
Growth markets |
|
33 |
|
3,065 |
|
3,099 |
|
30 |
|
|
Total loan receivables |
|
$ |
61 |
|
$ |
11,456 |
|
$ |
11,518 |
|
$ |
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
88 |
|
$ |
19,702 |
|
$ |
19,790 |
|
$ |
59 |
|
* Does not include accounts that are fully reserved.
|
|
|
|
|
|
|
|
|
Recorded |
|
|
|
|
Total |
|
|
|
Total |
|
Investment |
|
|
(Dollars in millions) |
|
Past Due |
|
|
|
Financing |
|
> 90 Days |
|
|
At December 31, 2011: |
|
> 90 days* |
|
Current |
|
Receivables |
|
and Accruing |
|
|
Major markets |
|
$ |
6 |
|
$ |
6,504 |
|
$ |
6,510 |
|
$ |
6 |
|
|
Growth markets |
|
9 |
|
1,911 |
|
1,921 |
|
6 |
|
|
Total lease receivables |
|
$ |
16 |
|
$ |
8,415 |
|
$ |
8,430 |
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Major markets |
|
$ |
23 |
|
$ |
9,054 |
|
$ |
9,077 |
|
$ |
7 |
|
|
Growth markets |
|
22 |
|
2,530 |
|
2,552 |
|
19 |
|
|
Total loan receivables |
|
$ |
46 |
|
$ |
11,584 |
|
$ |
11,629 |
|
$ |
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
62 |
|
$ |
19,998 |
|
$ |
20,060 |
|
$ |
38 |
|
* Does not include accounts that are fully reserved. | |
|