Financing Receivables (Tables)
|
3 Months Ended |
Mar. 31, 2019 |
|---|
| Financing Receivables |
|
| Summary of the components of financing receivables |
|
|
|
Investment in
|
|
|
|
Client Loan and
|
|
|
|
|
|
|
Sales-Type and
|
|
Commercial
|
|
Installment Payment
|
|
|
|
|
(Dollars in millions)
|
|
Direct Financing
|
|
Financing
|
|
Receivables/
|
|
|
|
|
At March 31, 2019:
|
|
Leases
|
|
Receivables
|
|
(Loans)
|
|
Total
|
|
|
Financing receivables, gross
|
|
$
|
6,477
|
|
$
|
10,385
|
|
$
|
12,582
|
|
$
|
29,444
|
|
|
Unearned income
|
|
(497
|
)
|
(34
|
)
|
(617
|
)
|
(1,148
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded investment
|
|
$
|
5,980
|
|
$
|
10,351
|
|
$
|
11,965
|
|
$
|
28,296
|
|
|
Allowance for credit losses
|
|
(95
|
)
|
(18
|
)
|
(174
|
)
|
(287
|
)
|
|
Unguaranteed residual value
|
|
566
|
|
—
|
|
—
|
|
566
|
|
|
Guaranteed residual value
|
|
72
|
|
—
|
|
—
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financing receivables, net
|
|
$
|
6,523
|
|
$
|
10,333
|
|
$
|
11,791
|
|
$
|
28,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
2,712
|
|
$
|
10,333
|
|
$
|
7,241
|
|
$
|
20,287
|
|
|
Noncurrent portion
|
|
$
|
3,811
|
|
$
|
—
|
|
$
|
4,550
|
|
$
|
8,361
|
|
|
|
|
Investment in
|
|
|
|
Client Loan and
|
|
|
|
|
|
|
Sales-Type and
|
|
Commercial
|
|
Installment Payment
|
|
|
|
|
(Dollars in millions)
|
|
Direct Financing
|
|
Financing
|
|
Receivables/
|
|
|
|
|
At December 31, 2018:
|
|
Leases
|
|
Receivables
|
|
(Loans)
|
|
Total
|
|
|
Financing receivables, gross
|
|
$
|
6,846
|
|
$
|
11,889
|
|
$
|
13,614
|
|
$
|
32,348
|
|
|
Unearned income
|
|
(526
|
)
|
(37
|
)
|
(632
|
)
|
(1,195
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded investment
|
|
$
|
6,320
|
|
$
|
11,852
|
|
$
|
12,981
|
|
$
|
31,153
|
|
|
Allowance for credit losses
|
|
(99
|
)
|
(13
|
)
|
(179
|
)
|
(292
|
)
|
|
Unguaranteed residual value
|
|
589
|
|
—
|
|
—
|
|
589
|
|
|
Guaranteed residual value
|
|
85
|
|
—
|
|
—
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financing receivables, net
|
|
$
|
6,895
|
|
$
|
11,838
|
|
$
|
12,802
|
|
$
|
31,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
2,834
|
|
$
|
11,838
|
|
$
|
7,716
|
|
$
|
22,388
|
|
|
Noncurrent portion
|
|
$
|
4,061
|
|
$
|
—
|
|
$
|
5,086
|
|
$
|
9,148
|
|
|
| Schedule of financing receivables and allowance for credit losses by portfolio segment |
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2019:
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
Total
|
|
|
Recorded investment
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
3,617
|
|
$
|
1,230
|
|
$
|
1,133
|
|
$
|
5,980
|
|
|
Loan receivables
|
|
6,203
|
|
3,374
|
|
2,388
|
|
11,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
$
|
9,820
|
|
$
|
4,603
|
|
$
|
3,522
|
|
$
|
17,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded investment collectively evaluated for impairment
|
|
$
|
9,672
|
|
$
|
4,555
|
|
$
|
3,471
|
|
$
|
17,699
|
|
|
Recorded investment individually evaluated for impairment
|
|
$
|
148
|
|
$
|
48
|
|
$
|
50
|
|
$
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
Beginning balance at January 1, 2019
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
53
|
|
$
|
22
|
|
$
|
24
|
|
$
|
99
|
|
|
Loan receivables
|
|
105
|
|
43
|
|
32
|
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
158
|
|
$
|
65
|
|
$
|
56
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-offs
|
|
$
|
(4
|
)
|
$
|
(1
|
)
|
$
|
(2
|
)
|
$
|
(8
|
)
|
|
Recoveries
|
|
0
|
|
0
|
|
0
|
|
0
|
|
|
Provision
|
|
3
|
|
(5
|
)
|
0
|
|
(1
|
)
|
|
Other *
|
|
(1
|
)
|
0
|
|
1
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at March 31, 2019
|
|
$
|
155
|
|
$
|
59
|
|
$
|
55
|
|
$
|
269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
49
|
|
$
|
22
|
|
$
|
24
|
|
$
|
95
|
|
|
Loan receivables
|
|
$
|
106
|
|
$
|
37
|
|
$
|
31
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related allowance, collectively evaluated for impairment
|
|
$
|
33
|
|
$
|
14
|
|
$
|
5
|
|
$
|
52
|
|
|
Related allowance, individually evaluated for impairment
|
|
$
|
122
|
|
$
|
45
|
|
$
|
50
|
|
$
|
217
|
|
* Primarily represents translation adjustments.
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2018:
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
Total
|
|
|
Recorded investment
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
3,827
|
|
$
|
1,341
|
|
$
|
1,152
|
|
$
|
6,320
|
|
|
Loan receivables
|
|
6,817
|
|
3,675
|
|
2,489
|
|
12,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
$
|
10,644
|
|
$
|
5,016
|
|
$
|
3,641
|
|
$
|
19,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded investment collectively evaluated for impairment
|
|
$
|
10,498
|
|
$
|
4,964
|
|
$
|
3,590
|
|
$
|
19,052
|
|
|
Recorded investment individually evaluated for impairment
|
|
$
|
146
|
|
$
|
52
|
|
$
|
51
|
|
$
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
|
Beginning balance at January 1, 2018
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
63
|
|
$
|
9
|
|
$
|
31
|
|
$
|
103
|
|
|
Loan receivables
|
|
108
|
|
52
|
|
51
|
|
211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
172
|
|
$
|
61
|
|
$
|
82
|
|
$
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-offs
|
|
$
|
(10
|
)
|
$
|
(2
|
)
|
$
|
(23
|
)
|
$
|
(35
|
)
|
|
Recoveries
|
|
0
|
|
0
|
|
2
|
|
2
|
|
|
Provision
|
|
7
|
|
9
|
|
0
|
|
16
|
|
|
Other*
|
|
(11
|
)
|
(3
|
)
|
(4
|
)
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance at December 31, 2018
|
|
$
|
158
|
|
$
|
65
|
|
$
|
56
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease receivables
|
|
$
|
53
|
|
$
|
22
|
|
$
|
24
|
|
$
|
99
|
|
|
Loan receivables
|
|
$
|
105
|
|
$
|
43
|
|
$
|
32
|
|
$
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related allowance, collectively evaluated for impairment
|
|
$
|
39
|
|
$
|
16
|
|
$
|
5
|
|
$
|
59
|
|
|
Related allowance, individually evaluated for impairment
|
|
$
|
119
|
|
$
|
49
|
|
$
|
51
|
|
$
|
219
|
|
* Primarily represents translation adjustments.
|
| Schedule of past due financing receivables |
|
|
|
|
|
|
|
Recorded
|
|
Billed
|
|
Recorded
|
|
|
|
|
Total
|
|
Recorded
|
|
Investment
|
|
Invoices
|
|
Investment
|
|
|
(Dollars in millions)
|
|
Recorded
|
|
Investment
|
|
> 90 Days and
|
|
> 90 Days and
|
|
Not
|
|
|
At March 31, 2019:
|
|
Investment
|
|
> 90 Days (1)
|
|
Accruing (1)
|
|
Accruing
|
|
Accruing (2)
|
|
|
Americas
|
|
$
|
3,617
|
|
$
|
294
|
|
$
|
240
|
|
$
|
13
|
|
$
|
54
|
|
|
EMEA
|
|
1,230
|
|
40
|
|
22
|
|
3
|
|
17
|
|
|
Asia Pacific
|
|
1,133
|
|
37
|
|
13
|
|
2
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total lease receivables
|
|
$
|
5,980
|
|
$
|
370
|
|
$
|
276
|
|
$
|
18
|
|
$
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
6,203
|
|
$
|
232
|
|
$
|
131
|
|
$
|
23
|
|
$
|
101
|
|
|
EMEA
|
|
3,374
|
|
83
|
|
14
|
|
4
|
|
68
|
|
|
Asia Pacific
|
|
2,388
|
|
32
|
|
4
|
|
2
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan receivables
|
|
$
|
11,965
|
|
$
|
347
|
|
$
|
150
|
|
$
|
29
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
17,945
|
|
$
|
717
|
|
$
|
426
|
|
$
|
47
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
(2) Of the recorded investment not accruing, $247 million is individually evaluated for impairment with a related allowance of $217 million.
|
|
|
|
|
|
|
Recorded
|
|
Billed
|
|
Recorded
|
|
|
|
|
Total
|
|
Recorded
|
|
Investment
|
|
Invoices
|
|
Investment
|
|
|
(Dollars in millions)
|
|
Recorded
|
|
Investment
|
|
> 90 Days and
|
|
> 90 Days and
|
|
Not
|
|
|
At December 31, 2018:
|
|
Investment
|
|
> 90 Days (1)
|
|
Accruing (1)
|
|
Accruing
|
|
Accruing (2)
|
|
|
Americas
|
|
$
|
3,827
|
|
$
|
310
|
|
$
|
256
|
|
$
|
19
|
|
$
|
57
|
|
|
EMEA
|
|
1,341
|
|
25
|
|
9
|
|
1
|
|
16
|
|
|
Asia Pacific
|
|
1,152
|
|
49
|
|
27
|
|
3
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total lease receivables
|
|
$
|
6,320
|
|
$
|
385
|
|
$
|
292
|
|
$
|
24
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
6,817
|
|
$
|
259
|
|
$
|
166
|
|
$
|
24
|
|
$
|
99
|
|
|
EMEA
|
|
3,675
|
|
98
|
|
25
|
|
3
|
|
73
|
|
|
Asia Pacific
|
|
2,489
|
|
40
|
|
11
|
|
1
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan receivables
|
|
$
|
12,981
|
|
$
|
397
|
|
$
|
202
|
|
$
|
29
|
|
$
|
203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
19,301
|
|
$
|
782
|
|
$
|
494
|
|
$
|
52
|
|
$
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
(2) Of the recorded investment not accruing, $249 million is individually evaluated for impairment with a related allowance of $219 million.
|
| Schedule of net recorded investment by credit quality indicator |
|
(Dollars in millions)
|
|
Lease Receivables
|
|
Loan Receivables
|
|
|
At March 31, 2019:
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
|
Credit ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aaa – Aa3
|
|
$
|
454
|
|
$
|
15
|
|
$
|
67
|
|
$
|
916
|
|
$
|
127
|
|
$
|
159
|
|
|
A1 – A3
|
|
804
|
|
136
|
|
540
|
|
892
|
|
238
|
|
792
|
|
|
Baa1 – Baa3
|
|
932
|
|
386
|
|
199
|
|
1,602
|
|
1,233
|
|
653
|
|
|
Ba1 – Ba2
|
|
679
|
|
437
|
|
135
|
|
1,459
|
|
944
|
|
535
|
|
|
Ba3 – B1
|
|
454
|
|
147
|
|
99
|
|
604
|
|
481
|
|
126
|
|
|
B2 – B3
|
|
198
|
|
69
|
|
54
|
|
521
|
|
284
|
|
75
|
|
|
Caa – D
|
|
47
|
|
18
|
|
15
|
|
104
|
|
31
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
3,568
|
|
$
|
1,208
|
|
$
|
1,109
|
|
$
|
6,097
|
|
$
|
3,337
|
|
$
|
2,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
Lease Receivables
|
|
Loan Receivables
|
|
|
At December 31, 2018:
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
Americas
|
|
EMEA
|
|
Asia Pacific
|
|
|
Credit ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aaa – Aa3
|
|
$
|
593
|
|
$
|
45
|
|
$
|
85
|
|
$
|
1,055
|
|
$
|
125
|
|
$
|
185
|
|
|
A1 – A3
|
|
678
|
|
158
|
|
413
|
|
1,206
|
|
436
|
|
901
|
|
|
Baa1 – Baa3
|
|
892
|
|
417
|
|
297
|
|
1,587
|
|
1,148
|
|
648
|
|
|
Ba1 – Ba2
|
|
852
|
|
426
|
|
191
|
|
1,516
|
|
1,175
|
|
417
|
|
|
Ba3 – B1
|
|
433
|
|
171
|
|
84
|
|
770
|
|
472
|
|
184
|
|
|
B2 – B3
|
|
299
|
|
90
|
|
50
|
|
531
|
|
249
|
|
109
|
|
|
Caa – D
|
|
26
|
|
10
|
|
7
|
|
47
|
|
28
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
3,774
|
|
$
|
1,319
|
|
$
|
1,128
|
|
$
|
6,712
|
|
$
|
3,633
|
|
$
|
2,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|