XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Finance Assets, net | 6 Months Ended
--- | ---
Jun. 30, 2016
Receivables [Abstract] |
Finance Assets, net | Finance Assets, net: In 2003, PMCC ceased making new investments and began focusing exclusively on managing its portfolio of finance assets in order to maximize its operating results and cash flows from its existing lease portfolio activities and asset sales. Accordingly, PMCC’s operating companies income will fluctuate over time as investments mature or are sold. At June 30, 2016, finance assets, net, of $1,155 million were comprised of investments in finance leases of $1,191 million, reduced by the allowance for losses of $36 million. At December 31, 2015, finance assets, net, of $1,239 million were comprised of investments in finance leases of $1,281 million, reduced by the allowance for losses of $42 million. During the second quarter of 2016 and 2015, as a result of updated market value information, PMCC determined that the estimated unguaranteed residual values on certain aircraft should be reduced by $28 million and $35 million, respectively. These decreases in unguaranteed residual values resulted in a reduction to PMCC’s net revenues of $18 million and $29 million in the second quarter of 2016 and 2015, respectively. PMCC assesses the adequacy of its allowance for losses relative to the credit risk of its leasing portfolio on an ongoing basis. PMCC believes that, as of June 30, 2016, the allowance for losses of $36 million was adequate. PMCC continues to monitor economic and credit conditions, and the individual situations of its lessees and their respective industries, and may increase or decrease its allowance for losses if such conditions change in the future. The activity in the allowance for losses on finance assets was as follows:
|  | For the Six Months Ended June 30,
|  | 2016 |  | 2015
|  | (in millions)
Balance at beginning of the year |  | $ | 42 |  |  | $ | 42 |
Decrease to allowance |  | (6 | ) |  | — |
Balance at June 30 |  | $ | 36 |  |  | $ | 42 |
All PMCC lessees were current on their lease payment obligations as of June 30, 2016. The credit quality of PMCC’s investments in finance leases as assigned by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Moody’s Investors Service, Inc. (“Moody’s”) at June 30, 2016 and December 31, 2015 was as follows:
|  | June 30, 2016 |  | December 31, 2015
|  | (in millions)
Credit Rating by Standard & Poor’s/Moody’s: |  |  |  |
“AAA/Aaa” to “A-/A3” |  | $ | 214 |  |  | $ | 212 |
“BBB+/Baa1” to “BBB-/Baa3” |  | 584 |  |  | 702 |
“BB+/Ba1” and Lower |  | 393 |  |  | 367 |
Total |  | $ | 1,191 |  |  | $ | 1,281 |

X
- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e4975-111524 + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration