Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Finance Receivables

Finance receivables, net were as follows:

	December 31,
	2016			2015
Gross receivables	$	4,380		$	4,683
Unearned income	(526		)	(577		)
Subtotal	3,854			4,106
Residual values	—			—
Allowance for doubtful accounts	(110		)	(118		)
Finance Receivables, Net	3,744			3,988
Less: Billed portion of finance receivables, net	90			97
Less: Current portion of finance receivables not billed, net	1,256			1,315
Finance Receivables Due After One Year, Net	$	2,398		$	2,576

Schedule of Financing Receivables, Minimum Payments

Contractual maturities of our gross finance receivables as of December 31, 2016 were as follows (including those already billed of $90):

2017		2018		2019		2020		2021		Thereafter		Total
$	1,628	$	1,225	$	855	$	485	$	175	$	12	$	4,380

Finance Receivables Sales Activity

The following is a summary of our prior sales activity:

	Year Ended December 31,
	2013		2012
Net carrying value (NCV) sold	$	676	$	682
Allowance included in NCV	17		18
Cash proceeds received	635		630
Beneficial interests received	86		101

Impact to Cash Flows from Sales of Finance Receivables

The net impact from the sales of finance receivables on operating cash flows is summarized below:

	2016			2015			2014			2013/2012
Net cash received for sales of finance receivables(1)	$	—		$	—		$	—		$	1,256
Impact from prior sales of finance receivables(2)	(186		)	(342		)	(527		)	(437		)
Collections on beneficial interests	30			56			94			58
Estimated (Decrease) Increase to Operating Cash Flows	$	(156	)	$	(286	)	$	(433	)	$	877

_____________

(1) Net of beneficial interest, fees and expenses.

(2) Represents cash that would have been collected if we had not sold finance receivables.

Allowance for Credit Losses Rollforward, and the Investment in Finance Receivables

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:

Allowance for Credit Losses:	United States			Canada			Europe			Other(2)			Total
Balance at December 31, 2014(1)	$	51		$	20		$	58		$	2		$	131
Provision	11			6			10			1			28
Charge-offs	(8		)	(10		)	(17		)	(1		)	(36		)
Recoveries and other(3)	—			1			(6		)	—			(5		)
Balance at December 31, 2015	$	54		$	17		$	45		$	2		$	118
Provision	10			3			11			—			24
Charge-offs	(12		)	(8		)	(15		)	—			(35		)
Recoveries and other(3)	3			4			(4		)	—			3
Balance at December 31, 2016	$	55		$	16		$	37		$	2		$	110
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2015(4)	$	2,174		$	365		$	1,509		$	58		$	4,106
December 31, 2016(4)	$	2,138		$	378		$	1,286		$	52		$	3,854

_____________

(1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

(2) Includes developing market countries and smaller units.

(3) Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4) Total Finance receivables exclude the allowance for credit losses of $110 and $118 at December 31, 2016 and 2015, respectively.

Credit Quality Indicators for Finance Receivables

Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:

	December 31, 2016								December 31, 2015(4)
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Finance and other services	$	181	$	342	$	95	$	618	$	195	$	285	$	91	$	571
Government and education	543		57		8		608		575		48		7		630
Graphic arts	138		102		107		347		145		92		127		364
Industrial	82		78		24		184		89		62		22		173
Healthcare	79		47		17		143		90		46		19		155
Other	82		103		53		238		121		107		53		281
Total United States	1,105		729		304		2,138		1,215		640		319		2,174
Finance and other services	54		43		15		112		55		35		9		99
Government and education	52		6		2		60		59		7		2		68
Graphic arts	39		37		24		100		45		35		21		101
Industrial	21		13		6		40		23		12		3		38
Other	33		25		8		66		33		23		3		59
Total Canada	199		124		55		378		215		112		38		365
France	181		222		51		454		203		207		101		511
U.K/Ireland	189		63		1		253		235		91		3		329
Central(1)	182		148		19		349		206		186		25		417
Southern(2)	36		131		14		181		36		138		17		191
Nordic(3)	26		22		1		49		24		35		2		61
Total Europe	614		586		86		1,286		704		657		148		1,509
Other	35		15		2		52		41		16		1		58
Total	$	1,953	$	1,454	$	447	$	3,854	$	2,175	$	1,425	$	506	$	4,106

_____________

(1) Switzerland, Germany, Austria, Belgium and Holland.

(2) Italy, Greece, Spain and Portugal.

(3) Sweden, Norway, Denmark and Finland.

Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:

	December 31, 2016
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	13	$	3	$	1	$	17	$	601	$	618	$	11
Government and education	10		4		3		17		591		608		25
Graphic arts	13		1		—		14		333		347		5
Industrial	4		1		1		6		178		184		5
Healthcare	3		1		1		5		138		143		5
Other	9		2		1		12		226		238		5
Total United States	52		12		7		71		2,067		2,138		56
Canada	3		—		—		3		375		378		8
France	3		—		—		3		451		454		20
U.K./Ireland	2		1		—		3		250		253		1
Central(1)	2		1		—		3		346		349		5
Southern(2)	5		1		1		7		174		181		6
Nordic(3)	1		—		—		1		48		49		1
Total Europe	13		3		1		17		1,269		1,286		33
Other	3		—		—		3		49		52		—
Total	$	71	$	15	$	8	$	94	$	3,760	$	3,854	$	97

	December 31, 2015(4)
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	10	$	2	$	2	$	14	$	557	$	571	$	14
Government and education	12		1		4		17		613		630		37
Graphic arts	12		2		1		15		349		364		8
Industrial	5		1		1		7		166		173		7
Healthcare	4		1		1		6		149		155		9
Other	14		2		2		18		263		281		7
Total United States	57		9		11		77		2,097		2,174		82
Canada	3		—		—		3		362		365		9
France	—		—		—		—		511		511		25
U.K./Ireland	1		—		—		1		328		329		1
Central(1)	3		1		1		5		412		417		7
Southern(2)	8		2		3		13		178		191		10
Nordic(3)	1		—		—		1		60		61		4
Total Europe	13		3		4		20		1,489		1,509		47
Other	1		1		—		2		56		58		—
Total	$	74	$	13	$	15	$	102	$	4,004	$	4,106	$	138

_____________

(1) Switzerland, Germany, Austria, Belgium and Holland.

(2) Italy, Greece, Spain and Portugal.

(3) Sweden, Norway, Denmark and Finland.